Branding of two-sided online marketplaces : An integrative model to comprehend the reciprocity within vlaue creation and branding of two-sided online marketplaces

Abstract: Background: Online marketplaces constitute one of the most successful business innovations of the Web 2.0. Nonetheless so far no branding theory has been connected to the topic of two-sided online marketplaces. This might be due to the high complexity and reciprocity of their value creation which however needs to be in order to apply any marketing and branding strategies.   Purpose:       Therefore, the purpose is to understand and clarify the value creation processes of two-sided online marketplaces and develop branding theory based on the findings thereof.   Method:        Within this thesis we conducted qualitative research.  The study is built on semi-structured interviews with 15 respondents that have used various two-sided online marketplaces either as sellers and buyers.   Conclusion: In order to understand the various variables of two-sided online marketplaces business model, we have identified, conceptualized and extended an integrative model to manage and brand their value. With the knowledge resulting from our literature review we built a model illustrating all pillars which influence value creation and thus brand perception and extended this model with the results of our own research. We have identified that while user behavior and preferences generally remain heterogeneous, commonalities such as social influences and convenience stick out most often for both user sides. Both pillars have barely been covered by research, which solely focused on network effects, price allocation and trust.