Consumer acceptance of refurbished mobile phones

Abstract

Now the detrimental consequences of human consumption become apparent, companies search for ways to extend the product life cycle. Refurbishment is an accessible and cost-effective strategy to regain value from used products and contributes to a more circular consumption model. Driven by a growing commercial interest in refurbishment, this research provides a comprehensive understanding of the factors influencing consumer acceptance of refurbished products, and in specific mobile phones. A qualitative approach using in-depth interviews with actual consumers is adopted to gain rich insight into the motivations that influence the consumer response to refurbished products. The research demonstrates that consumers express a primarily positive initial reaction to refurbished products as a purchase alternative. However, as a consequence of a multiplicity of different obstacles experienced throughout the decision making process, it is often rejected. In the orientation phase, external barriers prevent the refurbished product to enter the consumer consideration set. In the evaluation phase, consumers perceive a negative balance between risks and benefits. Furthermore, this research discovers the importance of product related factors in relation to consumer acceptance of refurbished products. Finally, the gap between current academic literature and commercial application of refurbishment is addressed by providing a framework of guidelines for increasing consumer acceptance of refurbished products. Three categories of measures are presented: product optimisation, barrier reduction and shifting the risk-benefit balance. Increasing consumer acceptance demands an integral approach, in which different stakeholders work together on the development of high value refurbished products, scaling up and recognition of refurbished products as a worthy alternative to new products. This application to practice is illustrated by translating the research conclusions into a strategy for increasing acceptance of the refurbished product assortment of the company Leapp. This project provides valuable insights that serve as a starting point for further exploration of consumers’ perception of refurbished products. In this way, this study gives an impetus to work towards a more widely spread consumer acceptance and use of refurbished products, and ultimately a more circular economy.