The Rise of the Sharing Economy in the UK

Chapter One

1.0 Introduction

Despite the existence of a service market, development of technology and the internet has impacted new ways of providing services to the economy through optimization of the available resources. Service such as transport and accommodation have been impacted by emergence of the sharing economy, further making them easily accessible and way affordable and convenient. The emergence of the sharing economy however has been significantly impacted by service marketing techniques which impact their popularity and enhance easier access. However there is no significant literature regarding the growth and performance of the sharing economy as well as the impact of service marketing to the emergence of the sharing economy in the UK.

1.1 Background of the Study

Marketing refers to the process of convincing individuals to buy a specific product due to particular outstanding features that it has over its substitutes and complimentary in the market. According to Twin (2019) Marketing refers to activities undertaken by a company to promote the buying or selling of a product or service. These include advertising, selling, and delivering products to consumers or other businesses. Lemon and Verhoef (2016) point out that understanding the customer experience and customer journey is a critical knowledge area for the success of any marketing techniques or strategies undertaken. Wedel and Kannan (2016) highlight that the product and service market scope and spectrum has been entirely changed with information technology which promote marketing analytics including analytics to optimize market mixing, analytics for personalization as well as analytics in the context of consumer experience, privacy and data security. Marketing of products and services especially in the current dynamic market setting requires specialized strategies which may be specific to products and others to services highlighting service marketing and product marketing (Castaldi and Giarratana, 2018). While the traditional marketing has quite explicitly focused on the product given its qualities of tangibility and visibility which gives it a form that can be easily advertised and marketed, the rise of the fourth industrial revolution has highlighted the importance of information and which subsequently opened doors for the appreciation and emergence of the service marketing industry (Brown, Fisk and Bitner, 2008). Granted, the service sector is indeed a critical component of every countries economy, contributing significantly to its GDP and to job creation especially when you consider service sectors such as the health sector, water and sanitation sector as well as the education sector (Eckhardt, Houston, Jiang, Lamberton, Rindfleischand, Zervas, 2019), however these services can be considered more as products rather than actual services given the capability of their quantification and value attachment. This enables their marketing and product marketing compatible. However considering recently established services all over various sectors of the economy and social living such as internet and cloud services, information services as well as the sharing economy which converts physical unused assets into service, a new service economy has been effectively developed with effective specified marketing techniques. The Service industry or economy can also be defined as the application of technology or innovation to facilitate the interchange of goods and services among various (Freedland and Prassl, 2017). The sharing economy is a business model that allows two parties to enter into a transition or an agreement that allows them to easily share their assets or services on mutually benefitial terms (Arcidiacono et al., 2018). Sharing economy is an aspect that has pervaded all sectors of the trade ranging from mobility industry, retailing of consumer goods, tourism and hoteling industry, entertainment, multimedia and telecommunication, financial and energy sector, human resources sector and other peripheral areas where service industry is applicable (Dillahunt et al., 2017). Osztovits et al (2019) highlight some of the key features that identify the service market of sharing economy to include: resource sharing, where the users are free to share their unique resources through different models that have been developed. Some of them include the car-sharing and short-term housing services such as BlaBlaCar, Uber and Airbnb respectively. The market also offer opportunities for the community to share the costs of operations including investment and the consequential implementation of diverse services model in the economy (Lee et al., 2018). Moreover, in the sharing economy sector, the partners and players share resources and enjoy the profits and benefits together.

The emergence of the service economy is further characterized with idle resources and capacities which can be sold at any time or be shared with other players. For instance, Airbnb is used to host their empty rooms available in the UK for users who are interested in accommodation (Wang and Nicolau, 2017). The service industry is well known for its on-demand access where users in the UK have the ability of satisfying their unique needs for different services as they are needed. As consumers, in exchange for the resources they use and only pay a propionate amount for their usage of the service (Freedland and Prassl, 2017). The sharing or the service industry in the UK is also characterized by a high degree of personal interaction through innovation and technology as the key drivers (Narasimhan et al., 2018). This is decided by different models which are meant to promote close relations between the service providers and the consumers across the country. The main objective is to offer comprehensive customer satisfaction platforms and services which is the key to the success of the sharing economy (Wosskow, 2014). In a study published by PWC, there are different factors which have been driving the rapid adoption and usage of the sharing economy. For instance, the study established that the service sector was influenced by the dynamic spread of advanced digital platforms and devices in the market which makes it easier for new models to be developed, tested and utilized (Dillahunt et al., 2017). The second factor that drives the sharing economy is the changes in consumer needs which include their attitude to ownership and environmentally friendly behavior. Accordingly, the service industry is influenced by desire to utilize current resources effectively and more rationally with maximum utility among consumers and producers through cheap alternatives (Narasimhan et al., 2018). The emergence has also been driven by the recurrent social changes which comprise of globalization and urbanization of the world that need companies to be connected for quick and efficient businesses and trade. However what is the impact of service marketing the the rapid development of the service market and sharing economy?

1.2 Research Problem

Undoubtedly, in the 21st century, the service market and sharing economy has become one of the most formidable and indispensable aspects of every business operation. Within the recent past, sharing economy has expanded and become one of the fast-growing business trends in the history ever with over $23 billion in the capital venture from different investors from 2010 (AP News. 2019). A report published by McKinsey in 2016 found that more than 162 million people in the US and Europe are active user of the sharing platforms with majority coming from the UK (Laurens 2016). In a different study, UK has been ranked as the leading destination and hub for sharing economy in Europe representing one-in-10 of the global companies using the new digital platform in the region (Ravenelle, 2017). In 2015, a local company, Just Park, mobilized more than £3.7m from almost 3,000 financiers to form one of the largest UK equity crowd funding with more than 865 companies registered in the sharing economy (Davidson, 2019; Langley, 2016). The sharing economy presents a new service market as a result of developed service marketing techniques which are effective. However, despite the importance and great potential that the sharing economy has, there still exist research gaps in the literature on how exactly the service economy has been performing in the recent years as well as the role of service marketing in the rapid development of the sharing economy within the UK. Therefore, to seal the present research gap, the current study will seek to examine and investigate the growth and performance of the sharing economy as well as the role of service marketing in the rapid emergence of the sharing economy within the UK in the recent past.

Research Aim

The research study aims to evaluate the growth and performance of the sharing economy as well as the role of service marketing in the rapid emergence of the sharing economy within the UK in the recent past.

Research Objectives

To review existing knowledge and literature related to the emergence of the sharing/service economy

To evaluate the impact/benefits that the public perceive from the sharing/service economy

To investigate the service marketing techniques utilized in the contemporary dynamic service market

To highlight the impact of service marketing to the development of the sharing/service economy

Research Questions

What are some of the benefits that the public perceives from the sharing/service economy?

Which service marketing techniques are currently being utilized in the contemporary dynamic market?

What is the impact of service marketing in the development of the sharing/service economy?

Scope of the Study

The study involves an evaluation of the service industry with specific reference to the sharing economy which has rapidly emerged within the UK in the recent past. In addition the study also aims to evaluate the impact of service marketing in the development of the sharing economy as such it will be spread across the entire scope of the industry including consumers within the industry as well as providers of these services. While the providers will be interviewed with relation to the marketing techniques they apply to highlight the impact of service marketing in the industry, the users will be evaluated using focus groups to achieve an understanding of their perspective when it comes to their personal experiences within the sharing economy. The research will focus on two specific companies within the sharing economy, these include providers and users of short term car-sharing services, Uber, and short term housing services Airbnb.

