| Title |
A conjoint analysis of circular economy value propositions for consumers: Using "washing machines in Stockholm" as a case study |
| ID_Doc |
4898 |
| Authors |
Lieder, M; Asif, FMA; Rashid, A; Mihelic, A; Kotnik, S |
| Title |
A conjoint analysis of circular economy value propositions for consumers: Using "washing machines in Stockholm" as a case study |
| Year |
2018 |
| Published |
|
| DOI |
10.1016/j.jclepro.2017.10.147 |
| Abstract |
Background: In industrial practice a transition from a linear (take-make-dispose) to a circular product system (considering reuse/remanufacturing/recycling) requires the change of business models through new value propositions. In doing so the focus of the value proposition shifts from selling a physical product to providing access to functionality through business innovation. One key factor related to circular business transitions is market acceptance. It is particularly challenging to understand what complexity a new concept like circular economy (CE) brings to established businesses where the success and the failure of the business is dependent on customer's acceptance of new value propositions. Purpose: This paper empirically explores the opportunities of a circular business approach for washing machines in the city of Stockholm by quantifying and assessing customer preferences for CE value propositions for a business to customer (B2C) scenario. Method: This study uses the method of choice-based conjoint analysis to investigate preferences based on the attributes price and payment scheme, environmental friendliness as well as service level. Originality: This paper is the first of its kind to assess customer preferences from the CE market acceptance point of view using a conjoint approach and provides insight to what extent new CE value propositions may be adopted. Findings: Results indicate that there is general interest in paying for access rather than for ownership. Service levels have the strongest impact on customer utility of a washing machine offer. If associated with reduction in CO2 emissions the number of remanufacturing cycles can increase purchase probability. As a method choice-based conjoint analysis is highlighted as beneficial to break down CE value propositions and to identify to what extent particular service-related attributes and product-related attributes contribute to overall customer utility. (C) 2017 Elsevier Ltd. All rights reserved. |
| Author Keywords |
Circular economy; Customer preferences; Customer acceptance; Business models; Conjoint analysis; Washing machines |
| Index Keywords |
Index Keywords |
| Document Type |
Other |
| Open Access |
Open Access |
| Source |
Science Citation Index Expanded (SCI-EXPANDED); Social Science Citation Index (SSCI) |
| EID |
WOS:000423001900025 |
| WoS Category |
Green & Sustainable Science & Technology; Engineering, Environmental; Environmental Sciences |
| Research Area |
Science & Technology - Other Topics; Engineering; Environmental Sciences & Ecology |
| PDF |
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