Advances in Consumer Behaviour – Assessment

 Summarise the key definitions, theories and concepts that appear in the body of research
relevant to the topic, highlighting any inconsistencies.
 Evaluate previous research by questioning the theoretical assumptions and research
methods used, assessing how they might have biased the findings/identifying the
limitations of the research.
 Demonstrate an ability to apply the concepts and theories by discussing how they relate to
various practical examples.
 Discuss the implications of this line of research (500 words), i.e., how is it useful to one
or several of the following: marketers, regulatory bodies, pressure groups, consumers.

Essay Plan
“Collaborative consumption has grown significantly since Rachel Botsman first introduced the idea over a decade ago. How
do you expect collaborative consumption to evolve over the coming years?”

Introduction

This should include what you are trying to do and how you intend to do it so that:
 The reader understands the aims of the essay
 The reader understands how the question is being interpreted
 May include necessary definitions

Main Body

The body for the essay has to present the evidence for the argument made in the introduction. The reader should never have
to work out for themselves why you included any particular material in your answer. In the main body, you should also
provide relevant evidence that backs up your argument using:

 Relevant concepts and theories – this is anything that comes from the academic literature, it doesn’t have to be defined
as a ‘theory of…’
 Relevant Examples

You should also ensure that the logic and direction of your argument is clear.

 Comment as you go along – make the ‘so what?’ point – don’t save it all for the conclusions section – why is this
important, why is it relevant, what are the implications and what is the significance of the material used?

Implications and Conclusions

It is recommended that you devote around 500 words of your assignment to this section.

 What are the implications from your argument? Who is it useful for and how?
 Marketers, consumers, policy makers etc.

This is the part of your essay where you don’t need any references! This is the place where you can show us that you have
innovative and creative ideas. This is the place where you can make your essay stand out from others.

Towards the end, you should clearly and concisely restate the argument to pull everything together.

Style
Double Line Spacing
Spell checked and Proofread
Times New Roman – Size 12
Page Numbers