Justification of the study

It is noted that studies with concern to the sharing economy have been carried out by a wide range of scholars including (Laurens, 2016; Ravenelle, 2017; Davidson, 2019; Langley, 2016) however these studies have been with specific concern to other developing countries as compared to an already developed country. In addition these studies have been focused on different aspects of the subject including factors that have led to the rapid growth of the sharing and service economy, however none so far focuses on the impact of service marketing as a strategy in enhancing the growth of the sharing economy within the UK as well as the growth and development of the sector itself. Given the relatively new field within the industry, the sharing economy highlights a wide range of gray areas with specific concerns to the laws and regulations governing the sharing kind of interaction as well as the various risk factors that are associated with the industry and its emergence. This research will be able through an evaluation of the growth and development of the sharing economy in the UK, highlight the structure and framework within which this economy has thrived, outlining its various risks and challenges thereby effectively keeping the consumers of the market on the know. Further the dissertation goes ahead to investigate the impact of service marketing techniques in the eventual rapid emergence of the sharing economy, highlighting the different specialized service marketing techniques and contributing to the pool of independent research findings that connects marketing as a factor responsible for the rapid emergence and development of the service/sharing economy. In combination with other factorial research findings such as (Dillahunt et al., 2017) who studied the dynamic spread of advanced digital platforms and devices as well as the ever changing consumer needs and attitude as factors for growth of the sharing economy, a wider scope of analysis of the growth and development of the sharing economy within the UK is highlighted.

Chapter Two Literature Review

Introduction

A recent study carried by PWC on the potentiality of the service market specifically with the emergence and spread of the sharing economy in the UK showed that the economy is expanding aggressively and that the returns are very high (Pwc.com, 2019). Players in the sector have benefited from expanded market opportunities. According to the study, customers have also profited in terms of efficiency, availability, and reliability of the services offered through the sharing economy (Pwc.com, 2019). Given the realized gap in the available information especially with specific concerns to how marketing techniques as well as specialized service marketing techniques have influenced the growth of the sharing economy, this research aims to fill in the gap with a primary study attached to a content analysis of the emerging market and its relation to the traditional service market. This chapter therefore will outline literature in line with the service market economy building up to the emergence of the sharing economy.

2.2 Service Market

A wide range of definitions can be used to describe the term services however in economic terms a service is defined as a transaction which involves no exchange of physical goods or products of any kind between the buyer and the seller (Martin, 1999). Based on Web Finance (2019), services are intangible products such as insurance, transportation, medical care, accounting, Banking, consultancy, education and many others. Services are sometimes quite difficult to identify given their close association with other goods and products. For instance medical care is a combination of a diagnosis and a physical product in medication which makes it a complex service. Another example is the banking services which involve an actual activity of storing physical products in money (Poissonnier, 2017). These variances highlight a wide range and types of services which are all critical and essential in the seamless running of an economy. Depending on the context with which the term is used; for instance whether in hospitality, business, or administration it will also allude to different items or activities. Services are widely classified in three different categories: business services, social Service and personal services. Social services include services provided willingly by individuals or organizations in pursuit of certain social achievements (Martin, 1999). Such social achievement include impacting the status of living of a maybe weaker section of the society, for instance providing education or health services to the slums or children’s and nursing homes. While these services are normally provided by governmental and Non-governmental organizations alike for free, there is normally an underlined objective such as covering other expenses or a corporate social responsibility agenda (Chenet, Dagger and O’Sullivan, 2010). Personal services on the other hand are different from person to person and are different depending on the service provider (Poissonnier, 2017). Six different types of business services however exist according to Martin (1999) and they include: professional services, information, transportation, medical care, financial services and convenience services. Based on the General Agreement on Tariff and Trade (GATT) a global agreement on the different service groups used in the making of commitments, eleven essential service sectors are defined: Business services which include professional and computer services, communication services, construction and related engineering services, educational services, environmental services, distribution services, financial services, health related and social services, transport services, recreational cultural and sporting services and tourism services (UN, 2015). These sectors are further segmented into around 160 different subsectors and service activities. For instance the tourism and travel related services is differentiated into subsectors for hotel and restaurants while the distribution services are further subdivided for the products being distributed as well as their transportation.

2.3 Role of Services in an economy

According to the New York Times (2017), the service industry is not only crucial for the sustenance of the products industry but in itself also makes up a crucial element of any countries economy. The service branch including; telecommunication, power and transportation makes up around 60% to 65% of the economy in a maximum number of the Organization of Economic Corporation and Development (OECD) countries (Chenet, Dagger and O’Sullivan, 2010). These point out the importance scope and magnitude of the services economy. Moreover the service industry is crucial in enabling continued, high and broad-based development which is necessary for economic development and poverty mitigation. While the observation that an increase in incomes goes together with an increasing share of services in economic activity dates back to at least the 1940s (Clark, 1967; Fuchs, 1980; Kuznets, 1957), a study by Khanna, Papadavid, Tyson and Willem te Velde, (2016) now points out that in any developing and developed economy across the globe including the UK, the sectorial constitution of the Gross Domestic Product (GDP) varies with the service economy within the country and has an increased share of more than 50% in most developing countries. This not only confirms the supremacy of the service industry and its steady constant growth over the years but also confirms an emergent form of service in sharing economy, which is quite effective and efficient and has therefore gained popularity rapidly over the years. According to AP News (2019) the sharing economy has expanded and become one of the fast-growing business trends in the history ever with over $23 billion in the capital venture from different investors from 2010. Laurens (2016) cites a report published by McKinsey in 2016 which highlights that more than 162 million people in the US and Europe are active users of the sharing platforms with majority coming from the UK further shedding light on the scope of the new market and its rapid adoption as well as impact in the economy. Recent approximations highlighted by the United Nations Conference on Trade and Development UNCTAD (2017), services account for up to 63% of the global economy almost doubling manufacture and industry at 32% and just 5% for the agricultural section. Up to 70% of the workforce within developed countries is employed within the service sector making the service economy and trade significant in inducing structural transformations in support of the global vision 2030 agenda for sustainable development developed by the UN (UNCTAD, 2017).

2.4 Data on the service Market and Economy

Data on the value of services to the economy are in two concepts to help categorize the types of services used; these include the national Accounts and Trade in services (Khanna et al., 2016). The National accounts distinguish among a wide range of services that are deemed to be government provisioned including: accommodation and restaurants, education, finance and insurance, health, information and communication, professional and support services, public administrative services, real estate transportation and storage as well as wholesale and retail trade services. The trade in services on the other hand are often grouped based on the 12 sectors of the World Trade Organization General Agreement on Trade in Services (WTO GATS) including : business services; communication services; construction and related engineering services; distributional services; educational services; environmental services; financial services; health-related and social services; travel-related services; recreational, cultural and sporting services; transport services; and other services. (Khanna et al., 2016). Chenet et al. (2010) however highlights that the role of services in the economy, including economic growth and transformation can be accessed on the basis of five indicators, including: the share of services in value added for an income level, the share of services in employment given a level of income, share of services in exports given an income level, the level of growth of the overall contribution of services to value added in as well as the level of growth of productivity in services and the rest of the economy. Conventionally the share of services in employment and value addition increases when a country becomes richer and the respective citizens’ incomes increase. A study highlighted by Khanna etal. (2016) confirms that while a Low Income Country (LIC) and a Low-Middle Income Country (LMIC) has a share of services in value added between 40-50%, Upper-Middle income Countries (UMIC) and High Income Countries (HIC) often display a value addition of between 50% to 70%. The study also highlighted as indicated in figure 2.1, that at lower levels of income, the employment share is lower than the value added share, this illustrates that the services productivity is higher than the average productivity of the economy, but the reverse is true for higher levels of income given that services productivity does not increase as fast as the rest of the economy.

