Ktcs Market Maker/Electronic Trading Platform Model

space, products, knowledge, work, etc. between strangers, does not happen frequently, most likely only once. The act of sharing also occurs in another part called "pseudo-sharing" (Belk, 2014 [36]).

Bostman et al. (2010) [41] believe that KTCS is an economic model mediated via the internet, built on sharing, exchanging, trading or renting products and services and does not require ownership. Choi, HR, et al. (2014) [47] also believe that KTCS is the act of sharing, exchanging and renting resources without ownership. Agreeing with this view, according to Muđoz, P., Cohen, B., (2018) [87], KTCS is an economy in which ownership is replaced by sharing or exploiting used assets. Used assets can be products, services, places, finances, spaces, money, labor, knowledge or information that people create and share with others (Miller, SR, 2016 [84] and Plewnia, F., Guenther, E., 2018 [97]). Hamari et al. (2015) [68] argue that shared economy emerged with the development of technology, helping to simplify the sharing of physical and non-physical products and services via the Internet. Also in this year, according to OECD (2015) [94], shared economy is a platform connecting supply and demand, allowing peer-to-peer (P2P) sales and rentals. There are three main types of shared economy: (a) peer-to-peer sales (b) peer-to-peer sharing and

c) Community services. Not only connecting supply and demand, but according to Täuscher, K., Kietzmann, J. (2017) [105], digital community services allow resource owners to share their idle assets with others.

The thesis gathers some concepts of KTCS in the following table:

Table 2.1. Concepts of sharing economy

Concept

Source
Communal economy is an economy in which the actions and processes of distributing what we give to others to use and receive or take something from others to use.	Belk (2010) [35]
KTCS is an internet-mediated economy built on share, exchange, trade or rent products and services and do not claim ownership.	Bostman (2010) [41]
KTCS is an economy that involves borrowing, giving gifts, transferring transfer ownership, exchange, coordinate acquisition, and distribute resources at cost.	Belk (2014) [36]
KTCS is an economy where sharing, exchange and renting are practiced.	Choi and colleagues

Maybe you are interested!

resources that do not require ownership.

(2014) [47]

Communal economy is an economy in which individuals share assets belonging to

private ownership or sharing of information according to market needs.

Dyal Chand

(2015) [53]

KTCS is a developing economy, where suppliers and customers temporarily own products and services.

Santana and Parigi (2015)

[102]

A social economy is an economy in which people create and share products and services.

services, locations, finances with others.

Miller

(2016) [84]

Source: NCS synthesis

There are many different views on the social economy, but they all have in common the characteristics such as an intermediary economy that coordinates the acquisition, use, distribution for a fee, transfer/non-transfer of ownership of idle assets, products, services, and used information of others through the internet and digital platforms. Therefore, the thesis proposes a comprehensive concept of the social economy as follows: The social economy is an intermediary economy via the internet, an online platform connecting supply and demand built on the coordination of temporary access, sharing, and leasing of used resources for a fee to serve end consumers continuously, quickly, and globally.

2.1.1.2. Sharing economy model

a) Concept of sharing economic model

According to Julie Wanning Tvede & Maria Christensen (2015) [75], the KTCS model is an intermediary model that creates and distributes value to customers and generates revenue from those transaction values. Agreeing with this view, Julie Wanning Tvede & Maria Christensen (2015) [75] also stated that the KTCS model is a model that aims to reduce costs and maximize economic benefits by sharing idle resources among individuals and organizations. The KTCS model is an economic model, operating peer-to-peer (P2P) to buy, provide or share access to goods and services and is often built on a community-based online platform Miller (2016) [84].

The above concepts have in common the characteristics such as intermediary model, creating and distributing value, sharing idle resources, sharing on ownership. Therefore, the thesis argues that the KTCS model is an intermediary model via the internet in which enterprises are the units that coordinate value through temporary access, exchange, transactions of products, services, information, money, labor force, knowledge, resources, assets.

used products from owner to user and to maximize economic benefits.

b) Classification of sharing economy models

According to Demary (2015) [51], Aleksandra Kosintceva (2016) [29], there are two models of social economy in the service sector: the market maker/e-exchange model and the access-based consumption model. The market maker/e-exchange model in social economy is a business model based on the matching of people with superior capabilities or surplus services (supply side) and consumers of surplus products and services, paying a certain amount (demand side). The access-based consumption model, on the other hand, provides access to intangible or tangible resources. These resources can be created, rented or owned by the enterprise itself or its partners.

