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Sustainability
  • Article
  • Open Access

16 December 2021

Evaluation of the Consumer Perception of Sharing Economy: Cases of Latvia, Russia, Ukraine and Belarus

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1
Institute of the Civil Engineering and Real Estate Economics, Riga Technical University, LV1048 Riga, Latvia
2
EKA University of Applied Sciences, LV1019 Riga, Latvia
3
Legal Department, Faculty of Law, Rīga Stradiņš University, LV1007 Riga, Latvia
4
Department of Management, BA School of Business and Finance, LV1013 Riga, Latvia
This article belongs to the Special Issue Environmental Management Approaches and Tools to Boost Circular Economy

Abstract

The overwhelming goal of large-scale cross-country research is to evaluate consumers’ perception of a sharing economy. The research was limited by the number of respondents, as well as by the countries represented in the survey. Latvia, Russia, Ukraine, and Belarus were mostly represented, and only these responses (757) were analyzed. The study used multilevel modelling of sharing economy elements (dependent variable) in relation to personal characteristics (age, gender, income, industry) nested by the self-assessed level of eco-friendliness (a key predictor for the attitude towards sharing economy). Findings: The key personal characteristics, which influence a person’s intention to be involved in the sharing economy practices, are level of income, education, and also self-perceived ecological friendliness. The sharing economy is not only a topic for investigation among academicians, but also an issue on the agenda of the European Commission, because it is considered as a driver for growth and job creation in the European Union. Despite an increasing interest and many studies, there is a limited number of studies focused on difference in perception of sharing economy depending on personal characteristics of respondents. This indicates the necessity of conducting such surveys, involving participants from different European countries. The given paper could be used as a methodological framework for other European researchers who are interested in the exploration of the topic regarding perception of the sharing economy.

1. Introduction

Sharing economy, or collaborative economy, is on the agenda of the European Commission due to its rapid dissemination across Europe. It is considered that sharing economy can make an “important contribution to jobs and growth in the European Union” [1]. The idea of sharing economy is based “on the philosophy of access-based consumption where, instead of buying and owning things, consumers want access to goods and prefer to pay for the experience of temporarily accessing them” [2]. Eurostat survey showed that 21% of EU citizens used a website or an app to arrange accommodation from another person, and 8% have done the same for transport services [3].
The current research continues the previous study conducted by the authors [4], which was based on a Latvian sample only. In the Latvian survey, 244 respondents participated, and one of the main goals was to test the reliability of the research instrument.
The goal of this paper was to evaluate consumers’ perception of a sharing economy. The results of the research were based on data received from 877 respondents representing 34 countries, but mainly Latvia, Russia, Ukraine, and Belarus. The only data received from respondents (757) of the most represented countries was analyzed.
The research question was “What personal characteristics of respondents affect their attitude to sharing economy?”
The data analysis was performed in the SPSS, applying multilevel regression analysis. Testing of measurement scales of separate questions was done by means of reliability analysis, assessing an internal consistency with Cronbach’s alpha coefficient.
The current research contributes to investigation of the relationship between attitude to sharing economy and personal characteristics of the potential participants.