These statistics are quite true for the service economy within the UK which has been growing steadily over time. According to Jackson (2018) of the financial times, 80% of the UK GDP came from the service sector in 2016. This number having grown from 46% in 1948, the percentage of workers rose from 33% to 80% from 1841 to 2011 highlighting the significantly increasing impact and magnitude of the service market. However to understand the increasingly significant impact of services to the economy, understanding its evolution and emergent trends as well as marketing techniques and the characteristics that makes services a unique form of products is essential.

Trends in the service Market

Shift in global trade structure

As already highlighted earlier, the contribution of the service market to the economy has been quite significant all over the period of development of trading and economics links and networks. UNCTAD (2017) highlights an increase in the share of services in GDP for all income levels in the period 1980–2015, specifically this increase include: from 61 to 76 per cent in developed economies and from 42 to 55 per cent in developing economies. Rao (2013) emphasizes that the service sector constitutes the backbone of both economic and social development of a region, emerging as the largest as well as fastest sector within the global economy creating both employment and significant output. The huge success of services has shifted the entire trade focus of superpower countries, minimizing on manufacturing and agricultural activities and maximizing on services which are taking centre stage. Buckley and Majumdar (2018) points out that with the rise of the service sector across economies within the globe the world trade structure has also been forced to change. The service sector now accounts for nearly 40% of the world trade (Deloitte, 2018).

2.5.2 Automated Services

The development of the internet and the fourth industrial revolution that is effectively shifting all traditional business activities such as management, procurement as well as manufacturing and marketing activities online, has also had a huge impact on the service market enabling individuals to be able to market their services online and increase client base as well as returns. However Draper (2019) also highlights that the internet has enabled the provision of some of these services online and even development of devices to deliver automated services in artificial intelligence and machine learning. A study by Mavenlink on the state of the service economy cited by Richards (2018) points out that among the common processes that service businesses implemented in 2018 include: Project dashboards that included project overview and history, Mobile access to projects, tasks, timesheets, and expenses and Contextualization caused by linking tasks to project delivery elements. This not only enables automated and mobile project management but also enables all stakeholders within a project or business to be able to oversee the various services being provided. Another 32% of the respondents from the study highlighted their involvement in the development and implementation of a Professional Service Automation (PSA) solution while about 48% had already implemented this (Richards, 2018). Another survey by the Deloitte as highlighted by the City of London Economic Research (Ullah, 2017) illuminates the presence of a growing adoption and provision of digital work spaces within the cloud and other secure websites developed as automated services within the internet. This enhances remote and localized working spaces due to the automated services of a workplace within the internet accessible from any geographical location across the globe.

Information services

Rao (2013) points out that the Information Technology industry has achieved phenomenal growth after liberalization. The industry has performed exceedingly well amidst tough global competition providing a wide range of information services that were initially unavailable and inaccessible. Differently business models dealing in selling information have been developed globally leading to a generally improved economy due to the ability of different businesses to perform with the additional aiding information (Ullah, 2017). The information technology service has also contributed significantly in being able to leverage global positive change leading to the continued emergence of a prominent industry. Berente (2011) highlights some of the services covered by the Information Technology Services industry to include: Medical Transcription, Back office, revenue accounting, data entry, data conversion, HR services. Customer interaction services -Non voice and Voice, Content development and animation as well as Remote education, market research and GIS. In addition Information Technology Services have served as a catalyst for the orientation of service business. According to Kawalkowski, Kinderstrom and Gebauer (2013) highlights that businesses dealing in services in support of client action have a larger positive impact on firms’ service business orientation.

2.5.4 Job creation of the Minority groups

According to the UNCTAD (2013) employment in the service industry has is relevant and significant for the females given that in the global statistics, women have the highest share of jobs within the sector. Based on a report by the International Labor Organization (ILO) (2016) the participation of women in services jobs in developing economies is 41 per cent and 54% in developed countries, second only to the agricultural sector. Service employment has also increased job opportunities for immigrants and individuals of minority groups in host countries such as Canada the US as well as the UK.

2.5.5 Service Trade

Development of the service industry has impacted the development of a trade industry creating a new trade of services that has flourished especially within already developed economies such as the UK and US. According to ILO (2017), the service trade including service exports and imports among the top 10 importers and exporters of services amounted to more than $5 million globally highlighting the emergence of the service trade which enables professional services to be exported and imported all across the globe to enhance growth and development of the various economies (Kawalkowski, Kinderstrom and Gebauer, 2013).

Sharing Economy

Sharing economy refers to a highly evolving term described by Miller (2019) as the use of technology to facilitate the exchanged access of goods and services between two or more parties. This baselines it as a form of service which enables easier accessibility of products and other services through the internet. Martucci (2016) describes the sharing economy as a highly flexible economic network that allows individuals and companies to exchange tangible as well as intangible products and services with one another at a scale. This definition points out its flexibility as one of the significant qualities of the sharing economy which differentiates it from the traditional services. Arcidiacono et al. (2018) on the other hand describes sharing economy as a business model that allows two parties to enter into a transition or an agreement that allows them to easily share their assets or services on mutually beneficial terms. While it has a wide range of boxing and definition based on different scholars and individuals in different fields, the common aspect include the sharing of space and product for the mutual benefit of all parties present.

Sharing Economy

A report published by McKinsey in 2016 found that more than 162 million people in the US and Europe are active user of the sharing platforms with majority coming from the UK (Laurens 2016). In a different study, UK has been ranked as the leading destination and hub for sharing economy in Europe representing one-in-10 of the global companies using the new digital platform in the region (Ravenelle, 2017). In 2015, a local company, Just Park, mobilized more than £3.7m from almost 3,000 financiers to form one of the largest UK equity crowdfunding with more than 865 companies registered in the sharing economy (Davidson, 2019; Langley, 2016). Sharing economy is an aspect that has pervaded all sectors of the trade ranging from mobility industry, retailing of consumer goods, tourism and hoteling industry, entertainment, multimedia and telecommunication, financial and energy sector, human resources sector and other peripheral areas where service industry is applicable (Dillahunt et al., 2017). Osztovits et al (2019) highlight some of the key features that identify the service market of sharing economy to include: resource sharing, where the users are free to share their unique resources through different models that have been developed. Through the use of the internet to make the exchange of resources easier on demand, not only speed and quality is delivered at a cheaper and more affordable cost but the transaction process and access to products and services is made more efficient through the sharing economy (Rinne, 2019). While the idea is not an entirely new business concept given that a wide range of rural and pre-colonial communities indulgences and reliance in the same idea through barter trade , the development of the internet has without a doubt impacted the sector leading to its rebranding into the sharing economy (Arcidiacono et al.,2018). For a long time the challenge was always how to find customers and clients who want exactly the same thing being offered and have exactly what is being required. While development of the currency solved one of the problems, it was not until the development of the internet that impacted communication channels, when the other problem was solved enabling an efficient and effective sharing economy (Rinne, 2019). An example of some of them includes the car-sharing economy such as Uber and short-term housing services such as the airbnb. While the sharing economy is the common term used, Miller (2019) unveils that this is only an umbrella term covering other economic systems including: Collaborative economy/collaborative consumption, Freelancing/Gig economy, Crowd funding investment or crowd sourcing resources, Peer to Peer economy as well as Co-branding. The market also offers opportunities for the community to share the costs of operations including investment and the consequential implementation of diverse services model in the economy (Lee et al., 2018). Moreover, in the sharing economy sector, the partners and players share resources and enjoy the profits and benefits together.

