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What is the potential of applied behavioral economics in creating new avenues of value generation and disrupting traditional business models? Using the Case of the Fitness Club Industry

Hania, Bouamra LU and Månsson, Cecilia LU (2015) MGTN59 20151
Department of Business Administration
Abstract
This investigative study seeks to explore the ability of applied behavioral economics to create new avenues of value generation and disrupt traditional business models. This is achieved through using the fitness industry and Digital Financial Incentives Services (DFIS) as a case study. The data comprises a survey and interviews targeting respectively the consumers and the industry side. The analysis consists of establishing the current and post-DFIS implementation business models from both consumers and the industry angles. The results indicate a market potential or “blue ocean”, in the solving of the compromise between supervision and price customers are currently forced to make, by providing customers an affordable and scalable incentive... (More)
This investigative study seeks to explore the ability of applied behavioral economics to create new avenues of value generation and disrupt traditional business models. This is achieved through using the fitness industry and Digital Financial Incentives Services (DFIS) as a case study. The data comprises a survey and interviews targeting respectively the consumers and the industry side. The analysis consists of establishing the current and post-DFIS implementation business models from both consumers and the industry angles. The results indicate a market potential or “blue ocean”, in the solving of the compromise between supervision and price customers are currently forced to make, by providing customers an affordable and scalable incentive service. This market is characterized by consumers’ need for accountability that can be filled with an incentive service, as well as consumers’ interest in such a service. However, it was found that no current industry segment was apt enough to cater for this unfilled need. The reason behind this was the inherent difficulty for firms to answer to the cumulative criteria of maintaining the configurational fit of their business models, while having their current customers sufficiently overlap with the potential customers of DFIS. This difficulty is attributed to the disruptive nature of DFIS. Thus this study has demonstrated that insights from behavioral economics can help bring to light what is identified as a leap of value that can be proven to be disruptive. Adopting a value co-creation approach, behavioral economics can spot potential untapped value when consumers cannot reach value fulfillment. (Less)
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author
Hania, Bouamra LU and Månsson, Cecilia LU
supervisor
organization
course
MGTN59 20151
year
type
H1 - Master's Degree (One Year)
subject
keywords
behavioral economics, value co-creation, business model innovation, disruptive innovation, customer value, value proposition
language
English
id
7448369
date added to LUP
2015-06-29 14:48:20
date last changed
2015-06-29 14:48:20
@misc{7448369,
  abstract     = {This investigative study seeks to explore the ability of applied behavioral economics to create new avenues of value generation and disrupt traditional business models. This is achieved through using the fitness industry and Digital Financial Incentives Services (DFIS) as a case study. The data comprises a survey and interviews targeting respectively the consumers and the industry side. The analysis consists of establishing the current and post-DFIS implementation business models from both consumers and the industry angles. The results indicate a market potential or “blue ocean”, in the solving of the compromise between supervision and price customers are currently forced to make, by providing customers an affordable and scalable incentive service. This market is characterized by consumers’ need for accountability that can be filled with an incentive service, as well as consumers’ interest in such a service. However, it was found that no current industry segment was apt enough to cater for this unfilled need. The reason behind this was the inherent difficulty for firms to answer to the cumulative criteria of maintaining the configurational fit of their business models, while having their current customers sufficiently overlap with the potential customers of DFIS. This difficulty is attributed to the disruptive nature of DFIS. Thus this study has demonstrated that insights from behavioral economics can help bring to light what is identified as a leap of value that can be proven to be disruptive. Adopting a value co-creation approach, behavioral economics can spot potential untapped value when consumers cannot reach value fulfillment.},
  author       = {Hania, Bouamra and Månsson, Cecilia},
  keyword      = {behavioral economics,value co-creation,business model innovation,disruptive innovation,customer value,value proposition},
  language     = {eng},
  note         = {Student Paper},
  title        = {What is the potential of applied behavioral economics in creating new avenues of value generation and disrupting traditional business models? Using the Case of the Fitness Club Industry},
  year         = {2015},
}