Exploratory study of consumer issues in online peer-to-peer platform markets Task 2 Report January 2017 Justice and Consumers EUROPEAN COMMISSION EUROPEAN COMMISSION Produced by Consumers, Health, Agriculture and Food Executive Agency (Chafea) on behalf of Directorate-General for Justice and Consumers Directorate E — Consumers Unit E.1 — Consumer policy Contact: Antonia Fokkema E-mail: [email protected] European Commission B-1049 Brussels EUROPEAN COMMISSION Exploratory study of consumer issues in online peer-to-peer platform markets Task 2 Report Directorate-General for Justice and Consumers EU Consumer Programme 2017 EUR 2017.4058 EN EUR 2017.405 EUR 2017.4058 EN Exploratory study of consumer issues in online peer-to-peer platform markets – Task 2 Report Europe Direct is a service to help you find answers to your questions about the European Union. 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More information on the European Union is available on the Internet (http://europa.eu). Luxembourg: Publications Office of the European Union, 2017 EN – Task 2 ISBN: 978-92- PDF/Volume_03 DS-01-17-530-EN-N DOI: 10.2838/21422 Report 79-69184-3 © European Union, 2017 Reproduction is authorised provided the source is acknowledged. EUR 2017.405 EUR 2017.4058 EN Exploratory study of consumer issues in online peer-to-peer platform markets – Task 2 Report TABLE OF CONTENTS Contents ........................................................................................................... 5 List of Tables .................................................................................................... 7 List of Figures ................................................................................................. 10 Executive summary ........................................................................................ 11 1 Introduction and methodology ............................................................... 15 1.1 Introduction 15 1.2 Methodology 15 1.2.1 Target population 15 1.2.2 Interviewing method 17 1.2.3 Languages of interviewing 17 1.2.4 Pilot 17 1.2.5 Fieldwork 18 1.2.6 Data cleaning, processing and validation 19 2 Usage of online P2P platforms ................................................................ 21 2.1 Overall usage rates 21 2.1.1 How do people engage with P2P platforms (in the last 12 months)? 23 2.1.2 Frequency of use 25 2.2 What is the level of income/expenditure on P2P platforms? 27 2.3 Conclusions 28 3 Experiences with online P2P platforms ................................................... 30 3.1 How satisfied are peer consumers and peer providers with their experiences on online P2P platforms? 30 3.1.1 Satisfaction by platform sector 32 3.2 How do peer consumers compare their experiences on P2P platforms versus conventional businesses? 36 3.2.1 Comparing experiences of sectors of P2P platforms to conventional businesses 36 3.2.2 Comparing peer consumers’ experiences of smaller and larger P2P platforms compared to conventional businesses 40 3.3 To what extent do current peer consumers indicate that they will use the platform again in the future? 44 3.4 Conclusions 45 4 Problems on P2P platforms .................................................................... 47 4.1 What problems did consumers experience when using P2P platforms and how frequently did these problems occur? 47 4.1.1 Comparing problems experienced using the sharing economy versus using conventional businesses 52 4.2 Level of detriment as a result of problems experienced 53 4.3 Actions taken after experiencing a problem 57 4.4 If action was undertaken, did the problem get solved? 59 4.5 Relation between the type of action taken and problem solving. 61 4.6 Which action did the other peer/the platform (resale/collaborative) take in response to the problem? 61 4.7 Satisfaction with how the other peer dealt with their complaint(s)? 65 4.8 Reasons for no action? 66 4.9 Conclusions 67 4.9.1 Problems encountered by peer consumers 67 4.9.2 Problems encountered by peer providers 68 4.9.3 Problems resolution 68 5 Perceptions of rights and responsibilities ............................................... 70 5.1 Knowledge of rights and responsibilities 70 5.2 Importance of clarity and transparency 74 5.3 Conclusion 79 6 Trust and user review/rating systems .................................................... 81 6.1 The use of review/rating systems before and after transactions 81 5 Exploratory study of consumer issues in online peer-to-peer platform markets – Task 2 Report 6.1.1 Reliability of review/rating systems and platforms 85 6.2 Conclusions 87 7 Overall Conclusions ................................................................................ 89 7.1 Core findings on P2P platforms 89 7.2 Differences between platform types and sectors 91 7.2.1 Platform types: main differences between collaborative versus (Re)Sale platforms 91 7.2.2 Differences between collaborative platforms sectors 92 7.2.3 Highlights by platform sector 93 7.3 Country differences 96 7.4 Further research needs 97 8 Annex 1: the questionnaire ..................................................................... 98 9 Annex 2: Socio-demographic profile of P2P users ................................. 119 10 Annex 3: Socio-demographic differences .............................................. 122 10.1 Usage of online P2P platforms 122 10.1.1 Overall usage rates 122 10.2 Problems on P2P platforms 124 10.2.1 What problems did consumers experience when using P2P platforms and how frequently did these problems occur? 124 10.2.2 Actions taken after experiencing a problem 125 10.2.3 To what extent do current peer consumers indicate that they will use the platform again in the future? 126 10.3 Perceptions of rights and responsibilities 127 10.3.1 Knowledge of rights and responsibilities 127 10.3.2 Importance of clarity and transparency 128 10.4 Trust and user review/rating systems 129 10.4.1 The use of review/rating systems before and after transactions 129 11 Annex 4: Additional tables .................................................................... 132 12 Annex 5: List of Platforms .................................................................... 136 6 Exploratory study of consumer issues in online peer-to-peer platform markets – Task 2 Report TABLES Table 1: Overview of languages used for interviewing per country ...................... 17 Table 2: Overview of obtained sample size per country ..................................... 18 Table 3: Overview of socio-demographics ....................................................... 18 Table 4: Incidence rates of usage (consumers and providers) ............................ 22 Table 5: Incidence rates of usage – country level (consumers and providers) ....... 22 Table 6: Incidence rates of usage – Sector breakdown (consumers and providers) 23 Table 7: Active users of sharing economy (consumers and providers) ................. 23 Table 8: Active users of P2P platforms – sector breakdown (consumers and providers) ...................................................................................... 24 Table 9: Active users of sharing economy – country breakdown (consumers and providers) ...................................................................................... 25 Table 10: Frequency of active use of online P2P platforms – Sector breakdown (Peer consumers) .................................................................................... 26 Table 11: Frequency of active use of online P2P platforms – Sector breakdown (Peer providers) ...................................................................................... 26 Table 12: Use of single or multiple platforms (consumers and providers) ................ 27 Table 13: Average amount spend/received on P2P platform (consumers and providers) .................................................................................................... 27 Table 14: Average amount received on P2P platform – socio-demographic breakdown (Peer providers) ............................................................................. 28 Table 15: Satisfaction with overall experience of using P2P platforms (consumers and providers) ...................................................................................... 30 Table 16: Satisfaction with overall experience of P2P platforms (Peer consumers) ... 31 Table 17: Satisfaction with overall experience of P2P platforms (Peer providers) ..... 31 Table 18: Satisfaction with overall experience – (Re)Sale Goods vs collaborative (Peer consumers) ...................................................................................