The importance of product lifetime labelling for purchase decisions: Strategic implications for corporate sustainability based on a conjoint analysis in Germany
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In: Business Strategy and the Environment, Vol. 31, No. 4, 01.05.2022, p. 1275-1291.
Research output: Journal contributions › Journal articles › Research › peer-review
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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 -