Purpose
– The paper aims to explore the reasons underlying the key assumption in the closed-loop supply chain (CLSC) literature that consumers' purchase intention is lower for remanufactured products than for new products. It aims to complement the predominantly operation-focused CLSC research by examining consumers' perception of and behavior relating to remanufactured products.
Design/methodology/approach
– A theoretical model is developed by integrating the concepts of perceived benefits and product knowledge with the theory of planned behavior and the theory of perceived risk. Then the model is examined through an empirical study in the Chinese automobile spare parts industry involving 288 respondents and using structural equation modeling.
Findings
– The results indicate that purchase intention is directly influenced by purchase attitude followed by perceived behavioral control and indirectly influenced by perceived risk, perceived benefit and product knowledge via attitude. Therefore, effective measures to promote consumers' purchase intention rely on coordinated policies built on multiple pillars instead of single factors.
Originality/value
– This is one of the first empirical studies to explore the factors that underpin consumers' purchase intention regarding remanufactured products. The results can be used to validate the key assumptions in operational models and foster new research in the context of CLSCs.
Purpose
The success of closed loop supply chains is contingent upon consumer acceptance of remanufactured products, yet little is known about how consumers value such products. The purpose of this paper is to provide theoretical grounding for understanding consumers’ value perceptions as related to remanufactured products.
Design/methodology/approach
Diffusion of innovation theory and customer perceived value literature help form the theoretical model, which is tested empirically using survey data of consumers. Structural equation modeling was employed to test the hypotheses.
Findings
Perceived value of remanufactured products is measured as a function of perceived benefits (environmental benefits; price advantage) and perceived sacrifices (perceived quality; perceived risk), all of which are shown to impact perceived value. Additionally, perceived risk is found to partially mediate the relationship between perceived quality and perceived value.
Originality/value
This research makes two significant contributions. First, mid-range theory that is contextualized to the closed loop supply chain is developed to aid researchers and practitioners in better understanding the consumer’s role in the closed loop supply chain, as related to the acceptance of remanufactured products. Second, consumer acceptance of remanufactured products represents a form of supply chain demand risk that has previously been unrecognized. The results provide a foundation for incorporating this type of demand risk in to future research efforts.
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