The technology-enabled sharing economy is an increasingly
significant social and economic phenomenon. It gives way for
individuals or groups to exploit their under-utilised physical assets
by means of sharing things with each other rather than having to have individual ownership for everything.
people are sharing items, services, and even talent within communities,
creating a deep relationship between customers and providers that drives the
sharing economy’s success. To illustrate, consumers will gain temporary access
to a product or asset, while providers will still retain ownership.
In this process, it can be seen that technologies,
especially the internet and e-commerce, play a very significant role to make
the sharing economy popular and successful. The function of technology and
social networks enable the flow of communications and support the sharing of
information. In order to facilitate transactions, online platforms are created
to help to establish marketplaces that would help peers to share resources
amongst themselves. Service providers (asset’s owners) can either invent their own
marketplace or utilize third party applications to reach their target
customers. These platforms help to bring individuals together to provide each
other with services representing the on-demand economy, which is usually based
on free, peer-to-peer services resulting in these innovative ideas
becoming viable and profitable business initiatives.
This essay will examine and analyse the concept of the
sharing economy based on three main topics which are: (1) culture and consumer
behaviour in terms of components of culture, (2) perception in terms of
exposure, attention, interpretation and marketing strategy and (3) reference
group in terms of group influences.