Indore: Ethical values are essential for consumer trust in car-sharing platforms, says IIM-I study.
Madhya Pradesh: According to the Indian Institute of Management (IIM) Indore, ethical considerations play a crucial role in building consumer trust and participation in car-sharing platforms.
The study, conducted by IIM Indore faculty member Prof. Bipul Kumar and IIM Ranchi’s Prof. Shweta Jha, reveals that consumers’ ethical values – such as fairness, responsibility, and concern for others – significantly influence their willingness to engage with car-sharing services. While previous research on collaborative consumption primarily focused on economic efficiency, technological convenience, and environmental benefits, this study, titled “Understanding Collaborative Consumption Behavior in the Context of Car-Sharing:
An Ethical Perspective and Empirical Analysis,” focuses on ethics as a key driver of consumer behavior. The findings suggest that car-sharing is not merely a practical or cost-saving option, but is deeply intertwined with ethical evaluations and trust.
The researchers utilized survey-based empirical data from car-sharing users and conducted two cross-sectional studies – one before and one after the COVID-19 pandemic. Advanced analytical techniques, including Partial Least Squares-based Structural Equation Modeling (PLS-SEM), were employed to examine how ethical perceptions influence consumer attitudes and behavioral intentions.
The results indicate that consumers who perceive car-sharing platforms as ethically responsible, transparent, and socially beneficial are significantly more likely to develop favorable attitudes and continue using these services.
Notably, the post-COVID-19 analysis revealed a stronger role of ethical idealism, suggesting that consumers now place greater emphasis on collective well-being, alongside environmental concerns, when engaging in collaborative consumption.
The study also found that ethical evaluations are as important – if not more so – than commonly studied factors such as perceived usefulness and ease of use. According to the authors, this reflects a broader shift in consumer mindset, where trust and ethical alignment have become crucial for sustained participation in sharing-economy platforms.
For businesses operating in the sharing economy, this research has significant managerial implications. The study argues that ethical considerations are not an external concern but a core component of long-term sustainability. Lack of transparency, perceived unfairness, or ethical lapses can directly erode consumer trust and reduce participation.
The authors recommend that car-sharing platforms incorporate ethical considerations into platform design and operations through transparent pricing, fair dispute resolution, responsible data handling, and clear usage guidelines. Strengthening trust mechanisms—such as robust rating systems and consistent enforcement of rules—can further enhance accountability and platform credibility.
