Consumer relationships with digital platforms: Consumer costs and opportunities for empowerment in a data-driven world

• Applicant: Professor Dr. Sascha Alavi
• Subject Area: Operations Management and Computer Science for Business Administration
• Term: since 2025
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 550503772

The widespread use of digital platforms has made them an integral part of our daily lives with services including web search, email, maps, and cloud storage, which are used globally. These services have become a fundamental part of how we access and use information and services, and as a result, individuals have become more interconnected with companies like Google and Amazon. Importantly, digital platforms fundamentally change how providers build relationships with users. Through the use of digital platforms, providers can establish relationships with users with unprecedented levels of closeness. This project explores the development of relationships between consumers and service providers through digital platforms over time within a framework of consumer benefits and costs. While digital platforms offer many benefits, the collection of personal data by digital platforms raise questions regarding data protection and the potential for abuse. Many individuals report concerns about the privacy of their data but they see no option other than to accept their situation. In addition, even with the awareness of such issues, it can be a significant challenge to quit or switch platforms, because of how deeply they are integrated into people's lives. By examining factors that influence the consumer-platform relationship, this research proposal aims to understand the diverse trajectories that it may take, leading to different positive and negative outcomes such as digital well-being, dependence or resignation. We also seek to identify actionable empowerment strategies for consumers to create relationships with digital platforms in an equitable manner. This research proposal has three two work packages (WP), all of which will use real usage data provided by users to explore the consumer-platform relationships. WP1 will examine relationship development through multiplatform systems with Google data. WP2 will employ a field experimental study to test strategies to empower users in their relationships with digital platforms. The usage data of individual users provides a detailed record of each consumer’s daily behaviors, which represents an exceptional data opportunity to explore our research questions. This analytical strategy entails several methodological advantages for this project: 1) objective, behavioral data, 2) a large data sample, 3) longitudinal data sample, to track developments over time. The relationships between consumers and digital platforms assume a pervasive role in our societies and will grow even more important as digital platforms evolve. Yet, ours will be the first study to advance a relationship perspective with digital platforms and examine relationship development in detail. This will give society, policymakers, and managers the means to create effective frameworks for the governance of these relationships.

• DFG Programme: Research Grants
• International Connection: Switzerland
• Cooperation Partner: Professor Dr. Valéry Bezençon