Marketing Approaches for a Circular Economy: Using Design Frameworks to Interpret Online Communications

Abstract

Abstract:The Circular Economy has been posited as a solution to the rise of environmental decimation with growing global economic prosperity, by introducing new systems of production, consumption, and disposal. Current literature has explored circular economy business models, such as product service systems (PSSs), and has identified some issues that represent both behavioral barriers and motivating factors when it comes to consumer acceptance of these new models. However, there are few studies that incorporate a marketing and communications perspective on the circular economy or which focus on the ways in which businesses providing circular products or services currently use communications to market their offerings and influence consumer behavior. This paper represents an initial, exploratory study that identifies ten groups of concerns or 'factors' from the literature that affect consumer acceptance of circular value propositions. It then uses two models from the field of design (Dimensions of Behavior Change and Design with Intent) to interpret examples of web communications from four retailers of circular products and services, and to suggest future marketing and communications strategies for use in business and research. It finds that design frameworks can provide a relevant and comprehensive means to analyze marketing strategies and suggest less binary approaches than for instance green marketing.

Predicting consumer adoption of branded subscription services: A prospect theory perspective

“…This is in line with findings that purchase decisions involving risk can be influenced through information during the editing stage of Prospect Theory (Creyer, ). This mirrors consumer desire for more information on PSS exhibited in qualitative studies to reduce uncertainties (Catulli, Cook, & Potter, ; Överholm, ; Poppelaars, Bakker, & van Engelen, ), which has also been observed in practice, although it is not known to what effect (Chamberlin & Boks, ; Chian Tan, Cahalane, Tan, & Englert, ).…”

“…Retamal (2017), Corvellec and Stål (2017), and Stål and Jansson (2017) have undertaken studies on a number of providers of different existing fashion PSS, whereas Petersen and Riisberg (2017) studied the provider of a fashion subscription in Denmark. Chamberlin and Boks (2018) assess how PSS providers use marketing communications to influence adoption intentions. This focus on fashion can on the one hand be explained by the large negative environmental impact of apparel products at every stage of their life cycle (Gwozdz, Steensen Nielsen, & Müller, 2017).…”

A Definition and Theoretical Review of the Circular Economy, Value Creation, and Sustainable Business Models: Where Are We Now and Where Should Research Move in the Future?

“…This idea has resulted in research into ways management can expand and rethink the traditional make-use-dispose business model [1,2]. Despite criticism of this view and debate over whether it is realistic to expect companies to venture beyond shareholders' interests when designing their business models to close resource loops and achieve the complete cycling of materials [3][4][5][6], an increasing number of scholars and practitioners are hopeful that such a transition can address what is perhaps the greatest challenge currently facing society [7,8]. Recently, discussions about the importance of the circular economy have evolved.…”

The Sustainability of Romanian SMEs and Their Involvement in the Circular Economy

“…The circular economy and sustainability are two concepts that outline an extended framework for sustainable development, through which the implementation of strategies capable of providing the enterprise with healthy development is also achieved by addressing the problems of environmental degradation and resource shortages [1][2][3][4]. Besides, the circular economy is a sustainable development strategy that tackles the problems of environmental degradation and natural resource shortages through three principles: reduction, reuse and recycling of materials [5][6][7].…”