Contemplating Circular Economy: The Effects of an Integrated Circular Consumption Strategy on Consumer Electronic Brands

Sammanfattning: Circular economy and circular consumption models have attracted much research attention in the last decades, particularly within consumer electronics, as a legitimate solution to our contemporary consumption mindset (i.e. take-make-use-dispose). Initial research has shown positive consumer responses to reused electrical products. Yet, managers are reluctant to introduce circular consumption, in the form of product reuse, because of fear of negative brand effects and marketing complications. Therefore, this thesis investigates how offering reused products will affect consumers' product and brand perceptions, attitude and purchase intention. A quantitative experimental study was conducted where consumers were exposed to either a new or reused product offering, from a familiar or unfamiliar brand. The findings indicate that consumers don't perceive reused products to have lower quality than new conventional products, contradicting one of the main assumptions among brand managers. Consumers' perception of product and brand sustainability are positively affected when a familiar or unfamiliar brand implements a circular consumption offering. However, the reused products offerings effects on perceived brand innovativeness, brand attitude and purchase intention are different for the familiar and unfamiliar brand; there is only a significantly higher effect for the unfamiliar brand. These findings, first, lead to managerial implications that there are no negative effects on brand perceptions when offering reused products. Second, electrical consumer brands can gain competitive advantage and position themselves as green by implementing and promoting circular consumption.