Short answer
Design for circularity should focus on demonstrating the value and quality of partially reused or remanufactured components, making them as desirable as new products.
- Field
- Sustainability
- Source
- Business Strategy and the Environment (2020)
- Method
- Choice-based conjoint experiment
- Sample
- 800 adults in the United Kingdom
- Evidence
- Strong effect
Consumers are willing to purchase reused or remanufactured electronic products at the same price as new ones, indicating a viable market for circular economy business models. This sustainability research insight is drawn from a 2020 study published in Business Strategy and the Environment. Using Choice-based conjoint experiment with 800 adults in the United Kingdom, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Design for circularity should focus on demonstrating the value and quality of partially reused or remanufactured components, making them as desirable as new products.
Circular Economy Products Can Compete with New at Retail Price
Consumers are willing to purchase reused or remanufactured electronic products at the same price as new ones, indicating a viable market for circular economy business models.
Business Strategy and the Environment · 2020
Key Findings
- 01Consumers prefer partly circulated products over fully or not at all circulated products.
- 02Circular products can likely enter the market successfully at the retail price of a new product.
- 03Circular products primarily compete with new products, with less impact on the market share of second-hand options.
Application
Design takeaway
Design for circularity should focus on demonstrating the value and quality of partially reused or remanufactured components, making them as desirable as new products.
How to apply
When developing new product lines or redesigning existing ones, consider how components can be sourced from reused or remanufactured streams and how to market these products effectively to compete with new offerings.
Project actions
- 01When researching consumer attitudes towards sustainable products, consider using conjoint analysis to understand trade-offs.
- 02Explore how the 'story' or origin of reused/remanufactured components can influence consumer perception.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Utilizes a robust experimental design (choice-based conjoint) to simulate purchasing decisions.
- +Investigates specific product categories relevant to consumer electronics.
Limitations
The experiment is based on hypothetical choices, and actual purchasing behavior might differ. The study focused on specific product types, so results may vary for other goods.
Reliability & validity
The conjoint experiment design enhances validity by simulating realistic trade-offs. Reliability would be supported by consistent preferences across participants for similar product attributes.
Think critically
How might the perceived quality and reliability of remanufactured products influence consumer willingness to pay the same price as new products?
Design Principles
"Embrace circularity by designing products that can be effectively reused or remanufactured, and market them at parity with new products to capture consumer interest."
This research suggests that businesses can successfully integrate circular economy principles into their operations without necessarily sacrificing market share or revenue. It challenges the perception that sustainable products must be priced lower than conventional alternatives.
What This Means for Your Design
People like electronics that have been partly fixed up or reused, and they'll pay the same price for them as for new ones. This is good news for companies wanting to make things more sustainable.
How to use in your project
- 1.Reference this study when discussing consumer acceptance of circular economy products and the potential for market penetration of sustainable alternatives in your design project.
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Quick Cite
Paragraph starter
Research indicates that consumers exhibit a preference for 'partly circulated' products, such as reused or remanufactured electronics, and are willing to purchase them at the same retail price as new items. This suggests a significant market opportunity for businesses transitioning to circular economy models, as these products primarily compete with new offerings rather than solely with existing second-hand markets.
Source
Business Strategy and the Environment
Determinants of consumer demand for circular economy products. A case for reuse and remanufacturing for sustainable development
journal · 2020
View sourceQuestions About This Research
- What does the research say about circular economy products can compete with new at retail price?
- Design for circularity should focus on demonstrating the value and quality of partially reused or remanufactured components, making them as desirable as new products. Evidence: Business Strategy and the Environment (2020).
- Why does "Circular Economy Products Can Compete with New at Retail Price" matter for design?
- This research suggests that businesses can successfully integrate circular economy principles into their operations without necessarily sacrificing market share or revenue. It challenges the perception that sustainable products must be priced lower than conventional alternatives.
- How can designers apply this research?
- Design for circularity should focus on demonstrating the value and quality of partially reused or remanufactured components, making them as desirable as new products.
- What were the main findings?
- Consumers prefer partly circulated products over fully or not at all circulated products.. Circular products can likely enter the market successfully at the retail price of a new product.. Circular products primarily compete with new products, with less impact on the market share of second-hand options.
- What research method was used?
- Choice-based conjoint experiment with 800 adults in the United Kingdom.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2020 journal from Business Strategy and the Environment.
- What should I do differently in my next project?
- When developing new product lines or redesigning existing ones, consider how components can be sourced from reused or remanufactured streams and how to market these products effectively to compete with new offerings.
- What are the limitations?
- The study focused on specific electronic product categories and a UK consumer base, which may not generalize to all product types or global markets. The hypothetical nature of the experiment might not perfectly reflect real-world purchasing behavior.