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Towards Circular Economy Business Models: Consumer Acceptance of Novel Services

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There is a need to accelerate the change from the current linear economy towards a circular economy (CE), which is regenerative by intention and design. The transformation towards CE entails radical changes in the business environment. Thus, in CE-based business model (BM) innovation, we need to understand consumer preferences, their everyday life, and the role of material objects. We here build a preliminary framework based on consumer practices and the product–service system (PSS) literature. We also present the results of a small survey investigating consumers' opinions about BMs based on services, which was carried out (n=239) at the Housing Fair in Finland in 2015. The findings indicated consumers' past experiences were most strongly related to conventional service use, such as a car utilisation, though consumers also indicated interest in trying other CE-based services. Consumers seem to more easily adopt a BM that does not require dramatic changes in their practices.
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This paper was presented at The ISPIM Innovation Summit, Brisbane, Australia on 6-9 December
2015. The publication is available to ISPIM members at www.ispim.org.
1
Towards Circular Economy Business Models:
Consumer Acceptance of Novel Services
Maria Antikainen*
VTT Technical Research Centre of Finland,
P.O. Box 1300, FI-33101 Tampere, Finland
E-mail: firstname.lastname@vtt.fi
Minna Lammi
University of Helsinki, Consumer Societ y Research Centr e
Unioninkatu 40, (P.O. Box 24) , 00014 University of Helsinki
E-mail: firstname.lastname@helsinki.fi
Harri Paloheimo, Timo Rüppel
CoReorient Oy
Työpajankatu 2bE, 00580 Helsinki
E-mail: firstname.lastname@coreorient.com
Katri Valkokari
VTT Technical Research Centre of Finland,
P.O. Box 1300, FI-33101 Tampere, Finland
E-mail: firstname.lastname@vtt.fi
Abstract: There is a need to accelerate the change from the current linear
economy towards a circular economy (CE), which is regenerative by intention
and design. The transformation towards CE entails radical changes in the
business environment. Thus, in CE-based business model (BM) innovation, we
need to understand consumer preferences, their everyday life, and the role of
material objects. We here build a preliminary framework based on consumer
practices and the product–service system (PSS) literature. We also present the
results of a small survey investigating consumers’ opinions about BMs based
on services, which was carried out (n=239) at the Housing Fair in Finland in
2015. The findings indicated consumers’ past experiences were most strongly
related to conventional service use, such as a car utilisation, though consumers
also indicated interest in trying other CE-based services. Consumers seem to
more easily adopt a BM that does not require dramatic changes in their
practices.
Keywords: Keywords: circular economy, business models, consumer, survey,
services
1Introduction
Motivation and research gap
This paper was presented at The ISPIM Innovation Summit, Brisbane, Australia on 6-9 December
2015. The publication is available to ISPIM members at www.ispim.org.
2
The ‘circular economy’ (CE) has gathered a lot of attention in recent years from
academia as well companies offering a practical alternative to the current linear economic
model. The need for CE is evident as the significant portion of non-renewable resources
is diminishing and the price volatility of natural resources is increasing (EMF 2012).
Current trends—such as increasing consumption, new generations of consumers,
urbanisation and employment, tightening legislation, and technological leaps—are
accelerating the transformation towards CE. Nevertheless, innovation often remains
piecemeal or incremental, rather than being transformational, fundamental and system
wide. While global environmental, social, political, and technological trends contin ue to
shift the foundations of our current business models, incremental innovation will become
less effective in enabling companies, industries and whole economies to adapt and
succeed. This has drawn attention to the urgent need for radical system-wide innovation
to transform the processes of value creation (EMF, 2012).
CE sets strong expectations on consumers, who will play a key role as enablers of the
circular economy. Since future business models will be radically different compared to
previous models, consumers are expected not only to adopt new models but also to
change their current habits. A good example of such a change is leasing, hiring and
sharing of products, as opposed to direct ownership. In order to make these models
attractive to consumers, we need to understand consumer preferences more deeply,
consumers’ everyday lives, and the role that material objects play in their lives. In this
paper we build a preliminary framework for understanding consumers, based on
consumer practices and the product–service system (PSS) literature.
Research questions
The aim of this study is to increase our understanding of Finnish consumers while
innovating circular business models.
