PWuse2: Quantitative analysis of the product value judgment as a decision for purchase replacement

• Applicant: Professor Dr.-Ing. Robert Heinrich Schmitt
• Subject Area: Production Systems, Operations Management, Quality Management and Factory Planning
• Term: from 2011 to 2017
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 209026841

During the first funding period, a tool was developed to evaluate the product value from the consumer's point of view in different stages of the product life cycle. With this tool it could be verified that the pre-purchase and post-purchase consumer product value differ systematically from each other.After intensely investigating the pre-purchase and post-purchase period and therewith the beginning of the utility-phase, the second funding period shall answer the question for changes of the perceived product value at the end of the lifecycle. It is particularly interesting, when the Consumer Perceived Value (CPV) has reached such a level that the consumer perceives the existing product not sufficiently attractive and considers buying a replacement.For companies it is important to understand, at what point the consumer considers to replace the product. Through a proactive design of the product life cycle from the beginning and a targeted stimulation of the consumer to purchase a replacement, a significant potential for value creation is offered. There is a chance to avoid the risks in product development and marketing on the one hand, on the other hand to take appropriate opportunities for economic or strategic betterment. However, this necessary understanding of the decision for replacement of a consumer is not yet available. In the literature mainly theoretical models discuss the so-called obsolescence of products and the resulting replacement purchase decision. These still not allow a quantitative description of the processes.By the findings from the first funding period an important foundation has already been laid for the quantification. The developed tool allows the evaluation of the product value by 13 relevant elements and thus offers a profound basis for the quantitative description of replacement purchase decisions. However, a detailed understanding of further model components, such as the setting of the consumer or the conversion conditions, is necessary for the practical application. Therefore, the aim of the second funding period is to apply and adapt the developed tool for the investigation of replacement purchase decisions. In particular, the research question will be, which elements of the extended Consumer Perceived Value contribute to the fact that a product is considered to be obsolete by the consumer and thus arouse the incentive to purchase a replacement.Therefore, in a quantitative study at two time points the measuring tool will be used to collect the relevant data. The results will again be verified by a qualitative study. Based on the findings, the factors influencing the replacement purchase decision as well as any threshold values for the product elements will be identified.

• DFG Programme: Research Grants