Consumer value considerations and adoption of remanufactured products in closed-loop supply chains

Abstract

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.

The Impact of Warranty Efficiency of Remanufactured Products on Production Decisions and Green Growth Performance in Closed-Loop Supply Chain: Perspective of Consumer Behavior

“…Zhang and He (2018 [12]) designed a consumer utility function based on consumers' different purchasing intentions for new and remanufactured products, considering a centralized system consisting of one manufacturer and one retailer to study the optimal pricing strategy for new products and remanufactured products. Wang et al (2018 [13]) provide a theoretical basis for understanding the values associated with consumers and remanufactured products. Genc, Talat and Giovanni (2018 [14]) within the framework of closed-loop supply chain, several consumer returns for second-hand products based on product prices and discounts were studied.…”

Warranty Period Decision and Coordination in Closed-Loop Supply Chains Considering Remanufacturing and Consumer Behavior

“…In a sense, the consumer's buying beliefs are consistent with the company's warranty policy. Wang et al [31] provided a theoretical basis for understanding remanufactured product-related consumer values. Genc et al [32] studied several consumer returns for second-hand products based on product prices and discounts within the framework of a closed-loop supply chain.…”

Optimal Pricing Strategy and Government Consumption Subsidy Policy in Closed-Loop Supply Chain with Third-Party Remanufacturer

“…The Chinese government has announced several programs such as a "Trade old for remanufactured" program or establishing a "model remanufacturing factories" program to attract more consumer attention to remanufactured products and to boost the demand for remanufactured products. However, due to low consumers' acceptance for remanufactured products [5,10], the marketing share of remanufactured product is less than 5% [11], and the growth of the remanufacturing industry in China still lags behind some developed countries [12]. Hence a key issue that should be addressed first is how to effectively attract more consumers to remanufactured products [13].…”