How B2B suppliers articulate customer value propositions in the circular economy: Four innovation-driven value creation logics

17.03.2020

Customer value propositions in the circular economy reflect four different value creation logics: resurrecting, sharing, optimizing, and replacing value. The customer value propositions for resurrect value are primarily based on economic and environmental benefits, and such firms need to be able to resurrect value into used products and materials with efficient processes. Share value’s customer value propositions are based on economic and functional benefits. For these firms, being able to offer customers convenient access to shared resources with a good customer experience is important. In optimization logic, the customer value propositions are widely based on economic, functional, and environmental benefits. In this logic, it is crucial to understand customer processes, in order to deliver improvements that create cost savings for the customer. Finally, the replacement logic’s customer value propositions are based on functional, social, and environmental benefits, and for these firms it is crucial that customers can easily use the firm’s offerings to directly replace current unsustainable resources, materials, or product components. Firms doing business in the circular economy need to understand the value creation logic they are following, communicate a customer value proposition that reflects this logic to their customers, and focus on fulfilling the customer value proposition as the core guideline of the business.’

Published: https://doi.org/10.1016/j.indmarman.2019.10.007

Authors: Valtteri Ranta, Joona Keränen, Leena Aarikka-Stenroos

Ranta et al. How B2B suppliers articulate customer value propositions in the circular economy