Consumer product knowledge and intention to purchase remanufactured products

Abstract

Throughout both the developing and the developed world, lack of consumer acceptance of remanufactured products prevents closed-loop supply chains of the circular economy from realizing the full potential value from remanufacturing. In this study, we examine 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. Based on prospect theory and literature on consumer perceived value and perceived risk, we use a 2×2×2 inter-group experiment to assess consumers׳ intention to purchase remanufactured products. The results of our structural equation modeling 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. Our theory-based model can be used as the basis for future research regarding the consumer׳s role in the close-loop supply chain.