ABSTRACT   Date:                                  2020-06-06   Level:                                 Bachelor Thesis in Business Administration, 15 cr   Institution:   School of Business, Society and Engineering, Mälardalen University   Authors:         Elina Nurmi                         Julia Darnéus Ekeroth   Natasha Milner             (1993-01-08)                              (1996-07-24)                                  (1998-05-05)   Title:                                  Investigating the ‘Greenness’ of Young Consumers   Tutor:                                David Freund   Keywords:  Environmental concern, green marketing, green consumer, green scepticism, green purchase decision. Research Question: How can environmental concern, exposure to green marketing and green scepticism influence young consumers’ green purchase decisions?   Purpose: The purpose of this thesis is to investigate how young consumers’ green purchase decisions can be influenced by their environmental concern, exposure to green marketing and lastly, green scepticism. It will be analysed if consumers are now overexposed to green marketing, whether there is an action/awareness gap, and lastly, the number of green consumers in the sample will be established.   Method: Primary data was collected through a quantitative research method, via a self-completion online questionnaire. The chosen sample was Swedes, aged 18-30 and consisted of 140 respondents. IBM SPSS Statistics was used for the statistical tests undertaken such as Cronbach’s Alpha, Chi-square, Pearson’s correlation and Regression analysis.   Conclusion: Environmental concern and green scepticism were found to have a significant influence on the young Swedish consumers’ green purchase decision. A great deal of the sample possessed environmental concern, and it was found to influence their green purchase decision positively. The participants were not sceptical of green marketing, and green scepticism was found to significantly and negatively influence their green purchases. Finally, the young Swedes were minimally underexposed to green marketing with a slight negative, but insignificant, influence on green purchase decisions.

D. Tech. (Marketing, Department of Marketing and Sport Management, Faculty of Management Sciences) Vaal University of Technology / The concept of green marketing has gained prominence in academia in recent years with concomitant implications for marketing strategy. The considerable attention accorded to green marketing is accentuated by concerns about global climate change and its threat to the sustainability of livelihoods. As the debate on green marketing continues to unfold, there are important issues yet to be addressed, one of which relates to the antecedents of green consumer buyer behaviour and selection attributes of green products. In view of the growing importance of green consumer buyer behaviour in contemporary markets, the purpose of the present study was to examine empirically the antecedents of green consumer buyer behaviour and the selection attributes of Generation Y consumers. The Generation Y cohort was considered as the ideal target population for the present study owing to its size, bespeaking a profitable market segment with the potential to provide a “snap-shot” of future pro-environmental behavioural intentions. The theories of Reasoned Action and Consumption Values provided the theoretical lens through which to examine and delineate the antecedents of green consumer buyer behaviour and the selection attributes of Generation Y consumers in the context of a developing country such as South Africa. The present study adopted a sequential mixed-methods methodology that commenced with a qualitative study and was followed by a quantitative study. For the qualitative study, data were collected from a purposively selected Generation Y student sample comprising sixteen participants. The principle of technical saturation was employed to ascertain the adequacy of the sample size. The credibility and trustworthiness of the qualitative study were achieved through pretesting of the interview guide, bracketing, prolonged ngagement with participants, member checks, peer de-briefing, an audit trail of the interviewing process and researcher reflexivity. The analysis of the qualitative data was conducted through the use of content and thematic analyses. The qualitative study identified environmental attitude, environmental concern, social influence, environmental responsibility, government influence, selection attributes and green purchase intention as the main determinants of green purchase behaviour. The qualitative study also revealed that the demand for green products is thwarted by marketing-related barriers such as high prices, misleading green marketing messages and unavailability of products. In line with the methodology of the study, the determinants of green purchase behaviour that emerged from the qualitative study were further examined through a quantitative study. The data for the quantitative study were generated from a conveniently selected Generation Y student sample of 386 respondents, using a structured selfadministered questionnaire. The historical evidence method and the pre-conditions of multivariate data analysis (confirmatory factor analysis) guided the determination of the sample size for the quantitative study. The statistical data analysis procedures utilised for the quantitative study were descriptive statistics, reliability and validity analysis, correlation analysis, confirmatory factor analysis and structural equation modelling. Prior to questionnaire administration, a pilot study was