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

Abstract

Manufacturers face several obstacles when marketing remanufactured products (RMPs), and therefore must appeal to consumers’ motivational desires to influence their purchase decisions. Informed by regulatory focus theory, this research contributes by examining the role that consumers’ environmental awareness and functionality orientation play in influencing their willingness to purchase RMPs. Limited research attention has been paid to the importance of consumers’ functionality orientations. The critical attributes of functionality orientation are perceptions of functionality, value, and relative pricing. Potential consumers of remanufactured automobile parts in China, Indonesia, and Thailand are surveyed and the data suggest consumers’ functionality orientations can partially mediate the relationship between consumers’ environmental awareness and their willingness to purchase RMPs. This finding indicates that remanufacturers can increase consumers’ willingness to purchase RMPs by informing them of the products’ benefits for the environment and by demonstrating and confirming that RMPs have the same functionality as new products. This research improves understanding of how firms can influence consumer perceptions of RMPs, and the findings can be used to inform practitioners who seek to optimize the value proposition of RMPs by informing consumers about the environmental benefits and functionality of RMPs.

Remanufactured products: A systematic review from the consumer perspective

“…J. Integrated Supply Management 2 2.00 52 Hunka et al [ 37 ] Business, Strategy and the Environment 8 8.00 53 Chinen et al [ 16 ] Journal of Industrial Ecology - - * Based on Web of Science database; † represents citation numbers from Scopus database; **E-data from e-bay = 23,282 auctions and 6197 fixed-price transactions …”

“…The theory refers to fulfilling internal motivations such as feeling better about themselves through consumption. Chinen et al [ 16 ] also used this theory to understand the effect of consumers’ environmental awareness and functionality orientation on the willingness to purchase RPs.…”

“…Consumers’ awareness of RPs [ 86 ] and awareness of green benefits in RPs positively affect purchase intention [ 19 ]. Environmental awareness positively influences willingness to pay for/purchase RPs [ 14 , 16 ] and functionality orientation. However, Chen et al [ 13 ] couldn’t find a significant relationship between awareness of remanufacturing, awareness of new products, and willingness to purchase RPs.…”

“…However, Abbey et al [ 1 ] found that green consumers prefer new products. Furthermore, the functionality orientation of consumers mediates the relationship between environmental awareness and the willingness to purchase RPs [ 16 ].…”

A Synergy Effect of Consumer Orientation and Disruptive Information on Choice in Remanufactured Products

“…They prioritize novelty and perceive remanufactured goods as potentially outdated or less fashionable [7]. Conversely, "functionality-oriented" consumers (hereafter called FOCs) prioritize a product's functional attributes and utility over its newness [5,8]. Valuing both the economic advantages and reliability of remanufactured goods, these consumers prioritize quality and longevity, often considering their environmental benefits as an additional incentive [5].…”