IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v181y2016ipbp460-469.html
   My bibliography  Save this article

Consumer product knowledge and intention to purchase remanufactured products

Author

Listed:
  • Wang, Yacan
  • Hazen, Benjamin T.

Abstract

Throughout both the developing and the developed world, lack of consumer acceptance of remanufactured products prevents closed-loop supply chains of the circular economy from realizing the full potential value from remanufacturing. In this study, we examine how knowledge of remanufactured products in terms of cost, quality, and green attributes affects consumers׳ perception of both risk and value associated with purchasing remanufactured products, and how these perceptions subsequently affect consumers׳ purchase intentions in China. Based on prospect theory and literature on consumer perceived value and perceived risk, we use a 2×2×2 inter-group experiment to assess consumers׳ intention to purchase remanufactured products. The results of our structural equation modeling indicate that purchase intention is positively influenced by perceived value and negatively influenced by perceived risk. Perceived value is most influenced by quality knowledge, followed by cost knowledge and green knowledge. Perceived risk is most influenced by quality knowledge, followed by cost knowledge. The findings can help remanufacturers and closed-loop supply chain managers to develop management policies and marketing strategies. Our theory-based model can be used as the basis for future research regarding the consumer׳s role in the close-loop supply chain.

Suggested Citation

  • Wang, Yacan & Hazen, Benjamin T., 2016. "Consumer product knowledge and intention to purchase remanufactured products," International Journal of Production Economics, Elsevier, vol. 181(PB), pages 460-469.
  • Handle: RePEc:eee:proeco:v:181:y:2016:i:pb:p:460-469
    DOI: 10.1016/j.ijpe.2015.08.031
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527315003278
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Wang, Charles X., 2010. "The loss-averse newsvendor game," International Journal of Production Economics, Elsevier, vol. 124(2), pages 448-452, April.
    2. Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-291, March.
    3. Atalay Atasu & Miklos Sarvary & Luk N. Van Wassenhove, 2008. "Remanufacturing as a Marketing Strategy," Management Science, INFORMS, vol. 54(10), pages 1731-1746, October.
    4. Burton, Scot & Howlett, Elizabeth & Tangari, Andrea Heintz, 2009. "Food for Thought: How Will the Nutrition Labeling of Quick Service Restaurant Menu Items Influence Consumers’ Product Evaluations, Purchase Intentions, and Choices?," Journal of Retailing, Elsevier, vol. 85(3), pages 258-273.
    5. Tversky, Amos & Kahneman, Daniel, 1992. "Advances in Prospect Theory: Cumulative Representation of Uncertainty," Journal of Risk and Uncertainty, Springer, vol. 5(4), pages 297-323, October.
    6. He, Yuanjie, 2015. "Acquisition pricing and remanufacturing decisions in a closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 163(C), pages 48-60.
    7. Olsen, Robert A., 1997. "Prospect theory as an explanation of risky choice by professional investors: Some evidence," Review of Financial Economics, Elsevier, vol. 6(2), pages 225-232.
    8. Akhter, Syed H., 2003. "Digital divide and purchase intention: Why demographic psychology matters," Journal of Economic Psychology, Elsevier, vol. 24(3), pages 321-327, June.
    9. Brucks, Merrie, 1985. "The Effects of Product Class Knowledge on Information Search Behavior," Journal of Consumer Research, Oxford University Press, vol. 12(1), pages 1-16, June.
    10. Tarnanidis, Theodore & Owusu-Frimpong, Nana & Nwankwo, Sonny & Omar, Maktoba, 2015. "Why we buy? Modeling consumer selection of referents," Journal of Retailing and Consumer Services, Elsevier, vol. 22(C), pages 24-36.
    11. Puto, Christopher P, 1987. "The Framing of Buying Decisions," Journal of Consumer Research, Oxford University Press, vol. 14(3), pages 301-315, December.
    12. James D. Abbey & Margaret G. Meloy & V. Daniel R. Guide Jr. & Selin Atalay, 2015. "Remanufactured Products in Closed-Loop Supply Chains for Consumer Goods," Production and Operations Management, Production and Operations Management Society, vol. 24(3), pages 488-503, March.
    13. Hazen, Benjamin T. & Overstreet, Robert E. & Jones-Farmer, L. Allison & Field, Hubert S., 2012. "The role of ambiguity tolerance in consumer perception of remanufactured products," International Journal of Production Economics, Elsevier, vol. 135(2), pages 781-790.
    14. Laurens G. Debo & L. Beril Toktay & Luk N. Van Wassenhove, 2005. "Market Segmentation and Product Technology Selection for Remanufacturable Products," Management Science, INFORMS, vol. 51(8), pages 1193-1205, August.
    15. Rao, Akshay R & Monroe, Kent B, 1988. "The Moderating Effect of Prior Knowledge on Cue Utilization in Product Evaluations," Journal of Consumer Research, Oxford University Press, vol. 15(2), pages 253-264, September.
