Predicting consumer adoption of branded subscription services: A prospect theory perspective

Abstract

Drivers of and barriers to consumer adoption of product‐service systems (PSS) deviating strongly from the current consumption paradigm remain unidentified. This study quantitatively investigates purchase intentions of a hypothetical branded fashion subscription service. This service features use‐ and result‐oriented PSS attributes in a lack of ownership, newness, and choice, and is investigated from a Prospect Theory perspective using a mixed method design combining an experiment with a survey (n = 524). Results show that even if the PSS provider is highly trusted by consumers, this only mitigates some of the worries consumers have about wearing used clothing and being held financially liable for product damage. The only driver of adoption is the opportunity to save money. Additional specific product information is also explored and shows that PSS providers have scope to change consumer perceptions. Overall, it appears that fashion ownership and choice are lesser issues than the literature suggests, although financial incentives are important. Furthermore, having a trusted brand allows a potential PSS provider to alleviate only some of the concerns consumers have. The contribution of this paper lies in its empirical findings as well as in its validation of Prospect Theory as a valid approach to enquiring into reasons for or against consumer adoption of complex PSS such as subscription services.

Customers’ Intention to Recommend Takeaway Food during COVID-19 Pandemic

“…Risk is one of the factors that influence consumer decision making in choosing and buying a product. Several studies have found risk and trust have positive effects on purchase intention (Day et al, 2020;Hoque and Alam, 2018). This study confirmed the findings of Al-Ansi, Olya and Han (2019) which explained that health risk, psychological risk, quality risk, which are part of general risk, have a positive and significant impact on trust and intention to recommend halal food.…”

“…During Pandemic COVID-19 most consumers consider uncertain situation with relatively high health risk, so their final decision to buy or consume the product is based on the perceived advantage (Radic et al, 2021). Therefore, Prospect Theory is recommended and suitable to utilize in times of crisis with full of risk and uncertainty by using Health Risk, Psychological Risk, Quality Risk as the consumer consideration (Al-Ansi and Day et al, 2020). Most previous studies have used this prospect theory for the hospitality industry.…”

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

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Towards sustainable business models with a novel life cycle assessment method

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