Session IV
Buy Vs. Service
Service based business model

How do you move from a product model to a service model of doing business.?

Customers attach a lot of value to ownership, it confers status, there is a lot of emotional value to owing something. Can we move away from this and build a business based on service model?

Can we change this psychology? How do we incentivise people to change their buying behaviour? It has to be a conceptual yet practical solution. Will people move away from owing to getting something as a service? What are the benefits for instance to rent a car from ZIP CAR visa vi buying a car in the city? Cost benefit analysis will help justifying the analysis…$80 a car for renting a zip car …vs buying a car


Also. Purchasing a few nice things is ok, and rest can be a service model.

Sustainable business model needs to be build, for instance if it easy to assemble a piece of furniture it should be easy to disassemble it too. That’s where the service angle comes in, and that brings in the sustainability.