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

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.

RETRACTED: Engaging the citizen in the circular economy: Transcending the passive consumer role

“…Studies have addressed consumer behavior aspects in relation to specific product groups, such as electronics (Parajuly et al, 2020;Islam et al, 2021) and textiles (Machado et al, 2019;Camacho-Otero et al, 2020), identifying the barriers and drivers of consumers in adopting CE solutions and concluding that there is apparent lack of knowledge especially in the consumer behavior during the use phase of products. This was confirmed in two recent literature review studies about the role of consumers in CE (Georgantzis Garcia et al, 2021;Gomes et al, 2022), reporting a lack of heterogeneity in the theoretical perspectives used, which focus primarily on consumer perceptions and the formation of intentions [e.g., (Boyer et al, 2021;Chun et al, 2022)], falling short of really studying intrinsic behavioral aspects, e.g., the established pre-dispositions and mindsets of consumers, cultural norms and practices. Thus, there is still a missing piece in the extant literature since little is currently known/researched about the significant transformations to everyday life that circularity may involve (Welch et al, 2017;Schulz et al, 2019;Hobson, 2020a).…”

Sustainability via Extended Warranty Contracts: Design for a Consumer Electronics Retailer

“…In the analysis of consumer behavior for circular products, warranty length (including extended domain) was found to be significant, especially for the risk-averse demographic category [23]. While some initiatives such as "trade-in" during extended warranty may be attractive for consumers, the impact on the sustainability of the product and on all life cycle costs should be analyzed carefully [24].…”

Strategies to Encourage the Acceleration of Circular Economic Practices Among Youth Play as Agent of Change

“…To achieve economic transformation, particularly in support of a green economy, Indonesia has incorporated the CE concept into its development vision and strategy with the aim of implementing it as a future policy. To begin implementing the Circular Economy concept, the Indonesian government has collaborated with UNDP to prioritize five industrial sectors -food and beverage, construction, electronics, textiles, and plastics -in its efforts (Low Carbon Development Indonesia The findings of a recent study conducted by Boyer et al (2021) highlight the significance of further exploring the factors that motivate and hinder the adoption of CE practices, considering demographic factors such as customer segments. Currently, experts are paying attention to the role of the younger generation, who are expected to be both change agents and consumers of CE products.…”