The Influence of Product Lifetime Labelling · 2018-02-03 · 3 Introduction – Research Gap & Questions § First few studies on product lifetime labelling (e.g. EESC, 2016) Hardly

The Influence of Product Lifetime Labelling on Purchasing Electrical Appliances among German Consumers K

Kathleen Jacobs

Alanus University of Arts and Social Sciences (Alfter, Germany)

Ecodesign Conference, Brussels: The ecodesign directive and the circular economy: How can we move forward?

25/Jan/2018 Kathleen Jacobs 1

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Introduction – Background

§  Sustainable consumption aims at reducing the use of natural resources and toxic materials as well as emissions of waste and pollutants (Norwegian Ministry for the Environment, 1994)

§  Changes in not only (energy) efficiency, but also in consumption levels and patterns are necessary (e.g. Lorek and Fuchs, 2013)

§  Consumers can contribute to the lifetime of their products already at purchase by deciding for the longer lasting product variants

§  However, a product’s functional durability is an experience attribute and can only be evaluated after purchase (e.g. Darby and Karni, 1973)

à Necessity of enhanced product lifetime information (e.g. Cox et al., 2013)

25/Jan/2018 Kathleen Jacobs

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Introduction – Research Gap & Questions

§  First few studies on product lifetime labelling (e.g. EESC, 2016)

! Hardly consider the various determinants of purchase behaviour and trade-offs with other product attributes

§  Research on sustainable consumption of electrical appliances has focused on energy consumption and disposal so far (e.g. Prothero et al., 2011)

§  Little empirical-quantitative research on purchase behaviour focusing on product longevity (e.g. Evans and Cooper, 2010)

Research Questions

?  What are the determinants of purchasing long-lasting electrical appliances?

?  How does a product lifetime label influence purchase decisions towards electrical appliances?




Conceptual Model – Theoretical Framework

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Consumer Theory of Lancaster (Lancaster, 1966)

=  Consumer preferences are not directed to the goods themselves, but to their attributes

―  Lack of psychological constructs

ü  Well-established for explaining decision-making of consumers

Theory of Planned Behaviour (Ajzen, 1991)

=  A person’s intention to engage in a certain behaviour is determined by her/his attitude, social norm and perceived behavioural control

ü  Different psychological constructs

―  Lack of explanatory power in consumer choice contexts

perfect match (similar to Nocella et al., 2012)


consciousness (sustainable

consumption)

Conceptual Model – Sketch

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behaviour (long product usage)

social norm (purchasing ...)

values (basic & materialistic)

attitude (purchasing long-lasting elec. appl.)

perceived behavioural control

(purchasing ...)

preference (long product lifetime

of elec. appl.)

Theory of Planned Behaviour

Consumer Theory of Lancaster

Other Theories & Concepts


Data Collection Method Experimental online survey (choice-based conjoint analysis)

Participants German consumers

Sample Source Online panel & personal network

Sample Size 409 usable questionnaires

Survey Period Oct to Dec 2017

Methods – Data Collection (Pilot Study)

6 25/Jan/2018 Kathleen Jacobs

Methods – Sample Characteristics


Sample (n=409)

Germanpopulation

100% 100%Gender Female 53 51

Male 47 49Age Under 20 years old 2 6

20 to 29 years old 22 1430 to 39 years old 20 1440 to 49 years old 18 2050 to 59 years old 24 1760 years and older 12 30No answer 1 0No school qualification or still at school 0 3Secondary modern school qualification 5 42Secondary school certificate 21 29University entrance qualification 26 12University degree 42 13Doctorate or habilitation 6 1No answer 0 0Below 20,000 inhabitants 32 4120,000 to 99,999 inhabitants 21 27100,000 to 499,999 inhabitants 23 15500,000 inhabitants and more 23 16No answer 1 0

Characteristics

Highest educational achievement

Size of place of residence


Sample (n=409)

Germanpopulation




Characteristics




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Sample:

§  More women

§  Younger

§  Higher educated

§  Larger places of residence


Sample (n=409)

Germanpopulation




Characteristics



Conjoint Analysis

§  Multivariate analysis technique to assess consumer preferences based on the consumer theory of Lancaster (1966)

§  Decompositional approach to analyse utility structures of individuals

à Relevance of single product attributes is derived from overall judgements on products

§  Much more realistic than traditional marketing tools

Choice-Based Conjoint Analysis

§  Popular sub-type of conjoint analysis which is very close to real-life, trade-off-based purchase decisions through the implementation of choice experiments

§  Lighthouse Studio Software

Methods – Data Analysis


Methods – Example Choice Task

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Brand

Expected Product Lifetime (Label)

Energy Consumption

Equipment

Price


new

Methods – Example Choice Task

9 10/Nov/2017 PLATE 2017 – Kathleen Jacobs

Introduction: (…)

Preliminary Results – Average Utility Values

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Brand


new unkown brand


11

Expected Product Lifetime (Label)


12

Energy Consumption




13

Equipment


Basic

Extended Premium

Preliminary Results – Average Utilities

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Price

Level Utility250 € 71.79450 € 63.44650 € 33.9850 € -7.14

1050 € -61.781250 € -100.2

+ Interaction effect with product lifetime label


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à 2nd most important product attribute


Preliminary Results – Average Importances

12%

31%

14%

10%

33%

Brand

Expected Product Lifetime (Label) Energy Consumption

Equipment

Price


Preliminary Results – Purchasing Determinants


consumption)






(purchasing ...)


of elec. appl.)

27/9/2016 Kathleen Krause, M.A. 22


Preliminary Results – Purchasing Determinants


consumption)






(purchasing ...)


of elec. appl.)

For Practitioners & Policy Makers

§  Information about consumer preferences, attitudes etc. on product lifetime in electrical appliance market

§  Product lifetime (label) second strongest purchase criterion next to price à durability marketing

§  Enhance drivers and reduce barriers of purchasing longer lasting electrical appliances (e.g. promotion of consciousness towards collaborative consumption and long product usage)

For Researchers

§  Extend research on sustainable consumption through the perspective of product longevity

§  Test product lifetime labeling in different countries, for different products

Implications


§  ‘Willingness to pay’ analyses

§  Trade-off analyses (energy efficiency, having “up-to-date” product)

§  Validation of scales and test of hypotheses (other psychological constructs), structural equation modelling

§  Adaption of survey as a basis for the main population representative study at the beginning of 2018

§  Label vs. non-label situation

§  Label’s potential of influencing ‘pro-longevity’ values, attitudes etc.

§  Influences on demand for second hand products

To-Dos


Thank you for your attention.

[email protected]

Alanus University of Arts and Social Sciences Faculty of Business Management

53347 Alfter, Germany


Documents

The Influence of Product Lifetime Labelling · 2018-02-03 · 3 Introduction – Research Gap & Questions § First few studies on product lifetime labelling (e.g. EESC, 2016) Hardly