Consumer service innovation in a circular economy – the customer value perspective

Maria Antikainen, Minna Maaria Lammi, Taru Hakanen

Tutkimustuotos: ArtikkelijulkaisuMuu artikkeliTieteellinenvertaisarvioitu

Kuvaus

We are already overusing non-renewable resources and exceeding the environmental capacity of our planet and consumption is constantly growing. There is an alarming need to replace the current linear economic model with a more sustainable and preserving model called the Circular Economy (CE). The idea of the CE is to keep products and materials in use as long as possible, preserving or even increasing their value. The transition towards a CE requires a fundamental redesign of business models and end-to-end value chains. Instead of selling products, companies should move to retain ownership and sell their use as a service, allowing them to optimize the use of resources. Thus, buying for a service creates value differently for consumers than buying and owning a product. Therefore, there is a need to understand how CE-based services create value for consumers. In this study, customer value is perceived as a trade-off between the benefits and sacrifices that a consumer perceives when purchasing a product or a service. Our data is derived from consumer group interviews that took place in February 2016 in Finland. In the group interviews we introduced potential CE services to consumers. The data show that consumers are gaining practical, economic and personal benefits from three potential CE rental services: a sofa, a washing machine and clothing. Moreover, the study revealed that the benefits elicited by the washing machine model related mainly to practical benefits, while the sofa model, in particular, offered personal benefits to consumers. It also seemed that the sofa and clothing CE models entailed more psychological sacrifices compared to the washing machine model. The results also indicate that when making a decision on renting or owning, the balance between the economic benefits and sacrifices is crucial. If buying is seen as economically favourable, it easily wins out over renting, since it is a more familiar way to act. With regards to some products, personal and emotional benefits tend to override other factors.
Alkuperäiskielienglanti
LehtiJournal of Serviceology
Vuosikerta3
Numero1
Sivut1-8
Sivumäärä8
TilaJulkaistu - 2018
OKM-julkaisutyyppiEi sovellu

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  • 511 Kansantaloustiede

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Antikainen, Maria ; Lammi, Minna Maaria ; Hakanen, Taru. / Consumer service innovation in a circular economy – the customer value perspective. Julkaisussa: Journal of Serviceology. 2018 ; Vuosikerta 3, Nro 1. Sivut 1-8.
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title = "Consumer service innovation in a circular economy – the customer value perspective",
abstract = "We are already overusing non-renewable resources and exceeding the environmental capacity of our planet and consumption is constantly growing. There is an alarming need to replace the current linear economic model with a more sustainable and preserving model called the Circular Economy (CE). The idea of the CE is to keep products and materials in use as long as possible, preserving or even increasing their value. The transition towards a CE requires a fundamental redesign of business models and end-to-end value chains. Instead of selling products, companies should move to retain ownership and sell their use as a service, allowing them to optimize the use of resources. Thus, buying for a service creates value differently for consumers than buying and owning a product. Therefore, there is a need to understand how CE-based services create value for consumers. In this study, customer value is perceived as a trade-off between the benefits and sacrifices that a consumer perceives when purchasing a product or a service. Our data is derived from consumer group interviews that took place in February 2016 in Finland. In the group interviews we introduced potential CE services to consumers. The data show that consumers are gaining practical, economic and personal benefits from three potential CE rental services: a sofa, a washing machine and clothing. Moreover, the study revealed that the benefits elicited by the washing machine model related mainly to practical benefits, while the sofa model, in particular, offered personal benefits to consumers. It also seemed that the sofa and clothing CE models entailed more psychological sacrifices compared to the washing machine model. The results also indicate that when making a decision on renting or owning, the balance between the economic benefits and sacrifices is crucial. If buying is seen as economically favourable, it easily wins out over renting, since it is a more familiar way to act. With regards to some products, personal and emotional benefits tend to override other factors.",
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Consumer service innovation in a circular economy – the customer value perspective. / Antikainen, Maria; Lammi, Minna Maaria; Hakanen, Taru.

julkaisussa: Journal of Serviceology, Vuosikerta 3, Nro 1, 2018, s. 1-8.

Tutkimustuotos: ArtikkelijulkaisuMuu artikkeliTieteellinenvertaisarvioitu

TY - JOUR

T1 - Consumer service innovation in a circular economy – the customer value perspective

AU - Antikainen, Maria

AU - Lammi, Minna Maaria

AU - Hakanen, Taru

PY - 2018

Y1 - 2018

N2 - We are already overusing non-renewable resources and exceeding the environmental capacity of our planet and consumption is constantly growing. There is an alarming need to replace the current linear economic model with a more sustainable and preserving model called the Circular Economy (CE). The idea of the CE is to keep products and materials in use as long as possible, preserving or even increasing their value. The transition towards a CE requires a fundamental redesign of business models and end-to-end value chains. Instead of selling products, companies should move to retain ownership and sell their use as a service, allowing them to optimize the use of resources. Thus, buying for a service creates value differently for consumers than buying and owning a product. Therefore, there is a need to understand how CE-based services create value for consumers. In this study, customer value is perceived as a trade-off between the benefits and sacrifices that a consumer perceives when purchasing a product or a service. Our data is derived from consumer group interviews that took place in February 2016 in Finland. In the group interviews we introduced potential CE services to consumers. The data show that consumers are gaining practical, economic and personal benefits from three potential CE rental services: a sofa, a washing machine and clothing. Moreover, the study revealed that the benefits elicited by the washing machine model related mainly to practical benefits, while the sofa model, in particular, offered personal benefits to consumers. It also seemed that the sofa and clothing CE models entailed more psychological sacrifices compared to the washing machine model. The results also indicate that when making a decision on renting or owning, the balance between the economic benefits and sacrifices is crucial. If buying is seen as economically favourable, it easily wins out over renting, since it is a more familiar way to act. With regards to some products, personal and emotional benefits tend to override other factors.

AB - We are already overusing non-renewable resources and exceeding the environmental capacity of our planet and consumption is constantly growing. There is an alarming need to replace the current linear economic model with a more sustainable and preserving model called the Circular Economy (CE). The idea of the CE is to keep products and materials in use as long as possible, preserving or even increasing their value. The transition towards a CE requires a fundamental redesign of business models and end-to-end value chains. Instead of selling products, companies should move to retain ownership and sell their use as a service, allowing them to optimize the use of resources. Thus, buying for a service creates value differently for consumers than buying and owning a product. Therefore, there is a need to understand how CE-based services create value for consumers. In this study, customer value is perceived as a trade-off between the benefits and sacrifices that a consumer perceives when purchasing a product or a service. Our data is derived from consumer group interviews that took place in February 2016 in Finland. In the group interviews we introduced potential CE services to consumers. The data show that consumers are gaining practical, economic and personal benefits from three potential CE rental services: a sofa, a washing machine and clothing. Moreover, the study revealed that the benefits elicited by the washing machine model related mainly to practical benefits, while the sofa model, in particular, offered personal benefits to consumers. It also seemed that the sofa and clothing CE models entailed more psychological sacrifices compared to the washing machine model. The results also indicate that when making a decision on renting or owning, the balance between the economic benefits and sacrifices is crucial. If buying is seen as economically favourable, it easily wins out over renting, since it is a more familiar way to act. With regards to some products, personal and emotional benefits tend to override other factors.

KW - 511 Economics

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VL - 3

SP - 1

EP - 8

JO - Journal of Serviceology

JF - Journal of Serviceology

IS - 1

ER -