Literature Review

Paving the way towards circular consumption: exploring consumer acceptance of refurbished mobile
phones in the Dutch market (Eline van Weelden, Ruth Mugge, Conny Bakker)

Research Question

What are the consumers' considerations that play a role in the choice of a refurbished product over
a new product?

Synthesis and Application

A majority of consumers do not take refurbished products because of lack of awareness and a
misunderstanding of what refurbishment entails. Besides, refurbished products are many a time
rejected as a consequence of a negative trade-off between perceived risks and benefits.

This paper established perceived risk and perceived benefit as significant constructs that play a role
in the decision process of the consumer.

Sources

The role of ambiguity tolerance in consumer perception of remanufactured products (Benjamin T.

Hazen, Robert E. Overstreet, L. Allison Jones-Farmer, Hubert S. Field)

Research Question

Does ambiguity tolerance, an individual difference variable, play a significant role in consumer
perception of remanufactured products?

Synthesis and Application

This paper found evidence to support a direct relationship between a consumer’s tolerance for
ambiguity and their willingness to pay for remanufactured products. There was also support for an
indirect relationship between ambiguity tolerance and willingness to pay that is mediated through
perceived quality. Extant literature often lacks an empirical justification regarding costing and quality

Consumer product knowledge and intention to purchase remanufactured products (Yacan Wang,
Benjamin T. Hazen)
Research Question

How knowledge of remanufactured products in terms of cost, quality, and green attributes affects
consumers' perception of both risk and value associated with purchasing remanufactured products,
and how these perceptions subsequently affect consumers' purchase intentions in China.

Synthesis and Application

The results of this paper’s structural equation modelling indicate that purchase intention is positively
influenced by perceived value and negatively influenced by perceived risk. Perceived value is most
influenced by quality knowledge, followed by cost knowledge and green knowledge. Perceived risk is
most influenced by quality knowledge, followed by cost knowledge. The findings can help
remanufacturers and closed-loop supply chain managers to develop management policies and
marketing strategies. The theory-based model could be used as the basis for future research
regarding the consumer's role in the closed-loop supply chain.

Perceived quality of remanufactured products: construct and measure development (Benjamin T.

Hazen, Christopher A. Boone, Yacan Wang, Kuan Siew Khor)

Research Question

How does the perceived quality of remanufactured products construct and associated measure
relate to each other?

Synthesis and Application

Scholars can use the content valid and reliable instrument as part of future research efforts aimed at
addressing the dearth of remanufactured focused research addressing behavioural and marketing
related issues. Practitioners can use the newly developed measure to aid in their selection of signals
best suited to communicate quality expectations and standards.

How to sell refurbished smartphones? An investigation of different customer groups and

appropriate incentives (Ruth Mugge, Boris Jockin, Nancy Bocken)

Research Question

What is the impact of various incentives that companies can employ to improve consumers’
purchase intention of refurbished phones?
Synthesis and Application

It was found that perceived environmental benefits and awareness of refurbishing have a positive
impact on the consumers’ purchase intention for refurbished smartphones. Most of the highest-
scoring incentives for purchasing refurbished smartphones were product-related and included
improved battery life, guaranteed software updates and upgraded performance, indicating a need
for continued performance. This research contributes to our theoretical understanding of consumer
responses to refurbished smartphones and can help companies in launching these products
successfully.

Exploring the inner loops of the circular economy: Replacement, repair, and reuse of mobile phones
in Austria (Harald Wieser, Nina Troger)

Research Question

What are the consumers’ motivations underpinning their considerations regarding replacement
timing, replace versus repair, and new versus second-hand phones?

Synthesis and Application

The findings from this study suggest that mobile phone replacements are not only based on a desire
for the new but primarily on the perceived obsoleteness of the current phone. We identify three
forms of perceived obsolescence, being either related to a phone’s 1) basic functionality, 2) up-to-
dateness, or 3) ability to keep up with social practices. Furthermore, it is shown that the perceived
speed of obsolescence is key to considerations of phone repair and reuse

A Review of literature and research on public attitudes, perceptions and behaviour relating to
remanufactured, repaired and reused products (Matt Watson, 2008)

Research Question

What are the public perceptions of remanufactured, repaired and reused products cutting across
themes of environment, waste, socio-technical systems the effect of social patterns?

Synthesis and Application

Certain consumers tend to not associate with refurbished products for fear of being associated with
poverty and charity. There is also a an embarrassment factor associated with telling friends that they
have bought a second hand product. However, these products also help serve as positive resources
for identity construction

A majority of consumers do not take a refurbished product into consideration as a consequence of a

lack of awareness and a misunderstanding of what refurbishment actually entails. In addition,
refurbished products are often rejected as a consequence of a negative trade-off between perceived
risks and benefits.

This paper established perceived risk and perceived benefit as significant constructs that play a role
in the decision process of the consumer.

Sources
Methodology:

Two different surveys were designed and administered to three convenience

samples to collect data for this study. The first survey was designed as an
experiment on a group of more than 30 people to understand their willingness to buy
refurbished smartphones

A survey was designed and administered to two convenience samples to collect data
for this study. One sample consists of 195 college students enrolled in a large US
university. The other one consists of 262 college students enrolled in a large
university in China. The survey was conducted in March and May 2013 respectively.
Students were chosen for this study for several reasons: (1) students have
considerable experience in the marketplace; (2) clothing is a major purchase
category for them; (3) they represent a large segment of future consumers (Lim and
O'Cass, 2001); and (4) the interest of young consumers in thrift shopping has been
credited greatly to the development of the second‐hand clothing industry (Darley and
Lim, 1999).