Figure
Source publication
Subscription commerce emerged as an up-and-coming phenomenon in retailing that enables shoppers to automatically receive recurring deliveries of consumer goods. One important dimension along which subscription services differ is the degree to which the content of each delivery is surprising. This paper focuses on two archetypes at opposite ends of...
Contexts in source publication
Context 1
... goods subscriptions are so manifold that they exist in all kinds of variations. Table 1 illustrates this point by outlining the retail mechanisms of selected subscription providers across various categories. Specifically, these retail mechanisms can be described in terms of the delivery interval, items per cycle, degree of surprise, and return option offered by the subscription service. ...Similar publications
Citations
... Subscription retention refers to a company's ability to keep its subscribers engaged and paying for its products or services over an extended period (Bischof et al., 2019). Retention is Management Decision fundamental for subscription-based businesses, playing a crucial role in determining their revenue, profitability and longevity (Eyal, 2022). ...
... This challenge is compounded by shifts in customer behavior, characterized by a preference for customized and high-quality products and services facilitated by intelligent digital platforms (Kim and Kim, 2020). Bischof et al. (2019), have divided this business model into three groups. The first category, referred to as replenishment subscription or predefined subscription in alternative literature sources, entails the regular delivery of frequently used items like food, socks or other goods essential for routine daily needs. ...
... The objective of the discovery or surprise subscription, identified as the second category, is to ensure the uniqueness and surprise effect of a product or service (Bischof et al., 2019). A notable illustration is evident in online shopping experiences, where customers derive delight from the moment of purchase through the receipt and unpacking of shipment. ...
Purpose
As an innovative business-driven solution within the contemporary digital industry, successful subscription retention requires a continuous focus on delivering value to subscribers and maintaining a strong relationship with them over time to stay competitive in fast growing digital business environment. The aim of this research is to comprehensively understand the digital subscription retention antecedents among Generation Z.
Design/methodology/approach
A survey was conducted among 385 Generation Z respondents using digital subscription platforms and representing various countries, most of which are European: Portugal is the most represented (20.5%), followed by Poland (17.4%) and Lithuania (14.0%). The research hypotheses were tested using correlation and linear regression analysis.
Findings
The findings demonstrate positive relationships between social media, performance expectancy, brand equity and Generation Z’s subscription retention decisions. Whereas close social environment shows only a moderate relationship with Generation Z subscription retention. This finding indicates that social media plays a more significant role for Generation Z subscription decisions than a close social environment.
Originality/value
The findings provide valuable insights for digital subscription-based business managers highlighting the importance of Generation Z customers’ preferences to encourage the subscription retention. Moreover, taking into consideration increasing digital subscription market and shortage of studies in the field, a comprehensive understanding of Generation Z perception and behavior within digital subscription-based businesses’ landscape is needed.
... Despite the sizable body of consumer-based subscription research, academia has not yet significantly influenced the development of B2B subscription expertise in the DE (refer Table 3). Bischof et al. (2020) created a theoretical framework for the curated subscription of surprise goods to consumers. This research also presented a classification system for subscription services and its administrative consequences. ...
... Recognizing the significant market projection underscores the escalating importance and expansion of subscriptionbased services, especially within the XaaS sector, guiding the exploration of business-to-business (B2B) SC in the digital ecosystem (DE). Bischof et al., 2020 Develops a theoretical framework and classification system for consumer-based subscription services but lacks exploration into the B2B market. ...
This study investigates subscription commerce (SC) in the business-to-business (B2B) marketplace, focusing on transforming legacy incumbents' relationships from one-time transactions to long-term associations. It aims to identify SC drivers and their role in the digital era's production and consumption ecosystem. The research follows a three-part approach. First, it distinguishes SC from electronic commerce and subscription billing. Second, it explores the digital ecosystem (DE), emphasizing the production and consumption ecosystem. Third, it proposes a fuzzy cognitive mapping (FCM) framework to analyse SC drivers, specifically emphasizing value derivation from data in the DE transition. This study pioneers the analysis of SC drivers within B2B contexts, showcasing SC's substantial role in unlocking value for legacy incumbents, particularly through the innovative FCM framework. It stands out as the first comprehensive analysis of SC drivers in B2B settings, showcasing its contribution to the digital transformation of legacy incumbents using FCM. This research offers crucial insights for legacy firm managers, aiding in digital transformation strategies, whether through in-house development or SC procurement. Additionally, consultants can leverage these drivers to support firms in their digitization efforts.
