Factors Influencing the Demand for Aftermarket Services

Abstract

The trend for sustainability and circular economy are currently changing the clothing and apparel industry. By implementing business models profiting on the reusage phase of the products, circularity and business growth can be combined. But in order to succeed with this, the services provided in the aftermarket must be based on the demands from customers. This study investigates which factors influences the demand for aftermarket services in the clothing and apparel industry. This was investigated through a survey sent out to general consumers of shoes and the customers of the company Icebug’s high quality grip shoes. The results showed that there is a general reluctance towards using shoes second-hand, and six factors could be derived as to why; preference for hygiene and comfort, transparency of the user chain, preference for owning the shoes, frequency of usage, area of usage and the cost of the service. The thesis discusses how these factors influence the demand for aftermarket services, and are developed around the case company Icebug’s operations. The study hence contributes both empirically and in practice, through the implication for practitioners.