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Consumer Demand for Circular Products: Identifying Customer Segments in the Circular Economy

Author

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  • Robert H. W. Boyer

    (Sustainable Business Unit, RISE Research Institutes of Sweden AB, Lindholmspiren 3A, 417 56 Gothenburg, Sweden)

  • Agnieszka D. Hunka

    (Sustainable Business Unit, RISE Research Institutes of Sweden AB, Lindholmspiren 3A, 417 56 Gothenburg, Sweden)

  • Katherine A. Whalen

    (Sustainable Business Unit, RISE Research Institutes of Sweden AB, Lindholmspiren 3A, 417 56 Gothenburg, Sweden)

Abstract

Understanding consumer preferences in the circular economy can help producers develop profitable strategies, lowering the risk involved in transitioning to circular business models and circular product design. This study uses a choice experiment to identify customer segments for mobile phones and robot vacuum cleaners at different levels of circularity. The experiment observes how a product’s theoretical Circular Economy Score (ranging from 0 to 100) influences consumer preferences as compared to other product attributes like price, appearance, warranty, battery life, reseller type, or ease of repair. Drawing from 800 UK respondents, the results indicate the presence of three customer segments that are sensitive to a product’s Circular Economy Score, including two that appear willing to purchase recirculated items and one that expresses a preference against them. The results offer initial evidence that a market for recirculated consumer electronics exists and that circularity labeling is a marketable option. The results also present a strong rationale for further research that probes a greater variety of products and contexts.

Suggested Citation

  • Robert H. W. Boyer & Agnieszka D. Hunka & Katherine A. Whalen, 2021. "Consumer Demand for Circular Products: Identifying Customer Segments in the Circular Economy," Sustainability, MDPI, vol. 13(22), pages 1-18, November.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:22:p:12348-:d:674978
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    References listed on IDEAS

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    Cited by:

    1. Arne Jeppe & Heike Proff & Max Eickhoff, 2023. "Economic Potentials of Ecologically Attractive Multi-Life Products—The Example of Lithium-Ion Batteries," Sustainability, MDPI, vol. 15(14), pages 1-16, July.
    2. Rui Jorge Carreira & José Vasconcelos Ferreira & Ana Luísa Ramos, 2023. "The Consumer’s Role in the Transition to the Circular Economy: A State of the Art Based on a SLR with Bibliometric Analysis," Sustainability, MDPI, vol. 15(20), pages 1-19, October.
    3. Lukas Alexander Benz, 2022. "Critical Success Factors for Circular Business Model Innovation from the Perspective of the Sustainable Development Goals," Sustainability, MDPI, vol. 14(10), pages 1-18, May.

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