Consumer Value Generation in Circular Business Models

Abstract

This thesis focuses on the consumer value generation within circular business models (CBMs). With the aim of exploring the practical tendencies of value generation for consumers, the thesis takes on a qualitative multiple case study approach. To generate consumer value, the findings show that the market specific product characteristics that lead to obsolescence are utilised through CBMs to create new circular offerings. Further, consumer involvement, incentivised by companies, is identified to be an enabler in the process of consumer value generation. Finally, the use of multiple CBMs and value propositions allow companies to create a broad portfolio of offerings, generating value for a variety of consumer demands. Incorporating CBMs facilitate companies to regenerate consumer value from the same product at multiple stages. These findings led to the creation of a conceptual model describing consumer value generation in CBMs.