CIRCULAR ECONOMY AND CONSUMER ACCEPTANCE ON PRODUCT-SERVICE SYSTEM: A CUSTOMER-DOMINANT LOGIC VIEW

Product-service system (PSS) is an integrated product and service offering that could be used as a business-level strategy to provide a circular economy solution. However, the preference over certain PSS elements or its combination remains unknown for large electrical home appliances. This study adopted a customer-dominant logic (CDL) approach to assess South Korean consumers’ acceptance of PSS elements for refrigerators. A two-phase mixed method including focus groups, conjoint analysis, and Kano modeling was used to analyze the responses from 244 Korean consumers. Our results identified three groups of consumers showing different preferences. PSS elements such as durability, energy efficiency, and long-term warranty were of the highest priority to consumers. This study contributes to the PSS literature by providing empirical and methodological insights into understanding consumer acceptance of PSS. Our findings will help businesses develop relevant value propositions.