Circular economy and consumer acceptance: An exploratory study in East and Southeast Asia

Kuah, Adrian T.H.; Wang, Pengji

doi:10.1016/j.jclepro.2019.119097

Cited by 104 publications

(108 citation statements)

References 56 publications

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“…Here, we could observe the law of diminishing marginal returns in action, where adding a premium of 12 months longer warranty does not increase the market share of Product 5 to the extent justifying potential expenses. This result contradicts reported quality concerns found in other studies (Kuah & Wang, 2020), demonstrating that attributes that increase trust in reused and remanufactured products, such as premium warranty terms and authorised seller, do help to address concerns about quality of circular products. There exist already well‐established sellers of refurbished electronics, such as Swappie in Sweden (mobile phones) or MPB from the United Kingdom (photographic equipment), to name a few, offering extended warranties, free returns and building a brand image of a premium seller.…”

Section: Discussioncontrasting

confidence: 99%

“…Our goal was to establish which premium or added features can make reused and remanufactured products more attractive to buyers. Our results corroborate previous findings about quality concerns (Bundgaard & Huulgaard, 2019), trust (Kuah & Wang, 2020) and functionality (Mugge et al, 2017) of reused electronic products, and take the discussion further by offering a concrete set of product attributes which are worth investing in as drivers of demand for circular offers.…”

Section: Discussionsupporting

confidence: 90%

“…These findings pose a challenge for CBMs where upfront costs related to recovering and remanufacturing a product can be potentially higher than the costs of manufacturing the same product from virgin materials (Demirel & Danisman, 2019), while the pool of consumers willing to pay a higher or the same price might be significantly reduced. Moreover, the scarce studies available on consumer acceptance of circular products show that consumers are concerned about the quality and reliability of reused goods (Bundgaard & Huulgaard, 2019) and display low trust in such circular offers, even if environmental benefits are evident (Kuah & Wang, 2020). On the other hand, Lieder et al (2018) found consumer interest in circular offers based on access rather than ownership.…”

Section: Introductionmentioning

confidence: 99%

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Determinants of consumer demand for circular economy products. A case for reuse and remanufacturing for sustainable development

2020

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We investigate determinants of consumer demand for circular (reused and remanufactured) products. Based on exploratory choice‐based conjoint experiments with a sample of 800 adults in the United Kingdom, we examine two types of premium segment electronic appliances: a mobile phone and a robot vacuum cleaner. We find that consumers prefer partly circulated products over fully or not at all circulated products and that circular products can likely successfully enter the existing market at the retail price of a new product. Interestingly, circular products compete for market share primarily with new products, leaving the market share of second‐hand options less affected. The results show a promising path for firms considering a transition to circular business models.

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Section: Discussioncontrasting

confidence: 99%

Section: Discussionsupporting

confidence: 90%

Section: Introductionmentioning

confidence: 99%

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Determinants of consumer demand for circular economy products. A case for reuse and remanufacturing for sustainable development

2020

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“…Additionally, the disparity in individual perception between Asian and Western cultures was vastly investigated, particularly in aspects of product (Kuah and Wang, 2020), advertisement (Errmann et al, 2019;Lee and Lee, 2017;Liu et al, 2019) and consumer behaviour (Rajamma et al, 2010;Weber et al, 2017). In another case, the study of one's birthed nationality and their latter residency demonstrated the tendency for ethnocentrism, where consumers' acceptance towards products within the home-and host-countries is dependent over the nature of both communities (Banna et al, 2018).…”

Section: Moderating Effect Of Nationality (Malaysian Vs Thais)mentioning

confidence: 99%

Cruising down millennials’ fashion runway: a cross-functional study beyond Pacific borders

Cham

Cheng

2020

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Purpose The clothing industry is one of the earmarked industries in many countries following the rising demand and consumption of clothing products among millennials. Malaysia and Thailand are known to be promising markets for this industry in the South East Asia region. The purpose of this study is to investigate the influence of psychological and marketing factors on clothing interest among Generation Y consumers, as well as the interrelationships between self-confidence, product attitude and purchase intention. The impact of nationality was also examined as a moderator on the investigated relationships. Design/methodology/approach The data was collected among Generation Y consumers using a survey questionnaire, which had successfully gathered a total of 388 usable cases from the capital cities of Malaysia (Kuala Lumpur) and Thailand (Bangkok). These cities were selected for being the largest cities in its country which contain the highest number of shopping malls, offices and Generation Y population. Data analysis was then performed using both the SPSS and AMOS software. Findings Findings obtained acknowledged the importance of both psychological (i.e. fashion innovativeness, self-concept, fashion consciousness and need for uniqueness) and marketing (i.e. social media marketing and fashion advertisement) factors towards the clothing interest among Generation Y consumers. Consequently, clothing interest would influence their product attitude, self-confidence and purchase intention, with product attitude and self-confidence as the mediators between clothing interest and purchase intention. Multigroup analysis confirmed that there are differences between Generation Y consumers in both Malaysia and Thailand, where Thai consumers hold a stricter emphasis concerning the influence of social media marketing on clothing interest and self-confidence on purchase intention. Originality/value This study is one of the very few studies that explored the minimally investigated territory on the consequential importance of clothing interest within the clothing industry, specifically, through extending the literature on the influence of psychological and marketing factors towards the individuals’ clothing interest. Moreover, this study also successfully highlighted the mediation role of product attitude and self-confidence in the relationship between clothing interest and purchase intention.

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“…Recently, however, there has been increasing interest in consumers within the circular economy literature, as well as multiple calls for more attention to the role of consumers in implementing circular practices [17][18][19][20][21][22][23]. Much of this attention has so far been directed at consumers' acceptance of circular solutions [24][25][26]. However, as Camacho-Otero et al [18] (p. 17) argue, "change [towards a circular economy] is not only about acceptance".…”

Section: Valuementioning

confidence: 99%

How the Dead Storage of Consumer Electronics Creates Consumer Value

et al. 2020

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Consumers across the globe tend to store their small electronic devices when they reach their end of life instead of disposing of them. This is a problem because if end-of-life devices are not recovered from consumers’ homes, the devices cannot be re-used or recycled, leading to increased production. We study what motivates consumers to store their end-of-life devices by looking at how storage creates consumer value. Applying a practice-based understanding of value, we find that storage is a social practice that generates value by protecting consumers from four different kinds of risk: practical risks, existential risks, environmental risks, and moral risks. Storage gives consumers a sense of security in their everyday lives and thus generates what we call ‘security value’. This notion implies that even though end-of-life devices sit idle in consumers’ homes, their value generating capacity remains active. The findings have implications for the role of consumers in reverse logistics strategies for sustainable systems.

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Circular economy and consumer acceptance: An exploratory study in East and Southeast Asia

Cited by 104 publications

References 56 publications

Determinants of consumer demand for circular economy products. A case for reuse and remanufacturing for sustainable development

Determinants of consumer demand for circular economy products. A case for reuse and remanufacturing for sustainable development

Cruising down millennials’ fashion runway: a cross-functional study beyond Pacific borders

How the Dead Storage of Consumer Electronics Creates Consumer Value

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