We address this main question through the following inquiries:
1. What are consumers’ opinions and experiences regarding hiring, leasing and
sharing of some traditional consumer products in different price categories?
2. What kinds of factors explain why consumers might prefer services (hiring,
leasing and sharing) in favour of owning products?
3. What are the preferred payment models when hiring, leasing and sharing?
2Literature
Business model innovation in CE
New ideas and technologies are commercialized by companies through their business
models (Chesbrough, 2010). Radical innovations and disruptive business models are
needed in order to move towards the circular economy model (Boons et al., 2013). On the
other hand, there is an evident need to base new business models on an in-depth
understanding of consumers. There are excellent examples of disruptive business models
based on a sharing economy (SE), such as Uber and Airbnb, which have successfully
created and implemented new value offering for consumers. The sharing economy and
service business have been identified not only as trends that support the transformation
towards CE, but also as a source of vast, as yet untapped opportunities for existing
companies as well as new players.
There is an extensive literature on business model innovation (BMI). In turn,
sustainable business model innovation (SBMI) combines the ideas of sustainable business
thinking and business model innovation. Rather than concentrate purely on creating
economic value, the SBMI literature concentrates on considering benefits from societal
and environmental perspectives and creating value for a broader range of stakeholders
(Boons & Lüdeke-Freund, 2013).In the SBMI literature, one of the main discussions has
centred on identifying different archetypes of sustainable strategies for companies, such
as promoting eco-efficiency, creating value from waste, and delivering functionality
rather than ownership (Bocken, 2014). There are also several studies in the SBMI
literature presenting concrete company cases of forerunners in this field, such as Interface
Inc (Stubbs & Cocklin, 2008) and Toyota (Porter & Derry, 2012).
The sustainable business model (SBM) and the circular business model (CBM) are
closely related literature streams and th ey can be regarded as a subcategory of business
models. CBMs can be defined as the rationale of how an organization creates, delivers
and captures value with and within closed product material loops (Mentink, 2014). The
idea is that a CBM does not need to close the material loops by itself within its internal
system boundaries, but can also be part of a system of BMs that together close a material
loop in order to achieve circularity (Mentink, 2014). Yet in reality, due to physical and
practical constraints, there exist neither 100% circular BMs nor 100% linear BMs.
Currently, many companies are dealing with the same issue: How to transform their
busin ess models from linear towards circular models and to be sustainable. The question
is highly relevant to society, businesses, and the environment. Up to now, adoption of
CE-based business models has been low among companies (Sommer, 2012). In the
literature on CE, the focus has been on identifying characteristics of circular business
models based on longevity, renewability, reuse, repair, upgrade, refurbishment, capacity
sharing, and dematerialization (Accenture, 2014). Yet, the literature on CE has been
lacking especially in relation to novel business opportunities. Furthermore, although,
studies and discussion are plentiful, we still lack a holistic understanding of CBMs, while
research is also needed on the wider social and political changes required to make CE-
based businesses mainstream (Bocken et al., 2014).
Consumer practices
In order to be successful, new CE-based business models need to be attractive to
consumers. Empirical studies are needed on the relationships between consumer
practices, temporalities and life events if the challenge of transformation towards CEs is
to be met in a profitable way. Consumers do have the desire to consume in a sustainable
way if they have easy opportunities and tools to make better consumption choices
through consumer markets (Lammi et al., 2011). Still, a consumption-based lifestyle is
deeply entrenched in society; people’s attachments to material things precedes the post-
war age of affluence (Trentmann, 2009) and are performed in the media and other public
discussion. Consumer practices, habits and routines do not always match with their
positive view of environmental issues. Especially those critical transitional life events
This paper was presented at The ISPIM Innovation Summit, Brisbane, Australia on 6-9 December
2015. The publication is available to ISPIM members at www.ispim.org.
4
(e.g. changing one's residence, getting marriage, childbirth, divorce, death etc.) bring
forth material incorporation, adaptation and abandonment (Aalto & Varjonen, 2014).
Moreover, these life events create discontinuity both in regard to practices and also one's
material attachments.
