Drivers and barriers for the adoption of use-oriented product-service systems: A study with young consumers in medium and small cities

doi:10.1016/j.spc.2019.11.002

Sustainable Production and Consumption

Volume 21, January 2020, Pages 92-103

https://doi.org/10.1016/j.spc.2019.11.002 Get rights and content

Highlights

•
“environmental concern” and “healthy lifestyle” are the main drivers to the adoption.
•
“difficulty in finding” is the greatest barrier to the adoption.
•
drivers associated with hedonistic needs tend to positively motivate the adoption.
•
personal factors (such as age) tend to positively motivate the adoption.
•
“situational factors”, as availability and little information, can serve as inhibitors.

Abstract

Considering that one of the alternatives for transitioning to a circular economy is the adoption of new business models based on use/performance instead of product ownership, we focused this study on the adoption of product-service systems (PSS). Specifically, we identify the main drivers and barriers affecting the adoption of use-oriented PSS by young consumers residing in medium and small cities. We opted to perform a descriptive research with a quantitative approach. We verified that “environmental concern” and “healthy lifestyle” are the main drivers for the adoption of use-oriented PSS, while “unavailability of use-oriented PSS in the region or city” presented the greatest barrier to the adoption. Furthermore, we conclude that drivers associated with hedonistic/experiential needs (such as self-fulfillment, self-esteem, sense of belonging), as well as personal factors (such as age and lifestyle) tend to positively incentivize the adoption of use-oriented PSS. Notwithstanding, “situational factors”, as PSS availability and information about costs and usage methods can serve as inhibitors. Finally, to assist managers and academics, we propose a framework that summarizes the identified PSS adoption drivers and barriers along with recommendations to optimize adoption drivers.

Introduction

Increased environmental concerns related to growing world population have encouraged institutions and governments around the world to pursue more sustainable economic models (Gnoni et al., 2017). Although improving the efficiency of products and processes makes sense from an environmental perspective, it is still not enough to address the scale of current problems, requiring further changes and attention to population consumption levels and patterns (Joshi and Rahman, 2017).

One possible solution to avoid unnecessary use of resources and excessive waste is to reduce new purchases and promote new socioeconomic patterns of consumption, such as circular economy (Kristensen and Remmen, 2019, Mashhadi et al., 2019). Unlike the linear production model, circular economy encompasses resource and product reuse, repair and upcycling (Ellen MacArthur Foundation, 2013), as well as models aimed at sharing of products (Piscicelli et al., 2015). It also includes practices of extending a products life such as resale of second hand items, access-based consumption such as renting, hiring and leasing products (also known as product-service systems) (Bardhi and Eckhardt, 2012), and collaborative consumption such as sharing platforms (Edbring et al., 2016).

Given that in circular economy reuse is more desirable than recycling (Park and Chertow, 2014), one of the alternatives for such transition would be the adoption of new business models that are based on usability/performance and no longer based on product ownership (Bressanelli et al., 2017). In this scenario, a promising way to achieve sustainability goals are product-service systems (PSS) (Zhang et al., 2015, Catulli et al., 2017).

Conceptually, PSS can be defined as a special case of servitization (Baines et al., 2007, Ziout and Azab, 2015, Kjaer et al., 2018), based on the functional thinking that people (consumers) do not necessarily look for a material product, rather they seek its utility, function, value or service (Mont, 2004, Qu et al., 2016, Kanda and Matschewsky, 2018). PSS can also be defined as a potential advanced scenario for more sustainable production and consumption systems (Santoso and Erdaka, 2015), since one of the objectives of PSS is to extend product life cycle and to provide customers with a more satisfactory experience (Annarelli et al., 2016).

Researchers divide PSS into three categories (Gaiardelli et al., 2014, Santoso and Erdaka, 2015, Catulli et al., 2017): (i) product-oriented PSS; (ii) use-oriented PSS; and (iii) result-oriented PSS. In (i) product-oriented PSS, product ownership is held by the customer, but additional services such as maintenance and warranty remain provided by the manufacturer, to ensure product performance over a given period. In (ii) use-oriented PSS, the service provider, which may or may not have been the original manufacturer, holds the product ownership and the customer purchases the use of the product and its functions over a given period of time (examples include sharing/pooling, renting and leasing). (iii) Result-oriented PSS focuses on the service that replaces the product in contrast to use-oriented PSS (for example, instead of renting a washing machine, households access a laundry service or launderettes).

Kristensen and Remmen (2019) point out that different studies have highlighted environmental sustainability as an important driver or result of PSSs. However, the authors draw attention to the gap in studies regarding the social dimension and the value created from PSSs. Therefore, we will focus our study on use-oriented PSS, whose subcategories are rental and product sharing (Tukker, 2004). Specifically, we identify the main drivers and barriers affecting the adoption of use-oriented PSS by young consumers residing in medium and small cities. According to Akbar and Hoffmann (2018), academic research is required in order to provide a framework that helps understand the behaviors associated with use-oriented PSS adoption. Furthermore, Mashhadi et al. (2019) state that there is a lack of elements by public and private managers related to understanding the drivers that contribute to use-oriented PSS adoption. Moreover, research indicates that use-oriented PSS adoption is disappointingly low, with consumer acceptance being a significant barrier (Piscicelli et al., 2015, Catulli et al., 2017).

Section snippets

Literature review: what we already know about drivers and barriers for use-oriented PSS?

