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?
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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)
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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?
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Introduction – Research Gap & Questions
Introduction – Research Gap & Questions
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)
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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
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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)
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Methods – Sample Characteristics
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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
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
Methods – Sample Characteristics
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Sample:
§ More women
§ Younger
§ Higher educated
§ Larger places of residence
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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
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
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Methods – Example Choice Task
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Brand
Expected Product Lifetime (Label)
Energy Consumption
Equipment
Price
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new
Methods – Example Choice Task
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Introduction: (…)
Preliminary Results – Average Utility Values
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Brand
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new unkown brand
Preliminary Results – Average Utility Values
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Expected Product Lifetime (Label)
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Energy Consumption
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Preliminary Results – Average Utility Values
Preliminary Results – Average Utility Values
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Equipment
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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
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Preliminary Results – Average Importances
12%
31%
14%
10%
33%
Brand
Expected Product Lifetime (Label) Energy Consumption
Equipment
Price
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Preliminary Results – Purchasing Determinants
consciousness (sustainable
consumption)
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.)
27/9/2016 Kathleen Krause, M.A. 22
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Preliminary Results – Purchasing Determinants
consciousness (sustainable
consumption)
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.)
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
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§ ‘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
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Thank you for your attention.
Alanus University of Arts and Social Sciences Faculty of Business Management
53347 Alfter, Germany
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