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The Value of Platform Endorsement

Author

Listed:
  • Mimansa Bairathi

    (University College London, London E14 5AA, United Kingdom)

  • Xu Zhang

    (London Business School, London NW1 4SA, United Kingdom)

  • Anja Lambrecht

    (London Business School, London NW1 4SA, United Kingdom)

Abstract

Many digital platforms with large product assortments endorse a select group of items to facilitate user choice. However, although it seems intuitive that such endorsement may increase the sales of endorsed items, little is known about its effect on unendorsed items and on the platform. Using data from a field experiment conducted by an online freelance platform, we examine the effect of exposure to platform endorsement on user search and purchase behavior. We find that exposure to platform endorsement increases user search and purchases not only for endorsed services but also, for unendorsed services. We link the increase in search and purchases to an increase in the perception of the quality of services offered on the platform. We further explore heterogeneity in the effect of platform endorsement and find that the effect of exposure to platform endorsement on purchase is more pronounced for users with a higher propensity to purchase. We discuss implications for platforms, merchants, and regulators.

Suggested Citation

  • Mimansa Bairathi & Xu Zhang & Anja Lambrecht, 2025. "The Value of Platform Endorsement," Marketing Science, INFORMS, vol. 44(1), pages 84-101, January.
    • Handle: RePEc:inm:ormksc:v:44:y:2025:i:1:p:84-101
    DOI: 10.1287/mksc.2022.0226
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    2. Markus Lill & Nastasia Gallitz & Lucas Stich & Martin Spann, 2026. "How Platform Endorsement Shapes Consumer Search and Choice in Online Retail," Rationality and Competition Discussion Paper Series 569, CRC TRR 190 Rationality and Competition.

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