    16. Holbrook, Morris B, 1986. "Aims, Concepts, and Methods for the Representation of Individual Differences in Esthetic Responses to Design Features," Journal of Consumer Research, Oxford University Press, vol. 13(3), pages 337-347, December.
    17. Thaler, Richard, 1980. "Toward a positive theory of consumer choice," Journal of Economic Behavior & Organization, Elsevier, vol. 1(1), pages 39-60, March.
    18. Gu, Wenjun & Chhajed, Dilip & Petruzzi, Nicholas C. & Yalabik, Baris, 2015. "Quality design and environmental implications of green consumerism in remanufacturing," International Journal of Production Economics, Elsevier, vol. 162(C), pages 55-69.
    19. Sabharwal, Srishti & Garg, Suresh, 2013. "Determining cost effectiveness index of remanufacturing: A graph theoretic approach," International Journal of Production Economics, Elsevier, vol. 144(2), pages 521-532.
    20. Daniel Ellsberg, 1961. "Risk, Ambiguity, and the Savage Axioms," The Quarterly Journal of Economics, Oxford University Press, vol. 75(4), pages 643-669.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Phantratanamongkol, Supanan & Casalin, Fabrizio & Pang, Gu & Sanderson, Joseph, 2018. "The price-volume relationship for new and remanufactured smartphones," International Journal of Production Economics, Elsevier, vol. 199(C), pages 78-94.
    2. Steven Day & Janet Godsell & Donato Masi & Wanrong Zhang, 2020. "Predicting consumer adoption of branded subscription services: A prospect theory perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1310-1330, March.
    3. Seoyoon Lee & Minjung Kwak, 2020. "Consumer Valuation of Remanufactured Products: A Comparative Study of Product Categories and Business Models," Sustainability, MDPI, Open Access Journal, vol. 12(18), pages 1-29, September.
    4. Shu-San Gan & I Nyoman Pujawan & Didik Wahjudi & Yopi Yusuf Tanoto, 2019. "Pricing decision model for new and remanufactured short life-cycle products with green consumers," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 18(5), pages 376-392, October.
    5. Wang, Shanyong & Wang, Jing & Li, Jun & Wang, Jinpeng & Liang, Liang, 2018. "Policy implications for promoting the adoption of electric vehicles: Do consumer’s knowledge, perceived risk and financial incentive policy matter?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 117(C), pages 58-69.
    6. Xu, Xun & Zeng, Shuo & He, Yuanjie, 2017. "The influence of e-services on customer online purchasing behavior toward remanufactured products," International Journal of Production Economics, Elsevier, vol. 187(C), pages 113-125.
    7. Reazul Islam & Rubi Ahmad, 2020. "Applicability of Mudarabah and Musharakah as Islamic Micro-equity Finance to Underprivileged Women in Malaysia," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(1), pages 176-197, January.
    8. Ramkumar, M. & Schoenherr, Tobias & Wagner, Stephan M. & Jenamani, Mamata, 2019. "Q-TAM: A quality technology acceptance model for predicting organizational buyers’ continuance intentions for e-procurement services," International Journal of Production Economics, Elsevier, vol. 216(C), pages 333-348.
    9. Xu, Xun & Jackson, Jonathan E., 2019. "Examining customer channel selection intention in the omni-channel retail environment," International Journal of Production Economics, Elsevier, vol. 208(C), pages 434-445.
    10. Van Nguyen, Truong & Zhou, Li & Chong, Alain Yee Loong & Li, Boying & Pu, Xiaodie, 2020. "Predicting customer demand for remanufactured products: A data-mining approach," European Journal of Operational Research, Elsevier, vol. 281(3), pages 543-558.
    11. Quariguasi Frota Neto, João & Dutordoir, Marie, 2020. "Mapping the market for remanufacturing: An application of “Big Data” analytics," International Journal of Production Economics, Elsevier, vol. 230(C).
    12. Claudio Siminelli, 2017. "Consumer behaviours and attitudes towards a circular economy: Knowledge and culture as determinants in a four-market analysis," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2017(1-2), pages 135-169.
    13. Xu, Xun & Jackson, Jonathan E., 2019. "Investigating the influential factors of return channel loyalty in omni-channel retailing," International Journal of Production Economics, Elsevier, vol. 216(C), pages 118-132.
    14. Zhu, Wenlong & Mou, Jian & Benyoucef, Morad, 2019. "Exploring purchase intention in cross-border E-commerce: A three stage model," Journal of Retailing and Consumer Services, Elsevier, vol. 51(C), pages 320-330.
    15. Xu, Xun & Zeng, Shuo & He, Yuanjie, 2021. "The impact of information disclosure on consumer purchase behavior on sharing economy platform Airbnb," International Journal of Production Economics, Elsevier, vol. 231(C).
    16. Shanyong Wang & Jing Wang & Feng Yang & Yu Wang & Jun Li, 2018. "Consumer familiarity, ambiguity tolerance, and purchase behavior toward remanufactured products: The implications for remanufacturers," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1741-1750, December.