... Finally, the researchers demonstrated how to manipulate related risks by introducing a free return option. The research presents a new type of subscription service and discusses the impact of management practices and directions for future research (Bischof et al. 2020). ...
Music has become a part of many people's lives. Early adopters used to buy tapes or CDs to listen to music, which were difficult to preserve and easily damaged. With the digital transfor-mation of the industry, users nowadays can listen to various genres/styles of music online through digital music platforms at any time. As the types and styles of music are numerous, some digital music platforms have begun to consider providing more diverse ways of delivering music listening services. For example, various music classification systems allows users to easily find all albums by the same singer; different styles of music streaming services save users time in searching for songs of the same type; and the ability to share playlists allows users to share their listening playlists with family and friends. This service model increases peer discussion topics and exposure to albums, songs, and singers. The study summarizes the driving factors influencing the adoption of digital music subscription services using expert interviews and literature reviews. The study outlines four adoption-driving dimensions (service benefits, service efficiency, behavioral attribution, and adoption intention) and 16 evaluation criteria. Besides, this study integrates Desire and Satisfaction Analysis (DSA) and Network Relation Map (NRM) to propose a DSA-NRM analysis to evaluate the adoption strategy and optimal development path for digital music subscription services. Based on the four quadrants of music subscription services, this study proposes four selected strategies (attention strategy, sustainment strategy, adjustment strategy, and focus strategy). The research results show that the SB (service benefits) aspect has high desire and low satisfaction and can adopt selected strategy D (focus Strategy). The AI (adoption intention) aspect is an aspect with intense desire and low satisfaction and can use strategy C (adjustment strategy) chosen. The AI (adoption intention) aspect can dominate other aspects, and the SE (service effectiveness) can be dominated by different aspects.
... The literature mainly discusses the concept, characteristics, opportunities, and challenges of subscription and PaaS models (Bischof, Boettger, and Rudolph 2020;Kesavapanikkar, Amit, and Ramu 2023;Lacy and Rutqvist 2015;Lindström, Maleki Vishkaei, and De Giovanni 20246) rather than analyzing the operational costs, inventory flow, and optimising order quantities. However, some articles study pricing strategies in subscription models in service and manufacturing sectors (Danaher 2002;Jain and Kannan 2002;Kash, Key, and Zoumpoulis 2023;Penmetsa, Gal-Or, and May 2015;Wang, Dada, and Sahin 2019), and some articles discuss pricing for subscription models considering digital products (Alaei, Makhdoumi, and Malekian 2023;Avinadav and Levy 2023). ...
The Product-as-a-Service (PaaS) model offers the opportunity to implement circular actions such as repairing, reusing, collecting end-of-life products, and recycling. However, adopting circular practices causes more complexities in managing the inventory flow due to repetitive product subscriptions. Accordingly, this paper aims to optimise a PaaS model's order quantity and profit, considering circular economy practices and various quality levels for subscription products. In the proposed model, the subscription firm defines a quality check and repair procedure at the end of each quality period before sending the product to another subscriber. Moreover, the firm recycles end-of-life products and sells the recycled material to the supplier. This study aims to compare a closed-loop PaaS model with the traditional economic order quantity model in terms of operational costs, revenue, and inventory flow. The results show that factors such as the difference between the demand rates of the consecutive periods, the relationship between the recycling capacity and the final collection rate, and the difference between the screening and demand rates have essential roles in alleviating the extra inventory costs related to circular economy actions like reusing, repairing, and recycling.
... Furthermore, the literature has established the relevance of one of PT's central tenets, namely that online shoppers are risk-averse and will generally react to perceived losses more strongly than to perceived gains (e.g. Bischof et al., 2020;Li and Shimizu, 2018). This tenet will play an essential role in our studies. ...
Purpose
This research explores the concept of omnichannel fulfillment steering (OFS) and demonstrates how retailers can influence a consumer’s fulfillment decisions through commonly used financial incentives such as discounts, credits and the opportunity to avoid home delivery fees.