References

 Would much rather see a shorter reference list with material that you have actually engaged in, as opposed to
just reciting author’s work.
 Very welcome to critic and question the work of authors and form your own opinions!
 Sub-headings are allowed.
Definitions
 Collaborative consumption (Botsman and Rogers, 2010) is defined as “people
coordinating the acquisition (i.e., purchase) and distribution of a resource for a fee or
other compensation,” and therefore encompasses bartering, trading, and swapping— all
of which involve giving and receiving nonmonetary compensation (Belk 2014).
 With collaborative consumption, ownership of a good is replaced by the access to the
good (Belk, 2014; Botsman & Rogers, 2010).
 Instead of buying goods and owning them, consumers gain temporary access to goods
they need (Bardhi & Eckhardt, 2012).
 Collaborative Consumption communities are formed with the explicit purpose of
facilitating economic exchange of goods and services among individuals and rarely have
a brand specific focus (Perren and Grauerholz, 2015).
 Belk and Russell (2014) suggest that sharing is a phenonenom as old as humankind, while
CC and the “sharing economy” are phenomena born of the Internet age.
 The sharing economy involves using internet technologies to connect distributed groups
of people and organisations to make better use of goods, skills, services, capital and
spaces, sharing access, and so reducing the need for ownership.
 According to Benoit et al (2017), “CC is an increasingly prevalent form of exchange”.
 Exchange has long been considered a cornerstone of marketing though (Bagozzi, 1975).
General Information
 Collaborative consumption is a new consumption paradigm, which is gaining popularity
due to the economic crisis and increased concern for protecting the environment (Hartl et
al, 2015).
 Various terms are used in the literature referring to collaborative consumption or similar
concepts, such as “sharing economy” (Heinrichs, 2013) which is often used
synonymously for “collaborative consumption,” “sharing,” “access-based consumption,”
or “anti-consumption.”
 Collaborative Consumption has emerged as a viable alternative to traditional business in
industries such as transportation, hospitality, retail and banking (Perren and Grauerholz,
2015).
 Firms in this market serve as intermediaries between an individual providing a service
and the person benefiting from the service (Perren and Grauerholz, 2015).
 In short, CC represents an important societal shift by altering the traditional exchange
between consumers and firms, requiring even well-established markets to adapt their
existing practices or marketing strategies (Perren and Grauerholz, 2015).
 This is a whole new world of consumption where people voluntarily get into cars, brave
traffic, navigate complex stores, and deal apathetic workers, just to get something they
want right now.
 Lone commuters in private vehicles travel billions of miles each day. Not only do these
private vehicles contribute to airborne pollution and global warming, but the increased
stress of time spent in traffic results in a tripling of heart attack risk a short time later
(Peters et al. 2004).
  By individually sharing via carpooling (or better still, bike-pooling) or by jointly sharing
via supporting and using public transportation, these negative consequences could be
substantially ameliorated (Belk, 2007).
Botsman defines the three systems that make up collaborative consumption as follows:
1. Distribution markets – this is where services are used to match haves and wants so that
personal unused assets can be redistributed to places where they will be put to better use.
These can be on a profit e.g., ebay or not profit basis e.g., freecycle.
2. Collaborative lifestyles – these allow people to share resources like money, skills, and
time, this is best explained as the sharing of intangible resources e.g., landshare or
‘borrow my doggy’. Toolpool as well.
3. Product service systems – these provide the benefits of a product without having to own it
outright, instead of buying products that are used to fulfil specific purposes, can be shared
e.g., nextbike, renttherunway. – Moeller & Wittkowski (2010) suggest that CC may
provide consumers with hedonic value such as when they wear luxury goods that they
normally couldn’t afford e.g., it is out of financial reach.
These different systems are bringing about change in society, by providing new employment
opportunities, including ways for people to earn money peer-to-peer, and decreasing the
ecological impact on the environment.
Drivers of CC
According to Botsman these can include:
 A renewed belief in the importance of community
 Increase in peer-to-peer social networks and real time technologies
 Pressing unresolved environmental concerns
 A global recession that has fundamentally shocked consumer behaviours
Nonetheless, it is important to note that such drivers are not confined to those mentioned
above, with Barnes & Mattson (2016) suggesting that economic drivers e.g., reducing or
sharing costs, play the most important role for customers when deciding to use CC.
Furthermore, Habibi, Kim & Lorache (2016) argue that, in some contexts, social motives
have also been found to be an important driver of CC use.
With CC, there is no exchange of ownership. Rather, the actor who owns the resource (e.g.,
car) grants temporary property rights to other actors (e.g., those in need of temporary
transportation). – Haase & Kleinaltenkamp, 2011
Sarah Benoit’s Triadic Framework
Buying Renting Non ownership/access- Collaborative Sharing or Co-
based services Consumption owning
Number of Dyadic, between Dyadic, between Dyadic, between provider Triadic, between a Two or more
actors provider and provider and and customer platform, a peer individuals e.g.,
customer customer service provider, and a within families or
customer. friends
Nature of Transfer of No ownership No ownership transfer, No ownership transfer, No ownership
exchange ownership, usually transfer, longer, shorter periods of agreed shorter periods of transfer, often
assets are fixed period of consumption time, agreed consumption shared ownership,
exchanged for agreed consumption sequential use time of underutilised therefore
financial time, mostly assets from the peer simultaneous or
 contribution, sense investment goods, service provider, sequential use.
of finality sequential use sequential use.
Directness of Predominantly Predominantly Mediated through market Mediated through Not mediated
exchange mediated through mediated through mechanisms market mechanisms through market,
market market mechanisms but social
mechanisms mechanisms

