The role of perceived risk and trust in 'consumers' participation in tourism-based sharing economy services

Abstract

The rise of the sharing economy, exemplified by platforms like Airbnb, has revolutionized consumer behavior and ownership perceptions since its beginning, mainly affected by the evolution of the Internet and digital platforms. The study centers on the relationship between perceived risk and trust and how these factors impact consumer behavior in the sharing economy, mainly focusing on research on Airbnb. The study examines the fundamental ideas of the sharing economy, describing the different kinds of services it offers, characterizing its features, and showing how it has evolved. In order to provide us with a deeper understanding of the Airbnb platform, the research closely examines the platform, outlining its business strategy, how customers make decisions based on perceived risk and trust, and what that means for the travel and tourism industry. Desk research and empirical studies are both included in the research process, which is described in the empirical analysis section. A survey method is used to gather information from 201 participants, focusing on Bosnia and Herzegovina's younger demographic (18–35 years old). Data collected contained multiple dimensions of perceived risk and trust, with statistical analysis undertaken to test formulated hypotheses. The research goal was to contribute to the existing literature by providing a comprehensive understanding of the role of perceived risk and trust in shaping consumer behavior within the sharing economy, specifically Airbnb services in Bosnia and Herzegovina. Moreover, the research was carried out in the post-COVID-19 world, but the pandemic didn't affect the shifts in risk perception and trust dynamics and Airbnb's appeal to a younger, more educated demographic. The study highlights the critical role of trust in the host in shaping consumer intentions, putting aside all other factors. Although our results contradict the current risk theories on consumer behavior, there are two possible explanations for them. First, customers could compare advantages like financial savings and authentic accommodations with perceived risks. Second, users can mitigate risks by reviewing host profiles, communicating before booking, choosing highly rated accommodations, and purchasing travel insurance. In addition to providing insight into the attitudes and intentions of B&H Airbnb users, the study will pave the way for further studies on the platform and related subjects.