1. want (Solomon et al., 2015). Even though two

1.    
Introduction

The
sharing economy is also called collaborative consumption, and it has greatly
exploded over the past few years. It is not only for the early adopters but also
plays a significant role in modern society. There are around 44% of the United Sates consumers being familiar with the
sharing economy and about 19% of consumers have engaged in a sharing economy
transaction, and these numbers will keep growing ().

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2.    
The Target Market – USA

In this essay, the market will be focused on
the United Sates and especially for the millennial groups. In the below pie
chart, it is obvious that the 16 to 34 age group is the largest grou who
get involved in sharing economy.

 Source: BBVA Research

 

As the sharing economy, Uber and Airbnb, is
highly related to technology such as on-line book websites and mobile apps, the
so called ‘Millennial
generation’ becomes the target group. For Millennial consumers, difficulties to involvement are mostly
associated with a lack of technical access (Ranzini et al., d.n.).

 

3.    
Rationale

 

3.1  Motivation

Analysing
the motivation process makes it easier to understand what’s the need, drive and
goal of consumers and what makes them get involved in the sharing economy. Also,
knowing the level of involvement can comprehend the extent of how consumer get
involved in a purchase decision.

 

3.2  Perception, Learning and Memory

Due
to the explosive growth of sharing economy, to comprehend the process of how
consumers become the users of Uber or Airbnb, perception, learning and memory
theories are worthy to analyse. By examining the process of how stimuli are
being selected, organized and interpreted, it is simpler to know how the
consumers are attracted by products or brands and what would they do to
response to the selected stimuli. Besides, understanding the learning and
memory procedure can find out what factors will affect consumers to purchase or
use the sharing economy again.

 

3.3 Identity

Personalities
are categorized into several types, and different types of personality affect
people’s consumer behavior. As, Airbnb is one of the newest company in the
tourism industry, and its concept of sharing economy is also an innovative
idea. Analysing the identity helps us to understand the connection between consumers’
personality and the feature of Airbnb. In addition, brand personality can also
appeal the people who have the similar identity because there is a consistency
between whom you are and the items your purchase.   

 

4. 
Case study

4.1.1 Motivation

Motivation
is a process that a need is aroused and reduced and a goal is set and trying to
achieve. The special type of consumption used to satisfy a need is named a want
(Solomon et al., 2015). Even though two people have the same kind of need, they
might seek for different thing or way to satisfy themselves. However, for the
same product, not everyone is motivated to the same extent and this depends on
the level of involvement. Involvement is seen as a significant concept in
individual purchasing behavior since it shows a strong motivation in terms of
perceived individual relevance of goods or services (Flynn &
Goldsmith,1993; Gotlieb, Schlacter, & Louis,1992). According to Guthrie and
Kim, the level of product interest and importance to the consumer can be
measured by involvement (2009).

 

4.12 Airbnb (USA)

Most of the USA Airbnb visitors chose Airbnb
based on the rational and emotional needs. According to Guttentag and Smith, the
American tourists were mainly attracted to the service by their desire for
local experiences and financial saving (2016). The attraction of Airbnb’s
low cost has been highlighted in many media stories (Guttentag and Smith, 2016). This is to say that the social and
economic factors motivate consumers to book a room from Airbnb.

 

There are several resources for consumers to
make the decisions and this is called ability. For example, plentiful reports
have showed that about 90% of Airbnb visitors are looking to “live like a
local” and several reports indicates that around 80% of Airbnb guests want to
choose it because the position is more suitable for them than that of a
comparable hotel, and some states that roughly 80 to 90% of Airbnb guests consider
it for the amenities (Guttentag and Smith, 2016). These are the emotional and
physical abilities respectively.

