POS displays in a circular economy

: an empirical investigation of German Generation Z’s perception of circular-designed confectionery POS Displays and the impact on their purchase intention and willingness-to-pay of confectionery in Germany

Abstract

The current economy is facing significant challenges emerging from unsustainable economic models, primarily driven by waste generation. A major contributor is the FMCG industry, where single-use point-of-sale displays play a notable role in waste production. Despite their short service life, point-of-sale displays are essential for sales promotion. This dissertation examines the integration of circular economy principles into point-of-sale marketing, focusing on confectionery displays in the German FMCG sector, emphasizing the prevention of waste, the circulation of materials and the regeneration of nature. Generation Z is the target group of this study based on their growing purchasing power and environmental awareness. Using the stimulus-organism-response model, this research investigates the influence of stimuli (point-of-sale display attributes, the confectionery manufacturer’s environmental record and Gen Z’s environmental concern) on Generation Z’s perceived sustainability of a circular-designed point of-sale display, and its impact on their purchase intention as well as willingness-to-pay for confectionery promoted in circular-designed point-of-sale displays. A mixed methods approach was used, starting with qualitative interviews for initial insights, followed by a quantitative survey. Key findings show that point-of-sale display attributes (i.e., circular materials, natural colors, informative content), manufacturer’s environmental record and a higher level of environmental concern positively influence Gen Z’s perceived sustainability of a circular-designed confectionery point-of-sale display. The direct influence of perceived sustainability on purchase intention and willingness-to-pay depends on consumers’ circular economy familiarity. The managerial implications highlight the importance of launching appealing and informative circular-designed point-of-sale displays, while confectionery manufacturers must increase transparency and educate consumers about circular economy.

Date of Award	27 Jun 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Miguel Rita (Supervisor)