Towards a better understanding of consumer acceptance and valuation of product-service systems (PSS) - A discrete choice experiment on laundry solution

Abstract

Product-Service Systems (PSS) or Product-as-a-Service (PaaS) have been heralded as one of the ways to achieve sustainable consumption and production. PSS can lower environmental impact and enable the circular economy. However, low consumer acceptance has hindered the success of this business model. This paper analyses what determines consumer acceptance of PSS in the business-to-consumer context. This was done by examining the most important attributes of PSS, how consumers value these attributes and how this is related to their consumers’ inherent characteristics. To answer the research questions, 18 interviews were held with PSS experts, that were consecutively complemented with a Discrete Choice Experiment (DCE) among 1061 Dutch consumers. It was found that consumer acceptance of a product-service systems was mainly influenced by eleven attributes of a proposition, whereof only seven were directly included in this study on laundry solutions. To show the influence of preferences for a laundry solution, the attributes were investigated on the basis of utility and importance scores. Furthermore, the discrete choice experiment allowed to test for heterogeneity among preferences for a PSS by identifying latent classes. Five different latent classes of consumers were identified, these were then described according to their characteristics. Lastly, this study investigated which consumer characteristics variables had most effect on the choice for a laundry solution. Future studies should take the utility and importance scores, variables, and latent classes into account, in order to improve the product-market fit with the consumer. This research contributes to a better alignment of consumer needs’ with PSS-propositions. Ultimately benefitting the consumer acceptance and adoption of such propositions, increasing the performance of PSS and potentially contributing to the circular economy.