Abstract

Refurbishment is an effective strategy to extend product lifetimes in a circular economy. However, consumers believe that refurbished products are contaminated with traces of prior use, which can be indicated by the appearance (e.g., scratches) or functionality (e.g., lower battery capacity) of refurbished products. This research explores strategies to improve consumer adoption of refurbished products by reducing contamination. In a choice-based conjoint analysis, 785 participants were exposed to refurbished headphones varying in features related to contamination, warranty, and price. We tested three contamination-reducing strategies, including (1). Communication about the clean object state, (2). Eliminating signs of use (aesthetic and functional wear-and-tear) and (3). Renewing parts that touch the skin (e.g., ear-cushions). Additionally, we analysed whether different consumer groups are driven by different attributes of refurbished products. Results showed that most consumers value refurbished products that show no signs of wear-and-tear and that have parts touching the skin renewed during the refurbishment process. These attributes are even more important than the reduced price or warranty, even though these are frequently used to market refurbished products. Depending on the consumer group, other contamination-reducing strategies were of great influence. While some consumer groups highly valued that signs of prior use are eliminated through an as-new appearance, others preferred refurbished products without functional wear-and-tear. In conclusion, four design strategies to deal with contamination during multiple life cycles of refurbished products are discussed.

Highlights

  • In the European Union, almost 8.5 million tonnes of electronic waste are produced annually, while at the same time, valuable resources needed to produce consumer electronics become increasingly scarce (European Union, 2019)

  • Future research could further compare refurbished products to new and perhaps even second-hand products to single out factors that differ in consumers’ product choices. Another limitation of our study is that we explored contaminationrelated strategies with a choice-based conjoint analysis, which did not allow us to measure the effect of the strategies on contamination per­ ceptions

  • Refurbishment is a key strategy in the circular economy to loop reused products back into the market

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Summary

Introduction

In the European Union, almost 8.5 million tonnes of electronic waste are produced annually, while at the same time, valuable resources needed to produce consumer electronics become increasingly scarce (European Union, 2019). The longer a product is kept in a loop by increasing its lifetime, the lower the negative environmental impact (Ellen MacArthur Foundation, 2016) compared to manufacturing a new product. The circular economy is described as a "regenerative system in which resource input and waste, emission, and energy leakage are minimised by slowing, closing, and narrowing material and energy loops. This can be achieved through long-lasting design, maintenance, repair, reuse, remanufacturing, refurbishing, and recycling" To ensure that refurbished products retain their value, it is necessary that refurbished products are techni­ cally durable so that they can last multiple life cycles and remain attractive to large groups of consumers (Blomsma and Tennant, 2020)

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