Platform-centric vs. multi-party service failure: an examination of consumers’ negative word of mouth about sharing economy platforms

Abstract

Purpose

This paper aims to identify platform-centric versus multiparty service failure on sharing economy platforms via topic modeling analysis of consumers’ negative online reviews. The authors also sought to understand consumers’ reactions to these experiences by detecting negative discrete emotions. The authors then contrasted consumers’ responses to platform-centric and multiparty service failure through the theoretical lens of failure controllability.

Design/methodology/approach

The authors used a large-scale data set containing more than 81,000 negative app reviews on eight representative hospitality and tourism sharing economy platforms. Topic modeling coupled with emotion detection algorithms revealed 11 themes reflecting diverse forms of platform-centric versus multiparty service failure and their associations with negative discrete emotions based on regression analysis.

Findings

The 11 themes reflecting diverse forms of platform-centric versus multiparty service failure were as follows: app glitch, customer service, locating and pooling, account issues, transaction, offer redemption, interface challenges, intermediary inaction, service lateness and cancellation, incorrect order and fee structure. The analysis suggests that platform-centric service failure is more likely than multiparty service failure to elicit negative discrete emotions.

Originality/value

The research enriches the understanding of platform-related service failure beyond dyadic service interaction. In particular, the authors bring to light two forms of platform-related service failure that warrant scholarly attention: platform-centric versus multiparty service failure. By uncovering the distinct negative emotional associations of platform-centric versus multiparty service failure, the research adds novel empirical evidence to the service failure literature and the relevant attribution theory. Findings offer long-term implications for the sustainable development of sharing economies and platform businesses in contemporary hospitality.

Citation

Wu, L., Liu, S.Q., Ma, S.(D). and Hanks, L. (2023), "Platform-centric vs. multi-party service failure: an examination of consumers’ negative word of mouth about sharing economy platforms", International Journal of Contemporary Hospitality Management, Vol. 35 No. 4, pp. 1332-1375. https://doi.org/10.1108/IJCHM-12-2021-1559