Application of Prospect Theory on Car Sharing Product Service System

To date, majority of current studies of product service system are approached from manufacturer' perspectives, while relatively few efforts have been devoted to investigate customer's decision making in between product and service. According to the Prospect Theory, there exist a variety of factors that will lead people to make irrational decisions. That being said, a clear understanding of the reason why and under what conditions people tend to behave irrationally is useful in improving existing services and designing new services. This paper presents some preliminary discussions of applicability of the Prospect Theory on a use-oriented product service system -car sharing service. (C) 2014 Elsevier B.V.