Understanding Malaysian consumers’ intentions to purchase recycled products: the role of environmental ethics and circular economy knowledge

Abstract While the literature extensively highlights the benefits of the circular economy (CE), there remains a significant gap in empirical research on the influence of environmental ethics on consumer preferences for recycled products, particularly within the Malaysian context. This study addresses that gap by examining how environmental ethics and knowledge of CE processes—specifically product history, recapturing, recycling, and remarketing—affect Malaysian consumers’ attitudes and intentions toward purchasing recycled products. Using collected data from 384 respondents, the study employs Partial Least Squares Structural equation Modeling (PLS-SEM) to assess the relationships between key constructs. The findings reveal that all four dimensions of CE knowledge significantly shape consumers’ attitudes toward recycled products. Moreover, environmental ethics plays a moderating role in strengthening the link between attitudes and purchase intentions. In addition, perceived value positively influences consumer attitudes, while perceived risk has a significant negative effect. These results provide both theoretical and practical contributions. Theoretically, the study integrates Prospect Theory and the Theory of Planned Behaviour to offer a more comprehensive understanding of green consumer behaviour. Practically, it offers guidance for policymakers, businesses, and supply chain managers aiming to promote CE practices in developing countries. The research underscores the importance of ethical awareness and targeted education in driving sustainable consumption.