Impact of the sharing economy

2.6.1.1 Accommodation and Hospitality

The emergence of this service economy is further characterized with idle resources and capacities which can be sold at any time or be shared with other players. For instance, Airbnb is a concept derived from making use of idle houses whose owners have other homes or are not within the locality. Rather than the houses lying idle with maintenance and repair cost they are rented out to visitors who would rather a quiet homely estate accommodations as compared to the commercialized hotel rooms. Seright (2018) points out that unrelated individuals can share rooms within an idle house and share the cost rather than every individual having their own houses with massively underutilized spaces. The concept is used by host for their empty rooms and is available in the UK for users who are interested in accommodation (Wang and Nicolau, 2017). The service industry is well known for its on-demand access where users in the UK have the ability of satisfying their unique needs for different services as they are needed. As consumers, in exchange for the resources they use and only pay a propionate amount for their usage of the service (Freedland and Prassl, 2017).

Transportation

The sharing or the service industry in the UK is also characterized by a high degree of personal interaction through innovation and technology as the key drivers (Narasimhan et al., 2018). This is decided by different models which are meant to promote close relations between the service providers and the consumers across the country. The main objective is to offer comprehensive customer satisfaction platforms and services which is the key to the success of the sharing economy (Wosskow, 2014). Among the sectors in the economy that have taken advantage of this concept is the car sharing/Taxi services such as Uber, Didi, Lyft and Turo which has recently expanded into the UK (Koresec, 2018). The use of the internet as well as online navigation systems such as GPS makes it easier to access cars available for sharing. I addition to this being fast and easily available car sharing offers an alternative to car hiring or using public transport thereby enhancing the efficiency of travels (Elliot, 2018). The services offered by this new economy as emphasized by Elliot (2018) thereby, includes connection of drivers with empty cars and enable them to conduct business through sharing with the public counterparts requiring transportation.

Crowd sourcing resources

Given the stringent procedures and requirement required by financial institutions such as banks and insurance companies, securing investment for different business ideas that individuals may have has for a long time been a challenge and key constraint in the development of business ideas and opportunities (Seright, 2018). Given the development and emergence of the sharing economy facilitated by the internet, individuals can now easily source funds through online peer to peer lending communities as well as websites such as lending club and crowd funding sited such as fundable.com (Koresec, 2018). Through the sharing economy financial services can be easily and conveniently accessed by individuals to be able to invest in their various projects with a short and less stringent way. In addition the sharing economy has significantly impacted and is also actively used as a modern form of service in sectors such as Health care by companies such as Doctor on Demand and Cohealo, in the professional and personal services sector to market nes professional services through online websites such as Upwork, Fiverr and TaskRabbit as well as consumer goods sharing spaces such as eBay and Rent the runway (Miller, 2019).

2.6.2 Causes for Emergence of the Sharing economy

In a study published by PWC, there are different factors which have been driving the rapid adoption and usage of the sharing economy. For instance, the study established that the service sector was influenced by the dynamic spread of advanced digital platforms and devices in the market which makes it easier for new models to be developed, tested and utilized (Dillahunt et al., 2017). The development and spread of technology leading to the development of social platforms and ecommerce sites as well as the widespread adoption of business conduction and transactions via the internet are all technological factors that have led to the random build up and emergence of the Sharing economy. This is because they make the service transactions, accessible, fast effective and efficient as compared to traditional means (Elliot, 2018). Another factor that drives the sharing economy is the changes in consumer needs which include their attitude to ownership and environmentally friendly behavior. Sustainability being another common term that has recently emerged alluding to the strife to conserve resources as well as the environment for future generations, business and individuals are fast adopting sustainable ways of living and existing with each other to enhance sustainability (Chenet, Dagger and O’Sullivan, 2010). Accordingly, the service industry is influenced by desire to utilize current resources effectively and more rationally with maximum utility among consumers and producers through cheap alternatives (Narasimhan et al., 2018). Through this way, individuals and organizations with underutilized assets can derive utility of their assets from a demanding service market that has just been exposed due to the fourth industrial revolution. The emergence has also been driven by the recurrent social changes which comprise of globalization and urbanization of the world that need companies to be connected for quick and efficient businesses and trade. Given the need to view the world as a single entity which requires development and growth all across, information transparency and sharing has impacted the development and h]growth of the sharing economy between developed and developing countries to establish global economic equilibrium (Narasimhan et al., 2018).

2.7 Service Marketing

Marketing as a concept has always been meant for goods with an aspect of physicality and tangibility that can be examined and its features dissected in a bid to win over the buyer or consumer. According to Vargo and Lusch (2004) marketing as a business aspect was built on the foundation of products and goods marketing, specifically the distribution and monetized exchange of manufactured output. Wainwright (2017) points out that the idea of marketing as understood in the modern era began during the first industrial revolution. Vargo and Lusch (2004) in fact confirm that the idea grew out of economic science with a wide range of different models developed during the industrial revolution and with the sole intention and purpose of dealing with the issues of publicizing manufactured products. While the concept can within a significant substantial level be used in the marketing of services as well, over the years scholars have been able to create a sub discipline of service marketing to address the exchange phenomenon due to the different qualities of services as compared to products. Schwartz, Bowen and Brown (1992) are among the scholars credited with breaking service marketing from product marketing through addressing exchange phenomenon that was previously underdressed or undressed in marketing given the different in their product and service orientation(Vargo and Lusch, 2004). Largely the break free involved the process of legitimizing the services domain from the product domain through pointing out certain differences in characteristics that warrant the need for different approaches in the publicity of services as compared to products. Crawford and Bailey (2018) point out the delineation of four different characteristics between services and goods, Intangibility, heterogeneity, inseparability and perishability. Vargo and Lusch (2004) point out that based on these characters that are normally considered disadvantageous, normative strategies to enhance the marketing of services were identified and adopted distinguishing service marketing from product marketing. Service marketing take into account the different characteristics of services and therefore use more normative strategies in their marketing. For instance given the special quality of service to be intangible does not mean they cannot be seen or felt, as such, marketing techniques for professional services take into account recommendations based on previous recipients of the same service. This enables companies to build marketing techniques out of a reputation of remarkable services offered to different clients (Jones and Shaw, 2002). Other characteristics such as its heterogeneity which refers to the inability for output standardization, its perish ability which highlights its inability to inventory services as compared to products as well as its inseparability of production and consumption limits its ability for quantification and thus accurate price tagging and marketing like goods (Vargo and Lusch, 2004). This necessitates the development of marketing techniques that can be able to quantify services including attaching it to measurable qualities that they may poses, for instance time periods of operation, for instance consultants and doctors as well as the size of attached physical product (Crawford and Bailey, 2018).all these adjustments in marketing techniques for instance have had an impact in the development of the sharing economy. While a majority of the travelling systems and mechanisms employed previously did not take into account accurate distance measurement and approximation, car sharing services through using of GPS navigation systems can effectively calculate distance and time and therefore develop effective and more competitive charges for travels which have effectively led to the rapid rise of the UK economy (Dancun, 2018). While marketing of hotels and restaurant accommodation mostly relied on the experience drawn from the services offered, classifying them into different classes of services, the development and rapid growth of house sharing economy enables individuals to pay much lesser for shared spaces but still enjoy a homely experience. This has led to a huge shift of individuals’ customers of travel services and hotel accommodation within the UK, including tourists on vacation to Airbnbs effective a rapid growth of the economy. Duncan (2018) highlights that Airbnb would make 22 per cent of all UK inventory if they were classified as hotels, pointing out that property owners made up to 657 million Euros between 2016 and 2017 via Airbnb pointing out a very wide profit range. ArthurOnline (2018) an Airbnb online connection site highlights that Airbnb provides a cheap and beneficial short term alternative to Hotels thereby rapidly shifting the market to the Sharing economy. ArthurOnline (2018) further emphasize that no business entity can question the big opportunity that Airbnb has brought into the industry highlighting their own benefits to include an increase in consumer to over 4 million guests in 2017 from below 1000 in 2011. Graph highlights cumulative guest arrivals at Airbnb listings in London Area.

