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EMAC 2019 Annual Conference


Impacts of product quality cues on travelers’ demand of peer-to-peer transportation sharing
(A2019-8081)

Published: May 28, 2019

AUTHORS

Seongsoo (Simon) Jang, Cardiff University; Farajallah Mehdi, Rennes School of Business

KEYWORDS

Collaborative; Peer-to-peer; Cue

ABSTRACT

Due to the explosive growth of peer-to-peer transportation sharing offered by micro-entrepreneurial travelers, investigating how quality cues affect travelers’ demand is of paramount importance. This study examines what types of intrinsic and extrinsic quality cues affect the long-distance travelers’ demand of peer-to-peer transportation services. Based on unique data of 52,248 transactions from Blablacar, a leading peer-to-peer intercity ridesharing platform, it was identified that intrinsic quality cues–car status and driver status–and extrinsic quality cues–price and offering duration–significantly affect the peer-to-peer transportation demand independently and interactively. Although higher car and driver status and longer offering duration of a ridesharing offering positively affect its demand, a higher (lower) price or longer (shorter) offering duration can decrease (increase) its sales when combined with higher car and driver status. Also, strategic implications for vulnerable segments such as female and minority travelers are provided.