Consumer acceptance of circular business models

Abstract

Society has been operating in a linear way which implies rapid waste generation. Previous research has shown business models able to reclaim products at end-of-use are currently poorly developed and implemented. A shift should be made to Circular Business Models (CBM) that focus on the re-use and recycling of materials. However, little is known about consumers’ acceptance and willingness to participate in CBMs. The present study aims to enrich the existing research on CBM consumer acceptance which currently lacks generalisable quantitative insights on preferential CBM design. The consumer intention to participate in three types of CBMs (take-back management, product lease and pay-per-use) is analysed emphasising three key characteristics: ownership, responsibility and payment structure. We use an established consumer behaviour theory, the Theory of Planned Behaviour and extend it with two main factors (environmental attitude and habits) in order to make it apt for analysing consumer preferences regarding environmental decision-making. Results show consumers’ clear preference for take-back management models over leasing or pay-per-use models. In particular, habits and consumer opinion regarding payment structures are revealed to have a large influence on consumer intention to participate in CBMs. Altered payment structures in leasing and pay-per use seem a crucial reason for lower acceptance. Ownership on the other hand had a marginal influence, which was not expected based on CBM literature. This suggests that institutionalised consumer habits have to be acknowledged and alternative characteristics have to be introduced gradually to reform habits. The results can serve as guidance for companies in their design and implementation of circular strategies to reclaim products after use. Future research should aim to more deeply understand the relation between consumers acceptance and the responsibility and payment structure characteristics of CBMs.