3. Materials and Methods

For our research, we used questions that were taken from the original questionnaire created by the Veridu in 2016 and conducted in the United Kingdom and USA [70]. According to the Veridu study, as well as other studies [71,72,73], younger consumers are far more likely to participate in the sharing economy. This is why the main part of the respondents were students who participated in various study courses related to sustainable development issues.
In the current research, the questionnaire with only two main sections was used: A—respondent profile, B—experience in sharing economy services, and C—attitude to the sharing economy. In turn, each of the sections involves several multiple-choice questions. The structure of the questionnaire is presented in Table 1.
Table 1. Structure of the questionnaire.
The current study analyzed the only data from section A and section C.
Within section C1, respondents were offered to answer the question “How comfortable are you with each of the following sharing economy scenarios?” on a 5-point scale (“1”—extremely uncomfortable, “5”—extremely comfortable), which was suggested for the rating of 8 pre-determined scenarios. Labels of each scenario are presented in Table 2.
Table 2. Statements in the questionnaire section C1 and their labels.
Within section C2, respondents were offered the opportunity to evaluate on a 5-point scale (“1”—absolutely not important, “5”—very important) the importance of various aspects/factors when using sharing economy services. All the factors were labelled, as is shown in Table 3.
Table 3. Statements in the questionnaire section C2 and their labels.
Within section C3, respondents were offered the opportunity to evaluate their readiness/willingness to make a checking procedure before engaging in a transaction with another member of the sharing economy platform. A 5-point scale (“1”—not likely at all, “5”—completely likely) was suggested. Checking procedures and their labels are summarized in Table 4.
Table 4. Statements in the questionnaire section C3 and their labels.
The total number of respondents in the sample was 877, representing 34 countries. Most respondents represented Russia, Ukraine, Belarus, and Latvia—23.26%, 22.12%, 8.55%, and 32.38%, respectively. Age representativeness of these countries can be explained by the fact that Russia, Ukraine, Belarus, and Latvia participated in the Baltic University program (BUP). The lecturers of these universities participated together in various events organized by BUP and agreed to conduct joint research.
The representativeness of all other countries did not exceed 1–3% of the sample and can be explained by the presence of foreign students in groups. Therefore, we decided to conduct an analysis only for 4 countries, i.e., we left only answers of 757 respondents. An adequate sample size, based on statistics of a population collected by the World Bank and using 99% confidence level and 5% confidence interval, was found to be 666 respondents.
The distribution between male and female respondents was 30% and 70%, respectively. Among the respondents, 49% had completed secondary education, and 18%, 8%, and 18% held a bachelor’s degree, a master’s degree, and a doctoral degree, respectively. The remaining respondents selected the answer “other”. Most of the respondents—25% and 38%, respectively—represented the age groups “less than 20 years” and “20–25 years”. In all other age groups, the number of respondents was distributed almost equally. Although the sample was somewhat biased in terms of gender, it was robust according to testing, yet we recognize consequential study limitations.
The reliability analysis to check the internal consistency of the measurements scales was conducted within the previous study. Analyzing the item-total correlation coefficients and alpha value “if item deleted”, we concluded that when the statement “joining a platform” from C1 scale and “communication” from C3 scale are deleted, total alpha of the scale can be increased. The items were not removed, but it was suggested to iterate the test in the following cross-country research. The results, based on the cross-country sample, are presented in Table 5.
Table 5. Cronbach’s alpha of the scales if individual items are deleted.
Cronbach’s alphas for the whole measurement scales (C1, C2, C3 questions) were 0.756, 0.798, and 0.809, respectively. As shown in Table 5, deleting of two items—“sharing a house” and “communication”—increased the overall consistency of the measurement scales C1 and C3, respectively. However, the improvement was not significant enough to remove the items from the analysis.
Data analysis was performed by the implementation of a multilevel regression model to find the relationship between the perception of the sharing economy (perceived eco-friendliness) and personal characteristics of the respondents. Multilevel regression was chosen as the key methodology due to the fact that suggested hypothesis aimed to test the portrait of a person who is highly likely to become engaged in sharing economy practices.
Applying the multilevel regression model, we found that the parameters (regression coefficients) were used to assess probability with which the dependent variable would reach certain value. The nesting parameter, or the second level of modeling data, is an independent variable that is moderating the relationship between the lower-level independent variable and the dependent variable. Multilevel models are commonly addressed as hierarchical, due to the implemented data structure and the hyper-parameters of the upper-level model that are used as a controlling variable that affects the influence of lower-level variables [74].
This type of statistical analysis is in use when one needs to consider the social contexts as well as the individual respondents or subjects, which applies to the studied case of the sharing economy perception in 4 countries. According to Snijders and Bosker [75], there are “Two kinds of argument to choose for a multilevel analysis instead of an OLS regression of disaggregated data:
  • Dependence as a nuisance. Standard errors and tests based on OLS regression are suspect because the assumption of independent residuals is invalid.
  • Dependence as an interesting phenomenon. It is interesting in itself to disentangle variability at the various levels; moreover, this can give insight in the directions where further explanation may fruitfully be sought.”
As the relationship studied within this research tended to be influenced by personal characteristics of the respondent, this study used multilevel modelling of the sharing economy elements (dependent variable) in relation to personal characteristics (age, gender, income, industry) nested by the self-assessed level of eco-friendliness (a key predictor for the attitude towards circular economy). The assessment was performed with SPSS Statistics 22.0.