Advantages
 It could be predicted that CC contexts, given their tendency to foster efficient and
sustainable consumption of resources (Brosius, Fernandez, and Cherrier 2013; Prothero et
al. 2011), might reduce the likelihood of consumers overpurchasing, overconsuming, and
wasting food.
 Developing economies have a great potential to benefit from collaborative practices to
alleviate lack of access to resources. For example, firms like Airbnb and Uber have
already entered markets in Latin America, Asia, the Middle East, and Africa, while local
entrepreneurs have sprung-up businesses to tackle problems such as access to education
and financing (Perren and Grauerholz, 2015).
 Since these exchanges are less costly than traditional marketplaces, individual consumers
benefit economically by fulfilling consumption needs at lower costs (Perren and
Grauerholz, 2015).
 Participation in collaborative consumption mitigates over-consumption by altering the
consumption cycle and allowing individuals to acquire, use, and dispose of their assets in
a way that positively influences the three pillars of sustainability: environmental,
economic, and social (Huang and Rust, 2011).
 In short, collaborative consumption potentially results in more sustainable consumption
behaviours that benefit individual consumers, businesses, and society (Bostman and
Rogers, 2010).
 Participation in CC marketplaces could enable individuals to pursue independent business
opportunities instead of traditional employment, creating a new wave of micro-
entrepreneurs (Perren and Grauerholz, 2015).
 Cohen & Kietzmann (2014) suggest that since CC provides temporary access to assets
with no ownership, it can reduce the risks associated with ownership, as well as the
responsibilities associated with owning goods such as maintenance, usage, storage and
disposal. For example, when using CC transportation services, consumers are not
burdened with the costs associated with purchasing a car, providing insurance or
maintenance, and only pay the time they are actually using the car, or the distance they
drive or both. – this could be a great example when talking about COVID-19, e.g.,
increases in the price of fuel due to shortages.
Disadvantages
 As a result, trust between the community members plays a significant role. If people lack
trust in other users in such a situation, they may call for governance and regulation, like
customers of a car sharing company (Bardhi & Eckhardt, 2012).
 However, using various methodologies, we find that consumers regularly purchase
significantly more food per person in CC (vs. personal consumption) group contexts,
which leads to overconsumption and waste (Parker et al, 2019).
 Some collaborative practices have been deemed illegal (e.g., short-term rentals are
prohibited in cities like New York and San Francisco, and lack of regulation and
oversight of these informal transactions in areas traditionally regulated such as food
preparation, banking, or transportation could expose collaborative consumers to risks
(Perren and Grauerholz, 2015).
 Collaborative consumption has also had a major economic effect on traditional markets,
disrupting existing institutions in key industries like transportation, hospitality, and
banking (Perren and Grauerholz, 2015).
 Studies prior to the COVID-19 pandemic indicated that sanitary issues could inhibit the
adoption process for use-oriented PSS. For instance, Armstrong et al. (2015) identified
that hygiene-related aspects could limit consumers’ adherence to business models focused
on clothing sharing.
 Research has also identified other negative emotions related to the adoption of use-
oriented PSS, such as insecurity and fear. Regarding insecurity, Medeiros et al (2021)
pointed out that one of the common drivers among people who adhere to sharing offers is
the de- sire to increase social connections. However, many tended to feel insecure and
disappointed since the transaction parties often do not know each other due to remote
access (such as car sharing, for example).
 If there is complaint in the sharing economy e.g., Uber or Airbnb, it is not clear who
needs to recover e.g., is it the driver that consumers expect something of, or is it the
platform?
 For CC models that are mediated using mobile technology and/or the Internet, customers
need the technical skill to use them. The strong focus on technology for many CC
offerings makes it difficult for less savvy users to participate (Chan and Shaheen, 2012).
Consequently, it could be argued that CC offerings may appeal more to the younger
generation, leading to other demographic groups being left out.
Examples
 Older, established firms, such as Craigslist and eBay, have given way to a wide variety of
firms that serve to connect or facilitate peer exchanges. These firms are growing
tremendously in number, size and profits (Perren and Grauerholz, 2015).
 In a case of car sharing conducted in Boston, Massachusetts, Bardhi and Eckhardt (2012)
found that ‘ZipCar’ users do not have an interest in meeting and socialising with other
members despite the company’s efforts to foster a sense of community.
 A report commissioned by Airbnb claims that the company contributed an estimated $56
million to San Francisco’s economic activity in the period from June 2011 to May 2012,
providing locals with substantial income and having a positive effect on local
neighbourhoods that are ‘off the beaten path’ (Godelnik, 2013).
 Currently, there are 38 cities in Italy offering at least one micro-mobility sharing service
(station-based bike sharing, free-floating bike sharing, jump scooter sharing, scooter
sharing (Esposti, Mortara and Roberti, 2021).
 Upwork – connects professionals and agencies to businesses seeking specialised talent
(very useful for marketers looking for an extra helping hand).
 BlaBlah car – could this have potential security concerns?