Transforming routines and habits has been recogn ised as a key target in achieving
long-lasting effects in the markets. Research has already looked at how people come to
form habits, how appropriate novelties appear, and what are the procedures that
collectivize these (Ylikauhaluoma et al., 2013; Shove et al., 2012). Business models that
do not remind consumers of existing models are likely to experience resistance; it is
easier to gain acceptance of a new practice when it closely resembles other practices that
are already common (see e.g. Mylan, 2015). A good example would be Airbnb –
consumers are already used to booking hotels online and so going to Airbnb entails a
very similar booking pr actice to ordinar y hotel bookin g.
In this paper we concentrate on different consumer services as substitutes for the
traditional ownership of products. Consumers engage in practices like laundering, driving
to the countryside for a holiday, or dressing up for special occasions. They do not
necessarily need to own a washing machine, a car, or special attire; rather, their need is to
wash their cloths, get to the countryside easi ly, and to dress suitable for special occasi ons.
Thus, the basic idea is that instead of buying products, the better solution may be to buy a
service that gives access to a certain product when needed. For companies, a business
offering services instead of products is by its nature a different kind of business. If
companies offer services and they own the products they have an incentive to ensure that
the products have a long service life, are used intensively and that they are cost- and
material-effective (Tukker & Tischner, 2006). Furthermore, companies need to build up a
service offering that will be attractive to consumers, including through new revenue
models (monthly payment, pay per use etc.). In order to offer superior value, the service
has to be easy to use, cost-effective, low-risk and it has to at least match existing
practices; that is, new services are easily adapted if they are aligned with ongoing
dynamics and perhaps even linked to existing practices (Mylan, 2015).
Consumers in the Product–Service Systems literature
The literature on PSS has focused on exploring the basic nature of the transition from a
product-centric organisation to a service or value proposition -centric organisation. Since
selling a product with its functionalities differs significantly from selling a service
offering based on customer value, PSSs have sought a deeper understanding of the
servitisation process in B2B and B2C contexts (Roy & Cheruvu, 2009). Thus, the PSS
literature can be defined as is ‘a mix of tangible products and intangible services
designed and combined so that they are jointly capable of fulfilling final customer needs’
(Tukker and Tischner, 2006).
While B2C markets and environmental or commercial consequences have been
widely discussed in the PSS literature, ther e are fewer studies focused on a consumer
perspective, especially on individual consumers (Mont & Plepys, 2003). However,
consumer acceptance plays a key role in creating a successful service offering. In
previous empirical studies, authors have listed the factors in Table 1 affect consumer
acceptance (modified from Rexfelt & Hjort af Ornäs, 2009).
Table 1 Factors influencing acceptance of services (modified from Rexfelt & Hjort af
Ornäs, 2009).
Factors influencing the acceptance of services
Category
Factor
Author
Price
Perceived fixed and vari
ble
costs, insight in total life-cycle
costs
Meijkamp, 2000; Mont, 2004b;
Schrader, 1999);
Price of products, costly most
successful
Littig, 2000; Mont, 2004a;
Schrader, 1999
Product /service
Perceived relative advantages
compared to alternatives
Littig, 2000; Meijkamp, 2000;
Mont, 2004a; Schrader, 1999;
Ornäs, 2009
Availability wherever and
when ever n eeded, con venience
Meijkamp, 2000; Schrader,
1999
Transaction costs (time and
money)
Meijkamp, 2000; Schrader,
1999
Quality of the PSS, reli
bility
Meijkamp, 2000
Consumer
Habits as an obstacle to
acceptance
Meijkamp, 2000
Issue of ownership
Littig, 2000
Environmental attitudes, may
have relatively little importance
Littig, 2000; Meijkamp, 2000
Relationship with
company
Reputation, i
mage
Mont, 2004b; Schrader, 1999
Un
certainties risks, costs and
responsibility)
Mont, 2004b
Communication between
supplier and consumer
Mont, 2004b
3Research design
Survey approach
Different approaches were considered when seeking to answer the research questions.
Given the lack of prior studies in the field, our approach was to investigate the
phenomenon by means of a survey, so as to study a larger number of consumers than
would be possible with interviews.
A survey was designed to investigate consumer opinions about business models that
are relevant in the context of the circular economy. The questions dealt with the
following themes: consumer preferences towards hiring different consumer products
(including also their preferences for the most convenient payment method), consumers’
previous experiences of CE-based business models, consumers’ aims for future actions
related to CE business models, and consumers’ rationalizations of the reasons why they
would prefer hiring instead of owning.
