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Pay-per-use business models as a driver for sustainable consumption : Evidence from the case of HOMIE

Bocken, Nancy M.P. LU ; Mugge, Ruth; Bom, Colin A. and Lemstra, Hidde Jan (2018) In Journal of Cleaner Production 198. p.498-510
Abstract

Pay-per-use business models where consumers pay for the unit of service (e.g. a wash) without gaining product ownership are often linked to increased environmental performance. Consumers would become more conscious about consumption patterns and companies would take responsibility for product life cycle issues. Such benefits can only be achieved when the business model is intentionally designed to deliver those impacts. Few studies focus on the environmental impacts of pay-per-use business models based on direct measurement of impacts. This paper investigates the following question: What positive environmental impact in terms of improving consumption patterns can be observed in a pay-per-use business model? Through an in-depth case of... (More)

Pay-per-use business models where consumers pay for the unit of service (e.g. a wash) without gaining product ownership are often linked to increased environmental performance. Consumers would become more conscious about consumption patterns and companies would take responsibility for product life cycle issues. Such benefits can only be achieved when the business model is intentionally designed to deliver those impacts. Few studies focus on the environmental impacts of pay-per-use business models based on direct measurement of impacts. This paper investigates the following question: What positive environmental impact in terms of improving consumption patterns can be observed in a pay-per-use business model? Through an in-depth case of the start-up HOMIE, we investigate how its pay-per-use business model contributes to sustainable consumption. We use two samples of 56 and 21 customers in a longitudinal study to assess whether their consumption patterns of using a washing machine significantly changed after implementing a pay-per-use business model. It was found that pay-per-use business models have the potential to stimulate sustainable consumption. When customers started paying after the first free month, the total number of washes and washing temperature decreased significantly. Temperature reductions were mostly realized by customers who used to wash at higher temperatures. Future research could focus on mapping ideal sequences of experiments to achieve the greatest levels of sustainability impacts, and investigating other sustainable business models, such as renting and sharing.

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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Business model experimentation, Business model innovation, Circular business model, Pay per use, Sufficiency, Sustainable consumption
in
Journal of Cleaner Production
volume
198
pages
13 pages
publisher
Elsevier
external identifiers
  • scopus:85053085219
ISSN
0959-6526
DOI
10.1016/j.jclepro.2018.07.043
language
English
LU publication?
yes
id
18eb2b10-1492-40fe-83c9-1d9aadb9c8f6
date added to LUP
2018-10-09 10:57:45
date last changed
2019-04-23 04:39:59
@article{18eb2b10-1492-40fe-83c9-1d9aadb9c8f6,
  abstract     = {<p>Pay-per-use business models where consumers pay for the unit of service (e.g. a wash) without gaining product ownership are often linked to increased environmental performance. Consumers would become more conscious about consumption patterns and companies would take responsibility for product life cycle issues. Such benefits can only be achieved when the business model is intentionally designed to deliver those impacts. Few studies focus on the environmental impacts of pay-per-use business models based on direct measurement of impacts. This paper investigates the following question: What positive environmental impact in terms of improving consumption patterns can be observed in a pay-per-use business model? Through an in-depth case of the start-up HOMIE, we investigate how its pay-per-use business model contributes to sustainable consumption. We use two samples of 56 and 21 customers in a longitudinal study to assess whether their consumption patterns of using a washing machine significantly changed after implementing a pay-per-use business model. It was found that pay-per-use business models have the potential to stimulate sustainable consumption. When customers started paying after the first free month, the total number of washes and washing temperature decreased significantly. Temperature reductions were mostly realized by customers who used to wash at higher temperatures. Future research could focus on mapping ideal sequences of experiments to achieve the greatest levels of sustainability impacts, and investigating other sustainable business models, such as renting and sharing.</p>},
  author       = {Bocken, Nancy M.P. and Mugge, Ruth and Bom, Colin A. and Lemstra, Hidde Jan},
  issn         = {0959-6526},
  keyword      = {Business model experimentation,Business model innovation,Circular business model,Pay per use,Sufficiency,Sustainable consumption},
  language     = {eng},
  pages        = {498--510},
  publisher    = {Elsevier},
  series       = {Journal of Cleaner Production},
  title        = {Pay-per-use business models as a driver for sustainable consumption : Evidence from the case of HOMIE},
  url          = {http://dx.doi.org/10.1016/j.jclepro.2018.07.043},
  volume       = {198},
  year         = {2018},
}