conducted to improve the accuracy of the survey instrument. The collected quantitative data were analysed using the Statistical Package for the Social Sciences (SPSS) 22.0 and Analysis of Moment Structures (AMOS) 22.0. The preliminary data analysis involved the process of coding and checking the distribution of scores. The results of the normality test revealed that the data were not normally distributed. Thus, non-parametric statistics were employed for correlation analysis and for testing gender difference in green consumer buyer behaviour. The Mann-Whitney U Test and the Kruskal-Wallis Test revealed that Generation Y female consumers are more apt to engage in pro-environmental behaviours than their male counterpartsIn order to verify the reliability of the measurement items, Cronbach’s alpha coefficient, the item-to-total values and composite reliability were computed. In addition, the validity of the survey instrument was enhanced through content, convergent, discriminant and predictive validities. The reliability and validity measures employed in the present study attested that the survey instrument utilised in the quantitative study was both reliable and valid. The results of correlation analysis indicated that environmental concern, environmental attitude, environmental responsibility, government influence, social influence and selection attributes have a positive association with green purchase intention. The correlation analysis also revealed a weak association between green purchase intention and actual purchase behaviour. Prior to testing the hypothesised relationships, the fitness of the measurement and structural models was assessed. The model fit indices that included the chi-square value over degree of freedom ( 2/df), Goodness-of-Fit Index (GFI), Root Mean Square Error of Approximation (RMSEA), Comparative Fit Index (CFI), Incremental Fit Index (IFI) andTucker-Lewis Index (TLI) yielded satisfactory results that are consistent with acceptable thresholds, demonstrating that the measurement and structural model fitted well with the data. The posited relationships were tested using structural equation modelling. The hypotheses testing results revealed that green purchase intention was significantly and positively influenced by environmental attitude, environmental concern, social influence, environmental responsibility and selection attributes, but not by government influence. The results also showed that the relationship between green purchase intention and actual purchase behaviour was moderated by selection attributes. The findings of the study imply that marketers need to formulate and implement green marketing strategies that enhance environmental attitudes and concerns, initiate programmes that foster environmental responsibility, understand the selection attributes of Generation Y consumers and utilise social networks to stimulate pro-environmental behaviours. The results also suggest that the South African government needs to re-invigorate its environmental initiatives to foster green purchase intention and the purchase of green products. Finally, the study also provided evidence that suggests an insignificant relationship between green purchase intention and actual purchase behaviour. This result suggests an urgent need by marketers to understand the underlying factors causing the gap between green purchase intention and actual purchase behaviour. To effectively promote green consumer buyer behaviour, marketers need to understand the determinants of green purchase intention and craft effective strategies to translate green purchase intentions into actual purchasing behaviour. The findings of the present study provide avenues for further study in a discipline that is increasingly gaining theoretical and practical prominence. Future research efforts should consider the use of an integrated research model that encompasses more variables, utilising a broader sample frame and employing a longitudinal study in order to enhance the generalisability of the research findings. Overall, the study offers valuable insights for stimulating green purchase behaviour among the potentially profitable Generation Y cohort and equips marketers with green marketing strategies to position green products competitively in the marketplace.

Abstract Problem: Food consumption represents the largest contributor to climate change in Sweden, with activities that contribute to excess waste and greenhouse gas emissions. Although studies indicate positive attitudes towards green purchasing behavior among young Swedish consumers, inconsistency between green purchasing intent and actual behavior have been noticed.   Purpose: The purpose of this qualitative research paper was to understand and identify underlying enablers and inhibitor to green purchasing behavior amongst young Swedish adults. Furthermore, the authors sought to understand the inconsistency between purchasing intent and actual purchasing behavior, of young Swedish consumers.   Method: To answer the research question a qualitative research was conducted with a deductive approach. Focus groups with semi-open interview questions were used to collect empirical data. The target group for this research were young Swedish adults between the ages of 20-26.   Conclusion: This research identified knowledge as the main inhibitor and enhancer of green purchasing behavior, as well as other factors that can be traced back to the amount and accessibility of knowledge. It was also concluded that companies have failed in delivering their green marketing strategies, as young consumers display confusion and mistrust towards green products.

