Customer-perceived value in the circular economy: A multidimensional framework

Abstract

This article explores how the circular economy (CE) affects customer-perceived value (CV), an important success factor for business-to-business companies. To this end, we examine business-to-business customers' value perceptions of circular market offerings and suppliers' alignment with such perceptions. More specifically, we conducted a qualitative multiple-case study of 12 business-to-business customer–supplier dyads in industrial CE businesses. Using abductive reasoning, we found that circularity modifies conventional CV dimensions (economic, functional, relationship, and identity value) and identified three new CV dimensions specific to the CE (ethical, strategic adaptation, and systemic value). Furthermore, our findings showed that suppliers' conceptions of various CV dimensions were either partially (for economic, functional, and ethical value) or fully (for systemic value) misaligned with customers' value perceptions of circular market offerings. Based on our findings, we developed six research propositions and a conceptual framework of multidimensional CV in the CE for business-to-business customers. This study contributes to supplier-dominant CE-oriented business-to-business research by adopting a customer-oriented approach and to CV research by extending the concept of CV into the CE. Our multidimensional framework explains what customers look for when buying circular offerings, which can help managers communicate full customer value in an increasingly circular world.