We often hear about platforms like Airbnb and TaskRabbit as part of the “sharing economy,” where people share their stuff for money. This kind of sharing has been around for thousands of years.
But it really took off when the Internet and big data came along. These technologies made it much easier for people to connect with potential customers. eBay is a famous example of the sharing economy, but it’s just a small piece of all the sharing that happens every day. According to a study by Price Waterhouse Coopers, the sharing economy is expected to generate about $335 billion in revenue by 2025.
A new study from Tuck Business School found something interesting about why people like the sharing economy. They found that people believe in the idea that the best should succeed.
Belief in a meritocracy
This subset of ideological belief is known as “economic system justification” (ESJ), which is when we justify existing economic systems because we believe everyone has the chance to succeed. When we score highly for ESJ, we believe things to be generally fair and just, whereas those who score lowly for ESJ think the opposite.
The researchers hypothesized that those with a more liberal leaning would support peer-to-peer providers as it would give them a chance that might otherwise be denied them in traditional workplaces. While this is largely true, they also found that our perceptions of the fairness of the economy were also hugely important, as people who have high ESJ value the kind of entrepreneurship and hard work exhibited by providers on sharing platforms.
The important message here is to know what your target audience believes about the economy, and then adjust your message, how you present your product, and where you advertise accordingly. If your audience has a lot of people who believe in being entrepreneurial and innovative (ESJ), emphasize how creative and competitive your business is. You might even consider advertising alongside a show like “Shark Tank.”
On the other hand, if you’re trying to reach people who don’t believe in these economic ideals (low ESJ), focus on how your business is an underdog and how you face more challenges in the tough market. Make it clear that you need extra support to succeed.
