Circular PSS: IncreasingConsumer Acceptance through a Rewarding Digital Brand Experience

Abstract

One of the key business models Gorenje andASKO have researched upon is a service model of circular washing machine under a pay per use (PPU) business model. PPU business models are currently mostly used within shared washing rooms, which is also the segment in which ASKO will enter withtheir first circular washing machines. However, even though PPU business models help nudge sustainable consumer behaviour, it can also have negative effects on consumer acceptance towards PSS and create negative emotional connections towards the brand itself. Key competitors currently offer circular products under PPU or leasing business models, but lack differentiation and clear unique selling points. To date, most competitors in the market struggle to offer new experiences with a circular product launch and seem to solely meet the requirements of potential regulations. However, this also offers an opportunity towards ASKO, as they have a chance to reposition their brand towards a broader target market and create new and unique brand experiences which set themselves apart from competition. MyASKO is a sub-brand and brand extension of ASKO which is targeted towards “aware millennials” who are using shared washing rooms within student accommodations, serviced apartments or communal homes. MyASKO also offers a digital brand experience which is rewarding and gives members the opportunity to proactively contribute towards local & global sustainable initiatives by choosing to wash on sustainable modes. By making the experience more rewarding and by engaging with local communities through sustainable initiatives, MyASKO increased the chance to create brand loyalty and potentially keep members for future circular washing machines for the private domestic market.