Customer Value in the business Market of Circular Economy : An Exploratory Multiple Case Study
Don Welathanthri, Martina Chethanie (2019)
2019
Tuotantotalouden DI-ohjelma - Degree Programme in Industrial Engineering and Management
Tekniikan ja luonnontieteiden tiedekunta - Faculty of Engineering and Natural Sciences
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Hyväksymispäivämäärä
2019-11-26
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:tuni-201911266281
https://urn.fi/URN:NBN:fi:tuni-201911266281
Tiivistelmä
The leading business markets across the world today incline toward circular economy business models that also promise profitable development through many new opportunities for the firms such as new profit streams and competitive advantage, while the users enjoy various consumer benefits. However, circular economy models involve collaborative partnerships to enable the circularity of resources, creating new customer-supplier relationships in the business market, but the perceived customer value is left unexplored in research and industrial fields. Thus, the objective of the thesis is to investigate and explore customer value and customer value dimensions in circular economy, biasing to the business market. The thesis contributes to the research gap of customer value in circular economy and influences the industry in creating more appealing value propositions in the business market.
In this study customer is value regarded as benefits that a good or a service provides, as perceived and measured by the customer. The thesis bases on the existing literature about customer value, value assessment in the business market and business models of circular economy. A multiple case study was conducted on customers of five various circular economy businesses. The cases were chosen to cover different circular economy business models, due to the numerous correspondent customer categories that can fairly contribute to the study. Accordingly, the study was conducted on customers of the case firms, using semi-structured interviews to facilitate explorative research approach, together with participant-observation and focus group methods to achieve richer data collection. The qualitative rigor of the built theory was achieved by analyzing the data using the Gioia methodology of ground theory development.
The findings reveal various value dimensions existing in both consumer and business markets of circular economy. The partnering customers in the business market seem to significantly value the influence of the CE solutions to the firms’ business functions, displaying value in functional dimension. Additionally, the value for movement toward sustainability exhibits esteem value while savings and additional profit streams affirm value in economic dimension. Adversely, the existence of emotional value in the business market was among the findings as well. Consequently, the business market consists of customer value in functional, economic, esteem and emotional dimensions. Compatibly, the consumer market resides value in the dimensions of functional, economic, symbolic and emotional, with a sub-dimension of surprise in emotional dimension. However, the findings of the thesis also attempt to enhance the observability of benefits in CE solutions by assessing the non- economic value dimensions in terms of economic value, suggesting the industry to respond to customer perceived value in CE solutions by creating and offering value propositions accordingly.
In this study customer is value regarded as benefits that a good or a service provides, as perceived and measured by the customer. The thesis bases on the existing literature about customer value, value assessment in the business market and business models of circular economy. A multiple case study was conducted on customers of five various circular economy businesses. The cases were chosen to cover different circular economy business models, due to the numerous correspondent customer categories that can fairly contribute to the study. Accordingly, the study was conducted on customers of the case firms, using semi-structured interviews to facilitate explorative research approach, together with participant-observation and focus group methods to achieve richer data collection. The qualitative rigor of the built theory was achieved by analyzing the data using the Gioia methodology of ground theory development.
The findings reveal various value dimensions existing in both consumer and business markets of circular economy. The partnering customers in the business market seem to significantly value the influence of the CE solutions to the firms’ business functions, displaying value in functional dimension. Additionally, the value for movement toward sustainability exhibits esteem value while savings and additional profit streams affirm value in economic dimension. Adversely, the existence of emotional value in the business market was among the findings as well. Consequently, the business market consists of customer value in functional, economic, esteem and emotional dimensions. Compatibly, the consumer market resides value in the dimensions of functional, economic, symbolic and emotional, with a sub-dimension of surprise in emotional dimension. However, the findings of the thesis also attempt to enhance the observability of benefits in CE solutions by assessing the non- economic value dimensions in terms of economic value, suggesting the industry to respond to customer perceived value in CE solutions by creating and offering value propositions accordingly.