Chapter 3 Research Methodology

3.0 Introduction

Kothari (2004) defines Research Methodology as “the application of science in the various processes and activities concerned with a research study.’ It involves a sequential tabulation of the procedures and guides involving a research study with the aim of deducing inferences and conclusions that are valuable in achieving the objectives of a specific study. Through the applications of reliable scientific tools and established principles data is collected and used to make these deductions. Saunders, Lewis and Thornhill (2009) illustrate an overall research methodology to resemble an onion with different layers covering up the main idea with relation to the research problem at the center of it. As such peeling off these layers is key to uncovering the main idea. These layers represent crucial aspects to be considered in determining the research methodology for a particular research. The contents of this chapter highlight an outline and in depth analysis of research methodologies, techniques, strategies, approaches and tools sufficient enough to recognise, accumulate collect and evaluate primary data related to the proposed research aim. The chapter includes a critical evaluation of the used methods of research, the research design and approach, population sampling, data collection and analysis, presentation as well as the ethical requirements appropriate to ensure that the selected approaches and procedures are optimum for the valid and reliable focus on the research question to achieve valuable data capable of achieving the stated objectives. The selected approach in addition has been carefully thought out to minimize the risk of human error in the collection and analyses of data phases.

Research Approach

A research approach is the chosen plan and strategy to conduct each of the different stages of a research project, from data collection, analysis and interpretation, to meet the objectives of a study. It is inherently based on the researcher’s philosophical presumptions, the hypotheses and the design opportunities to implement powerful and appropriate methods to gather, categorize, analyse, and interpret data throughout a research process. Consideration of the philosophical underpinnings, theories and concepts underpinning a study is an essential component of valuable research (Lather & St. Pierre, 2013). The three broad categories of qualitative, quantitative and mixed methods of research each speak to a point of view about the enquiry, however they are ultimately a continuum of the same axis rather than distinct components and each present data progressively according to the methodology (Creswell, 2014). Alvesson & Sköldberg (2017) argue that “knowledge cannot be separted from the knower” (p.1) and that qualititative research has achieved a cedibility previously the domain of empirical studies. This study given its nature involving wide qualitative information derived from individual experiences and opinions will take up the qualitative approach.

Research Design

Research design dictates the direction of the actual study as well as the manner in which the research is conducted (Remenyi et al., 2003). Saunders et al. (2009) further clarifies that a suitable research design needs to be selected based on research questions and objectives, existing knowledge on the subject area to be researched, the amount of resources and time available, and the philosophical leanings of the researcher. A comprehensive and extensive data collection and analysis framework was used in the determination of the research design to follow. This framework is highlighted in the figure 3.1 representing the Hierachy of the research design.

The two primary strategies include exploratory and conclusive research design. Exploratory research simply delineates between qualitative and quantitative enquiries. Conclusive research on the other hand delineates further to a wide range of divisions. Initially it is broadly distinguishing between descriptive and causal research. Descriptive research is further categorized by cross-sectional and longitudinal design. Cross-sectional design is further divided into single and multiple cross-sectional designs dependent on the resources and objectives of the study (Neuman & Robson, 2014). According to Collis and Hussey, (2009) and Saunders et al., (2009) the research design chosen dictates the types of strategies that a researcher can adopt for use in a study, some of which include survey, case study, experiment, action research, ethnography, archival research grounded theory, cross-sectional studies, longitudinal studies and participative enquiry. For this study however and guided by the above principles the researcher adopted a qualitative exploratory research design and use of open ended questionnaires and focus groups to collect data. Griffiths, (2009) points out that the qualitative exploratory research design involves detailed exploration and analysis of particular themes and concerns within a topic to find out unknown factors about them like their causes, or effects. Further qualitative approaches are particularly effective when the topic of research is complex, novel or under-researched as it leaves the results open to the possibility of unexpected findings, rather than predicting an expected outcome as is often the case for quantitative research (Collins and Hussey, 2009).

Research Philosophy

Saunders, et al., (2009) and Yin (2013) agree that research philosophy is chiefly concerned with the perspective with which various subjects and objects are viewed: it illuminates ideas about how data regarding a phenomenon should be gathered, analysed and used. This philosophical awareness guides researchers through the challenges and enable them employ the relevant and effective strategies that are crucial in ensuring the viability of the researches outcome. According to Strauss and Corbin (1994) and Yin, (2013) Research philosophy is concerned with how things are viewed in the world: an idea about how data regarding a phenomenon should be gathered, analyzed and used. Questions such as why the researcher is actually conducting the research in the first place, how to research and when to research are among the key determinants of which philosophical approach to be adopted within a research study. In the development of a philosophical perspective, making relevant assumptions with regards to the nature of society and science is quite a significant endeavor (Burrell and Morgan, 1979). Given that each research has a distinctive strategy, methodology as well as assumptions, a researcher ought to carefully choose the working paradigm, understand its nature, and document their choice in their writing Bryman (2001) The study being involved in the nature of social entities especially with regards to service delivery and its general impact to the society, the research will adopt the philosophy of: interpretivism (social constructionism) or positivism. This is due to the fact that social phenomena have an existence which is independent or separate from the actors within them.

Research Method

According to Yin (2013) the diversity of research studies enables utilization of multiple applicable methodologies to gain both rich qualitative and quantitative data to fulfil the purpose and objectives of the study. Mackey & Gass (2015) assert that qualitative data involves a dynamic and negotiated reality that seeks to understand human behaviour and perspectives, Qualitative data collected is often subjective and personal, containing sentiments, opinions, personal experiences and abstract ideas as such the analysis of qualitative data is through descriptors and identifying themes. According to Glesne(2015) the purpose of quantitative research is to identify relationships between variables as a means of establishing causality between them. In contrast, quantitative research entails the measuring of phenomena through tools such as surveys to obtain facts and figures that can be analysed for comparisons and inferences and establish statistics. Table 3.1 highlights the differences between thew two research methodologies.

Given the nature of the dissertation being a qualitative study that is purely exploratory in nature, seeking to identify the extent of growth of the sharing economy within the UK as well as the impact of service marketing to the development of the sharing economy, the researcher employed the use of structured questionnaires with closed ended questions in the collection of primary data for analysis and interpretation especially from among the service providers within the emergent sharing economy. In addition to this, the researcher employed the use of focus groups as other means of primary data collection among the various users of the sharing economy and individuals who have experienced in one way or another the services provided in this economy. This was essential to enable a follow up of the questionnaire as well as clarification of any specific points that would crucially add on to the overall value of the answers to the questions asked as well as the data collected for analysis. These data collection methods enhanced the collection of raw insights that clearly point out the of service marketing in the emergence of the sharing economy as well as the scope and growth of the economy itself.

3.5 Data Collection

Data collection is the essence of research and its reliability and validity determines the success of a study. The inclusion of mixed data sources, as discussed above, was made for categorization, evaluation and interpretation as a means to achieve the objectives of the study (Brinkmann, 2014). The sources and techniques of the primary and secondary data collection processes are identified below

3.5.1: Questionnaires

This study utilized a questionnaire to survey, collect and analyse emperical data to highlight the emergence and growth of the sharing service economy as well as the role of service marketing in its rapid emergence. The detailed questionnaire comprised seven questions directed towards suppliers of services in the sharing economy market. Survey responses were measured on the five-point Likert scale that clustered responses from strongly disagrees to strongly agree (McCusker & Gunaydin, 2015). The specific purpose of the survey was to determine the role of service marketing in the emergence and rapid growth of the sharing economy as well as evaluate its performance in terms of consumer experience and financial performance.

3.5.2 Focus Groups Design

The study further uses Focus group in the collection of data from the service users of the sharing economy. 15 respondents divided in groups of five each with a moderator will involve in discussions regarding their various experiences with the use of the services from the sharing economy.

