User-centered circular value propositions – approaches in practice and research

Abstract

Circular value propositions enable companies to build business models based on value preservation and circular resource flows. Circular value propositions also allow people to live more sustainably by facilitating increased utilization and resource efficiency. However, despite potential, transitions to circular business models remain low. One reason may be that circular value propositions are less attractive because they are often not developed with a user-centered approach and thus fail to meet people's everyday needs. Through interviews with 13 companies and a literature study, this paper explores how companies consider user needs and involve users during development of circular value propositions. It also identifies conditions and actions that aid development of attractive circular offers. The findings are synthesized in a framework describing six enabling conditions and a definition of user-centered circular value propositions useful for circular economy practice and research.