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How Do Consumers Evaluate Value Propositions of Connected Car Services?

The failure to clarify the value proposition, based upon a profound misunderstanding of different values that consumers attribute to connected car services, is the root cause of failed business models. Beyond practice, value propositions also play a central role in research on business models. Posing the research question of how consumers evaluate value propositions of connected car services, we address the research gap on value propositions in business models for the Connected Car. Informed by S-D logic, we conceptualize the perceived value on the consequence level and show empirically that consumers evaluate value propositions of connected car services not only in terms of their direct, but also in terms of their indirect and option value-in-context—both so far disregarded components of value-in-context.