Design/methodology/approach
We present insights from two theoretically grounded experiments to examine how different types of financial incentives can be used by omnichannel retailers to steer consumers from home delivery toward three alternative order fulfillment methods (AOFM) – buy-online-pickup-in-store, curbside-pickup and ship-to-locker.
Findings
Our analysis suggests that an opportunity to avoid shipping fees (penalty-avoidance) is a more effective OFS nudge than offering discounts or store credits (rewards). No difference was observed between offering discounts or credits as steering mechanisms; further, no omnichannel steering benefits were observed among the tested AOFMs. Collectively, these findings provide possible justification for retailers’ prioritization of credits to foster customer in-store visits, thus encouraging greater customer engagement and facilitating cross-selling opportunities. Finally, we uncover a penalty-avoidance endowment effect for “free shipping” of purchases over the current industry-standard free shipping threshold.
Practical implications
Retailers might prioritize store credits over discounts as nudges to steer customers toward an AOFM, with buy-online-pickup-in-store offering the greatest benefits for most retailers. Furthermore, using penalty-avoidance OFS incentives over a typical free shipping threshold may increase AOFM selection rates but engender adverse customer reactions.
Originality/value
Advancing the concept of OFS, this study directly informs retailers’ omnichannel incentive programs to nudge customers back into the store. Countering intertemporal choice theory, we could not demonstrate that delayed incentives are less effective than immediate ones. Based on prospect theory, we identify a free shipping endowment effect at a specific reference point along a purchase amount continuum.
... Often the option is included to buy favorite rented items for discounts (Bodenheimer et al., 2022). Fashion subscription box services are characterized by ongoing and flexible access enabled by a digital platform (Bischof et al., 2020). ...
... In the literature, different categorizations of subscription boxes can be found. According to the typology of Bischof et al. (2020), four box types can be distinguished: (1) predefined boxes, (2) curated surprise boxes, (3) access-based boxes, and (4) general surprise boxes. These four box types differ with respect to the degree of surprise and to personalization related to the controllability of products delivered (Bischof et al., 2020). ...
... According to the typology of Bischof et al. (2020), four box types can be distinguished: (1) predefined boxes, (2) curated surprise boxes, (3) access-based boxes, and (4) general surprise boxes. These four box types differ with respect to the degree of surprise and to personalization related to the controllability of products delivered (Bischof et al., 2020). The combination of the two dimensions of personalization and surprise, with low and high scores, reflects the value proposition of the box (Bischof et al., 2020). ...
Renting fashion using clothing box subscription is a growing trend in the textile industry. The element of surprise varies according to the box type chosen by the customer: the self-assembled or the curated surprise box. Our study focuses on the effects of consumer characteristics, box type and other attributes on the intention to subscribe. We collected data from 364 German respondents and used choice-based conjoint analysis to estimate these effects. A between-subject design helps to compare the self-assembled versus the curated surprise box type. Price has the highest relative importance in the curated surprise box subscription model. In both subscription models, consumers preferred to rent four fashion pieces rather than two. Sustainable fashion labels increase the willingness to pay in the case of the self-assembled box model. Most consumers still prefer new fashion items over second-hand or upcycled ones, leaving considerable room for circular communication strategies.
... Personalization-the ability to customize subscriptions to a user's tastes and needs-is one of the main draws of ecommerce subscription services. Consumers may take advantage of personalized product recommendations, automated delivery, and frequently lower prices as compared to in-store shopping [1]. Furthermore, subscription models encourage a feeling of commitment and loyalty between companies and clients, which may result in increased lifetime value and recurrent income streams. ...
