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

Amit Kumar Sah, Yao-Ming Hong () and Kuo-Chung Huang
Additional contact information
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

Sustainability, 2025, vol. 17, issue 3, 1-23

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.

Keywords: circular economy; service quality; brand value; customer satisfaction; brand image; customer loyalty (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/17/3/1332/pdf (application/pdf)
https://www.mdpi.com/2071-1050/17/3/1332/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:17:y:2025:i:3:p:1332-:d:1585160

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().