Unveiling the Influence of Sharing Economy on Socially Responsible Consumption Amidst Materialism

Abstract

Consumption practices around the world have seen multiple shifts with the advent of technology. Ease of access to information as well as products has encouraged consumers towards conspicuous consumption, leading to an increase in materialism. However, on the other hand, this hyper-consumption is not congruent with the rise of socially responsible consumption behaviours. This article is an attempt to investigate the impact of materialism on socially responsible consumption behaviour and the sharing economy. Further, the impact of the sharing economy on socially responsible consumption behaviour is also investigated. The study also evaluated the mediating role of the sharing economy juxtaposed between socially responsible consumption and materialism. These objectives were attained by using a survey of 352 respondents from two generations, Millennials and Gen Z, and analysed by employing structural equation modelling using the PLS-SEM technique with the help of SmartPLS 4.0 software. The findings suggest that materialism significantly impacts sharing economy and socially responsible consumption behaviour. Further, the sharing economy significantly mediates between materialism and socially responsible consumption behaviour. This study implies that the sharing platforms have expanded their reach to meet the diverse consumer requirements. Further, sharing enabled peers to share idle assets without the pressure of ownership and investment. Finally, materialistic consumers can engage in socially responsible consumption through a sharing economy. Theoretically, this study extends consumer behaviour literature by positioning the sharing economy as a bridge between materialism and sustainability, particularly for Millennials and Gen Z. Practically, this study highlights various opportunities for businesses to promote accessibility and affordability over ownership, which can make sharing platforms more attractive to materialistic consumers. Additionally, policymakers can also support regulations that encourage sustainable consumption through the sharing economy. Finally, the study emphasizes the potential of peer-to-peer asset utilization in reducing hyper-consumption.