 Uber provides a technology platform (the app) that efficiently coordinates underutilised
assets (owners vehicles) to serve customers who need transportation (Benoit et al, 2017).
 Zipcar, a firm that is frequently included in discussions of CC, would be considered as an
access-based service company, because Zipcar has inventory of cars to provide
transportation, rather than relying on peer-to-peer exchange (Bonoit et al, 2017).
Impact of Covid-19 on CC
 In addition, Marko et al. (2020) highlight that the exposure that everyone has to the
effects and risks arising from COVID-19 increases the effects on our mental health,
further deepening the feelings of uncertainty that tend to trigger generalized insecurity.
 The pandemic triggered by the spread of the coronavirus disease 2019 (COVID-19) has
had a major impact on numerous collective behaviours, while also changing individuals’
consumption choices. Thus, social researchers dealing with consumption patterns need to
reflect on the changes of individual practices, also in view of the growing centrality in the
public debate of issues related to sustainability and responsible consumption (Esposti,
Mortara and Roberti, 2021).
 Triggering a process of social change, the spread of COVID-19 virus is simultaneously a
public health emergency and a real-time experiment in downsizing our consumer
economy. In fact, in response to the spread of the virus, consumers have enacted
practices modifying their consumption behaviour and reorganizing their purchasing
strategies according to the conditions of lockdown and social distancing imposed by the
authorities (Cohen, 2020).
 Since 2008, the economic crises experienced by most Western countries has fostered
changing in consumption practices, letting individuals and groups of consumers rethink
ownership and the possibility of accessing rather than owning specific goods and supplies
(Esposti, Mortara and Roberti, 2021).
 Current research suggests that while sharing economy will be challenged, their
probability to survive the pandemic will be much greater, because they don’t have the
same struggle for resources e.g., while hotels suffered immensely due to the lockdown as
restrictions were imposed, Airbnb wouldn’t suffer as significantly as the platform was
available for frontline NHS workers.
 Likewise, due to the pandemic, consumers have begun to give greater value to social
interactions, so they may be likely to connect with other people who have the same
passion such as ridesharing etc. It could also be highlighted that due to the financial
implications of COVID-19, consumers may have less disposable income, therefore find
rental services such as Toolpool, BlaBlaCar, Too Good to Go, a lot more appealing.
 Similarly, throughout the pandemic we saw an increase in online health care platforms,
supporting the public with general health enquiries to burden the pressure on the NHS. In
the aftermath of the global pandemic, we could therefore argue that the health care
industry may be one of the next industries to be disrupted by the sharing economy. For
example, services may become available where experienced practitioners are willing to
provide expert advice on health-related issues or concerns.
 It is important to note that the concept of CC requires an extensive network of
independent peer service providers willing to provide access to underutilised assets,
something that is often mediated by technology platforms developed by platform
providers. Without these assets being made available by peer service providers, CC would
be a unique form of exchange. Ultimately, regardless of their motivation for doing so, it is
the willingness of individuals to provide access to things they own that makes CC
 available. – With this being the case, will this therefore delay the increase of those
participating in the sharing economy e.g., people feel less safe sharing their own space or
belongings (Bonoit et al, 2017).
What should be researched in the next few years?
 How do those operating in the sharing economy find the balance between standardisation
and authenticity? E.g., these platforms position themselves as unique because they are
more authentic because consumers are part of a community, they trust each other to rent
someone’s flat, but at the same time people expect standards. For example, Airbnb are
moving into professional levels and Uber drivers are being trained more to ensure the
platform is being compliant with standards but at the same time they lose their
authenticity. https://www.youtube.com/watch?v=eVkBh2BoNN4
 Customer retention strategies e.g., with the increased development of rental sharing such
as Toopool or renttherunway, how do brands go about retaining their existing customer
base e.g., if consumers are able to rent tools for the period, they need them as opposed to
buying them outright, how to B&Q retain their current consumers?
 Informational resources, particularly knowledge of customers and peer service providers,
are crucial to the platform provider’s role as a mediator. Subsequently, if CC continues to
rise, marketers must continually analyse the market to keep up to date with recent trends.
Likewise, Bonoit et al (2017) suggest that it is currently unclear how peer service
providers (e.g., hosts) can ensure the platform providers brand promise without any
formal training, how they can differentiate themselves from others, and how they can help
in building to become trustworthy suppliers.
 In many countries (e.g., UK and US) the practices of CC platform providers have come
under scrutiny and changes in regulatory frameworks are underway. For example,
considering peer service providers as employees or taxing platform providers similar to
traditional service providers like hotels are issues that will need to be addressed (Bonoit et
al, 2017).

