The ‘soft’ and ‘hard’ sides of the sharing economy: A discussion of marketing, financial and socio-cultural aspects

Abstract

This paper discusses three aspects of the sharing economy: the marketing aspect, the financial aspect, and the socio-cultural aspect. The discussion of the marketing aspect suggests that mindful consumption and advances in technology have made sharing economy possible and increasingly popular. This has modified consumption patterns, particularly in the tourism industry, and has changed traditional marketing channels. It is further suggested, that the increasing prevalence of sharing economy practices is directly linked to increases in revenue and improvements in customer welfare and job creation. Moreover, socio-cultural characteristics of societies have also been linked to the provision and use of sharing economy. More specifically, attitudes towards innovation, sharing, trust and environmental sensitivity have been identified as socio-cultural factors that are expected to influence the provision of sharing economy services, and individualism-collectivism, uncertainty avoidance, power distance and the internet appear to be key behaviour determinant variables.