Drivers and Barriers of Consumer Purchase Intention of Remanufactured Mobile Phones: A Study on Indonesian Comsumers

Wahjudi, Didik and San, Gan Shu and Tanoto, Yopi Yusuf and WINATA, JERRY (2018) Drivers and Barriers of Consumer Purchase Intention of Remanufactured Mobile Phones: A Study on Indonesian Comsumers. In: 8th International Conference on Operations and Supply Chain Management, 12-09-2018 - 12-09-2018, Cranfield - United Kingdom.

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Abstract

The ever increasing waste electrical and electronic equipment (WEEE) motivates industries to perform closed-loop supply chain (CLSC). Remanufacturing, one form of CLSC, has been widely practiced especially in developed countries. In addition to landfill reduction, remanufacturing also saves energy and conserves natural resources. While several studies have been devoted to evaluate its business and technical aspects, little effort is given to explore the acceptance of remanufactured short life-cycle products such as mobile phone. Mobile phone encounters functional and psychological obsolescence. As a country with the fourth largest mobile phone users in the world, Indonesia needs to tackle the vast waste electrical and electronic equipment (WEEE) that comes from obsolete mobile phones. This study investigates the drivers and barriers of consumer purchase intention of remanufactured mobile phones. Case study was conducted through in-depth interviews on thirteen respondents. These respondents represented different age groups, gender, and social classes. Two key drivers of consumer purchase intention are affordable price and upgraded specification. Among the main barriers are regulatory concern, trend concern, and obsolescence concern. Depending on the level, perceived quality and quality assurance can be either drivers or barriers. The implication of this study is that mobile phone remanufacturers should focus on providing phones with upgraded specification at an affordable price and to provide consumer information about the remanufacturing process. This study also emphasizes the urgency for the government to impose strict regulation that protect consumers from counterfeit products.

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