Consumer Value Creation in Circular Business Models - A Qualitative Case Study in the Consumer Electronics Sector

Abstract Circular business models represent promising solutions to support the circular economy, but their implementation and diffusion are inhibited by limited consumer interest. Despite the crucial role of consumers, their perspective has largely been overlooked, and little is known about the value such models create for them. This paper investigates what types of value consumers perceive from using an implemented circular product-service system. Empirical data were collected through a qualitative case study within the consumer electronics sector, involving interviews with both consumers and company representatives. The study has two main contributions. First, it provides a nuanced view of consumer perceived value in terms of benefits, sacrifices and absent value alongside six dimensions (functional, financial, emotional, social, novelty, and environmental). Second, it connects this value to the business model, thereby demonstrating how consumer value understanding can support the identification of business model innovation opportunities for enhanced value creation.