More Fairness, Less Wear? Data-driven Leasing Using the Fair-Wear Pricing Model (FWPM)

Brîncoveanu, Carl & Hinz · HMD Praxis der Wirtschaftsinformatik ·

TL;DR: Introducing the Fair-Wear Pricing Model (FWPM), a data-driven leasing model that links rates to actual product wear and tear to promote sustainability. Traditional leasing models often use a one-size-fits-all approach, which may not accurately reflect how a product is used. This can lead to unfair pricing for consumers and fails to incentivize sustainable, resource-conscious behavior.

To address this, we introduce the Fair-Wear Pricing Model (FWPM). This data-driven leasing model calculates rates based on the actual, real-time wear and tear of a product, measured using IoT technologies. It adapts principles from the B2B pay-per-stress model for a consumer (B2C) context.

The FWPM creates a more transparent and equitable system. For consumers, leasing rates are directly tied to their usage patterns, rewarding careful handling. For lessors and manufacturers, it promotes longer product lifecycles and provides valuable data for future design improvements.

Using vehicle leasing as a practical use case, this paper demonstrates how the FWPM can align economic incentives with sustainability goals. It offers a promising concept for connected mobility and other sectors, paving the way for business models that are both data-driven and resource-conscious.

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(Note: The full paper is in German.)