Basic demographic information was sought on respondents’ age, municipality of
residence, education, gender and income level, and a questionnaire with six questions:
This paper was presented at The ISPIM Innovation Summit, Brisbane, Australia on 6-9 December
2015. The publication is available to ISPIM members at www.ispim.org.
6
1. Would you consider, in the future, renting instead of owning one of the
following items?
2. What reasons would persuade you to rent a washing machine instead of owning
it?
3. How would you prefer to pay for the rental of a washing machine?
4. Have you used one of the following services?
5. Would you be willing to try one of the listed services in the future?
6. What reasons would lead you to use any of the listed services?
The survey was conducted at the Housing Fair in a newly built area in the city of
Vantaa from July–August 2015 and it generated 240 responses. The questions to
respondents were presented in the form of a printed questionnaire at the site of smart
community space prototype demonstration at the Housing Fair. Assistance and
background information was offered to the respondents on request at the time of filling
out the questionnaire. Due to space limitations at the site a maximum of five persons
could complete the questionnaire at any one time. There was no mention of the prototype
concept site or of the survey in the official Fair program. The site was situated en route to
a popular apartment building attraction at the Fair. Admission to the fair entailed a fee.
4Findings
Study results
Of the 240 respondents, 149 were women; age distributions are shown in Figure 1. The
Housing Fair appeals to aspiring home owners and thus predictably younger people are
overrepresented when compared to the age distribution of the general population in
Finland (OSF, 2015). Respondents’ municipality of residence are shown in Figure 2. The
Housing Fair was held in the municipality of Vantaa, which is part of the capital region
of Finland, which also includes the municipalities of Helsinki, Espoo and Kauniainen. As
can be seen, these municipalities (Kauniainen is a very small municipality and so is
included in other’) make up a large majority of the respondents, with the rest of Finland
being represented by roughly 32% of respondents, wh ereas 80% of the general
population do not live in the capital region (OSF, 2009).
Figure 1 The age distribution of the respondents in the survey.
Figure 2 The distribution of the municipality of residence of the respondents in the
survey.
The first question in the questionnaire assessed consumers’ willingness to use
renting as an alternative to outright ownership in the case of a car, hobby
equipment (e.g. ice skates, snowboards), a washing machine, and everyday
clothing. A free-text entry option was also provided. The question was answered
by selecting a number from 1 to 5 (not willing to rent–very willing to rent). In the
analysis, responses were collapsed into three categories: No (1,2), Maybe (3) and
Yes (4,5). The answers given are shown in Figure 3.
This paper was presented at The ISPIM Innovation Summit, Brisbane, Australia on 6-9 December
2015. The publication is available to ISPIM members at www.ispim.org.
8
Figure 3 Responses to question 1 of the survey.
Consumers seemed to be very willing to rent if the business model is familiar or usage is
infrequent (car rental, hobby equipment), but showed considerable aversion in the case of
everyday clothing. This may be due to the personal nature of clothing or the unfamiliar
business models of this use case. Renting a washing machine is also an example of a new
type of business model, though without the personal aspect associated with clothing, and
here the answers were very widespread, though leaning towards slightly positive when
yes and maybe answers are summarised. A car is also an example of an expensive
product category, which might add to the attraction of renting over owning.
The second question assessed possible motivating factors (environmental concerns,
easier maintenance, better wash results due to easier access to upscale models, smaller
risk due to existence of a maintenance contract) for consumers to switch to a lease-based
ownership model for a washing machine. The answers were given similarly to question 1,
and are tabulated in a similar manner. Figure 4 shows the distribution of the results.
Figure 4 Responses to question 2 of the survey.
A washing machine is a utility appliance that is not commonly leased by consumers.
As can be seen, maintenance concerns would be the prime motivating factors, while
access to upscale models and the promise of better wash results are clearly not as
important as the better energy efficiency and environmental friendliness that those
models would be expected to provide.
Question 3 concerned the preferred method of payment in the case of a leased
washing machine and the results are (n=235): Pay per usage (27.2%), fixed monthly fee
(37.9%) and the option for traditional ownership (34.9%). These results correspond well
with the responses in the washing machine category of question 1 of the survey.