4. Results

The first question to the respondents was about the general self-perception as an “eco-friendly” person. Less than 1% answered “not at all”. The distribution of other answers, using 5-point scale from “not at all” to “very much”, was the following: “2”—15%, “3”—46%, “4”—35%, and “5”—4%. Thus, approximately 38% of respondents perceived themselves as “eco-friendly” people, and 61% evaluated their level of eco-friendliness as average.
At the first stage of research, we assessed direct relationships between the variables retrieved from the questionnaire by means of regular regression analysis; yet, it appeared that no significant relationship existed when we looked for the interdependence of a person’s involvement in the sharing economy and their personal characteristics (and an example of ANOVA is found in Table 6, where the dependent variable is Joining_a_platform, but predictors are constant and education). In order to follow the path of multilevel regression analysis, we needed to estimate whether the level of education can be seen as a predictor for joining the platform.
Table 6. ANOVA model of the sharing economy perception.
The results of single-level regression modelling with the same dependent variable, run for age, gender, and country as independent variables, indicated the same—the results were statistically insignificant, and therefore each personal characteristic cannot be considered as a predictor for a person’s involvement in the sharing economy. Yet, respondent’s age appeared to be statistically significant, although it explained only 2.5% of the variance in terms of involvement in sharing economy practices. Thus, Hypothesis 1 was partly supported (for age).
As a sequence to non-revealed result, we continued statistical modeling by means of multilevel regression analysis (as suggested by Snijders and Bosker [75]). The results of sharing economy elements modeling in relation to personal characteristics (age, gender, income, industry) were nested by the self-assessed level of eco-friendliness. The set of initial models tested (the set of models was defined on the basis of correlation analysis, where age had been proven to be insignificant) can be seen in Table 7.
Table 7. A set of models of multilevel regression testing.
Each of the initial models was tested as the primary level of multiple regression, which was connected to the dependent variable (involvement in the sharing economy on either supply or demand side) via intercept. The statistically significant results can be seen in Table 8.
Table 8. Multilevel regression for sharing economy sector perception (statistically significant models).
Out of the models tested, only eight appeared to be statistically significant enough to predict the level of personal involvement in the sharing economy, both as a supplier and provider of services. These included a multiplicative model that included income and education as basic level personal characteristics; a multiplicative model with country and eco-friendliness self-perception as personal characteristics; a multiplicative model using income, education, and self-perceived eco-friendliness as personal characteristics (this model also works if education level is replaced by country of origin or respondent’s gender); and a multiplicative model using education, country, and self-perceived eco-friendliness. Moreover, the two four-factor models proved to be statistically significant, i.e., multiplicative model using income, education, country, and self-perceived eco-friendliness as personal characteristics and the model with income, education, sex, and self-perceived eco-friendliness as independent variables of the bottom-level variables. All the other models appeared to be insignificant. The same results were achieved when a set of variables, presented in the questionnaire, were used as nesting ones. Thus, the authors can conclude that key personal characteristics, which influence a person’s probable involvement in the sharing economy practices, are his or her levels of income, education, and self-perceived ecological friendliness. Other factors appeared influential only in some cases, and thus they can be dropped for predicting the level of involvement in the sharing economy.
Summarizing the analysis, we identified the following results. First, in case of nesting the model with eco-friendliness, none of the personal characteristics appeared to be statistically significant as predictors of the sharing economy perception. At the same time, such models as Income × Age, Education × Age, and Income × Country × Gender appeared to be statistically significant in predicting the perception of certain sharing economy elements. Second, in the case of nesting by personal characteristics (for instance, age), only the models that considered eco-friendliness as one of the elements appeared to be statistically significant predictors of sharing economy elements perception. Thus, Hypothesis 2 was supported, confirming that a set of personal characteristics can be a predictor of personal involvement in sharing economy practices. Our results partly match with the results of Ranzini et al. [51].