Under de senaste 15 åren har modeindustrin växt och blivit både snabbare och billigare och begreppet fast fashion har etablerats. Fast fashion är en affärsstrategi inom modeindustrin vars mål är att reducera ledtiderna från idé till butik. Strategin syftar till att tillfredsställa kundernas begär av de senaste trenderna på mycket kort tid. Fast fashion branschen kan sägas stå i motsägelse till en hållbar utveckling, då den representerar korta modecykler där kläder tenderar att bli ”slit och släng” varor. Idag går utvecklingen dock mot en ökad medvetenhet i gröna, miljörelaterade frågor vilket har lett till att fler produkter marknadsförs som gröna produkter. En ökad miljömedvetenhet hos konsumenten har skapat ett behov hos företag att kartlägga den gröna konsumenten. Ur ett företag - och marknadsföringsperspektiv är en förståelse för vad den gröna konsumenten eftersöker en förutsättning, då det är ineffektivt att utveckla gröna produkter om inte kunden attraheras av dem.Syftet med uppsatsen är att uppnå en ökad förståelse för modekonsumentens attityder och uppfattningar kring hållbart mode inom fast fashion branschen på den svenska marknaden. Uppsatsen har en kvalitativ utformning och datainsamling har skett genom två fokusgrupper. Den insamlade empirin har analyserats utifrån den teoretiska referensramen. Den behandlar teorier kring konsumentbeteende med inriktning mot fast fashion konsumenten och den gröna konsumenten. Vidare behandlas segmentering med fokus på grön segmentering och slutligen marknadskommunikation med inriktning mot hållbar och grön kommunikation. Resultatet från de undersökta kunderna är tänkta att generera uppslag för fast fashion företag vid utformning och kommunikation av produkter och aktiviteter kopplade till hållbart mode.Vi kan utifrån resultatet från båda fokusgrupperna urskilja en något motsägelsefull hållning till miljömedvetenhet. Det är tveksamt huruvida de undersökta kunderna ser en problematik i klädkonsumtionen kopplat till miljöproblem. Vidare uppvisar de en skepsis gentemot fast fashion företagens hållbara mode då de ifrågasätter trovärdigheten och äktheten. Gällande hur hållbart mode kan kommuniceras kan sägas att intervjupersonerna eftersöker en tydlighet i hur budskapen kommuniceras. En slutsats i uppsatsen är att den höga omsättningen på produkter framkallar ett ”Köp nu”-beteende hos kunden vilket bekräftar fast fashion kunden som till stor del impulsstyrd i sina inköp. Det är inte behovet av att exempelvis köpa en ny jacka som i första hand styr kundens inköp utan snarare att hon köper för köpandets skull. Denna mentalitet hos de undersökta kunderna bekräftar att fast fashion-mode behandlas som ”Slit och släng”-produkter.Två nyckelord som har vuxit fram ur det empiriska materialet är tydligt och konsekvent. Dessa nyckelord måste vara ständigt närvarande för att fast fashion företag ska kunna kommunicera hållbarhet på ett sätt som appellerar till de undersökta kundernas attityder. Sammanfattningsvis kan sägas att om fast fashion företag lyckas kommunicera hållbarhet på ett attraktivt sätt kan vinsterna bli stora. Genom att positionera sig som ett fast fashion företag som erbjuder hållbart mode kan konkurrensfördelar skapas.Over the past 15 years, the fashion industry has grown in size and become both faster and cheaper and the concept of fast fashion has been established. Fast fashion is a business strategy in the fashion industry which is based on reducing lead times from concept to store. The strategy aims to satisfy customer requests of the latest trends in a very short time span. The fast fashion industry is in a way contradicting a sustainable development, as it represents short fashion cycles where clothes tend to be regarded as disposable products. Today however, we are moving towards a greater awareness concerning green, environmental issues which has resulted in more products that are being marketed as green products. This increased environmental awareness among consumers has created a need for companies to identify “the green consumer”. From a business - and marketing perspective, an understanding of what the green consumer is looking for is a pre-condition, since it is inefficient to develop green products unless they are what the customer desires.The purpose of this paper is to obtain a better understanding of the fashion consumer’s attitudes and perceptions on sustainable fashion concerning the fast fashion industry. The thesis has a qualitative design and the data has been collected through two focus groups. The collected empirical data has been analyzed with the theoretical framework in mind. The theoretical framework deals with theories of consumer behavior with emphasis on the fast fashion consumer as well as the green consumer. We also look at market segmentation with emphasis on green segmentation and finally marketing with a focus on sustainable and green communication. The results gathered from the surveyed customers will hopefully generate ideas for fast fashion companies on how to communicate products and activities related to sustainable fashion.Based on the results from the two focus groups we can discern a somewhat contradictory attitude towards environmental awareness in general. Whether the surveyed customers realize that clothing consumption is linked to some environmental problems is rather doubtful. Furthermore, they exhibit skepticism towards the sustainable fashion