Closing the Supply Chain Loop: From Circular Product Cues to Post‐Use Behavior

Abstract

This research investigates consumer engagement in closed‐loop supply chains (CLSCs) for fast‐moving consumer goods (FMCGs). We argue that closing the loop effectively begins with the product's design and the signals it sends to the consumer. By integrating signaling and cue utilization theories, this study examines how specific circular product‐level cues drive both brand evaluations and active participation in material recovery. Two complementary studies were conducted. Study 1 ( n = 827) used an online experiment to test the interaction between intrinsic cues (recycled content) and extrinsic cues (end‐of‐use messaging). Study 2 ( n = 156) utilized a quasi‐field experiment involving actual product trial followed by a 1‐week longitudinal survey to capture self‐reported post‐use behavior and willingness to buy. Results show that intrinsic cues alone often fail to elevate quality perceptions. However, pairing high recycled content with clear end‐of‐use cues significantly enhances perceived quality, brand attitude, and overall brand equity. Taken together, these circularity signals shift consumers' disposal intentions in ways that help close the loop; participants were more than 25 times more likely to report recycling than discarding the product when circularity cues were present. These findings demonstrate that consumers are critical enablers of material return and underscore their central role in the effectiveness of closed‐loop supply chains in FMCG sectors.