In this article (link here) reporter Emily Badger discusses changes in purchasing habits of the millennial generation. Millennials are shifting towards a tendency of access rather than ownership. With companies like Airbnb, Uber, Rent the Runway and more, many millenials are renting goods ranging from transportation services to clothing. The majority of people surveyed believe the "sharing economy" makes life more affordable and convenient.
This shift is particularly interesting given the decline in peoples general trust of other individuals and institutions. The rise in popularity of these companies essentially built on the idea of trusting others has been attributed to increasing trust in rating systems. Millenials are reassured by testimonials of other consumers rather than the claims of sellers.
This article (link here) also gives an interesting comparison of millennials to rural, suburban, and urban populations and how essential they view things like TVs, computers, cell phones, and cars.
What do you think of the sharing economy? Do you pay attention to ratings before using these kinds of services?
I think this is a very interesting article. I would have to agree that I tend to judge items or services based on testimonials. Usually when looking for a restaurant to go to, the first place I check is on yelp or urbanspoon. For the most part, I think that trusting the ratings on these sites is fairly accurate so I can understand why these businesses are doing well.
ReplyDeleteThis article is very interesting. I'm not sure exactly how I feel about our "sharing economy", but it seems to be working right now. I also look up ratings and testimonials for places before I decide to go to a restaurant, show, hotel, etc. I think that ratings and testimonials are becoming much more important in our economy, and it can benefit a company tremendously if they have good reviews, but also has the ability to hinder business if it's reviews are bad. It's interesting to me that this is also driving another type of business, which is those where people go rate, review and give testimonials like yelp, urbanspoon, Angie's list, and so on
ReplyDeleteI don't have anything against the "sharing economy", as long as there is reasonable trust between the parties involved. I actually think that it is a great way to invest/make use of things. Particularly, something that not a lot of people can afford, now they can with a cheaper price while the owner still earns from it.
ReplyDeleteI also do a lot of research before deciding to buy something new, even if it's only a sunscreen. I need to read lots of reviews from different sources. But when I realize that most of the reviews are scams, I would not buy that product anymore because I feel that there's no evidence to trust.
I personally think that the ratings are precisely what make this "sharing economy" possible. I know that after every ride with Uber, you are required to rate the driver (out of five stars), and the driver rates the passengers as well. When I see that the driver has a high rating, I feel more comfortable, for sure. That being said, I haven't had a bad experience yet with Uber, and that has definitely increased my trust with the company.
ReplyDeleteI agree with Aleksis in that a "sharing economy" is only possible due to the rating system, which is built by customers' trust. Also I am uncertain whether "sharing economies" are best for the economy; is it possible that companies like Uber may be creating positive externalities?
ReplyDeleteI think the idea of the "sharing economy" is a good one and is not necessarily harmful to other aspects of the economy. Many of the goods rented/borrowed in a sharing economy are high priced items that people are hesitant to fully purchase, which is not surprising given that people still feel like the economy isn't back to its full potential. Consumers will continue to buy regular items that will keep the economy going, it's just more luxury items that may see a downturn in purchase and an increase in borrowing.
ReplyDeleteI agree with everyone above that a "sharing economy" is currently a good idea given the high distrust in the economy and many financial institutions. As a few people have already stated, I also use ratings and testimonials when deciding on a good or service. I think it is interesting to consider whether the idea of a "sharing economy" will continue when, or if, people regain trust in our financial institutions and the economy as a whole.
ReplyDeleteI agree with all the previous comments. I think this kind of 'shared economy' is helping the society by making efficient use of resources that may not otherwise to fully used to its utmost potential. Personally as a consumer of goods and services, I do look at other customer ratings and, to some extent that does determine whether or not I purchase a particular product. However, I found an interesting article that suggest that Airbnb and Uber are invading tax regulations as well as breaking the law (i.e., failing to meet safety and insurance state laws).
ReplyDeletehere is the link
http://www.theguardian.com/commentisfree/2014/may/27/airbnb-uber-taxes-regulation