A marketing alternative: Consumer leasing and renting

Abstract

Do contemporary consumers favor outright purchase of products, or do they in many instances acquire goods through ownership only because suitable consumption alternatives are not available? Over the past decade, observers of trends in the ultimate consumer market have implied that the marketing system has been somewhat remiss in not providing consumers with adequate alternatives. The leasing or renting of products to households on a large-scale basis is in an embryonic stage. Although usership has made significant inroads in a few industr iesnotably autmobiles, moving equipment, formal wear and home maintenance equipment -marke t ing authorities and business managers have often overlooked the untapped potential of this consumption alternative. A number of terms which relate to the theme of this article need to be defined. Lease/rental refers to a contractual arrangement between the owner of a product and the user wherein the latter returns the good to the owner at the termination of the contract. Lease typically suggests a long-term arrangement extending for several months or years, and rent applies to short-term arrangements of one month or less. Ownership indicates the holding of legal title to property. (The scope of this article is restricted to personal property as opposed to real property.) Usership is a broad term encompassing all types of consumption in which the consumer does not possess legal title to the product.