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

Robert H. W. Boyer, Agnieszka D. Hunka and Katherine A. Whalen
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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

Sustainability, 2021, vol. 13, issue 22, 1-18

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.

Keywords: circular economy; customer segments; latent demand; consumer demand; circularity metrics (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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