The OTF market is a decentralized market place with many service providers and OTF providers who are responsible for the composition process and customer contact. This market structure causes challenges on different levels:
Customer reviews describe the experience with composed services. The first challenge is to disaggregate these composed service reviews to assessments of single services supplied by service providers. To approach this challenge, we empirically investigate already existing review platforms, on which composed services are assessed. Furthermore, we plan to analyze specific multidimensional customer review systems in electronic markets concerning their suitability to provide for the quality of the composition of OTF services. The aim is to shed light on an individual’s aggregation heuristics applied when giving customer reviews to a composed service. This knowledge can, in turn, be applied when aggregating the customer reviews of single services into a service composition on the OTF market.
(Non-technical) certificates can be used to signal the high quality of products. However, there must be authorities which verify, certify and progressively audit the high quality of single or composed services. These additional roles come along with further sources of strategic behavior.
In the first step, we focus on the OTF provider. Specifically, we investigate behavioral patterns of the OTF provider, which can possibly undermine the effectiveness of certificates as a quality assurance mechanism. In the second step we will develop instruments to reduce possible undesirable behavioral patterns.
Here, we investigate the impact of certificates as an instrument to signal superior quality in the OTF market. We face the strategic behavior of all market participants. The figure shows the players in the OTF market and the potential types of strategic behavior.