Consumer Acceptance and Value in Use-Oriented Product-Service Systems: Lessons from Swedish Consumer Goods Companies

Daniel Borg, Oksana Mont and Heather Schoonover
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Daniel Borg: The International Institute for Industrial Environmental Economics (IIIEE), Lund University, Tegnérsplatsen 4, 22100 Lund, Sweden
Oksana Mont: The International Institute for Industrial Environmental Economics (IIIEE), Lund University, Tegnérsplatsen 4, 22100 Lund, Sweden
Heather Schoonover: The International Institute for Industrial Environmental Economics (IIIEE), Lund University, Tegnérsplatsen 4, 22100 Lund, Sweden

Sustainability, 2020, vol. 12, issue 19, 1-19

Abstract: In order to make our production and consumption systems more sustainable, there is a need to further explore and support novel business models with higher sustainability potential. Use-oriented product-service systems (u-PSS) are considered a promising alternative to traditional ownership-based business models, as they may result in lower environmental impacts. The presence of u-PSS in consumer goods markets, however, is still small. This is due in part to the nature of the products and lack of consumer acceptance of u-PSS. Lately, however, companies in Sweden have begun offering u-PSS for consumer goods, thereby challenging earlier findings. Understanding about how companies encourage consumers to select u-PSS over ownership-based options is still lacking. We investigate this question by conducting interviews with and analysing websites and publicly available company reports of seven Swedish companies from three consumer goods sectors: clothing, eyewear and furniture. We found that, while consumer barriers to u-PSS found in previous studies—uncertainty and trust, economics and costs and desire to own—persist, tailoring elements of u-PSS business models to different markets, sectors and consumer segments can help address these barriers and ensure u-PSS resonate with consumers. The study also applies the concept of consumer perceived value to show how emphasising different dimensions of value—financial, functional, emotional and social—provided by u-PSS may help increase their acceptance and adoption.

Keywords: consumer acceptance; consumer perceived value; use-oriented product-service systems; consumer goods; Sweden (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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