How Eco Label Credibility Social Norms and Price Premium Drive Circular Economy Product Adoption in Zhejiang China

Abstract Circular economy products (CEPs) can extend the life of resources through reuse and recycling, thereby supporting more sustainable consumption. However, consumer adoption of CEPs in China remains relatively underexplored, particularly the roles of trust, social norms, and price-related concerns. This study surveyed 407 adults in Zhejiang Province who had prior experience with CEPs and used Partial Least Squares Structural Equation Modelling (PLS-SEM) to examine how eco-label credibility, social norms, environmental concern, product trust, and perceived green premium influence willingness to purchase and actual purchasing behaviour. The results show that product trust, eco-label credibility, social norms, and environmental concern positively influence willingness to purchase, with product trust emerging as the strongest predictor. In contrast, perceived green premium negatively affects willingness to purchase. Willingness to purchase also mediates these relationships and significantly influences actual purchasing behaviour. These findings highlight the importance of building consumer trust, strengthening the credibility and transparency of eco-labels, and addressing price concerns to encourage circular consumption. For marketers and policymakers, improving confidence in CEPs while making them more affordable may help bridge the gap between consumers’ positive attitudes and their actual sustainable purchasing behaviour.