We have all heard of consumer reviews, and many of us have contributed our own. Whether it be a comment card left in a restaurant, or a Yelp review published online, consumers have been making their feelings felt one way or the other. In a twist, however, platforms such as Airbnb and Uber employ two-sided reputation systems in which consumers are being rated for their behavior while using the platform. This represents a major departure from the traditional view of “the customer is always right,” which has far-reaching implications. The Black Mirror episode streaming on Netflix titled “Nosedive” provides a dystopian perspective of what happens if the nascent practice of reviewing individuals becomes the norm. This is the first empirical study to examine this precedent setting phenomenon.
Laura Schrier Rifkin, assistant professor of marketing in the Murray Koppelman School of Business, recently co-authored an article that appeared in the Journal of Consumer Research: “A Turn of the Tables: Psychological Contracts and Word of Mouth about Sharing Economy Platforms When Consumers Get Reviewed.” Rifkin, who has been teaching marketing at Brooklyn College for 3 1/2 years, talked about why this new shift is important and the good and bad associated with it.
How and why did two-sided reputation systems come about?
In the sharing economy, a platform will act as an intermediary to bring together providers who have a product or service to offer with individuals who are seeking them. The term sharing is a bit of a misnomer, but refers to a temporary exchange rather than transfer of ownership. Homestay and ride-sharing are the largest sectors of the sharing economy, but there are many examples such as boats, cars, books, swimming pools, money lending, and dog sitting.
Since firsthand knowledge is unlikely between providers and…
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