A conjoint analysis of circular economy value propositions for consumers: Using 'washing machines in Stockholm' as a case study
| Autor: | Michael Lieder, Farazee M. A. Asif, Amir Rashid, Simon Kotnik, Aleš Mihelič |
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| Rok vydání: | 2018 |
| Předmět: |
Renewable Energy
Sustainability and the Environment Strategy and Management Value proposition Circular economy 05 social sciences 010501 environmental sciences Business model 01 natural sciences Industrial and Manufacturing Engineering Conjoint analysis Service level 050501 criminology Product (category theory) Business Marketing Customer to customer Remanufacturing Industrial organization 0505 law 0105 earth and related environmental sciences General Environmental Science |
| Zdroj: | Journal of Cleaner Production. 172:264-273 |
| ISSN: | 0959-6526 |
| DOI: | 10.1016/j.jclepro.2017.10.147 |
| Popis: | 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. |
| Databáze: | OpenAIRE |
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