Questions 4 and 5 assessed consumers’ prior use of and future willingness to use
circular economy services, such as renting an apartment from another consumer (e.g.
AirBnB), swapping apartments (e.g. Home Exchange), ride-sharing services (e.g. Uber,
Lyft), delivery services (e.g. PiggyBaggy) and car rentals (e.g. CityCarClub). The
question was answered by selecting any number of services that the respondent had
previously used (question 4) and was willing to use in the future (question 5), we provide
an extra “Any of the above” category to show the absolute fraction of people who
selected at least one of the services. Figures 5 and 6 show the tabulated results for
questions 4 and 5, respectively.
Figure 5 Responses to question 4 of the survey.
This paper was presented at The ISPIM Innovation Summit, Brisbane, Australia on 6-9 December
2015. The publication is available to ISPIM members at www.ispim.org.
10
Figure 6 Responses to question 5 of the survey.
Figure 6 shows that a surprisingly large number of people have used short-term
apartment rental services such as AirBnB, at least when compared to the ridesharing
category, which is a service category with a much higher media visibility (in part due to
the frequent controversies around Uber). In Figure 6 we can see that consumers see
themselves as very likel y to use CE services in the future, with over 90% selecting at
least one of the available options.
An interesting question is whether consumers are more likely to see themselves using
CE services once they have already used them. In essence this would indicate whether
they found actual value from their previous experience with a given service. In order to
see this effect, we divided the responses to question 5 into two groups based on whether
the respondent had answered affirmatively or not to question 4 in a given category. The
results of this grouping are shown in Figure 7. It can be seen that there is such an effect
and it is consistently and significantly (p<0.01) present in all categories.
Figure 7 Responses to question 5 of the survey divided into two groups based on
respondents’ response to question 4.
Question 6 assessed the possible motivating factors (time savings, environmental
concerns, affordability, supporting other people, better / different service experience) that
would lead consumers to use CE services. The question was answered and results
tabulated in the same way as for questions 1 and 2; results are shown in Figure 8.
Figure 8 Responses to question 6 of the survey.
Figure 8 shows that pricing concerns are the main motivating factor, with
environmental concerns a close second.
This paper was presented at The ISPIM Innovation Summit, Brisbane, Australia on 6-9 December
2015. The publication is available to ISPIM members at www.ispim.org.
12
5Discussion
The study findings show that consumers used circular-economy (CE) services only
marginally, but expressed a high likelihood for using such services in the future.
Respon den ts who had previously used CE ser vices also seemed to be more interested in
using them in the future compared to those who had not yet tried them. Previous studies
have shown that people accept new practices more easily if they are aligned to old ones
(e.g. Mylan 2015, Shove et al. 2012). Based on our findings, we propose that CE-based
busin ess models are not only attractive for consumers who want to try something new,
but they would be successful at creating real value for consumers compared to other
alternatives.
In the study we were interested in the influence of consumer practices and the ease of
using new services, both of which have been regarded as important factors in the
previous literature (see e.g. Mylan 2015). Our study confirmed this viewpoint: A
significant proportion of respondents had already tried apartment rental services and
swapping and they also had plans to use these services in the future. Moreover, when
asked about the importance of different factors, time savings and easy maintenance were
listed by consumers.
In our study, environmental issues were also found to have influenced the consumer-
decision making process. Although these were not the most important factors, the interest
was slightly more than has been seen than in previous studies (Littig, 2000; Meijkamp,
2000).
It is quite natural that high prices for products might add to consumer interest towards
service-based models that do not need as high an investment and which are quite flexible
and based on current need. In this regard, our findings on renting a car confirmed
previous findings (Littig, 2000; Mont, 2004a; Schrader, 1999). Consumers also stressed
the importance of cheaper prices as an important factor in choosing to rent over
ownership, which would be understandable in the case of tools that are seldom in use, as
an example. The results also slightly indicate that at least in the case of a washing
machine, consumers prefer a fixed monthly payment rather than a pay per use model.
One of the reasons might be that pay per use is a rather unfamiliar model for consumers.
Thus, they might consider it more expensive or an otherwise more complicated payment
method.
