The role of signaling in inducing a sense of community: an experimental investigation of multi-sided platform markets

Purpose In the era of the platform economy, platform providers are competing fiercely to create a loyal user base. However, little is known about how multi-sided platforms can build a sense of community among users and strengthen consumer loyalty toward the platform. This study aims to explore how social proof signals and personalization signals shape consumers’ perceptions of a platform’s sense of community and their resulting loyalty. It also addresses theoretical tensions by applying and extending signaling theory to the multi-sided platform context. Design/methodology/approach Using three between-subject experimental designs, data were collected from 1,255 respondents from the UK and the USA through Prolific Academic Limited, a popular online participant recruitment platform. Across three between-subject experiments, Study 3 used a 2 × 2 design manipulating signal type (social proof vs personalization) and frame (positive vs negative). Findings Results indicate that personalization signals consistently elicited higher attitudinal and behavioral loyalty than social proof signals, with effects most pronounced under positive framing. Sense of community significantly mediated the effect of both signals on loyalty. Moderated mediation analysis revealed that the mediation pathway was significant for attitudinal loyalty under negative framing but not under positive framing, suggesting that framing shapes when and how signaling affects loyalty. Research limitations/implications The study used vignette-based scenarios that may not fully represent real-world platform interactions and examined a single platform type, limiting generalizability. Future research could incorporate longitudinal field data and consider additional constructs such as trust and satisfaction. Practical implications Multi-sided platform providers can benefit significantly from these findings. Personalization strategies such as tailored recommendations and individualized content should be prioritized to foster a sense of community and enhance loyalty. Positive message framing can raise overall loyalty levels, while negative framing may be used strategically to make personalization cues more salient and deepen attitudinal commitment. Originality/value By examining the effects of signaling on loyalty and the mediating role of sense of community, this study contributes to an underexplored area of research. It extends signaling theory by showing that the impact of signal content depends on framing, offering a nuanced understanding of how platforms can strengthen user relationships.