Consumer Demand for Circular Products: Identifying Customer Segments in the Circular Economy
Open accessAbstract
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.
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Tailoring a compelling value proposition is the primary hurdle for the product-as-a-service model, as it must overcome deeply ingrained consumer preferences for product ownership and concerns about long-term costs.
“Tailoring a compelling value proposition is the primary hurdle, as it must overcome deeply ingrained consumer preferences for product ownership and concerns about long-term costs (Boyer et al. 2021;Magnier and Mugge 2022).”
From Integrating Life Cycle Assessment, Monetised Externalities and Value Alignment for Strategic Reconfiguration of Circular Business Models: The Case of Smartphones (2026) · cites this paper as Boyer et al. 2021
The Discussion (page unavailable) says firms should adjust circular offerings to customer segments and that some customers prioritize low prices. It mentions a product-service system as a possible way to recirculate products, but does not identify tailoring its value proposition as the primary hurdle or report preferences for ownership and concerns about long-term costs. (LLM, conf=0.82)
Experimental — accuracy not yet measuredThe circular economy transition requires offerings that resonate with evolving consumer needs and challenge entrenched consumption patterns.
“It requires offerings that resonate with evolving consumer needs and challenge entrenched consumption patterns (Boyer et al. 2021).”
From Integrating Life Cycle Assessment, Monetised Externalities and Value Alignment for Strategic Reconfiguration of Circular Business Models: The Case of Smartphones (2026) · cites this paper as Boyer et al. 2021
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Circular Business Models: Defining a Concept and Framing an Emerging Research Field
Nußholz, J. (2017) · Sustainability · doi:10.3390/su9101810 · Cited by 415 · see citing works
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Cited by
Sorted by citations
Rittershaus, P., Aryan, V., & Renner, M. (2025) · WIREs Energy and Environment · doi:10.1002/wene.70006 · Cited by 6 · see citing works
Rittershaus, P., Aryan, V., Sánchez, D., Renner, M., & Poeppelbuss, J. (2026) · Business Strategy and the Environment · doi:10.1002/bse.70271 · Cited by 3 · see citing works
- Authors
- Boyer, R. H. W., Hunka, A. D., & Whalen, K. A.
- Affiliations
- RISE Research Institutes of Sweden (SE)
- Corresponding author
- Boyer, Robert H. W.
- Venue
- Sustainability
- Publisher
- MDPI AG
- Published
- 2021-11-09
- Volume
- 13
- Issue
- 22
- Pages
- 12348
- ISSN
- 2071-1050 (ISSN-L)
- OpenAlex
- W3212390309
- Cited by
- 39
- References
- 2
- Citations by year
- 2026: 9 · 2025: 12 · 2024: 6 · 2023: 8 · 2022: 4
- FWCI
- 4.02
- Type
- journal article
- Language
- en
- Open access
- gold
- doi.org
- Licence
- Locations
- Sustainability (publishedVersion, cc-by)
- RePEc: Research Papers in Economics (submittedVersion)
- DOAJ (DOAJ: Directory of Open Access Journals) (submittedVersion, cc-by-sa)
- Funders
- Marianne and Marcus Wallenberg Foundation (MMW 2015.0045)
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Sustainable Supply Chain Management
- Social Sciences › Business, Management and Accounting › Marketing › Environmental Sustainability in Business
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic and Environmental Valuation
- Keywords
- circular economy, consumer demand, customer segmentation, circular products, mobile devices, robot vacuum cleaners, product design, discrete choice experiment, willingness to pay
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