Our study used several examples of the sharing economy business model, such as
ride-sharing and house rental and swapping. Since these exchanges happen between two
consumers, the personality of the relationship is stressed. Thus, we also asked about the
importance of support as an influencing factor for choosing a CE-based business model.
This factor also seemed to affect service adoption, although it was not among the most
important factors.
Limitations
The Housing Fair took place in the City of Vantaa and a majority of participants were
from the capital region of Finland. Therefore, smaller cities and rural areas are only
marginally represented in the results. Additionally, the Housing Fair was held during the
holiday season in Finland, which might possibly distort the results, as respondents on
holiday might respond differently to those who might be working. Finally, the age
distribution of respondents does not match the age profile of the general population; in
particular, the elderly, for whom CE services can be more important, were severely
underrepresented.
A visitor to the Housing Fair pays an entrance fee and can be expected to have an
interest in and the financial capability of acquiring real-estate in the near future. The
survey participants are a subset of this already limited group, which creates bias in the
results. Due to the Housing Fair having required an admission fee and time being at a
premium, the survey was necessarily very concise and focused only on a limited set of
questions.
As SE and CE services are not yet widely in use, their form and function may have
been unclear and abstract to many of the respondents. Moreover, in the absence of prior
experience of th ese novel services, a respondent’s answers are based on impressions and
assumptions. Even though assistance was provided at the time of answering the survey,
respondents may have been subjected to confirmation bias or were cautious about
revealing their lack of knowledge publicly, i.e. to other respondents at the stall who were
also completing the survey.
The reliability of the results could be improved in the future by extending the inquiry
window beyond the holiday period and replicating the sur vey in smaller cities and rural
areas. To estimate the impact of services being unfamiliar to respondents and related
questions being abstract, results from this study could be compared with responses
received from actual service users and with measured use in trials conducted in various
locations.
6Conclusions and further study paths
This study sheds light on consumer understanding of CE especially in relation to novel
consumer services, including C2C services. In addition, the study also indicates consumer
preferences towards different payment models. As such this study contributes to
deepening understanding in CE business models, while bridging the literature on
sustainable business model innovation, circular economy business model innovation, and
consumer studies. The study serves both academia and practitioners in providing relevant
and concrete understanding of consumers’ preferences, which would help in creating CE
business models that are attractive in the eyes of consumers.
Our study indicated that past experiences of CE-based services were related to
conventional use cases, such as car utilisation, although interest was shown in broadening
the var iety of services used in the future. Of the services presented, hobby equipment and
car rentals were found to be of most interest to consumers.
Based on the study, we propose three significan t factors that are of interest to
consumers regarding the services provided within the circular economy: ease of use,
decreased environmental impact, and reduced cost. Consumers also seem to more easily
adopt a business model that does not require a dramatic change in their practices. In CE
busin ess model innovation, these factors should be taken into account especially in the
elements related to the consumer value proposition and the revenue model. Consumers
might also need extra education and incentives if new innovative business models are to
be attractive to them. One such path would be to offer a step-by-step adoption of new
practices.
This study acts a path opener for CE-based business models and a deeper
understanding of consumers as active participants of CE. Possible future directions from
here could include, for example, understanding different revenue and incentive models of
CE-based business models. We also need to better understand how consumers might
adopt new business models faster, with one possibility being to more actively involve
consumers in the business model innovation pr ocess.
This paper was presented at The ISPIM Innovation Summit, Brisbane, Australia on 6-9 December
2015. The publication is available to ISPIM members at www.ispim.org.
14
Acknowledgements
This paper has been conducted as a part of the AARRE (Capitalising on Invisible Value
–User-driven Business Models in the Emerging Circular Economy) – project. The
authors would like to express their gratitude for the Green Growth Programme of the
Finnish Funding Agency for Innovation (Tekes), VTT and other parties involved in
AARRE – project for their financial support.