* Market maker/electronic exchange model

This is a business model that connects supply and demand to meet the needs of the tourism market. In this model, enterprises following the KTCS model play the role of intermediaries between two parties: those with excess services (supply side or direct service providers) and those who pay to consume excess services (demand side, for example, DLTT customers). Business databases are extremely important factors for enterprises following the market maker/electronic trading floor model. Enterprises charge fees on total transaction costs or charge fees to a market participant. The main activities of enterprises depend on the characteristics of their business as well as their relationships with partners. Partners of this model are investors, lobbyists, technology developers, content creators and search engines. The operating costs of enterprises are mainly membership development costs and website/mobile application operating costs.

Direct service provider

Client

B2C:

Market maker model

(pure, service, community)

B2B:

Mobile trading floor model

(pure, service, community)

Figure 2.1. KTCS's market maker/electronic trading platform model

Source: Demary (2015) [51], Aleksandra Kosintceva (2016) [29]

The market maker/e-trading platform model in social economy was born from the market maker/e-trading platform model in e-commerce. The goal of this model in social economy is to create a two-way market to increase the interaction of parties through an online platform. The market maker/e-trading platform model in e-commerce focuses on products with a variety of options and revenue generated from sales, considering product quality as secondary. The market maker/e-trading platform model in social economy operates through short-term rental of a specific tourism service, businesses in social economy want to provide high quality services, so service quality is considered important and a prerequisite.

Table 2.2. Comparison of the market maker/electronic trading platform model in KTCS with the market maker/electronic trading platform model in e-commerce in general

Market maker/e-trading platform model in e-commerce

(eg eBay)

KTCS's market maker/electronic trading platform model in the service sector

(eg Agoda, AirBnb)

Focus on the product

Focus on customer service

Revenue generated from operations

sell

Revenue generated from short term rentals

limited, intermediary connecting tourism services

Heterogeneity of products (e.g. there are many types of products)

on eBay)

Uniformity of services within a supplier (eg: home-stay rental service of

Airbnb)

NCC does not interact directly with

client

Suppliers interact directly with customers

during the use of the service

Service quality is secondary

Service quality is paramount

Product advertising programs can be done through

through suppliers

Service advertising programs cannot be implemented through suppliers.

The risk for direct product suppliers is low because the assets have been

transfer of ownership

The risk for direct service providers is high because their assets are personal.

Source: Chakravarty et al. (2014) [46]

Direct service providers in the KTCS model face higher risks than in the e-commerce model. Because their assets are often valuable assets (houses, cars, etc.) and are personal assets, not transferring ownership like in a normal two-way market. The success of the market maker/electronic trading floor model in

KTCS depends on a large number of direct service providers and customers as well as service quality (Chakravarty et al., 2014 [46]).

The market maker/electronic exchange model in KTCS includes three types:

- Pure market maker/e-exchange model: the main activities of the model are carried out through websites/mobile applications according to the KTCS model and do not require external participation. The main element of this model is the business channels. For example, AirBnb is a pure market maker model in the accommodation sector, connecting hosts and tourists to share accommodation.

- Market maker/electronic service exchange model: is a model that provides additional services to one or both customer sides. The value of the enterprise is the services. The main resource of the model is human resources. In the field of DLTT services, the market maker/electronic service exchange model often provides DLTT support services such as tour consulting, support for procedures such as visa or passport application.

- Community-serving market maker/e-commerce platform model: is a model that provides information and reviews from all parties to increase customer satisfaction when participating in the community. The model is built around issues that customers care about. For example, Tripadvisor is a community-serving market maker, allowing sharing of experiences and opinions of DLTT customers.

Table 2.3. Forms of the Market Maker model

Market Maker/Pure Electronic Exchange

Market Maker/Electronic Services Exchange

Market Maker/Electronic Trading Platform Serving

community

Basic Value

recommended

Enterprises regulate the exchange between direct suppliers and customers, implemented via website/mobile application according to the model

KTCS

The enterprise provides additional services to one or more parties according to customer segments.

Enterprises provide benefits to different customer groups from the community.

Wall

main part

Business channels

Resources and activities

important

Relationships

client

For example

AirBnB, Lyft

Tripadvisor

Source: Demary (2015) [51], Aleksandra Kosintceva (2016) [29]

* Access-based consumption model

Direct service provider

Client

Access-based consumption model

The access-based consumption model is built around access to a number of services through a website/mobile application in the KTCS model. In this model, the enterprise provides access to resources. The resources are created or owned by the direct provider. The main elements of the KTCS website/mobile application are business channels and partnerships.

