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Optimizing value propositions for circular business models : the interplay of price, brand, quality, and circularity

Fatima Khitous, Katrien Verleye (UGent) , Andrea Urbinati and Annabelle Depuydt
(2026) BUSINESS STRATEGY AND THE ENVIRONMENT. 35(2). p.2792-2809
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Abstract
Despite the increasing interest in circular business models (CBMs), how they engage customers and other stakeholders is still under‐researched, limiting their broader implementation. This study addresses this gap by examining how CBMs can foster engagement through their value propositions. Through a literature review, we identify four key dimensions of value propositions: brand, quality, price, and circularity. Using a discrete choice conjoint experiment, we assess their impact on customer decision‐making, offering valuable insights for advancing their engagement with CBMs. Our findings offer critical insights: lower prices significantly boost customer engagement, while high‐end brands and high quality also drive higher engagement compared with their lower‐end counterparts. Surprisingly, higher levels of circularity (reduce and reuse) reduce engagement, contrasting with lower levels of circularity (recycling) and linearity. These findings have both theoretical and practical contributions, highlighting how value propositions can enhance customer engagement and unlock the potential of CBMs to drive sustainable consumption.
Keywords
brand, circular business models (CBMs), circularity, conjoint analysis, customer engagement, price, quality, value proposition, DISCRETE-CHOICE EXPERIMENTS, CLOTHING CONSUMPTION, SYSTEMIC LOGIC, FASHION, ECONOMY, OPPORTUNITIES, CONSUMERS, FACEBOOK, IDENTITY, MARKETS

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MLA
Khitous, Fatima, et al. “Optimizing Value Propositions for Circular Business Models : The Interplay of Price, Brand, Quality, and Circularity.” BUSINESS STRATEGY AND THE ENVIRONMENT, vol. 35, no. 2, 2026, pp. 2792–809, doi:10.1002/bse.70298.
APA
Khitous, F., Verleye, K., Urbinati, A., & Depuydt, A. (2026). Optimizing value propositions for circular business models : the interplay of price, brand, quality, and circularity. BUSINESS STRATEGY AND THE ENVIRONMENT, 35(2), 2792–2809. https://doi.org/10.1002/bse.70298
Chicago author-date
Khitous, Fatima, Katrien Verleye, Andrea Urbinati, and Annabelle Depuydt. 2026. “Optimizing Value Propositions for Circular Business Models : The Interplay of Price, Brand, Quality, and Circularity.” BUSINESS STRATEGY AND THE ENVIRONMENT 35 (2): 2792–2809. https://doi.org/10.1002/bse.70298.
Chicago author-date (all authors)
Khitous, Fatima, Katrien Verleye, Andrea Urbinati, and Annabelle Depuydt. 2026. “Optimizing Value Propositions for Circular Business Models : The Interplay of Price, Brand, Quality, and Circularity.” BUSINESS STRATEGY AND THE ENVIRONMENT 35 (2): 2792–2809. doi:10.1002/bse.70298.
Vancouver
1.
Khitous F, Verleye K, Urbinati A, Depuydt A. Optimizing value propositions for circular business models : the interplay of price, brand, quality, and circularity. BUSINESS STRATEGY AND THE ENVIRONMENT. 2026;35(2):2792–809.
IEEE
[1]
F. Khitous, K. Verleye, A. Urbinati, and A. Depuydt, “Optimizing value propositions for circular business models : the interplay of price, brand, quality, and circularity,” BUSINESS STRATEGY AND THE ENVIRONMENT, vol. 35, no. 2, pp. 2792–2809, 2026.
@article{01KGPZ8VDV1SWRBPXN11YES4NF,
  abstract     = {{Despite the increasing interest in circular business models (CBMs), how they engage customers and other stakeholders is still under‐researched, limiting their broader implementation. This study addresses this gap by examining how CBMs can foster engagement through their value propositions. Through a literature review, we identify four key dimensions of value propositions: brand, quality, price, and circularity. Using a discrete choice conjoint experiment, we assess their impact on customer decision‐making, offering valuable insights for advancing their engagement with CBMs. Our findings offer critical insights: lower prices significantly boost customer engagement, while high‐end brands and high quality also drive higher engagement compared with their lower‐end counterparts. Surprisingly, higher levels of circularity (reduce and reuse) reduce engagement, contrasting with lower levels of circularity (recycling) and linearity. These findings have both theoretical and practical contributions, highlighting how value propositions can enhance customer engagement and unlock the potential of CBMs to drive sustainable consumption.}},
  author       = {{Khitous, Fatima and Verleye, Katrien and Urbinati, Andrea and Depuydt, Annabelle}},
  issn         = {{0964-4733}},
  journal      = {{BUSINESS STRATEGY AND THE ENVIRONMENT}},
  keywords     = {{brand,circular business models (CBMs),circularity,conjoint analysis,customer engagement,price,quality,value proposition,DISCRETE-CHOICE EXPERIMENTS,CLOTHING CONSUMPTION,SYSTEMIC LOGIC,FASHION,ECONOMY,OPPORTUNITIES,CONSUMERS,FACEBOOK,IDENTITY,MARKETS}},
  language     = {{eng}},
  number       = {{2}},
  pages        = {{2792--2809}},
  title        = {{Optimizing value propositions for circular business models : the interplay of price, brand, quality, and circularity}},
  url          = {{http://doi.org/10.1002/bse.70298}},
  volume       = {{35}},
  year         = {{2026}},
}
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