Determinants of consumer demand for circular economy products. A case for reuse and remanufacturing for sustainable development | Zendy

Hunka Agnieszka D. | Zendy; Linder Marcus | Zendy; Habibi Shiva | Zendy

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Determinants of consumer demand for circular economy products. A case for reuse and remanufacturing for sustainable development

Author(s) -

Hunka Agnieszka D.,

Linder Marcus,

Habibi Shiva

Publication year - 2021

Publication title -

business strategy and the environment

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 2.123

H-Index - 105

eISSN - 1099-0836

pISSN - 0964-4733

DOI - 10.1002/bse.2636

Subject(s) - circular economy , remanufacturing , reuse , business , industrial organization , market share , sample (material) , product (mathematics) , new product development , sustainability , marketing , mobile phone , commerce , sustainable development , telecommunications , manufacturing engineering , computer science , engineering , ecology , chemistry , geometry , mathematics , chromatography , biology , waste management , law , political science

We investigate determinants of consumer demand for circular (reused and remanufactured) products. Based on exploratory choice‐based conjoint experiments with a sample of 800 adults in the United Kingdom, we examine two types of premium segment electronic appliances: a mobile phone and a robot vacuum cleaner. We find that consumers prefer partly circulated products over fully or not at all circulated products and that circular products can likely successfully enter the existing market at the retail price of a new product. Interestingly, circular products compete for market share primarily with new products, leaving the market share of second‐hand options less affected. The results show a promising path for firms considering a transition to circular business models.

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