What will lead Asian consumers into circular consumption? An empirical study of purchasing refurbished smartphones in Japan and Indonesia

Abstract

Although smartphones are small mini-computers, their impact on the environment is no longer small. In terms of e-waste, the challenges faced by many nations in Asia, where limited recovery and recycling practices exist, include sustainable choice and consumption habits. This study investigated the factors that affect Asian consumers' behavioral intention in purchasing unbranded third-party and original equipment manufacturer (OEM)-branded refurbished smartphones, respectively. Through online surveys and analysis of a representative sample of 1200 mobile phone users in Japan and Indonesia, the findings showed that in both countries, perceived risk, consumer innovativeness, and (to some extent) price are all vital factors affecting the participation of consumers in circular consumption. The study also examined mobile phone/smartphone markets and the related legislation in Japan and Indonesia to develop field-driven hypotheses and identify the salient characteristics of the circular economy (CE) for refurbishment in both countries. In Japan, the difference in purchase intention (PI) between unbranded third-party refurbished and OEM-branded smartphones is much smaller than in Indonesia. The demand for refurbished smartphones supplied by an OEM in Indonesia is relatively higher than in Japan. The findings from this cross-cultural study can yield rich insights for CE business practitioners who seek to grasp overall patterns across the two countries and identify the salient features of each country, improving their regional marketing initiatives.