HOW LOYAL ARE THE CUSTOMER TO RECYCLED PRODUCT
Abstract
Recycled products form a crucial component of the Reuse, Reduce and Recycle framework within the broader concept of circular economy. Nevertheless, consumer loyalty towards these products remains uncertain. This research aims to examine the determinants of customer loyalty for recycled goods, with customer satisfaction serving as a mediating factor. The study utilises a quantitative approach, gathering data through an online questionnaire distributed via purposive sampling. To assess the hypotheses, SEM Smart PLS analysis is applied to responses from 302 recycled product consumers. The findings reveal that brand image and environmental concern positively influence customer loyalty. Conversely, brand prestige and product quality demonstrate a negative relationship with loyalty, with the latter showing significant impact. Customer satisfaction mediates the connection between perceived price fairness, product quality, environmental concern, and customer loyalty. This research contributes to marketing and sustainability literature by demonstrating that customers can develop satisfaction and loyalty towards non-food recycled products. For future investigations into recycled product loyalty, a qualitative methodology is recommended.
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