2021
DOI: 10.1016/j.ijresmar.2020.09.008
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The existence and persistence of the pay-per-use bias in car sharing services

Abstract: A key benefit of using car sharing services (relative to car ownership) is that they are more cost effective. Car sharing firms offer a menu of pricing plans to make this happen. The two most common plans are flat-rate and pay-per-use pricing. However, little is known about how consumers choose among these pricing plans. In this study, we analyze consumers' choices between pay-per-use and flat-rate pricing using data from a car sharing provider in a large European city. We show that over 40% of customers make … Show more

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Cited by 15 publications
(4 citation statements)
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References 20 publications
(28 reference statements)
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“…Lovelock and Gummesson (2004) proposed that pricing access-based services should relate to units of time but also noted that pricing schemes may need to be modified according to circumstance. Dowling et al 's (2020) analysis of how users choose between different payment plans showed that carsharing customers typically opt for pay-per-use favor flexibility but tend to underestimate their usage. In general, further research is warranted on perceived utility and willingness to pay, as this may yield solutions to issues of scalability and stakeholder goal alignment.…”
Section: Discussion and Research Agendamentioning
confidence: 99%
“…Lovelock and Gummesson (2004) proposed that pricing access-based services should relate to units of time but also noted that pricing schemes may need to be modified according to circumstance. Dowling et al 's (2020) analysis of how users choose between different payment plans showed that carsharing customers typically opt for pay-per-use favor flexibility but tend to underestimate their usage. In general, further research is warranted on perceived utility and willingness to pay, as this may yield solutions to issues of scalability and stakeholder goal alignment.…”
Section: Discussion and Research Agendamentioning
confidence: 99%
“…The sharing economy functions according to the notion of someone offering the unused capacity of an asset they own for sharing with others who need the asset but do not want to purchase it outright (Schor & Frenken, 2019). The difference between owning and sharing a product lies in cost-effectiveness (Dowling et al, 2021). Traditional business models are no longer valid in the sharing economy.…”
Section: Definition Of the Sharing Economymentioning
confidence: 99%
“…For instance, in pay-per-use BMs (Chun, 2020 ), on-demand printing and car sharing services, consumers only pay for the unit of service they need to use without gaining product ownership (Bocken et al., 2018 ). Furthermore, consumers become more conscious about pricing (Chun, 2020 ; Dowling et al., 2020 ) and consumption patterns and companies take more responsibility for inefficiencies in their products’ life cycles (Bocken et al., 2018 ; Gebauer et al., 2017 ; Sato & Nakashima, 2020 ). Similarly, manufacturers can make their operations more sustainable and more profitable by focussing on services that extend the efficiency and value of their products (Rothenberg, 2007 ).…”
Section: Background Literaturementioning
confidence: 99%