References

Armstrong, C., Niinimäki, K., Kujala, S., Karell, E. and Lang, C. (2015) ‘Sustainable
Product-Service Systems for Clothing: Exploring Consumer Perceptions of Consumption
Alternatives in Finland’, Journal of Cleaner Production, Vol 97, pp.30-39.
Bagozzi, R. (1975) ‘Marketing As An Exchange’, Journal of Marketing, 39(4), pp. 32-39.
Bardhi, F. and Eckhardt, G. (2012) ‘Access-Based Consumption: The Case of Car Sharing’,
Journal of Consumer Research, 39(4), p.891. Available at:
https://www.jstor.org/stable/10.1086/666376 (Accessed: 27 September 2021).
Barnes, S.J. and Mattson, J. (2016) ‘Understanding Current and Future Issues in
Collaborative Consumption’, Technological Forecasting and Social Change, Vol 104,
pp.200-211.
Belk, R. (2014) ‘You Are What You Can Access: Sharing and Collaborative Consumption
Online’, Journal of Business Research, 67(8), p1597. Available at:
https://www.sciencedirect.com/science/article/pii/S0148296313003366 (Accessed: 28
September 2021).
Belk, R. (2007) ‘Why Not Share Rather Than Own?’, The Annals of the American Academy
of Political and Social Science, 611(1), pp.126-140.
Benoit, S., Baker, T., Bolton, R., Gruber, T. and Kandampully, J. (2017) ‘A Triadic
Framework for Collaborative Consumption (CC): Motives, Activities and Resources &
Capabilities of Actors’, Journal of Business Research, Vol 79, pp.219-226.
Brosius, N., Fernandez, K. and Cherrier, H. (2013) ‘Reacquiring Consumer Waste: Treasure
in Our Trash?’, Journal of Public Policy & Marketing, 32(2), pp.286-301. Available at:
https://journals.sagepub.com/doi/full/10.1509/jppm.11.146 (Accessed: 27 September 2021).
Botsman, R. and Rogers, R. (2021) What’s Mine is Yours: The Rise of Collaborative
Consumption. – Missing publication place
Chan, N.D. and Shaheen, S.A. (2012) ‘Ridesharing in North America: Past, Present and
Future’, Transport Reviews, 32(1), pp. 93-112.
Cohen, B. and Kietzmann, J. (2014) ‘Ride On! Mobility Business Models for the Sharing
Economy’, Organisation and Environment, 279-296.
Cohen, M. (2020) ‘Does the COVID-19 Outbreak Mark the Onset of a Sustainable
Consumption Transition?’, Sustainabilty: Science, Practice and Policy, 16(1), pp.1-3.
Available at: https://www.researchgate.net/publication/340016060_Does_the_COVID-
19_outbreak_mark_the_onset_of_a_sustainable_consumption_transition (Accessed: 28
September 2021).
Esposti, P., Mortara, A. and Roberti, G. (2021) ‘Sharing and Sustainable Consumption in the
Era of COVID-19’, Sustainability, 13(4), pp.1903. Available at:
https://www.mdpi.com/2071-1050/13/4/1903 (Accessed: 28 September 2021).