3.5.3 Secondary Data Collection

This research is a detailed study of the emergent sharing service economy and the impact of service marketing to its rapid growth and development as such it includes both primary and secondary data related to the themes of the study. In the determination of the impact of service marketing as well as the experience of the new sharing economy through primary methodology, a comprehensive review of relevant academic literature with relation to the emergence and development of the sharing/service economy was conducted to more broadly understand the new market.

3.6 Sampling

Unlike quantitative sampling methods that typically depend upon probability samples that will permit confident generalization from the sample to a larger population; qualitative samlpling methodology focuses on an in-depth interview of relatively small samples with similar characteristics to the population selected purposefully (Smith, 2015; Taherdoost, 2016; Tarone, Gass, & Cohen, 2013). The sampling method is the parameter that enables researchers to select a suitable population for data collection and analysis, such that it influences the overall research results. It is therefore paramount that collection of data is acutely relevant to the key themes of the study, the research design and research models. Table 3.2 highlights some of the different sampling methodology available for use in different research studies.

Palinkas, et al. (2015) accentuates that the ideas behind a specific sampling approach vary significantly and reflect the purposes and questions directing the study. Having knowledge with regards to the magnitude and scope of one’s population therefore is is significant in the determination of whether probability sampling can be implemented (Blaikie, 2010). The study population involves service providers as well as service users in the sharing economy due to their direct involvement and participation in the emerging industry. To develop an elaborate sample that will produce viable and reliably elaborate perspectives and benefits therefore, random sampling will be carried out in within London UK. The researcher will issue questionnaires and informal interview to 25 service providers within the sharing industry including uber and other car sharing company drivers, airbnb housing owners as well as investors who are involved in crowd funding and peer to peer lending activities. This means that the sample will also be open to restrictions such as age and gender. Further the researcher also used purposive sampling to select 15 respondents who are users of the services from the sharing economy for the focus groups. These respondents included three groups of five respondents, each of the three groups with users of a different service within the sharing economy including; car sharing, house sharing and investment or resource crowd sourcing. Purposivel sampling is a technique widely used in qualitative research for the identification and selection of information-rich cases for the most effective use of limited resources (Palinkas, et al.2015). Cresswell and Plano (2011) further highlight that this involves identifying and selecting individuals or groups of individuals that are especially knowledgeable about or experienced in a phenomenon of interest. There was no age restriction in the selection of the sharing economy customers; however, data on participants’ age was collected for generational context.

3.7 Data Analysis

Mixed methodology research involves analyzing information from both a subjective and objective perspective as a means of gaining a holistic understanding of the research topic. The primary data collected on growth and development of the sharing economy within the UK as well as the impact of service marketing technique to this growth was analyzed using thematic analysis. Thematic analysis, used as a form of analysis for qualitative research studies provides a protocol for identifying, examining, compiling, describing, and reporting themes found within a data set (Braun and Clarke, 2006) collected through a wide variety of different research methods such as interviews, focus groups and questionnaires as applied in this research study. Accurate and replicable inferences are made from the analysis of the various patterns and themes out of the findings Content analysis methodology was used for the categorization of verbal or behavioural information analysis of motivations, summarization, and organization (Tarone, Gass, & Cohen, 2013; Reynolds, et al, 2014). The content examination phase includes two broad stages: coding and arranging information, referred to as sorting and ordering; and the point of setting the investigation so as to understand the information gathered and to feature the essential tendencies, highlights or discoveries (Jaggar, 2015; Mackey & Marsden, 2015).

3.7 Research Ethics

The nature of this study necessitated the inclusion of key areas of ethical concern: competence, confidentiality, informed consent, and conflict of interests, to be considered in the collection and data analysis processes to avoid legal or ethical issues impacting this research findings or further investigation on the topic.

Confidentiality and Informed Consent –Working with primary data collection necessitates the researcher to gain the trust of questionnaire and focus group participants and provide them with a commitment to confidentiality and security of the information provided by participants (Alvesson & Sköldberg, 2017; Lather & St. Pierre, 2013).

Conflict of Interest – Consideration of any conflict of interest for either the researcher or participants during the course of the research process arising from their duties or obligations in the interview and, or the questionnaire processes. Researchers have a responsibility to protect the interests of interviewees by considering potential areas of conflict for participants by bearing in mind their best interests or issues that could potentially lead to biased opinions or responses.

Consideration for all ethical and or moral values associated with the research is essential to ensure adherence to all professional research standards and approaches of reporting, credits, and plagiarism in order to protect the researcher from present or future ethical or legal issues. Focus on the code of ethical practices ensures the statement of principles and procedures is followed according to the ethical guidelines (Gast & Ledford, 2014; McCusker & Gunaydin, 2015). Adherence to the code of conduct allows researchers to avoid issues by considering issues that might affect the research over any ethical concern (Alvesson & Sköldberg, 2017).

Chapter four Data presentation and Analysis

4.0 Introduction and Background

The primary data collected in the field study will be presented and analyzed within this chapter highlighting the various themes and patterns that are useful in the answering of the research question. A discussion of the analyzed data will further follow to outline whether or not the aim of the study which is to evaluate the emergence of the service market with specific reference to the sharing economy as well as how the different marketing techniques have led to the emergence of the sharing economy, has been accomplished. The researcher utilized thematic analysis for data collected both through the questionnaire and focus groups. Thematic analysis, used as a form of analysis for qualitative research studies focuses on examining themes, patterns and connections within raw data collected through different research methods. The different themes and patterns regarding the objectives of the study including:

Knowledge of and experience of the sharing industry

Benefits and advantages of the sharing economy

Impact of service marketing to the emergence of the sharing economy

Impact of service/sharing economy to the economy

will comprise the major topics under which all the data will be analyzed The initial phase will focuses on the analysis of the questionnaires presented to the service providers in an attempt to determine the extent of spread of the sharing economy to the UK economy, its impact and benefits to the economy as well as the impact of different marketing techniques to its eventual emergence. The second phase will focus on the analysis of the focus groups among the users of the sharing economy services including: car sharing, House sharing as well as the investment or resource crowd funding. Eventually all the data will be combined in a discussion of how they relate to the different themes and patterns of the research study.

Respondents Background

The study involved 40 respondents in total, 25 of who filled questionnaires and responded to informal follow up interviews for the credibility and reliability testing of the information as well as additional information that require extensive indulgence and explanation by the respondents. The other 15 respondents were broken down into three groups of five, each engaging in focus group conversation regarding a relevant facet of the sharing economy: Car Sharing, house sharing and resource crowd sourcing. Out of the 40 respondents 24 respondents representing 60% were male while the remaining 40% were female respondents. 15 of the male respondents were service providers who answered questionnaires while the remaining 9% were service users who were involved in the focus group discussions. Similarly 10 female respondents were service providers while the rest were service users. Chart 4.1 highlights the sample distribution of the respondents based on their sex and age groups.

A majority of the respondents were in their early youth between ages 26-30 years making up 20 (50%) of the total respondents 11 of who were males and service providers while the remaining 9 were females 7 of who were service providers while the remaining two were service users. Respondents between ages 21-25 were next with 7 respondents making up, 31-35 with 6 respondents while 3 respondents were below 20 years of age and another 4 respondents between ages 36-40. This information points out that the economy is mostly dominated by the youths averaging 30 years. This is important to note given the development of this generation right at the development of the fourth industrial revolution. In addition the findings point out that in fact wide majority of the youthful generation between 26-30 years make up the service providers, in fact all the service providers are concentrated within the Age of 26-35 years which is the peak of youth highlighting the high affinity and dependence of the sharing economy emergence to the internet and fourth industrial revolution.

