TY - JOUR

T1 - The importance of product lifetime labelling for purchase decisions

T2 - Strategic implications for corporate sustainability based on a conjoint analysis in Germany

AU - Jacobs, Kathleen

AU - Hörisch, Jacob

N1 - Funding Information: We would like to thank Leif Jacobs (Fraunhofer Institute for Applied Information Technology FIT) for conceptual and methodological discussions on the research project. This research was supported by a Sawtooth Software Academic Grant. Publisher Copyright: © 2021 The Authors. Business Strategy and The Environment published by ERP Environment and John Wiley & Sons Ltd.

PY - 2022/5/1

Y1 - 2022/5/1

N2 - This article studies the influence of product lifetime labelling on purchase decisions. Based on consumer theory of Lancaster, experimental survey data are collected from a population representative sample of 499 German consumers, using choice-based conjoint analysis. Hierarchical Bayes utility modelling suggests a substantial positive effect of product lifetime labelling on purchase decisions. However, the effect is not linear but decreasing with higher levels of product lifetime. The relative importance of the product lifetime label is found to be higher than that of the product's energy consumption or brand. Additionally, we show that the introduction of product lifetime labelling renders the positive influence of existing brands on purchase decisions less impactful. Therefore, strategic implications for companies differ substantially, depending on companies' current brand-building. Besides implications for business strategy, the study informs marketers and policymakers about the potential of product lifetime labelling to stimulate the supply of, and demand for, more durable products.

AB - This article studies the influence of product lifetime labelling on purchase decisions. Based on consumer theory of Lancaster, experimental survey data are collected from a population representative sample of 499 German consumers, using choice-based conjoint analysis. Hierarchical Bayes utility modelling suggests a substantial positive effect of product lifetime labelling on purchase decisions. However, the effect is not linear but decreasing with higher levels of product lifetime. The relative importance of the product lifetime label is found to be higher than that of the product's energy consumption or brand. Additionally, we show that the introduction of product lifetime labelling renders the positive influence of existing brands on purchase decisions less impactful. Therefore, strategic implications for companies differ substantially, depending on companies' current brand-building. Besides implications for business strategy, the study informs marketers and policymakers about the potential of product lifetime labelling to stimulate the supply of, and demand for, more durable products.

KW - choice-based conjoint analysis

KW - labelling

KW - product lifetime

KW - purchase decision

KW - sustainable consumption

KW - choice-based conjoint analysis

KW - labelling

KW - product lifetime

KW - purchase decision

KW - sustainable consumption

KW - Sustainability sciences, Management & Economics

UR - http://www.scopus.com/inward/record.url?scp=85121506395&partnerID=8YFLogxK

UR - https://www.mendeley.com/catalogue/f95ce6a1-72c5-36b6-a37e-474118e8f0d3/

U2 - 10.1002/bse.2954

DO - 10.1002/bse.2954

M3 - Journal articles

AN - SCOPUS:85121506395

VL - 31

SP - 1275

EP - 1291

JO - Business Strategy and the Environment

JF - Business Strategy and the Environment

SN - 0964-4733

IS - 4

ER -