 

The
customer involvement can be increased by the introduction of new product,
therefore, Airbnb can increase travelers’ involvement in their accommodation
choice (Lee and Kim, 2017). In 2014, Airbnb introduced a new logo which
indicated the idea of people, places, love and Airbnb (???????). In the meantime, a mobile app was available on the smartphone. One the
one hand, the concept of the new logo conveys the bond of love and friendship
between the hosts and guests, which makes the consumers affective involvement
in the brand of Airbnb. On the other hand, the consumers cognitive involvement
in the new mobile app as the target group, people who are around 16 to 34 years
old (Quinones and Augustine, 2015), is used to using the
Internet and smartphones.

 

 

Novelty is another key reason which motivates
consumers to choose Airbnb as their accommodation. Novelty-seeking is usually
theorized as a desire for new and unfamiliar stimuli (Guttentag and Smith,
2016). For example, consumer can choose whether they want to stay in a spare
room in an apartment with the owner present or not. If they want to stay with
host, they may text the host before they visit and check with the owner to see
if there is any activity they can join. Also, Airbnb users prefer the
accommodations to have more special characteristics and personality than
standard hotel rooms (Paulauskaite et al., 2017).

 

To sum up, price, live like a local,
location, facility, specialty and novelty are the motivations that drive
consumer to consider and book a room from Airbnb.

These individuals are inevitably
heterogeneous in countless different and potentially noteworthy ways, ranging
from straightforward differences like age to more complex differences like
their emotional connection to Airbnb. (DK)

 

 

4.2.1 Perception, learning and memory
theories

A
complete process of perception includes exposure, organize and interpret. When stimuli
are sent to consumers’ five sense, consumer will select which stimuli are
focused and they will give meanings to the stimuli (Solomon et al., 2015). This
is a subjective and selective process. Consumers make decisions sometimes
depend on what they have learnt from the past experiences. These experiences
were stored in their brains when they need a piece of information, they could
retrieve from their memories (Blackwell, Engel and Miniard, 2002). These three
theories well explain how consumers react when they get information from a
company, an advertisement and a brand. 

 

4.2.2 Perception influences Airbnb’s potential
guests

Advertising
plays a significant role in making potential consumers aware of an innovation, delivering
information about its value, and connecting other characteristics like company reliability
(Horsky & Simon, 1983). However, Airbnb has only involved in few of
advertising. In the beginning of the company was established, it focused on the
use of online ads such as Google and Facebook (Delo, 2013), and only started
its first integrated national U.S. advertising campaign in late 2013 (Levere,
2013).

 

On
the contrary, however, Airbnb get abundant public attention in local, national,
and international media over the past few years. These stories fall into
different categories, reflecting both positive and negative publicity on the
service. These stories and publicity work as stimuli which are sent to
consumers and even negative comment can sometimes raise consumers’ awareness
(Berger, Sorensen, & Rasmussen, 2010). It can be seen that consumers are
exposed to plentiful of information of the Airbnb then the information catches
consumers’ attention and make them started think of Airbnb.

 

When
consumers begin considering and thinking of Airbnb, they will start search more
information of it, for example, they will read the news or see through all
comments on the website of Airbnb. As potential guests cannot observe host’s
attributes on-line, the overall impression of the host is inferred by online
review scores, which convey her reputation, and from the host’s visual photo,
which may communicate at least some of her other attributes (Gerwe and Frojan,
2017). It is asserted that when potential costumers view the host’s photo, they
begin to have an immediate impression of her attractiveness and trustworthiness,
which is called “visual-based trust” (Ert, Fleischer and Magen, 2015). This
example indicates how consumers interpret the information that they get and
response to it.

 

The
other one of the ways to stimulate potential consumers’ sense is called “word-of-mouth”,
it provides an extra degree of credibility, therefore, it significantly affects
many consumer decisions (Guttentag and Smith, 2016). During the travel planning,
accommodation is an important choice, therefore, the potential guests of Airbnb
tend to ask their friends, parents or co-workers about their past experience of
stay in Airbnb accomodations. Potential consumers will pay attention to these
comments and opinions and then interpret them into a positive or negative
response.