4.2 Magnitude of the Sharing Economy in the UK

4.2.1 Types of Sharing Economy Services within the UK

The study highlighted the existence of a wide range of different types of services being offered within the sharing economy including Car sharing services, house sharing service investment crowd sourcing, medical care as well as information sharing and others. According to the findings the most common service in the sharing economy within the UK is the car sharing economy with 10 respondents representing a 40% of the sharing economy service providers. These companies include Turo, Drivy as well as Uber Car services. House sharing services came second with 9 respondents followed by Investment crowd sourcing with 5 respondents and Information technology sharing with one respondent. Graph 3.2: highlights the distribution of the different types of sharing economy types within the UK.

4.2.2 Popularity of the Sharing Economy

Given the purposive sampling in the Focus groups all the respondents chosen had in one point or another interacted with at least a single particular service within the sharing economy in the UK. Respondents on the Car sharing focus group in fact testified to using the services quite often in their travels. 3 respondents highlighted that they use car sharing services in almost all their travels within the city on a regular basis while the other 2 clarified that they use the services only for short distance traveling with a frequency of about 3 to four times a week. These findings generally point out the high activity within the car sharing economy to almost match the traditional public transport economy. Respondents within the house sharing focus groups also pointed out a high populatiry of the service in the modern UK especially in comparison to the Hotel and restaurant accommodation alternative. 2 respondents highlighted that they often use Airbnb whenever they travel away from the city on business trips quite often while the other respondents preferred airbnb when on vacations. Collectively however it was a consensus on the popularity of the house sharing services in comparison to hotel and restaurant accommodation. While all the respondents in the investment crowd sourcing focus group agreed to only using the option when in a fix with their ideas and they need a bail out, the respondents arrived at a consensus with regards to its preference as compared to traditional financial institutions such as banks. These findings not only highlight a popularity and preference of the sharing economy in accessing different services as compared to the traditional service market but also describe a wide spread magnitude of the sharing economy within the UK capital.

4.3 Benefits Perceived from the sharing Economy

4.3.1 Service Providers Experience

In order to investigate the benefits of the sharing/service economy in the economy of UK the researcher indulged in finding out the experience of the providers of these services within the economy through answering a five point scale from Very Good to Very bad. The findings highlight a very positive experience from the service providers in the sharing economy. 20 out of the 25 respondents representing 80% of the service providers pointed out that the experience so far within the industry has been very good citing profits from their endeavors. It is also important to note that all of these respondents include providers dealing in the in the car sharing and house sharing services. 3 respondents highlighted a good experience while another 2 respondents highlighted that the outcomes are sustainable. Graph 3.3 outlines the service providers experience in the sharing economy within the UK.

4.4 Benefits of the Sharing Economy

The study went further to investigate the potential benefits of the sharing economy both to the service provider and consumers in the sharing economy. 100% of the respondents agreed to a wide range of benefits derived from the emerged sharing economy as compared to the traditional service economy. Convenience, efficiency, affordability as well as quality for money were the most frequently mentioned benefits that come with the sharing economy.

4.4.1 Convenience and Profitability

All the 25 respondents who answered questionnaires and responded to interviews pointed out convenience and increased profitability to include the benefits derived by the service providers within the emerged industry. A majority of the house sharing service providers point out that sharing spaces not only provides them with a source of revenue which increases the profitability of the assets they have but it also enables an effective use of the available assets and spaces. In addition the various parts of the house that have been rented out becomes the tenants responsibility relegating only the general service and repair functions to the owner, this is significantly more convenient compared to building management. Respondents within the focus groups on car sharing and house sharing also cited convenience as a major benefit that they derive from the emerged sharing economy. As highlighted by one respondent sharing a house in a homely environment provide a lot more convenience, freedom and flexibility than a hotel room. In addition sharing a car is definitely much more comfortable and convenient as compared to taking a bus despite being a little bit more expensive. All the respondents in the focus groups of agree that the sharing economy provides a wide range of highly convenient options compares to traditional services.

4.4.2 Efficiency

The research also established efficiency as another benefit provided by the sharing economy. All the respondents in the focus groups agreed that the sharing economy is in fact much more efficient in the provision of services as compared to the traditional models available within the industry. Respondents pointed out that using services such as Turo and Drivy is quite efficient given that the car serves only one passenger and thus the trip is direct to the preferred destination. In addition, these vehicles can also be tracked through the internet with the use of smart phones; as such users can easily access services at whatever location and time simply by requesting for a ride in their online apps, this is quite efficient especially when one is in a remote location. The conclusion within the focus group on resource crowd sourcing highlights a wide range of restrictions and challenges with accessing resources from traditional financial sources which makes the sharing economy quite an efficient source. Citing the limited requirements on crowd funding websites as well as the ease with which these sites and funds can be accessed, sharing stakes on a good and viable business investment also makes it easier to raise a large sum with minimal risk on each individual making it a rather efficient way of financing business projects within the economy.

4.4.3 Quality for Money

Both car sharing and House sharing users confirmed within the focus groups that the sharing economy enables a high satisfaction with the services thereby providing a quality for the consumers’ money. A respondent in the focus group highlighted that ‘While car sharing services such as using Turo services to move around may be much more expensive than other public transportation means such as the bus, the comfort provided by the vehicles as well as the direct to destination services impacts the journey in a very positive experience minimizing the hustle and thus making it justifying the money spent.’

Another participant highlighted that:

‘While an Airbnb charges up to 15 Euros a night within the UK, a hotel room to match the standards of the Airbnb in terms of services provides could cost up to 75 Euros a night. Making the Airbnb significantly cheaper for the services provided and thus justify the quality of money spent as compared to the hotel rooms. ‘

This difference in pricing between the Airbnb and the hotel also highlights highly affordable services within the sharing economy as compared to the traditional service economy. This justifies affordability as a major benefit of the sharing economy. These findings collectively point out that the various benefits of the sharing economy as compared to the traditional economy, subsequently justifying the rapid emergence and growth of the economy within UK.

4.5 Impact of Service marketing to the emergence of the sharing economy

4.5.1 Marketing Techniques within the Sharing Economy

In order to establish how different service marketing techniques have influenced the emergence of the sharing economy, the researcher included a question to find out the different marketing techniques that the service providers used in marketing their services. Based on the findings all 25 respondents making up 100% of the service providers identified the internet and You Tube Ads as some of the major strategies they applied in marketing their products. This they went ahead to highlight is quite efficient and suited for the specific type of business as all the aspects of the services being offered can easily relay to the consumers. For instance through the short You Tube Ad videos the Airbnb owners can advertise the various spaces they offer as well as the different service that come with this space to a global economy. This increases popularity even among foreigners who might be traveling in to the UK for vacation. Availability of online booking services in addition impacts the ease of accessing these services and makes the marketing technique quite an efficient one. In addition 15 other respondents making up 60% of the service providers including the 9 airbnb owners also specified social media marketing as a frequently used marketing technique due to its wide reach and variety of which it can be used. These respondents pointed out that internet as well as You Tube ads and social media marketing are quite effective and efficient especially when you consider the response rate, feedback as well as turn over as a result of the use of just these strategies. Graph 3.4 highlights the distribution of respondents with regards to the different sites used in the marketing of the services provided in the UK sharing economy. 4 respondents, specifically those dealing in the resource crowd sourcing also pointed out the use of word of mouth.

