Digital trust is the cornerstone of the sharing economy, with user ratings playing a crucial role in establishing trust. This trust is essential for businesses such as Uber and Airbnb, where users must feel secure in sharing their resources with strangers. Digital platforms use sophisticated algorithms to analyse user behaviour and predict trustworthiness, with feedback systems allowing users to rate each other’s reliability.
Despite its importance, digital trust is fragile and can be easily undermined by negative experiences. One poor rating can significantly impact a user’s reputation, leading to a decrease in transactions. This fragility highlights the need for robust dispute resolution mechanisms to resolve issues and maintain trust.
Interestingly, digital trust can also foster social connections. Users often feel a sense of community when they share resources and experiences, leading to increased trust and engagement with the platform. This social aspect is a unique feature of the sharing economy, setting it apart from traditional business models.
However, digital trust is not a one-size-fits-all solution. Different cultures and demographics perceive trust differently, and businesses must tailor their strategies accordingly. For example, older users may require more reassurances about safety and security, while younger users may value convenience and speed.
In summary, digital trust is a complex, multifaceted concept that is vital to the success of the sharing economy. It requires careful management and understanding of user behaviour to maintain and enhance.
Go to source article: https://www.researchgate.net/publication/315483205_How_digital_trust_powers_the_sharing_economy