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Mobile application (m-app) platforms act as an aggregator and technology interface between customers and product/service providers, enabling online ordering and offline delivery of on-demand services anytime and anywhere (Jaconi, 2014; Su et al., 2022; Talwar et al., 2021; Yapp et al., 2018). Common examples of successful m-app platform-based on-demand services include Uber (on-demand ride-sharing app), Zomato (on-demand food delivery app), and Urban Company (on-demand home service application [HSA]). These on-demand service delivery platforms have grown exponentially in the 21st century. For example, the global ride-sharing market is expected to double from US$85.8 billion in 2021 to more than US$185.1 billion in 2026 (Markets and Markets, 2022). Regarding the on-demand food delivery market, worldwide revenue is expected to grow from US$293.6 billion in 2021 to more than US$466.4 billion in 2026 (Statista, 2021). Another rapidly growing business segment includes m-app platform-based home services, which include on-demand services like home cleaning and equipment repairs, personal grooming, pest control, laundry, and plumbing (Kumar et al., 2022; Technavio, 2019).
HSAs involve the online booking of utility services through an app, followed by an offline delivery of services by the service providers (Kumar et al., 2022). HSA-based service offerings are in sharp contrast to the traditional model where consumers would avail themselves of local home services by contacting the segregated service providers directly. Factors like the growing millennial population and a shift in their buying behavior, increasing penetration of high-speed and affordable internet and communication technologies, and rapidly expanding access to smartphones have led to the shift toward online demand for hyperlocal services (Technavio, 2019).
The global on-demand home services market was valued at US$280 billion in 2018. It is expected to grow beyond US$1.133 billion by 2026, which implies an average growth rate of 18.91% (VMR, 2021). Urban Company, a leading HSA in India, expanded its leadership team and raised funding in the amount of US$255 million in 2021. It also planned to hire more than 100 engineers in 2022 (PTI, 2021). This indicates the growing demand for HSAs in the coming years.
It has been observed that online platforms extract consumer-generated value (social sharing intention and electronic word of mouth [eWOM]) from customers while also creating value (consumer-perceived value or benefits). This, in turn, results in the dual concept of consumer value (Kumar & Reinartz, 2016; Shin & Perdue, 2022). Many studies have evaluated consumer-perceived value and consumer-generated value. However, the dual concept of consumer value where perceived value or benefits lead to generated value has remained underexplored in information systems (IS, Wang et al., 2021).
The continuance intention and satisfaction level of users in the context of m-app platform-based service offerings are influenced by perceived value or benefits, which comprise not only utilitarian but also hedonic benefits (Hsu & Lin, 2020). The existing research studies highlight the relationship between trust-building and customer-generated values like eWOM (Agag & El-Masry, 2016; Alam et al., 2023; Kim & Park, 2013). However, a dearth of studies in IS have investigated the role of customer-perceived value in trust-building. Therefore, it has become important to study the role of customer-perceived value in trust-building. This, in turn, impacts customer-generated value (Agag & El-Masry, 2016; Kim & Park, 2013) and continuance intention (Hsu & Lin, 2020), leading to the authors’ first research question: