Refurbished or Remanufactured?-An Experimental Study on Consumer Choice Behavior

Area of Science:

• Circular Economy
• Consumer Behavior
• Resource Management

Background:

• Remanufacturing is crucial for circular economy and resource reuse but faces low consumer familiarity in China.
• This lack of awareness impedes the growth of China's remanufacturing industry.
• Understanding consumer perceptions is vital for market strategy development.

Purpose of the Study:

• To analyze Chinese consumers' purchase intentions and decision-making processes for new, remanufactured, and refurbished products.
• To investigate consumer willingness to pay for remanufactured and refurbished goods.
• To determine how product attributes influence consumer selection mechanisms and preferences.

Main Methods:

• An empirical study involving hypothetical purchase decisions for two product types (MP4, cartridge) in different scenarios.
• Two experimental stages: comparing new vs. remanufactured, then new vs. remanufactured vs. refurbished products.
• Analysis of consumer attention to environmental protection, quality, brand, price, and new/old preferences.

Main Results:

• Consumer selection mechanisms differ for new, remanufactured, and refurbished products, influenced by product attributes.
• Consumers' attention to factors like environmental protection, quality, brand, and price varies based on product type.
• Refurbished products impact the market for remanufactured goods; consumers prioritize price over environmental protection.

Conclusions:

• Consumer choice behavior and willingness to pay are influenced by varying levels of attention to product attributes.
• Market strategies for remanufacturing enterprises and policies for government should consider these consumer preferences.
• The study provides insights for Original Equipment Manufacturer (OEM) production strategies.