What Is the Customer Value of the Circular Economy? Cross-Industry Exploration of Diverse Values Perceived by Consumers and Business Customers

Leena Aarikka-Stenroos,Martina Don Welathanthri,Valtteri Ranta

doi:10.3390/su132413764

Leena Aarikka-Stenroos, Martina Don Welathanthri + Show 1 more

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https://doi.org/10.3390/su132413764

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Journal: Sustainability	Publication Date: Dec 13, 2021
Citations: 7	License type: CC BY 4.0

Affiliation: Tampere University

Abstract

A growing number of companies provide CE products, technologies, services, and solutions, and similarly, an increasing number of researchers have analyzed sustainable and CE business models providing knowledge about CE technology businesses. However, this research has focused almost solely on the providers’ perspective on CE business and offerings, remaining silent on the customer perspective. Therefore, this study contributes by focusing on the customer value of CE innovations and solutions, conducting an explorative qualitative multiple-case investigation among customers of diverse CE businesses, and mapping diverse customer value dimensions, including economic, functional, emotional, and symbolic, and comparing them as perceived by consumer and business customers. The findings show that the functional value of CE offerings dominates. We develop conceptual maps for CE customer value for a theoretical understanding of the CE from the customer perspective and provide insights for managers to assert the value of their CE solutions.

Highlights

To enhance the environmental responsibility of technology businesses, much innovation is taking place in sustainability, resource efficiency, and the circular economy (CE).The CE has been increasingly investigated from business and technology perspectives, and research on sustainable business models and CE business is increasing [1,2]
We provide an overview of the full spectrum of diverse customer value and discuss how the four value dimensions occur in business and consumer markets
The functional value dimension consists of benefits that contribute to business functions and operations and consumer needs and practices; they include improved processes and practices

Summary

Introduction

The CE has been increasingly investigated from business and technology perspectives, and research on sustainable business models and CE business is increasing [1,2]. These studies aim to improve our understanding of how innovators and suppliers may turn sustainable offerings into business. To apply sustainable technologies and innovations in society and ensure diffusion in markets, such offerings must be adopted and valued by customers, in consumer and business markets. Understanding the innovation’s customer value from the customer’s perspective is the crucial part of commercializing innovative solutions [4]

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