Value Perceptions of First-Party Content on Multi-Sided Platforms : Findings from the Amazon Marketplace

In the context of multi-sided platform literature, the strategic use of first-party content has previously been studied from the perspectives of entry, rent extraction, integration and governance. In these contexts, consumers’ value perceptions of first- and third-party content has been treated to be equivalent. However, given well known results from research on retail and supermarkets, it is generally accepted that—among consumers—the perceived value of products from store brands is significantly lower than products from manufacturer brands. This study investigates whether the same difference in perception among consumers persists on a multi-sided platform where consumers can choose to buy products either from third-party sellers or the platform itself (‘AmazonBasics’). The study finds that consumers perceive products sold by the platform as delivering significantly less value than functionally and aesthetically equivalent third-party substitutes and that this difference persists independently of price. The study thus contributes an important finding that contextualises extant research by introducing 'value perception' as a key strategic variable for managers looking to apply first-party content strategies on multi-sided platforms