Retailers Calendar

Value Hidden in Product Use Phase
Product use phase of consumer products is the phase where the highest cost of ownership and the most
environmental responsibility are located. Hence, in this phase lie many opportunities to enhance consumer
satisfaction by enhancing your service levels.
Especially when purchasing products to be used for long periods of lifetime, consumers look for high service
levels at low cost. Environmental aspects well relate to the reduction of the cost of ownership of your products.
For example, studies have shown that during the lifecycle of a washing machine, the use-phase, compared to
production and disposal, has the greatest amount of energy consumption, air pollution, water pollution, solid
waste, and water consumption (Ottman, 1998).
You might educate your consumers about the real cost of ownership. This cost obviously extends beyond the
initial purchase price and corresponds to the expenditure over the lifetime of a product. Your customers need to
consider the cost of repairs and maintenance, and if relevant also the cost of operating. For instance, in the case
of a refrigerator, different models with the same capacity can vary dramatically in the amount of electricity they
use. An A-class model can lead to 20% annual savings compared to an average efficient model. As a result, you
might help your consumer save money by buying the more expensive, more energy-efficient model. Scientists are
also claiming that a growing number of consumers are claiming that environmental performance measures of
products affect their purchasing behaviour (Sammer and Wüstenhagen, 2006).
Have you
considered
making your
consumers
aware of the
real cost of
product
ownership?
Communication of real cost of ownership may increase service value.
Cost of ownership is an issue in sales of many more product groups. For example, a life-cycle analysis of a pair of trousers
sold at Marks and Spencer stores found that 76% of the energy consumed in connection with the trousers was from the
customer’s washing, drying, and ironing them. The One Planet Business Flagship Document states that 81% of the product
emissions and material use for a car stem from the use phase.
Box 9.3: Increasing the service value through communication of real cost of ownership
An opportunity might definitely be to educate consumers about the cost of ownership and make them aware of
their increasing environmental responsibilities during product use. Guidance in reduction of cost of ownership,
technical assistance for decrease of environmental load during use phase will increase service level and will lead
to increased stakeholder value.
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