Buying while expecting to sell: The economic psychology of online resale
Consumer online resale is becoming increasingly common for transactions of secondhand goods. However, when accompanied by a preconceived intention to resell a product after using it, the initial consumer purchasing decision for self-use is complicated by the estimated resale value of that good. We applied the principles of mental accounting to develop and evaluate a new concept that may influence consumer resale and purchase intention: external resale reference price (ERRP). The study examines how online consumer sellers' economic psychology of buying affected their expectation of future online resale outcome. The results indicate that (1) consumers' awareness of future online resale potential can influence their purchasing decisions; (2) ERRP, which is mediated by the estimated resale return, can increase purchase intention; and (3) the effects of ERRP on purchase intention are moderated by online resale likelihood, but are minimal when consumers are aware that resale possibility is extremely low.
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