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Properties of feedback mechanisms on digital platforms: an exploratory study

Author

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  • Andreas J. Steur

    (Ulm University)

  • Mischa Seiter

    (Ulm University)

Abstract

Many digital platforms implement feedback mechanisms as a means to control the behavior of their users. However, there is a lack of theoretical explanation regarding the interrelation between design characteristics of feedback mechanisms and their effects. In this study, we interpret feedback mechanisms as a specific type of management control to propose properties as a new theoretical perspective on this problem. Our exploratory study has two objectives. First, we analyze how digital platforms design their feedback mechanisms. Second, we examine to what extent feedback mechanisms comply with standards given in the management control literature for our newly introduced properties. Analyzing the 102 most widely used platforms in Germany, we find dominant patterns in nearly all design characteristics (e.g., query method, submission category and scale level). Furthermore, we find mixed compliance of feedback mechanisms with our introduced properties (e.g., low precision but high sensitivity and verifiability). For a deeper understanding of these results, especially the reasons for the design choices, we conduct 14 semi-structured expert interviews. We find simplicity and inspiration from other platforms to be dominant drivers for design choices.

Suggested Citation

  • Andreas J. Steur & Mischa Seiter, 2021. "Properties of feedback mechanisms on digital platforms: an exploratory study," Journal of Business Economics, Springer, vol. 91(4), pages 479-526, May.
    • Handle: RePEc:spr:jbecon:v:91:y:2021:i:4:d:10.1007_s11573-020-01009-6
    DOI: 10.1007/s11573-020-01009-6
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    Cited by:

    1. Andreas J. Steur & Fabian Fritzsche & Mischa Seiter, 2022. "It’s all about the text: An experimental investigation of inconsistent reviews on restaurant booking platforms," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1187-1220, September.
    2. Simon Michalke & Lisa Lohrenz & Christoph Lattemann & Susanne Robra-Bissantz, 2022. "Exploring engagement, well-being, and welfare on engagement platforms: Insight into the personal service sector from the DACH region," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(4), pages 2429-2444, December.
    3. Lucian Visinescu & Nicholas Evangelopoulos, 2024. "Designing adaptive feedback mechanisms with text mining capabilities: An illustration on eBay," Electronic Markets, Springer;IIM University of St. Gallen, vol. 34(1), pages 1-21, December.

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    More about this item

    Keywords

    Feedback mechanism; Design characteristics; Properties; Digital platform; Management control;
    All these keywords.

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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