This section presents the results of a narrative bibliographic research that was conducted in the Scopus database, focused on use-oriented PSS. Specifically, we seek to identify, from prior research activities, the drivers and barriers for consumer adoption of use-oriented PSS.

The drivers for the adoption of use-oriented PSS vary widely among different products. According to Botsman and Rogers (2011), lower value-added goods whose purchase decision processes require low to medium engagement

Method

In light of this study’s objective, we opted to perform a descriptive research with a quantitative approach. Descriptive studies are recommended when researchers aim to report characteristics or behavioral trends of targetpopulations (Malhotra, 2009). The quantitative approach allows greater assurance in the development of study conclusions (Hair Jr. et al., 2005).

As for the research population sample, we focused our study on the economically active young residents of southern Brazil. We

Data analysis

This section describes the results obtained in our field research, by initially highlighting in Section 4.1 the use-oriented PSS adoption drivers and barriers, followed by the intention to use analysis in Section 4.2

Discussion

Our results confirm the importance given by consumers to environmental aspects. Analyzing the data from the theory of evaluation criteria (Blackwell et al., 2005), it can be stated that drivers associated with hedonistic/experiential needs (such as self-fulfillment, self-esteem, and sense of belonging) tend to positively incentivize the adoption of use-oriented PSS. However, the utilitarian needs (as performance and comfort), tend to hinder such adoption.

Additionally, we found that knowledge

Final considerations

Theoretically, our research furthers the understanding of use-oriented PSS adoption drivers and barriers . We also believe that this study may contribute to public policymaking in support of promoting use-oriented PSS in medium and small cities.

However, this study presents some limitations. We recognize the use of non-probabilistic sampling makes it difficult to generalize the results obtained. We also recognize that in this study we approach the use-oriented PSS in general, i.e., we do not

Declaration of Competing Interest

The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.

Acknowledgments

The authors thank the Research Coordination of the Brazilian Ministry of Education (CAPES) and the University of Passo Fundo Foundation (FUPF), Brazil for the financial support received to conduct this research.

Andressa D’Agostin ( [email protected]) holds a degree in Environmental and Sanitary Engineering by Federal University of Santa Maria, RS, Brazil. She is currently a master’s student of the Graduate Program on Environmental Sciences (PPGCiAmb) at University of Passo Fundo, researching communication towards pro-environmental behavior, more specifically emotions related to the consumption of single-use plastic, also being a member of the research project on “Innovation Management of

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Janine Fleith de Medeiros ( [email protected]) is a Full Professor of the Graduate Program on Business Administration and of the Graduate Program on Environmental Sciences at University of Passo Fundo, RS, Brazil. She coordinates the research project on “Innovation Management of Environmentally Sustainable Products”. Janine is currently a postdoctoral researcher on Industrial Engineering from Federal University of Rio Grande do Sul where she also received her doctorate degree in Industrial Engineering.

Gabriel Vidor ( [email protected]) Gabriel Vidor holds a PhD (2014) and a Master’s degree (2010) in Industrial Engineering from the Federal University of Rio Grande do Sul and an undergraduate in Production Engineering from the University of Caxias do Sul (2007). He is currently a Professor at the University of Caxias do Sul. He has experience in planning, design and control of production systems. His main research areas involve the use of production methods to solve capacity and planning problems in industrial and service organizations.

Maikielli Zulpo ( [email protected]) holds a degree in Environmental Engineering and a Graduate Degree in Occupational Safety and Health by University of Passo Fundo, RS, Brazil. She is currently a master’s student of the Graduate Program on Environmental Sciences (PPGCiAmb) at University of Passo Fundo, researching the contribution of the efficient microorganisms involved in cattle manure composting, as well as the characterization of this material.

Cleide Fátima Moretto ( [email protected]) is a Full Professor of the Graduate Program on Human Aging and of the Graduate Program on Environmental Sciences at University of Passo Fundo, RS, Brazil. She holds a doctorate degree in Economic Theory by University of São Paulo (USP) and is currently a researcher on the areas of socioeconomic development, labor and human resources economy, approaching subjects such as sustainable development, labor market and worker’s health.

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Research articleDrivers and barriers for the adoption of use-oriented product-service systems: A study with young consumers in medium and small cities

Highlights

Abstract

Introduction

Section snippets

Literature review: what we already know about drivers and barriers for use-oriented PSS?

Method

Data analysis

Discussion

Final considerations

Declaration of Competing Interest

Acknowledgments

J. Clean. Prod.

J. Clean. Prod.

J. Clean. Prod.

Technol. Forecast. Soc. Change

Procedia CIRP

Procedia CIRP

J. Clean. Prod.

J. Clean. Prod.

J. Cleaner Prod.

Procedia CIRP

Ecol. Econ.

J. Clean. Prod.

Procedia CIRP

J. Clean. Prod.

Sustain. Prod. Consum.

Procedia CIRP

J. Clean. Prod.

J. Environ. Psychol.

J. Clean. Prod.

J. Environ. Psychol.

J. Clean. Prod.

Procedia CIRP

J. Clean. Prod.

J. Clean. Prod.

Ecol. Econ.

J. Clean. Prod.

J. Environ. Psychol.

J. Econ. Psychol.

J. Environ. Psychol.

J. Environ. Manag.

J. Clean. Prod.

Appl. Energy

Comput. Ind.

Procedia Comput. Sci.

CIRP J. Manuf. Sci. Technol.

Procedia CIRP

Research article
Drivers and barriers for the adoption of use-oriented product-service systems: A study with young consumers in medium and small cities