Unpacking preferences for surprise subscription boxes-A Kano-based study of present, former, and non-users

Abstract

Subscription-based services have emerged as a significant phenomenon in the e-retail landscape, with sales soaring during the COVID-19 pandemic, particularly for surprise boxes at a time when consumers were confined to their homes. However, in the aftermath of lockdown loneliness and with growing pressure on consumers' wallets, subscription-based surprise box services lately face challenging churn rates. While recent research has shed light on consumer profiles, motives and barriers in adopting subscription-based services, the relative importance of these factors in driving satisfaction is often neglected. Another boundary to the existing knowledge is the lack of distinction between what drives consumers to adopt versus what makes consumers quit their subscription. Given the substantial churn rate in the subscription market, investigating attitudes of the ever growing group of ‘former users’ entails potential to improve retention rates. Drawing from an online survey with Prolific panelists (n = 439 UK consumers, of which 234 former, 60 present, and 145 non-users), this study takes a refined Kano perspective to identify attributes of surprise subscription box services that contribute to customer satisfaction. Our findings provide clear guidance to retailers on the optimal positioning and marketing of their offers for present, former and non-customers.