Why customers and peer service providers do not participate in collaborative consumption

Purpose
Technological innovations such as smart mobile devices and mobile applications gave rise to a new business model: collaborative consumption. This business model, which is receiving significant attention from researchers and practitioners, is characterized by an intermediating digital platform that facilitates exchanges between customers and peer service providers. However, many digital platform providers still fail to build a critical mass of demand and supply. Accordingly, the aim of this research is to develop a better understanding of the barriers perceived by both customers and peer service providers.


Design/methodology/approach
This study uses a mixed-method qualitative approach to develop a comprehensive understanding of the factors that explain the rejection of collaborative consumption. In particular, six focus groups and 14 in-depth interviews were conducted, totaling 50 Belgian participants (with a mean age of 33 years). In addition, 375 online critical incidents—retrieved from various sources, such as review websites and social networks—were used for triangulation purposes. All data were analyzed using a thematic analytic approach.

Findings
Customers and peer service providers reject collaborative consumption because of a complex set of multidimensional functional and psychological barriers. In particular, actors may perceive barriers related to complexity, value, risk, compatibility, contamination, image, and responsibility, which prevent them from participating in collaborative consumption.

Originality/value
This paper builds theory on the reasons why both customers and peer service providers reject collaborative consumption. The research identifies several barriers that were not captured in prior research. Digital platform providers can use the research findings to more fully understand actors' decision-making processes in collaborative consumption.