offered by fast fashion companies as they question the credibility and authenticity. They also express the need of a clearer and more accessible marketing communication concerning sustainable fashion. One conclusion of this paper is that the high turnover of products creates a "Buy Now"-behavior which confirms the fast fashion customer as largely an impulse buyer. It is not the need for say, a new jacket that primarily govern the customer's purchase, but rather that she is buying for buying's sake. This mentality confirms that fast fashion clothing often is treated as disposable products.Two keywords which have emerged from the empirical material are clear and consistent. These keywords should permeate fast fashion companies in their effort to communicate sustainability in a way which appeals to the surveyed customers attitudes. In summary, if fast fashion companies are able to succeed in communicating sustainability in an attractive way, the gains can become significant. By positioning itself as a fast fashion company offering sustainable fashion a competitive advantage is created. / Program: Textilekonomutbildningen

Sustainability has become a subject of much interest in recent years, due to the deterioration of the natural environment. In response there has been increasing public pressure on businesses to provide environmentally friendly product alternatives for consumers. However, the demand for said products is surprisingly low, which constitutes a challenge for marketers; how can the demand for sustainable products be increased? In order to answer this question, a deeper understanding of the green consumer profile is needed. As such, the purpose of this study is to: Increase the understanding of the green consumer profile by exploring drivers of, and barriers to, green purchasing behaviour. In order to fulfil this purpose within the chosen context of sustainable foods, the subsequent main research questions were formulated: <ol type="1">What do consumers perceive to be drivers motivating them to purchase sustainable foods? What do consumers perceive to be barriers preventing them from purchasing sustainable foods? The study adopts a qualitative and exploratory approach and utilizes semi-structured focus groups to accumulate empirical material. The questions for these focus groups stem from an integrative model created through synthesis of existing theory related to marketing of sustainable products, while adopting a consumer perspective. Three focus groups were subsequently held, with a total of 12 participants. Data display and analysis was used to produce insights related to the purpose and research questions of the study. Among these, the most important insights include the lack of specific knowledge relating to the benefits of sustainable food products, and the social factors that influence consumers’ purchasing behaviour of sustainable foods. Moreover, the findings suggest that the confusion regarding the definition of sustainable foods has implications that call into question contemporary theory on the matter.

Made available in DSpace on 2016-12-01T19:18:37Z (GMT). No. of bitstreams: 1 117384.pdf: 2251323 bytes, checksum: dd028bb77a17d91a9e4f908309165e7c (MD5) Previous issue date: 2013-12-16 / Coordenação de Aperfeiçoamento de Pessoal de Nível Superior / There is increasing pressure for companies seeking sustainable development principles into their business , however there are few studies in the area of tourism that give this type of stamp placement. This study aimed to analyze the propensity of consumption of sustainable products by customers SBTUR . The research method of this paper is essentially quantitative, through research type survey data were collected through a questionnaire applied to a representative sample of the population. The analysis model was constructed according to the stages of the consumer decision process and the proposed by Gonçalves-Dias et al (2009) that measures environmental awareness model was applied . Through cluster analysis we identified 5 distinct clusters of customers who have potential differentiated consumption of green tourism products. Of the total 89 % have some potential to purchase products with this kind of appeal. This positioning can be a way for the company to differentiate itself from others and build customer loyalty. / Há uma crescente pressão para as empresas buscarem princípios de desenvolvimento sustentável em seus negócios, entretanto há poucos estudos na área de turismo que deem chancela a este tipo de posicionamento. O presente trabalho teve como objetivo analisar a propensão de consumo de produtos sustentáveis pelos clientes do SBTUR. O método de pesquisa deste trabalho é essencialmente quantitativo, por meio de pesquisa tipo survey. Os dados foram coletados por meio de questionário aplicados a uma amostra representativa da população. O modelo de análise foi construído de acordo com as fases do processo decisório de consumo e foi aplicado o modelo proposto por Gonçalves-Dias et al (2009) que mensura consciência ambiental. Por meio de análise de agrupamentos identificou-se 5 grupos distintos de clientes, que apresentam potenciais diferenciados de consumo de produtos turísticos verdes. Do total 89% apresentam algum potencial para adquirir produtos com este tipo de apelo. Este posicionamento pode ser uma forma da empresa diferenciar-se das demais e fidelizar o cliente.