5. Discussion

Hypothesis 1, which aimed to assess individual behavior in relevance to a set of personal characteristics, was partly confirmed. It appeared, that although age is the only statistically significant direct predictor of person’s involvement in sharing economy practices, it appeared to be statistically significant; this direct relation did not appear earlier in the literature. Moreover, the range of influence shown by this predictor was very low, so in practice, it should not be considered a significant factor.
The set of personal characteristics, including age, gender, country of origin, education, and personal income, appeared to be a better predictor for the sharing economy involvement. In this research, we confirmed seven models that appeared to be statistically significant in terms of predicting personal involvement in the sharing economy practices (one was aged-based and included gender also), four were income-based and included a set of characteristics, and two were education-based and also included more than two predictors. These findings are in line with the results achieved by Hamari et al. [41] and Hellwig et al. [42], for whom ideology (education) and economics (income) were the key factors. Moreover, the findings partly confirm the suggestion of Pisano et al. [44], who outline that the sharing economy can change the perception and thinking of users towards increased transparency, openness, collaboration, and sharing—each of these is indirectly related to a set of personal characteristics, especially defined by country (see Hofstede dimensions). Barnes and Mattsson [48] highlighted economic, environmental, political, social, and technological factors that influence consumer perception, and this was partly confirmed by the significance of multifactor models our research had identified. Rebiazina with co-authors [49] outlined socio-technological, economic-political, and personal groups of factors, and these findings were also confirmed by the models developed as a part of this research.

6. Conclusions

The current paper reflects the results of the authors’ conducted cross-country survey aimed to evaluate consumers’ perception of the sharing economy. The results of the research are based on data received from 757 respondents representing four countries: Latvia, Russia, Ukraine, and Belarus. The research applied a multilevel regression analysis to identify the link between personal characteristics of respondents and their attitude to sharing economy services.
Approximately 41% of respondents perceived themselves as an “eco-friendly” person. A total of 44% evaluated their level of eco-friendliness as average. Personal characteristics that have an impact on respondents’ perception of the sharing economy were income level and education level. Moreover, the analysis revealed that the level of perceived “eco-friendliness” is a predictor of respondents’ evaluation of suggested statements regarding sharing economy activities. Gender, income, and education were not dominant predictors of attitude of respondents towards the sharing economy that, actually, is a contradictory result with the previously conducted studies. On the contrary, age appeared to be a significant predictor of adapting sharing economy practices, although variance explained by this factor was low.
Hypothesis 1 was confirmed only for age, which appeared to be a statistically significant predictor of personal involvement in the sharing economy. Hypothesis 2 was partly confirmed—one age-based, four income-based, and two education-based multifactor models were confirmed by multilevel analysis.
On the basis of the achieved results, this research confirms some of the findings in the existing literature. First, the role of age was proven to be significant, although it had a very low impact on involvement in the sharing economy. Second, multilevel regression models indicated that mainly the mix of age, gender, and education are the predictors for adapting sharing economy behavior.
The potential directions for further research include: (1) analysis of the most popular sharing economy activities to be engaged from the viewpoint of respondents, (2) analysis of the main reasons for avoiding sharing economy activities, (3) analysis of the difference in attitude of respondents representing different countries, and (4) statistically significant predictors serving as a methodological framework to justify the sharing economy.
Moreover, it is important to mention that the results of this research were somewhat biased by the dominance of females in the original sample; this has to be considered as one of the research limitations that should be taken into account.

Author Contributions

Conceptualization, T.T. and J.T.; methodology, T.T., J.T. and D.A.; software, A.S.; validation, A.S.; formal analysis, T.T. and J.T.; investigation, T.T., D.A. and M.T.; resources, T.T.; data curation, T.T., J.T. and M.T.; writing—original draft preparation, T.T., J.T., A.S., D.A. and M.T.; writing—review and editing, T.T. and J.T.; visualization, A.S.; supervision, T.T. All authors have read and agreed to the published version of the manuscript.

Funding

This research received no external funding.

Institutional Review Board Statement

Not applicable.

Data Availability Statement

Not applicable.

Acknowledgments

The authors would like to thank all the respondents for participating in the survey.

Conflicts of Interest

The authors declare no conflict of interest.

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