Products' end-of-life management has recently become a critical business issue. One of the possible end-of-life strategies is remanufacturing, which can provide competitive advantages through material and energy savings. Beyond industrial organization challenges, there is a question about the interest of developing a green marketing strategy for remanufactured products. Indeed, remanufactured products can be considered as green products since their industrial process has environmental benefits. Our paper asks whether consumers are willing to pay for remanufactured products, especially when they are informed that these products are 'green'. We use experimental auctions to elicit consumers' WTP for specific characteristics of remanufactured products. Our study indicates that consumers tend to value the remanufactured product less than the conventional one unless they are informed about their respective environmental impacts. We find no evidence that consumers are willing to pay a premium for the green (i.e. remanufactured) product. However, providing environmental information to consumers has an effect on their WTP for the conventional product: they generally decrease significantly their WTP for the conventional (and thus most polluting) product.
This paper investigates consumers' willingness to pay (WTP) a price premium for two environmental attributes of a non-food agricultural product. We study individual preferences for roses associated with an eco-label and a carbon footprint using an economic experiment combining discrete choice questions and real economic incentives involving real purchases of roses against cash. The data are analyzed with a mixed logit model and reveal significant premiums for both environmental attributes of the product.
Upgradeable products are designed to allow sequential improvements during their lifetime. Little is known about consumers' preferences for these eco-innovative products. We use a discrete choice experiment to assess the importance of several attributes of product upgrading on consumers' choices. Four types of products are investigated: a washing machine, a wireless (upright) vacuum, a traditional vacuum and a laptop computer. Our experimental design varies several attributes of upgradeability (the type of improvement, the time between initial purchase and first upgrade and the upgrade practical procedure). All other characteristics of products are kept constant except the purchase price and the upgrade fee. Individual values are elicited on the basis of the random utility model (RUM) and an estimated mixed logit model permits to compute willingness to pay indicators. The results indicate that consumers value positively the possibility to improve products' performance through upgrading, especially in terms of energy efficiency
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