Environment and its conservation is one of the key issues across the globe these days. It is even more important in the Scandinavian region.Swedenis one of the leading pro-environment nations in the world when it comes to environment-friendly or green automobiles. Introducing emissions tax, green car rebate, and congestion tax exemption for green cars on large cities have resulted in a surge of green car sales inSwedenover the past few years. The preferences of the Swedish green car consumers are examined in this study.   Consumer decision process and preferences related theories have been used for the theoretical understanding of this study and based on these understandings, the Adaptive Choice Based Conjoint Analysis has been selected to measure and understand the consumer preferences towards green cars. The Swedish green car market has been explained and understood as a prerequisite to conduct this study. Examinations of previous related studies, a small scale pre-screening survey, and expert interviews were carried out prior to formulating the conjoint experiment to ensure the inclusion of significant components into the study. The collected data were analyzed using advanced analysis software such as, SSI Web, SMRT, and SPSS, to understand and measure consumer preferences. The findings provide answers to the importance of different attributes in the purchase decision-making for green cars, the effect of each attribute to the decision-making process, the effect of prior purchase experience on the formation of preference, and the relationship between consumer’s green consciousness level and green decision-making process.   This study contributes to the theoretical field of green consumer behavior and to the practical field of marketing of green cars. The study also identifies and recommends key areas of interest that warrant further research.   Key Words: High Involvement Purchase, Green Consumer Behavior, Conjoint Analysis, Adaptive Choice Based Conjoint Analysis (ACBC), Green Preference, Green Car.

L’attenzione verso la sostenibilità ambientale da parte di istituzioni, società civile e imprese, ha condotto alla diffusione di molteplici strumenti utilizzati delle imprese per dimostrare il proprio impegno per ridurre l’impatto ambientale dei propri prodotti e processi. Tra questi spiccano le eco-label, certificazioni di qualità ambientale. Attraverso una ricerca esplorativa questa tesi intende chiarire i meccanismi che regolano la comunicazione tra istituzione, impresa e cliente, quali siano i i gap informativi più rilevanti in tale triangolazione e le aree di intervento su agire per ridurre le asimmetrie informative aumentando l’efficacia dell’eco-label, le imprese come fonte di vantaggio competitivo e i certificatori come sistema di riduzione dell’impatto ambientale. La ricerca multi-metodo condotta conferma un diffuso interesse dei consumatori verso la sostenibilità ambientale e l’intenzione di contribuire attivamente, tuttavia, sottolinea anche l’esistenza di numerosi malfunzionamenti della comunicazione sia da parte delle imprese che da parte degli enti certificatori. Spunti interessanti emergono sulle modalità attraverso cui i consumatori vorrebbero essere informati e sulle loro necessità informative circa le eco-label. Emerge chiaramente la necessità di investimenti di marketing da parte delle istituzioni e, per le imprese, la necessità di integrare l’eco-label nella visione strategica per valorizzarne il potenziale di vantaggio competitivo. / During the last two decades, the interest in environmentally-conscious production and consumption has been considerably increasing. In response to these environmental concerns, a growing number of third-party certified eco-labels has been developed. Through eco-labels companies can demonstrate their commitment in lowering the environmental impact of their products and processes. The aim of this thesis is to provide a better understanding of: 1) the communication mechanisms among issuer, firm and customer; 2) the nature of the main information gaps within this triangulation; 3) the areas of intervention as to reduce the information asymmetries and increase the effectiveness of eco-labels, in terms of competitive advantage for firms and increased beneficial effects on the environment for the issuers. The multi-method explorative research conducted confirms a wide interest towards sustainable consumption issues among consumers and their willingness to actively contribute; although it highlights numerous communication failures involving both firms and issuers. Interesting suggestions emerge about the consumers’ preferred ways to be informed on eco-labels and about their information needs. It also clearly emerges the need for marketing investment from the issuers, and the need of integrating the eco-label in the strategic vision for the firms in order to value its competitive advantage potential.

