LAUSR

This study examined changes in consumer perceptions of product types and purchase intentions when a subscription model is introduced for products normally sold on a one-time basis. It then proposed product types likely to affect consumers’ purchasing intentions in the subscription economy and product categories best suited for the subscription economy. To this end, an experimental study was conducted with experts and general consumers using 99 subscription business cases. It was found that a regular delivery of products on a subscription basis gradually changes consumer perceptions of the products from utilitarian to hedonic and from search to experience ones. It was also found that consumption motivation is an important predictor of consumer purchase intentions in the subscription economy. In addition, experience-utilitarian and search-utilitarian products were associated with the highest purchase intentions among experts and general consumers, respectively. This suggests that a company’s strategy should be adjusted in line with consumers’ understanding of the subscription model. Therefore, suppliers need to understand the full implications of the new model, such as changed consumer perceptions and purchasing intentions, and strive to design a subscription model that is suitable for the target segments and product selections.