SEP Is Facilitating Electronic Word-of-Mouth (eWOM): The Case of Xiaohongshu Platform

The chapter explores the role of Sharing Economy Platforms (SEPs) in facilitating Electronic Word-of-Mouth (eWOM) from the customer perspective, using the case of Xiaohongshu. SEPs have revolutionized commerce and customer engagement by leveraging idle assets and fostering community-driven interactions. Digital technologies like Big Data Analytics and AI have been integrated to personalize services and enhance customer loyalty. However, the dynamic digital landscape also presents challenges such as cultivating customer loyalty and managing content authenticity. The chapter delves into how Xiaohongshu’s unique mechanism of combining e-commerce with social media encourages users to share experiences and product reviews, thus powering eWOM and influencing purchasing decisions. Challenges including content authenticity, quality control, and data privacy are discussed, with measures such as enhanced verification processes and content moderation proposed to maintain platform trust. The chapter concludes that the strategic management of digital technologies and eWOM is pivotal for the sustained success of SEPs like Xiaohongshu in the competitive digital marketplace.