With increasing world population and an unsettling resource scarcity in the back, sustainble consumption has moved to the foreground of political, economical and social discussions. One major school-of-thought is Circular Economy (CE), an approach summarizing various sustainable consumption activites under one roof. However, quantitative studies on the consumer are rare, yet crucial for a transfer from linear to circular consumption. This dissertation adds to literature by providing pioneer insights into consumer behavior in CE as an overarching concept, instead limiting research on singular subconcepts. Namely, four consumer activities are studied: recycling, upcycling, renting and sharing. In order to identify relevant insights for both academics and practitioners in CE, the research question ("what drives participation in CE?") is broken down into sub-hypotheses, which are addressed by three empirical studies. Using the SOR-Model (adaption Belk 1975) as overarching logic, the three studies deal with (1) the consumer (and their motivation) and situational stimuli (both (2) offline and (3) online). Respectively, three data sets are consulted to assess the sub-hypotheses and to identify overarching insights on how to accelerate consumer participation in CE, The research methodology employed ranges from a structured equation model (SEM), a random allocation field experiment during Fashion Week in Berlin to a discrete-choice model with best-worst scaling. The dissertation succeeds in revealing that (1) different activities in CE can be summarized in one latent variable, proving CE as a wholesome concept in consumer-related activities; that (2) Trust has a leveraging effect on participation in CE activities. Further, Trust can be enhanced offline via face-to-face interaction and online via third-party online attributes.; and that (3) experience in CE activities affects perception of online attributes, implying the need for adapted measures when dealing with CE-unexperienced consumers as compared to consumers with prior experience in CE activities.
We conducted a random allocation experiment at fashion week in Berlin in 2017, testing how face-to-face (f2f) communication affects sales of a fashion start-up focusing on second-hand. The experiment revealed that 11% of guests of an f2f event afterwards turned paying customers with an average basket size 11.8% higher than the overall sales event average. We add insights to research on entrepreneurial practice as well as on offline operations in the context of circular consumption in fashion, exposing the leveraging effect of f2f communication for customer acquisition and revenue of start-ups in the field of sustainable fashion.
Businesses like Airbnb have shown that a successful circular economy (CE) business can operate exclusively online. Although online communication and web appearance attributes have been subject to academic research given accelerated digitization, there is still a lack of knowledge about online attributes and their role in facilitating CE. We close the portrayed knowledge gap by conducting a discrete-choice experiment with best to worst scaling and focusing on the effect of CE experience on the perception of a CE website by ranking nine online attributes, grouped in three subsets. We therefore contribute by identifying online attributes that are perceived as favorable for CE businesses and detect how participation in CE activities affects the perception of these attributes. We find that third-party associated online attributes (e.g., user reviews or third-party guarantees) rank significantly higher throughout CE consumption patterns of the sample, being always amongst the top three attributes. This novel finding on online preferences opens a new direction for further research, as well as allows practitioners to optimize online operations accordingly. Furthermore, we find that users without prior touchpoints with CE have a higher need for information about the business model as compared to CE active users who are more interested in community related attributes.