Circular Economy in Customizable Furniture: Applying Norm Activation Model and the Impact of Green Product Perception to Willingness to Pay More

Abstract

The increasing awareness of environmental issues and the urgency of sustainable development have driven significant advancements in creating and implementing circular products. This paper, with its unique contribution, presents a comprehensive (psychological and product characteristics) perspective on purchasing drivers of circular products. By enhancing the understanding of the Norm Activation Model (NAM) in the circular furniture context, it provides fresh insights into this important study area. We used a quantitative survey of 300 respondents collected using convenience sampling and analyzed with partial least squares structural equation modeling (PLS-SEM). The results indicate that environmental concern is the strongest predictor of personal norm, followed by aspiration of responsibility, perceived consumer effectiveness, and awareness of consequences. Findings show that perceived consumer effectiveness does not affect the willingness to pay more. Considerations to pay more for circular products depend more on green image and perceived green quality than on psychological factors (environmental concern and personal norm). Interestingly, although significant, consumers’ environmental concern negatively impacts their willingness to pay a premium price. These results contributed to NAM’s application in circular furniture products by providing comprehensive drivers of the willingness to pay, offering practical recommendations to companies aiming to engage consumers in a sustainability-oriented production process.