 

4.2.3 Airbnb users reuse it
depends on their experiences    

A
customer will experience some degree of satisfaction when he or she use Airbnb,
and it is commonly theorized as linking to a product’s perceived performance,
often in comparison with previous expectations (Guttentag and Smith, 2016). Based
on Loureiro’s (2014) study, a pleased guest was more likely to memorize the
experience.

surveyed
visitors to a festival and a museum in Norway, again adopting the 4Es to define
the experience variables. According to Mehmetoglu and Engen (2011), education
(learning), entertainment (feeling), escapism (doing), and aesthetics (being) greatly
influence visitor satisfaction.

 

Another
tourism experiences that are highly related to Airbnb users are the influences
of experience co?creation
(Guttentag and Smith, 2016). Some of the co?created experiences are what can be called “living like a
local” and local people are now much more involved in plaining these
experiences for visitors (Richards, 2014; Rosso & Richards, 2016). What
consumers learn from the experiences and the degree of satisfaction will be
stored in their brain and they probably use Airbnb again when they plain next
travel (Cohen et al., 2014).

 

4.3.1 Big
five personality traits of Airbnb users

Personality
could be a potential predictor of travel behaviour (Jani et al., 2011).

Pezenka,
Weismayer and Lalicic (2017) analyse Airbnb users’ personality base on big five
personality traits. There are surprising differences between Airbnb users and
Airbnb nonusers. Airbnb users’ personality traits tend to be openness,
extraversion, agreeableness, and conscientiousness but there are still few
consumers are neuroticism (Pezenka et al., 2017).

 

Openness
make an impact on a person’s tendency to use Airbnb and it can be explained by
the main characteristic of the trait. Since openness to experience indicates
the possibility to come up with special ideas and to be creative (John & Srivastava,
1999). This lead to the assumption that Airbnb users are easier to embrace
innovative things. Also, the idea that authenticity of accommodation experience
plays a significant role in peer to peer accommodation service is supported by extraversion
of Airbnb users (Oskam & Boswijk, 2016). Gaining local experiences is an
important reason for consumer to choose Airbnb. As extraversion means a person
who is being energetic and enjoying being with other people, this kind of
person gets pleasure from an authentic local experience with locals.

 

In
addition, Agreeableness means that a person tends to be compassionate and
cooperative towards others. These people are all about trust, honesty, and
getting along with others. The trust in peer to peer service is an important
barrier to sharing economy, therefore, agreeable Airbnb users tend to trust the
description, photographs and profiles that hosts post on-line on the Airbnb
website page (Ert et al., 2016).

 

About
the individuals with neuroticism trait, they are more likely to search
information from the Internet because they are easy to get anxious. Therefore,
they will see the comments on the Airbnb website to choose the accommodation
(Jani et al., 2011) To sum up, these findings show the importance of personality
traits in understanding the consumer beavior of Airbnb.

 

4.3.2 Brand personality influence the consumer
behavior to Airbnb

Brand
personality means linking human characteristics to a brand (Biel, 1993; Aaker,
1997). Consumer purchases are influenced by brand personality due to a brand’s
emotional and self-expressive benefits (Aaker, 1995). In order to explore
Airbnb’s brand personality, XXX
do the analyse based on Asker’s brand personality scale and there are five
dimensions which are sincerity, excitement, competence, sophistication, and
ruggedness. This is to say, Airbnb is an exciting, sincere, and competent
company.

 

First
of all, consumers consider the three dimensions, excitement, sincerity, and
competence, as the main dimensions of Airbnb brand personality. These may
directly affect a customer’s choice of Airbnb in the accommodation category. In
other words, most of the guests chose Airbnb due to its genuineness and the
possibility of creating an exciting experience for them. Secondly, males and
females have different attitudes toward Airbnb. Male guests tend to rate the
personality of Airbnb in a positive way if they are highly involved in accommodation
decisions. However, female customers pay more attention to security and safety
issues in the lodging industry, therefore, their perceptions of Airbnb brand
personality will become more complex (Babakus, Yavas, & Eroglu,2005; Chan
& Lam,2013).

 

 

5. Limitation

This
study has some limitations, which suggest that further research should be
conducted.

 

 

6. Conclusion