    17. Wang, Yacan & Zhu, Quan & Krikke, Harold & Hazen, Benjamin, 2020. "How product and process knowledge enable consumer switching to remanufactured laptop computers in circular economy," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    18. Yang, Liu & Dong, Shaozeng, 2018. "Rebate strategy to stimulate online customer reviews," International Journal of Production Economics, Elsevier, vol. 204(C), pages 99-107.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Berger, Paul D & Smith, Gerald E, 1998. "The Impact of Prospect Theory Based Framing Tactics on Advertising Effectiveness," Omega, Elsevier, vol. 26(5), pages 593-609, October.
    2. Xu, Xun & Zeng, Shuo & He, Yuanjie, 2017. "The influence of e-services on customer online purchasing behavior toward remanufactured products," International Journal of Production Economics, Elsevier, vol. 187(C), pages 113-125.
    3. Ma, Peng & Gong, Yeming & Mirchandani, Prakash, 2020. "Trade-in for remanufactured products: Pricing with double reference effects," International Journal of Production Economics, Elsevier, vol. 230(C).
    4. Wang, Yacan & Zhu, Quan & Krikke, Harold & Hazen, Benjamin, 2020. "How product and process knowledge enable consumer switching to remanufactured laptop computers in circular economy," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    5. Xiong, Yu & Zhao, Quanwu & Zhou, Yu, 2016. "Manufacturer-remanufacturing vs supplier-remanufacturing in a closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 176(C), pages 21-28.
    6. Gu, Wenjun & Chhajed, Dilip & Petruzzi, Nicholas C. & Yalabik, Baris, 2015. "Quality design and environmental implications of green consumerism in remanufacturing," International Journal of Production Economics, Elsevier, vol. 162(C), pages 55-69.
    7. Itzhak Gilboa & Andrew Postlewaite & Larry Samuelson & David Schmeidler, 2019. "What are axiomatizations good for?," Theory and Decision, Springer, vol. 86(3), pages 339-359, May.
    8. Luis Sarmiento, 2020. "I Am Innocent: Hourly Variations in Air Pollution and Crime Behavior," Discussion Papers of DIW Berlin 1879, DIW Berlin, German Institute for Economic Research.
    9. Mercè Roca & Robin Hogarth & A. Maule, 2006. "Ambiguity seeking as a result of the status quo bias," Journal of Risk and Uncertainty, Springer, vol. 32(3), pages 175-194, May.
    10. Basieva, Irina & Khrennikova, Polina & Pothos, Emmanuel M. & Asano, Masanari & Khrennikov, Andrei, 2018. "Quantum-like model of subjective expected utility," Journal of Mathematical Economics, Elsevier, vol. 78(C), pages 150-162.
    11. repec:ubc:pmicro:halevy-04-10-29-10-08-43 is not listed on IDEAS
    12. Richard J. Arend, 2020. "Strategic decision-making under ambiguity: a new problem space and a proposed optimization approach," Business Research, Springer;German Academic Association for Business Research, vol. 13(3), pages 1231-1251, November.
    13. Wu, Cheng-Han, 2015. "Strategic and operational decisions under sales competition and collection competition for end-of-use products in remanufacturing," International Journal of Production Economics, Elsevier, vol. 169(C), pages 11-20.
    14. Kuhberger, Anton, 1998. "The Influence of Framing on Risky Decisions: A Meta-analysis," Organizational Behavior and Human Decision Processes, Elsevier, vol. 75(1), pages 23-55, July.
    15. Weber, Martin & Welfens, Frank, 2007. "The repurchase behavior of individual investors : an experimental investigation," Papers 07-44, Sonderforschungsbreich 504.
    16. Ng, Yew-Kwang & Wang, Jianguo, 2001. "Attitude choice, economic change, and welfare," Journal of Economic Behavior & Organization, Elsevier, vol. 45(3), pages 279-291, July.
    17. Jakusch, Sven Thorsten & Meyer, Steffen & Hackethal, Andreas, 2019. "Taming models of prospect theory in the wild? Estimation of Vlcek and Hens (2011)," SAFE Working Paper Series 146, Leibniz Institute for Financial Research SAFE.
    18. Bouchouicha, Ranoua & Martinsson, Peter & Medhin, Haileselassie & Vieider, Ferdinand M., 2017. "Stake effects on ambiguity attitudes for gains and losses," EconStor Open Access Articles, ZBW - Leibniz Information Centre for Economics, pages 19-35.
    19. Frota Neto, João Quariguasi & Bloemhof, Jacqueline & Corbett, Charles, 2016. "Market prices of remanufactured, used and new items: Evidence from eBay," International Journal of Production Economics, Elsevier, vol. 171(P3), pages 371-380.
    20. Jonathan W. Leland & Mark Schneider, 2016. "Salience, Framing, and Decisions under Risk, Uncertainty, and Time," Working Papers 16-08, Chapman University, Economic Science Institute.
    21. Haven, Emmanuel & Khrennikova, Polina, 2018. "A quantum-probabilistic paradigm: Non-consequential reasoning and state dependence in investment choice," Journal of Mathematical Economics, Elsevier, vol. 78(C), pages 186-197.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:181:y:2016:i:pb:p:460-469. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nithya Sathishkumar). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.