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

Abstract

AbstractManufacturers 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.