The sharing economy at the base of the economic pyramid: How access‐based services can help overcome ownership risks

Abstract

The sharing economy provides short-term access to products without the risks associated with ownership. While extant research primarily examined it in the context of affluent consumer segments, the sharing economy may offer opportunities for consumers at the base of the economic pyramid, where ownership risks prevent access to products that could create societal benefits. Drawing from risk perception theory, we examine how access-based services, as an alternative to ownership, can mitigate perceived risk dimensions. An experimental study reveals that, in contrast to consumers with higher income, low-income consumers perceive access-based services to entail less financial risk, resulting in a greater inclination to access a good than to own it. In a second study, we explore these differences by comparing access with a risk mitigation strategy. We find that at the base of the pyramid, access is perceived to entail less financial risk than both ownership and ownership with a warranty. The results indicate the importance of the sharing economy for addressing the limited availability of resources for alleviating poverty.

Does renting luxury make me shine? The mediating role of perceived signals

“…In addition to the lack of ownership that has been discussed by many studies, the inability to afford luxury goods is examined. Marketers should note that even though access‐based consumption may increase total market demand by attracting some nonowners who cannot afford the product (Feng et al, 2020; Schaefers et al, 2021), not all nonowners (e.g., incremental theorists) can be their potential consumers. Thus, marketers should consider the best means to reduce the negative impact of authentic signals on incremental theorists' renting intentions.…”

“…Marketers should note that even though access-based consumption may increase total market demand by attracting some nonowners who cannot afford the product (Feng et al, 2020;Schaefers et al, 2021), not all nonowners (e.g., incremental…”

“…Besides, unlike related research that primarily investigates access-based consumption in affluent consumer segments (Schaefers et al, 2021) and does not distinguish between luxury owners and nonowners (Krekels et al, 2020;Loussaïef et al, 2019;Pantano & Stylos, 2020), we focus on those who cannot afford luxury goods.…”

“…Besides, unlike related research that primarily investigates access‐based consumption in affluent consumer segments (Schaefers et al, 2021) and does not distinguish between luxury owners and nonowners (Krekels et al, 2020; Loussaïef et al, 2019; Pantano & Stylos, 2020), we focus on those who cannot afford luxury goods. Access to goods at a lower cost has been identified as a strong motive in access‐based consumption studies (Hamari et al, 2016; Lang & Armstrong, 2018).…”

Drivers, Barriers, and Facilitators of Entrepreneurship at BoP: Review, Conceptual Framework and Research Agenda

“…Also, since ICTs have acquired increased prominence in subsistence contexts, future research can focus on examining different ICT usage contexts, the role played by ICT in facilitating value co-creation by various kinds of subsistence entrepreneurs and their collectives (Maity and Singh 2020; Parthiban et al 2021). Future studies can also consider extending the research on shared and platform economies to subsistence contexts and examine their impact in enhancing access to services in BoP contexts and also the impact they exert on subsistence entrepreneurs with little saleable or rentable assets (Delacroix, Parguel, and Benoit-Moreau 2019; Schaefers et al 2021). Moreover, the improved ICT access in subsistence contexts also creates opportunities for leveraging such technologies for researching subsistence contexts.…”