Enhancing Brand Value Through Circular Economy Service Quality: The Mediating Roles of Customer Satisfaction, Brand Image, and Customer Loyalty

This study rigorously examines the relationship between circular economy service quality and brand value, focusing on the mediating roles of customer satisfaction, brand image, and customer loyalty. Amid the growing adoption of circular economy principles to enhance sustainability and resource efficiency, the impact of such practices on brand value remains underexplored. This research addresses this gap by developing and testing an integrated model of circular economy service quality and its influence on brand value. Using a quantitative methodology, this study collected data from customers engaged with companies employing circular economy practices. A structured survey assessed the perceptions of circular economy service quality, customer satisfaction, brand image, customer loyalty, and brand value. Advanced statistical techniques, including structural equation modeling (SEM), were employed to analyze the data and evaluate the proposed relationships. The results revealed significant positive correlations between circular economy service quality, customer satisfaction, brand image, and customer loyalty. Furthermore, the mediating roles of customer satisfaction, brand image, and customer loyalty in the relationship between circular economy service quality and brand value were validated. High-quality circular economy services fostered customer satisfaction, enhanced brand image, and strengthened customer loyalty, collectively driving increased brand value. This research underscored two critical implications. First, circular economy service quality was identified as a pivotal factor in enhancing brand value. By offering sustainable and efficient services, organizations can deliver superior customer experiences, cultivate a strong brand image, and ultimately boost brand value. Second, the mediating variables—customer satisfaction, brand image, and customer loyalty—were shown to play essential roles in amplifying the impact of circular economy service quality on brand value. Organizations should strategically focus on optimizing these factors to maximize brand performance. These findings provide valuable insights for businesses aiming to integrate sustainability into their operations while enhancing brand equity and market performance.