In e-commerce subscription services, predicting client attrition is essential for businesses trying to boost sales and enhance client retention. This article proposes a unique approach for accurate churn prediction: recurrent neural networks (RNNs) plus attention mechanisms. By taking advantage of the temporal dependencies found in subscription-based interactions, the RNN model dynamically learns and concentrates on important features. This enables it to detect minute patterns that can point to potential churn behavior in the future. This study thoroughly examines churn characteristics in e-commerce subscription services in order to determine the effectiveness of the proposed RNN architecture in anticipating client attrition. Experiments on real datasets show that the model works better than traditional methods, achieving notable accuracy and predictive power. Moreover, the attention processes in the model allow it to rank the informative traits in order of importance, providing insight into the fundamental causes of customer attrition. The results of this study establish a solid framework for proactive churn control and long-term growth, which has important ramifications for e-commerce companies. Businesses may maximize resource allocation, raise customer happiness, and develop enduring connections with their subscribers by utilizing the predictive powers of RNNs with attention mechanisms. Python is used to implement the suggested work. The accuracy of the suggested study is 97%.
... Bischof et al., 2020). 멤버십형 구독서비스는 권 한부여형, 접근형으로도 불리운다 (정영훈, 2019;Bischof et al., 2020;Chen et al., 2018). ...
... . 멤버십형 구독서비스는 권 한부여형, 접근형으로도 불리운다 (정영훈, 2019;Bischof et al., 2020;Chen et al., 2018). 멤버십은 유료로 결제한 회원에게 가격할인, 적립금 등 경 제적 혜택을 제공하는 제도를 의미한다 (박영미, 이희숙, 2014). ...
... The rising subscription service model is mutually beneficial to the supply and the demand ends, and it also makes a great contribution to environmental protection [30]. To stimulate consumers to buy new products based on the designed service life of products, most of them, including electronic products, are designed to be easily damaged once the warranty period expires, bringing a considerable amount of electronic waste annually across the globe. ...
Subscription services have become popular in recent years, breaking the traditional business model of one-time payment and prompting operators to build long-term loyal relationships with their customers. As smartphones are popular in Taiwan and the Taiwanese have a high acceptance of new technologies, is it possible for domestic restaurants to reach a win-win situation for both consumers and restaurant operators and to reduce food waste through subscription services? The Technology Acceptance Model was used in this study to explore consumers’ perceived usefulness, perceived ease of use, and attitudes toward restaurant subscription platforms, with two variables, new environmental paradigm and environmental behavior, added to probe the relations with intention to use. This study was conducted by convenience and snowball sampling, and the subjects were consumers eating out. A total of 400 questionnaires were collected and 369 valid ones were returned, with a response rate of 92.25%. The results show that perceived usefulness, perceived ease of use, new environmental paradigm, environmental behaviors, and attitude toward using have significant positive effects, and attitude toward using has the same effect on intention to use. In addition, attitude toward using has a mediating effect on perceived usefulness, new environmental paradigm, environmental behavior, and intention to use. Finally, it is expected that the results of this study can be used as a reference for restaurant operators to adopt subscription services in order to build long-term and stable relationships with consumers. Furthermore, new entrepreneurs can also evaluate the feasibility of building a subscription platform like this one, which can provide a convenient and economical option for consumers dining out, as well as reduce food waste.
... Customers also enjoy the convenience as the decision making process is largely simplified. The flat rate is easy for budgeting and the automated transaction could tie retailers and customers more closely (Bischof et al. 2020). In addition, personalized content are increasing in popularity as customers feel 'recognized and acknowledged' (Janzer 2020). ...
... A large portion of the existing literature focuses on subscription values from customers' perspectives, such as customer lifetime value (McCarthy et al. 2017), customer perceptions (Baek and Kim 2022), and surprise as a product dimension (Bischof et al. 2020). The attention of customer-oriented research is primarily on fixed subscription plans, where the customers get a fixed amount of service or consumed goods, such as a subscription box. ...
Subscription models where consumers pay fixed (monthly) fees for access to services are becoming increasingly popular across a wider set of service offerings as firms look for ways to stabilize revenues. Lodging subscription services are natural and flexible extensions of timeshare models whereby consumers pay monthly subscriptions fees to get access to a wide variety of stay options. The value of the subscription service may be difficult for consumers to evaluate and hence limit adoption. This study demonstrates that service providers can assist consumers in maximizing use of their subscription through addition of simple sort functionality or via more robust optimization approaches. Using synthetic data as well as data from a lodging subscription provider, we develop approaches for consumers to maximize their use of the subscription service - we compare and contrast optimal approaches to readily deployed heuristic approaches.
