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

Author

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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)

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.

Suggested Citation

  • Daniel Borg & Oksana Mont & Heather Schoonover, 2020. "Consumer Acceptance and Value in Use-Oriented Product-Service Systems: Lessons from Swedish Consumer Goods Companies," Sustainability, MDPI, vol. 12(19), pages 1-19, September.
  • Handle: RePEc:gam:jsusta:v:12:y:2020:i:19:p:8079-:d:422108
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    References listed on IDEAS

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