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Q5b
Apartment
Swap Ridesharing Deliveries Car rental
Row
Totals
Previous Use
4
(8.60)
[2.46]
22
(11.75) [8.94]
6
(14.16) [4.70]
15
(12.49)
[0.50]
47
No previous
use
89
(84.40) [0.25]
105
(115.25)
[0.91]
147
(138.84)
[0.48]
120
(122.51)
[0.05]
461
Column
Totals 93 127 153 135
508
(Total)
This paper was presented at The ISPIM Innovation Summit, Brisbane, Australia on 6-9 December
2015. The publication is available to ISPIM members at www.ispim.org.
16
Chi^2 = 18.3016, degrees of freedom k= 3, p=0.000381 Result significant at p<0.01. In
the table the three values x (y) [z] are x=number of responses in category, y=expected
number in category, z=contribution to chi^2 from category.
... Rexfelt, and Hiort af Ornäs (2009) Change required Implications AB-PSS adoption has for everyday life and behaviour. Mont (2004), Rexfelt, andHiort af Ornäs (2009), Mylan (2015), Vezzoli et al. (2015), Antikainen et al. (2015), Camacho-Otero et al. (2017) and Santamaria et al. (2016) Use-related barriers Quality of product Concerns regarding low quality product either because of low end brands or because of increased utilisation. Durgee and O'Connor (1995), Mont (2002b), Mont (2004), Catulli (2012), Lidenhammar (2015) and Camacho-Otero et al. (2017) Specific product characteristics Characteristics that make a product more or less suitable for access, for example their material, the importance of fashion, or their monetary value. ...
... Durgee and O'Connor (1995), Mont (2002b), Mont (2004), Catulli (2012), Lidenhammar (2015) and Camacho-Otero et al. (2017) Specific product characteristics Characteristics that make a product more or less suitable for access, for example their material, the importance of fashion, or their monetary value. Schrader (1999), Tukker (2015), Antikainen et al. (2015), Edbring et al. (2016) and Poppelaars et al. (2018) Effort to use product Learning to operate the products placed in AB-PSS, taking additional care during use, cleaning and maintaining them. ...
... The material properties of products also influence consumers' perception of contamination (Edbring et al., 2016); products made from soft materials such as clothing are more susceptible to lead to perceived contamination than products made from hard materials such as bicycles. Previous research has found that some consumers find clothing too personal to rent (Antikainen et al., 2015) and that consumers would never rent undergarments (Armstrong et al., 2016). ...
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... (7) Socio-economic constraints-Low education and literacy levels, lack of basic amenities', poor or no access to logistic and distribution networks, poor sanitation, lack of resources to mobilise adequate transportation and storage facilities are only some of the socioeconomic constraints of the seller in subsistence markets. Buyers and most of the sellers in subsistence markets have low education, low standards of living and most of their incomes are spent on purchasing sustenance products and services, needless to say, some smart marketers and large business corporations like Reliance Communications in India during 2003, made available mobile phone connections with handsets at 500 INR thus sphere heading a movement of low cost mobile handsets being made available to the BOP customers as well [3]. Within the realm of socio-economic constraints, sellers in subsistence markets have to scout for products that they can purchase at lower costs so they could sell it to their customers at a considerable mark-up. ...
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Part I - Introduction.- The Emergence of Green Business Models.- Purpose of this Work and Research Approach.- Part II - Theoretical Foundation of Green Business Model Transformations.- Environmental Sustainability in Business.- The Business Model Concept as a Unit of Analysis for Management Science.- Towards a Taxonomy of Green Business Models.- Organisations, Change, and Innovation.- Part III - Towards a Practical Management Approach.- A Survey on Green Business Model Transformations.- Managerial Implications of Survey Results.- Managing Green Business Model Transformations - A Framework for Management Practice.- Part IV - Conclusion and Outlook.- Conclusion and Outlook.
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Everyday life is defined and characterised by the rise, transformation and fall of social practices. Using terminology that is both accessible and sophisticated, this essential book guides the reader through a multi-level analysis of this dynamic. In working through core propositions about social practices and how they change the book is clear and accessible; real world examples, including the history of car driving, the emergence of frozen food, and the fate of hula hooping, bring abstract concepts to life and firmly ground them in empirical case-studies and new research. Demonstrating the relevance of social theory for public policy problems, the authors show that the everyday is the basis of social transformation addressing questions such as:how do practices emerge, exist and die?what are the elements from which practices are made?how do practices recruit practitioners?how are elements, practices and the links between them generated, renewed and reproduced? Precise, relevant and persuasive this book will inspire students and researchers from across the social sciences.
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