Towards circular business models: Identifying consumer needs based on the jobs-to-be-done theory

Abstract

Non-renewable resources form one of the boundaries of our current linear-growth model. Moving from product-oriented to product-service systems (PSS)-based business models may contribute to the circularity of resource flows while strengthening the competitive advantage of organizations. Scholars have been studying the win-win potential of circular business models from a strategic business perspective for some time. However, methods for increasing consumer participation in circular economy (CE)-linked PSSs are yet to be studied intensively. This is particularly problematic because consumers play a significant and active role in the success of closing material loops. We sought to contribute to the closure of this research gap with a case study, in which we use a mixed-method approach inspired by the outcome-driven innovation (ODI) approach. ODI aims to detect innovation potential based on the job-to-be-done theory at the fuzzy front end of innovation. This indicates user-centric connection points for new value proposition development for circular business models. In our case study of the consumer electronics industry, we exemplify how insights about consumer needs along the lifecycle of a TV can be derived. We first interviewed a sample of consumers in order to qualitatively analyze and identify the problems they currently face when trying to solve an entertainment interruption. This revealed 30 consumer needs. In a second step, we evaluated these needs in a survey to quantify their potential according to the degree of importance and satisfaction associated with each. Our analysis revealed that 11 of the 30 needs are currently not well satisfied. These needs are linked as innovation opportunities to potential PSSs, providing a foundation for customer-centric value propositions design to foster the implementation of the CE. Our study not only advances the understanding of consumer need-orientation in CE literature, but also yields valuable contributions to the methodological repertoire for customer-centric innovation management in the CE context. Additionally, it outlines directions for further research on refining ODI for the purpose of connecting individual consumer needs with societal needs.