Non-ownership Mobility Services for Low-Income Consumers in India: An Empirical Investigation
A major challenge for low-income consumers is the affordability of products that could transform their livelihood. Most low-income consumers cannot afford to purchase products requesting significant financial investments (e.g. small cars, air-conditioners, water filters, etc.) and thereby prevent them from improving their living conditions or capability to earn regular incomes. Moreover, the “burdens of ownership”, i.e. the risks and responsibilities that come with owning a product, are an additional disadvantage for low-income consumers. Transformative service research literature indicates that this challenge could be addressed with solutions offering access to goods through fractional ownership. Drawing from risk perception theory, we propose to empirically test the viability of such claims in the Indian transportation context. In particular, we investigate the question whether access-based mobility services provide low-income consumers in India with improved transportation possibilities. We conduct an experimental study with low-income consumers living in rural/semi-urban areas of India examining the choice of low-income consumers between “intention to purchase a mobility product” and “intention to use a mobility product offered through access-based solution”, the moderating role of specific income levels, and the mediating role of risk perception dimensions (financial risk, performance risk, and social risk) as well as livelihood improvement perception. The experimental study is conducted for three different products namely motor bikes, small cars, and mini trucks. We use a choice-based conjoint measurement approach to evaluate the user preferences for three different products. Our analysis of the empirical data is expected to reveal the preference patterns of potential users of non-ownership mobility services and provide valuable insights for access-based mobility service providers and public policy makers. The study finally intends to contribute to the understanding of the application of a service-dominant logic in transformative service and supply chain research.
contribution to scientific community
HSG Profile Area
SoM - Business Innovation
POMS International 2017