Indonesians’ Perceptions of Auto Parts Remanufactured in China: Implications for Global Remanufacturing Operations

Abstract

Remanufacturing is a key strategy for achieving a circular economy. One crucial obstacle to remanufacturing is consumers’ acceptance (or non-acceptance) of remanufactured products. The current study investigated Indonesian consumers’ perceived images of remanufactured auto parts (RAPs) remanufactured in China. Consumers’ perception of a target country can be either helpful or damaging for an international business. If China seeks successful remanufacturing operations across national boundaries, it must establish national branding and manage the image of remanufactured products to meet and exceed consumer expectations in the global market. An online survey with 500 respondents was conducted to examine (1) how basic product knowledge of RAPs influence consumers’ perceived risks and benefits, (2) whether consumers’ purchase intention of RAPs made in the home country influences their purchase intention of RAPs made in China, and (3) whether the trust in the RAP certification increases purchase intention of RAPs.

The mediating role of functionality orientation for purchasing remanufactured products: Cases in China, Indonesia, and Thailand

“…Existing RMP‐related research already provides an understanding of consumer behaviors, pricing strategies (Abbey et al., 2015; Michaud & Llerena, 2011; Neto et al., 2016; Pang et al., 2015), branding (Abbey et al., 2017; Agrawal et al., 2015), and reputation management (Subramanian & Subramanyam, 2012), and reveals factors that influence purchasing behavior (Wang et al., 2013; Jiménez‐Parra et al., 2014; Matsumoto et al., 2018a), but little attention has been paid to the influence of a country‐of‐origin effect (COE) on RMPs (Chinen & Matsumoto, 2021; Matsumoto et al., 2018a) even though the COE can vary across product types (Han & Qualls, 1985). The recent “buy domestic” campaign worldwide may influence remanufacturers’ decisions regarding facility locations for supply chain management because consumers tend to rate goods made in highly industrialized countries higher than goods from developing countries.…”

Remanufactured products: A systematic review from the consumer perspective

“…Moreover, product knowledge negatively affects perceived risk [ 91 ] and directly influences demand risk [ 41 ]. On the contrary, Chinen and Matsumoto [ 15 ] couldn’t find a significant relationship between product knowledge and perceived risk. Moreover, Wang et al [ 91 ] found that product knowledge negatively influences purchase intention.…”

“…Wahjudi et al [ 85 ] note that there are financial (obsolescence concern, regulatory concern), quality (quality assurance, perceived quality, lack of OEM support), and social risks (prestige concern, subjective norm, public opinion, and trend concern). Chinen and Matsumoto [ 15 ] considered only physical, financial, performance, and time risks.…”

“…Perceived risk negatively affects the attitude toward RPs [ 39 , 73 , 84 , 87 , 91 , 97 ] and intention to purchase RPs [ 15 , 18 , 50 , 51 , 74 , 87 , 89 , 95 , 97 ].…”

“…Furthermore, perceived knowledge of RPs differs among developing countries [ 51 ] and advanced countries [ 49 ]. Product knowledge positively affects attitude [ 73 , 84 , 91 ], purchase intention [ 50 , 51 , 54 , 73 , 84 , 87 ], and perceived benefit [ 15 ]. Moreover, product knowledge negatively affects perceived risk [ 91 ] and directly influences demand risk [ 41 ].…”