IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i3p1332-d1585160.html
   My bibliography  Save this article

Enhancing Brand Value Through Circular Economy Service Quality: The Mediating Roles of Customer Satisfaction, Brand Image, and Customer Loyalty

Author

Listed:
  • Amit Kumar Sah

    (Department of Business Administration, Nanhua University, Chiayi 622301, Taiwan)

  • Yao-Ming Hong

    (Department of Natural Resources and Environmental Studies, National Dong Hwa University, Hualien 974301, Taiwan)

  • Kuo-Chung Huang

    (Department of Business Administration, Nanhua University, Chiayi 622301, Taiwan)

Abstract

This study rigorously examines the relationship between circular economy service quality and brand value, focusing on the mediating roles of customer satisfaction, brand image, and customer loyalty. Amid the growing adoption of circular economy principles to enhance sustainability and resource efficiency, the impact of such practices on brand value remains underexplored. This research addresses this gap by developing and testing an integrated model of circular economy service quality and its influence on brand value. Using a quantitative methodology, this study collected data from customers engaged with companies employing circular economy practices. A structured survey assessed the perceptions of circular economy service quality, customer satisfaction, brand image, customer loyalty, and brand value. Advanced statistical techniques, including structural equation modeling (SEM), were employed to analyze the data and evaluate the proposed relationships. The results revealed significant positive correlations between circular economy service quality, customer satisfaction, brand image, and customer loyalty. Furthermore, the mediating roles of customer satisfaction, brand image, and customer loyalty in the relationship between circular economy service quality and brand value were validated. High-quality circular economy services fostered customer satisfaction, enhanced brand image, and strengthened customer loyalty, collectively driving increased brand value. This research underscored two critical implications. First, circular economy service quality was identified as a pivotal factor in enhancing brand value. By offering sustainable and efficient services, organizations can deliver superior customer experiences, cultivate a strong brand image, and ultimately boost brand value. Second, the mediating variables—customer satisfaction, brand image, and customer loyalty—were shown to play essential roles in amplifying the impact of circular economy service quality on brand value. Organizations should strategically focus on optimizing these factors to maximize brand performance. These findings provide valuable insights for businesses aiming to integrate sustainability into their operations while enhancing brand equity and market performance.

