Exploring the adoption of pay-per-month business models: A theoretical framework and behavioral analysis in the context of white goods in Guayas province, Ecuador

Abstract

In response to increasing environmental concerns, this study explores the adoption of a pay-per-month (PPM) model in the white goods sector in Guayas province, Ecuador, within the framework of the circular economy (CE). The research integrates the Theory of Planned Behavior (TPB) and Norm Activation Model (NAM) to assess consumer behavior and preferences. Using a Discrete Choice Experiment (DCE), data were collected from 3267 respondents, evaluating the impact of psychographic factors on PPM model acceptance for products like refrigerators, stoves, and washing machines. Results show that ecological intentions, personal norms, and attitudes significantly influence acceptance. The study reveals that greater consumer education and policy incentives on the environmental benefits of PPM models can drive higher adoption rates. This research contributes to the existing literature by providing a comprehensive framework that merges TPB and NAM methodologies, addressing gaps in understanding consumer motivations in circular business models such as PPM. Additionally, while the focus is on Guayas, the insights gained may have broader applicability in similar developing regions. However, the study also acknowledges limitations related to geographic and socio-economic differences, suggesting avenues for future research to explore the PPM model's viability across diverse contexts.