What makes people hesitant from circularity: An analysis of risk, marketing mix, cost and inconvenience

The circular economy (CE) concept has attracted significant research and practical momentum. Nevertheless, knowledge about its relationships to consumption and disposal from consumers' standpoint is still fragmented. Most CE consumer-centric research ends with a consumer's intention to purchase. As a result, this study intends to fill several research gaps by presenting a framework that goes beyond purchase intention and, consequently, incorporates both actual purchase behaviour and circular disposal, as well as their predictors. We gathered survey data from 489 Indian consumers and the proposed research claims were tested by adopting a structural equation modelling approach. The findings demonstrate that pricing advantage and product quality negatively impact perceived risk and positively impact perceived value. The main results confirm that the perception towards marketing mix plays a significant role in generating positive purchase intention. Furthermore, the indirect influence of the perception towards marketing mix on actual purchase behaviour is stronger than the direct influence. Both actual purchase behaviour and disposal convenience positively impact circular disposal behaviour. Meanwhile, the higher disposal costs discourage customers from circular disposal. This research has important implications for researchers and managers seeking to understand how to foster the circularity rate among consumers.