Suggested Citation

  • Amit Kumar Sah & Yao-Ming Hong & Kuo-Chung Huang, 2025. "Enhancing Brand Value Through Circular Economy Service Quality: The Mediating Roles of Customer Satisfaction, Brand Image, and Customer Loyalty," Sustainability, MDPI, vol. 17(3), pages 1-23, February.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:3:p:1332-:d:1585160
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/3/1332/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/3/1332/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ovidiu-Ioan Moisescu, 2018. "From perceptual corporate sustainability to customer loyalty: a multi-sectorial investigation in a developing country," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 31(1), pages 55-72, January.
    2. Alejandro Padilla-Rivera & Sara Russo-Garrido & Nicolas Merveille, 2020. "Addressing the Social Aspects of a Circular Economy: A Systematic Literature Review," Sustainability, MDPI, vol. 12(19), pages 1-17, September.
    3. Vikas Mittal & Kyuhong Han & Carly Frennea & Markus Blut & Muzeeb Shaik & Narendra Bosukonda & Shrihari Sridhar, 2023. "Customer satisfaction, loyalty behaviors, and firm financial performance: what 40 years of research tells us," Marketing Letters, Springer, vol. 34(2), pages 171-187, June.
    4. Antonio Marín-García & Irene Gil-Saura & María Eugenia Ruiz-Molina & Gloria Berenguer-Contrí, 2021. "Sustainability, Store Equity, and Satisfaction: The Moderating Effect of Gender in Retailing," Sustainability, MDPI, vol. 13(2), pages 1-20, January.
    5. Kojo Kakra Twum & Andrews Agya Yalley & Gloria Kakrabah-Quarshie Agyapong & Daniel Ofori, 2021. "The influence of Public University library service quality and library Brand image on user loyalty," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 18(2), pages 207-227, June.
    6. Mbaye Fall Diallo & Norchène Ben Dahmane Mouelhi & Mahesh Gadekar & Marie Schill, 2021. "CSR Actions, Brand Value, and Willingness to Pay a Premium Price for Luxury Brands: Does Long-Term Orientation Matter?," Journal of Business Ethics, Springer, vol. 169(2), pages 241-260, March.
    7. Piera Centobelli & Roberto Cerchione & Davide Chiaroni & Pasquale Del Vecchio & Andrea Urbinati, 2020. "Designing business models in circular economy: A systematic literature review and research agenda," Business Strategy and the Environment, Wiley Blackwell, vol. 29(4), pages 1734-1749, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Castro-Lopez, Adrian & Iglesias, Victor & Santos-Vijande, María Leticia, 2023. "Organizational capabilities and institutional pressures in the adoption of circular economy," Journal of Business Research, Elsevier, vol. 161(C).
    2. Ana de Jesus & Minna Lammi & Teresa Domenech & Fedra Vanhuyse & Sandro Mendonça, 2021. "Eco-Innovation Diversity in a Circular Economy: Towards Circular Innovation Studies," Sustainability, MDPI, vol. 13(19), pages 1-22, October.
    3. Thomas Tsalis & Alexandros I. Stefanakis & Ioannis Nikolaou, 2022. "A Framework to Evaluate the Social Life Cycle Impact of Products under the Circular Economy Thinking," Sustainability, MDPI, vol. 14(4), pages 1-24, February.
    4. Rubee Singh & Shahbaz Khan & Piera Centobelli, 2022. "Investigating the Interplay between Social Performance and Organisational Factors Supporting Circular Economy Practices," Sustainability, MDPI, vol. 14(24), pages 1-21, December.
    5. Berfin Bayram & Linda Deserno & Kathrin Greiff, 2024. "Product Quality in the Circular Economy: A Systematic Review of its Definition and Contexts in Scientific Literature," Circular Economy and Sustainability, Springer, vol. 4(4), pages 2713-2747, December.
    6. Abbate, Stefano & Centobelli, Piera & Cerchione, Roberto, 2023. "From Fast to Slow: An Exploratory Analysis of Circular Business Models in the Italian Apparel Industry," International Journal of Production Economics, Elsevier, vol. 260(C).
    7. Bruno Michel Roman Pais Seles & Janaina Mascarenhas & Ana Beatriz Lopes de Sousa Jabbour & Adriana Hoffman Trevisan, 2022. "Smoothing the circular economy transition: The role of resources and capabilities enablers," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1814-1837, May.
    8. Patricia van Loon & Luk N. Van Wassenhove & Ales Mihelic, 2022. "Designing a circular business strategy: 7 years of evolution at a large washing machine manufacturer," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1030-1041, March.
    9. Abderahman Rejeb & Karim Rejeb & Suhaiza Zailani & Yasanur Kayikci & John G. Keogh, 2023. "Examining Knowledge Diffusion in the Circular Economy Domain: a Main Path Analysis," Circular Economy and Sustainability, Springer, vol. 3(1), pages 125-166, March.
    10. Halim Lee & Jaewon Son & Dayoon Joo & Jinhyeok Ha & Seongreal Yun & Chul-Hee Lim & Woo-Kyun Lee, 2020. "Sustainable Water Security Based on the SDG Framework: A Case Study of the 2019 Metro Manila Water Crisis," Sustainability, MDPI, vol. 12(17), pages 1-19, August.
    11. Pina Puntillo & Carmela Gulluscio & Donald Huisingh & Stefania Veltri, 2021. "Reevaluating waste as a resource under a circular economy approach from a system perspective: Findings from a case study," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 968-984, February.
    12. Nadia Preghenella & Cinzia Battistella, 2021. "Exploring business models for sustainability: A bibliographic investigation of the literature and future research directions," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2505-2522, July.
    13. Claudia Marcela Betancourt Morales & Jhon Wilder Zartha Sossa, 2020. "Circular economy in Latin America: A systematic literature review," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2479-2497, September.
    14. Song, Hanqun & Yang, Huijun & Ma, Emily, 2022. "Restaurants’ outdoor signs say more than you think: An enquiry from a linguistic landscape perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    15. Jowita Trzcielinska & Renata Kaps, 2024. "Impact of Business Environment Perception on Pro-Ecological Activities in Polish Firms," European Research Studies Journal, European Research Studies Journal, vol. 0(Special A), pages 510-530.
    16. Antonioli, Davide & Ghisetti, Claudia & Mazzanti, Massimiliano & Nicolli, Francesco, 2022. "The economic returns of circular economy practices," FEEM Working Papers 319761, Fondazione Eni Enrico Mattei (FEEM).
    17. Marta Negri & Alessandra Neri & Enrico Cagno & Gabriele Monfardini, 2021. "Circular Economy Performance Measurement in Manufacturing Firms: A Systematic Literature Review with Insights for Small and Medium Enterprises and New Adopters," Sustainability, MDPI, vol. 13(16), pages 1-27, August.
    18. Kumar, Shantanu & Mehany, Mohammed S.Hashem M., 2022. "A standardized framework for quantitative assessment of cities’ socioeconomic resilience and its improvement measures," Socio-Economic Planning Sciences, Elsevier, vol. 79(C).
    19. Joanicjusz Nazarko & Ewa Chodakowska & Łukasz Nazarko, 2022. "Evaluating the Transition of the European Union Member States towards a Circular Economy," Energies, MDPI, vol. 15(11), pages 1-24, May.
    20. Caroline Samberger & Sanaz Imen & Katerina Messologitis & Arthur Umble & Joseph G. Jacangelo, 2024. "Assessing circularity of wastewater treatment systems: A critical review of indicators," Journal of Industrial Ecology, Yale University, vol. 28(2), pages 262-276, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2025:i:3:p:1332-:d:1585160. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.