Godelnik, R. (2013) ‘The Sharing Economy Increases Economic Growth While Lowering
Consumption’, Triple Pundit, 6th February. Available at:
https://www.triplepundit.com/story/2013/sharing-economy-increases-economic-growth-
while-lowering-consumption/59391 (Accessed: 27 September 2021).
Haase, M. and Kleinaltenkamp, M. (2011) ‘Property Rights Design and Market Process:
Implications for Market Theory, Marketing Theory, and S-D Logic’, Journal of
Macromarketing, 31(2), pp.148-159.
Habibi, M., Kim, A. and Laroche, M. (2016) ‘From Sharing to Exchange: An Extended
Framework of Dual Models of Collaboration Non-Ownership Consumption’, The Journal of
the Association for Customer Research, 1(2), 277-294.
Hartl, B., Hoffman, E. and Kirchler, E. (2015) ‘Do We Need Rules for “What's Mine Is
Yours”? Governance In Collaborative Consumption Communities’, Journal of Business
Research, 69(8), p2756-2757. Available at:
https://www.sciencedirect.com/science/article/pii/S0148296315006050 (Accessed: 27
September 2021).

Heinrichs, H. (2013) ‘Sharing Economy: A Potential New Pathway to Sustainability’,

Ecological Perspectives on Science and Society, 22(4), pp228-231. Available at:
https://www.researchgate.net/publication/263058344_Sharing_Economy_A_Potential_New_
Pathway_to_Sustainability#:~:text=In%20the%20given%20context%2C%20Heinrichs
%20stated%20that%20the,economic%20responsibility%2C%20the%20so-called%20triple
%20bottom%20line%20%5B19%2C20%5D (Accessed: 27 September 2021).
Huang, M. and Rust, R. (2011) ‘Sustainability and Consumption’, Journal of the Academy of
Marketing Science, 39(1), pp57-62.
Medeiros, J., Marcon, A., Ribeiro, J., Quist, J. and D’Agostin, A. (2021) ‘Consumer
Emotions and Collaborative Consumption: The Effect of COVID-19 On the Adoption of
Use-Oriented Product-Service Systems, Sustainable Production and Consumption, Vol 27,
pp.1569-1588.
Moeller, S. and Wittkowski, K. (2010) ‘The Burdens of Ownership: Reasons for Preferring
Renting, Managing Service Quality, 20(2), pp176-191.
Parker, J., Umashankar, N. and Schleicher, G. (2019) ‘How and Why the Collaborative
Consumption of Food Leads to Overpurchasing, Overconsumption, and Waste’, Journal of
Public Policy and Marketing, 38(2), pp147-149. Available at:
https://journals.sagepub.com/doi/10.1177/0743915618823783 (Accessed: 28 September
2021).
Perren, R. and Grauerholz, L. (2015) ‘Collaborative Consumption’, International
Encyclopedia of the Social & Behavioral Sciences’, pp.139-144. Available at:
https://www.researchgate.net/publication/303960052_Collaborative_Consumption
(Accessed: 27 September 2021). – Should this be cited as an article or book?

Essay Plan
“Collaborative consumption has grown significantly since Rachel Botsman first introduced the idea over a decade ago. How
do you expect collaborative consumption to evolve over the coming years?”

Introduction

This should include what you are trying to do and how you intend to do it so that:
 The reader understands the aims of the essay
 The reader understands how the question is being interpreted
 May include necessary definitions

Main Body
The body for the essay has to present the evidence for the argument made in the introduction. The reader should never have
to work out for themselves why you included any particular material in your answer. In the main body, you should also
provide relevant evidence that backs up your argument using:

 Relevant concepts and theories – this is anything that comes from the academic literature, it doesn’t have to be defined
as a ‘theory of…’
 Relevant Examples

You should also ensure that the logic and direction of your argument is clear.

 Comment as you go along – make the ‘so what?’ point – don’t save it all for the conclusions section – why is this
important, why is it relevant, what are the implications and what is the significance of the material used?

Implications and Conclusions

It is recommended that you devote around 500 words of your assignment to this section.

 What are the implications from your argument? Who is it useful for and how?
 Marketers, consumers, policy makers etc.

This is the part of your essay where you don’t need any references! This is the place where you can show us that you have
innovative and creative ideas. This is the place where you can make your essay stand out from others.

Towards the end, you should clearly and concisely restate the argument to pull everything together.

Style
Double Line Spacing
Spell checked and Proofread
Times New Roman – Size 12
Page Numbers

References

 Would much rather see a shorter reference list with material that you have actually engaged in, as opposed to
just reciting author’s work.
 Very welcome to critic and question the work of authors and form your own opinions!
 Sub-headings are allowed.