Figure 2.2. KTCS's access-based consumption model

Source: Demary (2015) [51], Aleksandra Kosintceva (2016) [29]

The benefit of this model is that it connects customers from one sector to another, building a useful network and the opportunity to get professional advice, solve problems or simply inspire. Different businesses have different revenue streams and characteristics, so their operating costs are also different. The main resource of a business under this model is the object that is granted access. Therefore, partners play an important role in the access-based consumption model.

c) Level of development of sharing economic models

The level of development of business models in e-commerce is classified by Timmers P. (1998) [106] in two dimensions: the level of development from basic to advanced and the level of integration of features from single to diverse. Timmer P. (1998) [106] classifies based on traditional business forms combined with the functions of online markets. After studying the documents of Timmers P. (1998) [106], the thesis collected opinions from experts on KTCS, E-commerce and TTDL. 2/30 experts expressed neutral opinions, 28/30 experts said that the thesis can refer to the level of development of business models in e-commerce by Timmers, P. (1998) [106] for the level of development of KTCS models of enterprises in the field of TTDL services. Experts say that KTCS is a field of the digital economy, operating on the basis of supply-demand relationships, developing according to the number of participants 1-1, 1-many and many-many or rebuilding the value chain, that is, integrating information processing through several steps of the chain.

value. KTCS models are in the process of being used and tested, the development levels in the study of Timmers, P. (1998) [106] are appropriate. From the above conclusions, the thesis proposes the development levels of KTCS models as shown in the following diagram:

Access-based consumption model

Market Maker/Pure Electronic Exchange

Market Maker/Serving Electronic Trading Platform

community

family

Marketplace/E-Service Platform

Complicated

Level of feature integration

Simple

Low Development Level High

Diagram 2.3. Level of development of KTCS models of enterprises in the field of IT services

Source: based on research by Timmers, P. (1998) [106]

The above diagram is built based on qualitative research methods. The Ox dimension is the level of model development from basic to advanced, for example from applying e-commerce in traditional business models to doing business entirely on the internet, focusing on sharing and connecting idle resources. The Oy dimension is the level of integration of features from single to diverse, for example only providing internet marketing functions to linking shared value chains in enterprises. Looking at the diagram, it can be seen that there are no KTCS models in the lower and upper left corners. In the lower right corner is the market maker/electronic service exchange model. The two models focus on a number of specialized services, basic features such as electronic payment, account management, and transaction support. The top right quadrant KTCS models such as the community-serving market maker/e-exchange model, the pure market maker/e-exchange model, and the access-based consumption model require a level of development.

highly developed, heavily dependent on IT. The trust factor increases with the level of development and integration in the value chain.

2.1.1.3. Business according to the sharing economy model

* Concept of business according to the sharing economy model:

According to NCS, business according to the KTCS model can be understood as the process of an organization/enterprise investing resources in an online business model that acts as an intermediary in the market. Accordingly, this organization/enterprise will own and manage a website/mobile application to connect direct service providers and end consumers who want to receive that shared service.

* Characteristics of business according to the sharing economy model:

Business according to the KTCS model has some characteristics such as: online business method to connect supply and demand and act as an intermediary in the tourism market; built on temporary access, consumption of leisure tourism services; operating on a peer-to-peer, trust and profit basis; aiming at sustainable development in tourism; operating with almost zero marginal costs;

- It is an online business method to connect supply and demand and act as an intermediary in the tourism market: more than 60% of the documents collected by the thesis mention this feature in business according to the KTCS model. Through websites or mobile applications, KTCS creates a network connecting direct DLTT service providers and DLTT customers in a safe and transparent manner.

- Built on temporary access, consumption of leisure tourism services: access to leisure tourism services is the use of infrequently used assets by tourists such as houses, cars, lawns... These assets "have no transfer of ownership", through collaborative consumption, assets are redistributed and used more effectively.

- Operating based on peer-to-peer, trust and profit mechanisms: the peer-to-peer mechanism in the KTCS model is demonstrated through the P2P, B2P (Business-to-Peer) and P2B (Peer-to-Business) protocols. In which, P2P is the direct connection between service providers and DLTT customers, B2P connects and provides tourism services and risk management consulting for service providers, and P2B operates as a community for DLTT customers but gradually directs customers to direct service providers. Many researchers agree that KTCS activities take place for the purpose of seeking profits and deny that business according to the KTCS model is

Comment