Understanding the purchase intention towards remanufactured product in closed-loop supply chains

Abstract

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.

Consumer product knowledge and intention to purchase remanufactured products

“…Prospect theory characterizes cumulative uncertainties in order to predict individual choices even when expected utility theory is violated (Tversky and Kahneman, 1992;McDermott et al, 2008). This is an especially useful lens through which to consider the context of this study, where previous research indicates that expected utility theory might not be adequate for explaining consumer reactions to remanufactured products due to value and risk factors that should be accounted for (Wang et al, 2013;Hazen et al, 2012a).…”

“…Such risks include financial, performance, social, physical, privacy, and time (Grewal et al, 1994). Because of asymmetric information, high costs associated with acquiring information about the products, the proliferation of counterfeit and inferior products, and the difficulties associated with solving consumer complaints, consumers might associate the purchase of remanufactured products with a higher degree of perceived risk (Wang et al, 2013). Indeed, providing specific domain information to decision makers (here, consumers) has been shown to significantly and systemically affect decision outcomes (Rose et al, 2004).…”

“…Subjective knowledge is generally acquired via consumer experience with using the focal product. As indicated above, Chinese consumers generally have limited purchase and use experience with remanufactured products (Wang et al, 2013). Thus, given the research setting, this investigation is limited to only consider objective knowledge.…”

“…As a critical component of the circular economy, remanufacturing has the potential to deliver economic, social and environmental benefits (Zhu and Sarkis, 2007;Tseng et al, 2015a). For instance, some advantages of remanufactured products over new products include the following: up to 70% less raw materials required to produce; up to 80% less emissions to produce; up to 60% less energy required to produce; up to 50% less total production costs; and lower prices for consumers (Wang et al, 2013). Governments and the private sector are now working to promote remanufacturing because of these benefits.…”

The Influence of Green Condominium Purchase Attitude toward Intention to Purchase: Generation Y Consumers

“…When studying the past research of all the variables shows that People who recognize the benefits of green building they will have a positive attitude and willingness to buy it (Wang, 2013). In conclusion, if the consumers perceive benefits from using the Green Condo, they will have positive attitude and willingness to purchase a Green Condo too.…”