The Role of e-WOM towards Value Co-Creation on Sharing Economy Platform in Indonesia

Abstract

The purpose of the research is to examine the effect of electronic Word of Mouth (e-WOM) on value co-creation of ride sharing application users in Indonesia (both directly and indirectly). The method that was used is survey method with the respondents of 201 ride sharing application users (Gen Y). A convenience sampling technique was used with the data that was collected using questionnaires and analyzed using Partial Least Square-Structural Equation Modeling. The results showed that e-WOM had direct and indirect effect on value co-creation through ethical perceptions. This result suggests or imply that it is important for the company to consider ethical aspects and e-WOM marketing strategy to increase value co-creation between user and service provider.