Discussions within the focus groups with regards to the marketing techniques used in marketing of the sharing economy services hugely pointed out to the internet as well as social media. A majority of the participants admitted to having heard about the sharing economy services from internet advertisement as well as social media sites such as Facebook and Twitter. However four respondents within the house sharing focus group pointed out that they first found out about Airbnb from their friends who had travelled and used them before and therefore had a firsthand experience regarding the services offered. The participants generally were in agreement that the internet is indeed an effective and efficient source when looking to find out and use sharing services within the UK given the wide range of companies advertising their services within different publicly accessible sites and social media channels within the internet. However a number of respondents highlighted that reliance on word of mouth is quickly taking root as a marketing technique within the sharing economy. Just like the traditional service market where service providers compete in terms of the quality of services provided to the consumers, the rapid emergence of the sharing economy and the availability of different options within the economy has increased the need for maintaining a favorable reputation which in turn impacts the business one receives. This within the internet is referred to as electronic Word of Mouth (eWOM) As such a wide range of the respondents highlighted that while the internet is a good marketing site for these businesses, they are not quite effective when it comes to decision making by the consumers as most of them turn to eWOM for decision making.

4.6 Impact of the Sharing Economy

Through highlighting the various benefits they derive from indulging in the sharing/service economy one of them including profitability, the respondents pointed out that through sharing economy they are able to make revenue from previously dormant assets and therefore make a 100% profit. These profits derived from the sharing economy highly impact the economy subsequently in a positive and big margin. These findings in addition are consistent to the literature review content analysis findings including (AP News. 2019; Laurens 2016; Ravenelle, 2017; Davidson, 2019; Langley, 2016). All of who highlight that within the recent past, sharing economy has expanded and become one of the fast-growing business trends in the history ever with over $23 billion in the capital venture from different investors. A respondent pointed out that: ‘Having enrolled my personal vehicle in Turo I can be able to use it to transport passengers on a part time as well as whenever I’m headed somewhere thereby affording me a 100% profit that I was not able of getting previously.’ The participants of the focus group further point out a wide range of benefits including convenience, efficiency, flexibility, value for money as well as affordability all of which significantly impact the economy through a shift in taste and preferences. Given the shift from traditional service economy such as hotels and public service vehicles as well as financial institutions, all of which are critical players within the economy, the economy is significantly affected and among the ripple effects that may be exhibited includes collapse of service businesses impacting the economy in a negative stretch. In the same breath, the sharing economy has significantly emerged and grown on exponentially thereby impacting the economy in a positive stretch. The lack of equilibrium of this changes as highlighted by the law of economics is likely to influence the growth of the economy within the UK thereby either increasing it significantly. Among the risks and challenges highlighted by the respondents especially the service providers within the sharing industry include experiencing breakages and vandalism in the personal property like houses which are not scheduled for as well as the issue of security in car sharing. One respondent for instance highlights that ‘Drivers have complained about being robbed when driving individuals who pose as passengers especially during the night. ‘ These risks and challenges significantly limit the involvement of individuals within the sector especially given the lack of an efficient legal framework for regulating the fairly new market. This consequently impact their contribution within the economy

4.7 Discussion

The primary study findings were almost quite consistent throughout the study with the content analysis in line with the research objectives. Having set out to investigate the emergence of the sharing/service, its magnitude and impact to the economy as well as the role of service marketing in its rapid emergence, the findings were quite effective in answering these questions.

4.7.1 The Sharing/Service Economy

The findings with regards to the emergence of the sharing economy within UK point out the existence of a wide range of services within the sharing economy that is available within the capital of UK. These including Car sharing (Turo and Uber) House Sharing (Airbnb) resource crowd sourcing networks and other services in sectors such as the health sector are easily accessible and frequently used within the UK. This can be confirmed by the content analysis in scholars including Duncan (2018) who highlights that highlights that between 2016 and 2017 Airbnb made up 22 per cent of all UK housing and accommodation inventory, pointing out that property owners made up to 657 million Euros via Airbnb this confirms a very high frequency and popularity of their use as well as a wide profit range. In addition the researcher was able to also purposely locate a sample of individuals who have indulged frequently in using these services which highlights the existence of a large market for the sharing services within the UK, effectively translating to the huge magnitude of the services within the UK.

4.7.2 Impact to the Economy

The findings also highlight a wide range of benefits that are derived from the sharing economy by both service providers and service users in comparison to the traditional service models. Majorly based on the study these include convenience, efficiency, affordability, reliability, value for money as well as profitability. These benefits are consistent with the literature review findings from scholars such as (Seright, 2018; Wang and Nicolau, 2017; Wosskow, 2014; Narasimhan et al., 2018 and Koresec, 2018) who point out efficiency, flexibility and convenience as some of the major benefits brought about by the sharing economy. Duncun (2018) points out a revenue of up to 657 million Euros collected by property owners in the financial year 2016-2017, In 2015, a local company, Just Park, mobilized more than £3.7m from almost 3,000 financiers to form one of the largest UK equity crowdfunding with more than 865 companies registered in the sharing economy (Davidson, 2019; Langley, 2016) and a report published by McKinsey in 2016 found that more than 162 million people in the US and Europe are active user of the sharing platforms with majority coming from the UK (Laurens 2016). These statistics not only point to the existence and the rapidly improving sector of the UK economy in sharing economy but also stronlgly indicate the impact that the sharing economy has had within the entire UK economy in just a few years.

4.7.3 Impact of Service Marketing

Service marketing techniques as highlighted by the literature review (Vargo and Lusch, 2004; Brown, 1992; Jones and Shaw, 2002; Crawford and Bailey, 2018 and Wainwright, 2017) has significantly evolved to include strategies that impact the sales of services as compared to products. The findings highlight that the sharing economy has partly developed due to the advancement of technology and the internet; these sites have also impacted service marketing in a significant way making it easy for service providers to be able to advertise their services to the general public. However Just like in traditional service marketing where individual utilize strategized marketing services in the electronic Word of Mouth (eWOM) through consumer engagement and feedback in ecommerce sites, the sharing economy is highly impacted by eWOM among consumers who have already experienced the services provided. Strategically designed service marketing advertisements within the internet as well as feedback from individuals on social media sites has been quite significant in the emergence of the sharing market within the UK.

Chapter 5 Conclusion and Recommendation

Conclusion

The service market has always been a significant contributor to the economy making up more than half of the Gross Domestic Product in the UK. While a wide range of services have existed in the market ever since the first industrial revolution, most of these services were enclosed within products when it comes to pricing thereby leading to the development of inadequate marketing techniques for services. in addition the characteristics of services such as intangibility, heterogeneity as well as its quality of being inseparable from the service provider impacted the accurate quantification of the various services, however with the delineation of products from services, the service market was capable of significantly developing within the UK. Different trends in the service market within the UK in the current century however in connection to the development of the internet and technological advancements that have subsequently impacted marketing services and the extent and magnitude of information reach have led to the development of a new economy within the service market: the Sharing economy. Availability of the internet and social media sites now makes it easier to be able to market various services in the sharing economy with ease and significantly compete against the established traditional service provision models. This highlights why the sharing economy has been able to significantly grow within a short time to be a lead source of revenue within the UK. The existence of idle resources and assets as well as the need to impact sustainable environmental development also include among the other factors that led to the emergence and rapid development of the sharing economy within the UK. Given the wide range of sharing economy services available within the UK economy as well as their economic impact, the researcher concluded that in fact the service marketing techniques used by the service providers of the sharing economy within the UK were impactful in the growth of the industry in the recent past. The research as such confirms the existence of a large sharing economy market within the UK that is significantly impacting its economy.

5.2 Recommendations

Given the findings of the research, the researcher confirms the existence of a sharing economy within the UK. However the most prevalent services offered include car sharing, house sharing, and investment sharing. This is however due to the restricted scope with which the researcher was operating during the process of carrying out the research as such for a full understanding of the sharing economy within the UK; the other scopes of the sharing economy should be inherently investigated. The research also highlights that consumers tend to rely more on eWOM for their decision making with regards to which services to use within the sharing economy. As such, this research recommends the development of online business websites for the service provided in the Sharing economy.

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