La presente investigación tiene como finalidad determinar la existencia de una relación entre el marketing mix verde y el valor de marca para consumidores de jabones ecológicos entre 21 y 35 años de los distritos de Miraflores, San Isidro y Barranco de Lima Metropolitana. El estudio se basa en el modelo validado del autor Sadiq Sohail King Fahd de la Universidad Rey Fahd de Petróleo y Minerales realizada en Arabia Saudita en el 2016. Para esta investigación se analizaron tanto a hombres como mujeres entre 21 y 25 años (20.7%), entre 26 y 30 años (27.9%) y 31 y 35 años (51.4%) a través de la metodología descriptiva, un diseño transeccional o transversal y la aplicación de un muestreo no probabilístico por conveniencia aplicando el método de inclusión y exclusión. La investigación se divide en cinco capítulos: el primero presenta los antecedentes, el marco teórico y marco de referencia, el segundo desarrolla el plan de investigación sentando los objetivos e hipótesis generales y específicos; el tercero explica la metodología de trabajo; el cuarto analiza los resultados descriptivos y el quinto finalmente presenta los resultados, conclusiones y recomendaciones. La investigación concluye demostrando la existencia entre el marketing mix verde y el valor de marca en diferentes niveles y dimensiones. Esta investigación resulta útil para todo aquel interesado en desarrollar una estrategia de marketing mix verde para productos ecológicos que deseen incrementar el valor de marca y potenciar la ventaja competitiva de un negocio o comercio. / The present research aims to determine the existence of a relationship between green marketing mix and brand value for consumers of ecological soaps between 21 and 35 years in the districts of Miraflores, San Isidro and Barranco of Lima Metropolitana. The study is based on the validated model of the author Sadiq Sohail King Fahd of the King Fahd University of Petroleum and Minerals carried out in Saudi Arabia in 2016. For this research, both men and women were analyzed between 21 and 25 years (20.7%), between 26 and 30 years (27.9%) and 31 and 35 years (51.4%) through a descriptive methodology, a transectional or cross-sectional design and the application of a non-probabilistic convenience sampling applying the inclusion and exclusion method. The research is divided into five chapters: the first presents the antecedents, the theoretical framework and reference framework, the second develops the research plan setting the objectives and general and specific hypotheses; the third explains the work methodology; the fourth analyzes the descriptive results and the fifth finally presents the results, conclusions and recommendations. The research concludes by demonstrating the existence between the green marketing mix and brand equity at different levels and dimensions. This research is useful for anyone interested into develop a green marketing mix strategy for ecological products that wish to increase brand equity and enhance the competitive advantage of a business or trade. / Tesis

Uppsatsen syftar till att bidra med kunskap kring de svårigheter och de barriärer som föreligger vid en implementering av en cirkulär affärsmodell. Studien utgår från ett företagsperspektiv, vilket även kompletterats med ett kundperspektiv för att skapa ett holistiskt perspektiv. Uppsatsen inkluderar undersökningar kring de anställdas uppfattningar, i avseende att identifiera eventuella barriärer. Vidare inkluderas även undersökningar kring kundernas uppfattningar av IKEA:s cirkulära arbete. En kvalitativ ansats har använts då en fallstudie på ett IKEA-varuhus i Mellansverige genomförts. Ostandardiserade och halvstrukturerade intervjuer har skett, där sex anställda deltog i djupare intervjuer och nitton besökare på IKEA-varuhuset deltog i mer kortvariga intervjuer. Data användes sedan för en analys och diskussion i förhållande till tidigare forskning. Den mest omfattande barriären som upptäckts på fallstudiens enhet är kommunikation, där både den interna kommunikationen visar på brister kring bland annat informationsdelning, samt den externa kommunikationen gentemot kunder i sin helhet. Vidare belyser uppsatsen brister kring varuhusets företagskultur där hållbarhetsutbildningen är återhållsam, samt har distinkta skillnader framgått i de anställdas motivation. För en lyckad omställning av cirkulär affärsmodell behövs extern och intern kommunikation, långsiktig intern utbildning, samt motivation för att driva cirkulära innovationer. / The main aim of this thesis is to assess, understand and contribute to the challenges and barriers related to the implementation of a circular business model. The thesis applied a holistic perspective where both organizational and customer perspectives are studied. In this study, we assess both employees and customers perceptions regarding the transition to a circular way of doing things in order to identify eventual barriers and challenges. The study has a qualitative approach with a case study of an IKEA store in the central part of Sweden. We have used semi-structured and unstandardizedinterviews, where six employees of IKEA participated in more insightful interviews and nineteen customers participated in short interviews. The collected data was used for analysis and discussion in relation to previous research (theoretical framework). In this study, we have found that the vital barrier in the IKEA store is communication, for instance, the circular informational sharing is lacking in internal communication. The external communication towards customers is also inadequate. Furthermore, some difficulties regarding the corporate culture of IKEA is emphasized. The education concerning sustainability and circular economy is restrained and distinctions in employee motivation has emerged. In order to success, business need a readjustment towards a circular business model implementation, long-term education is necessary to create knowledge, while motivating the employees in order to facilitate circular innovations.