Factors Affecting Purchase Intention of Remanufactured Short Life-cycle

Wahjudi, Didik and San, Gan Shu and Anggono, Juliana and Tanoto, Yopi Yusuf (2017) Factors Affecting Purchase Intention of Remanufactured Short Life-cycle. In: International Conference on Management & Entrepreneurship, 14-07-2017 - 14-07-2017, Denpasar - Indonesia.

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Abstract

Environmental awareness drives remanufacturing practices. Remanufacturing is reported to be more environmental friendly because it consumes less energy and less virgin materials. In addition, it provides customers more affordable products at the same quality. Previous studies identifies focus on purchase intention of long life-cycle remanufactured products. Short life-cycle products present different challenges. These products have a life-cycle of one to two years. After one year they usually become functionally obsolete and undesirable. The aim of this study is to explore the influence of various factors on purchase intention of remanufactured short-life cycle products. A conceptual framework is developed by incorporating factors of product knowledge, perceived benefit, perceived risk, and purchase attitude. An empirical study was conducted on 300 mobile phone users in Surabaya, Indonesia by utilizing convenience sampling. The data was examined using structural equation modeling (SEM). The results indicate that product knowledge and purchase attitude have positive correlation with purchase intention. Perceived benefit and perceived risk do not directly correlate with purchase intention, but they correlate indirectly through purchase attitude. To the best of our knowledge, this article presents the first empirical study that explore factors influencing purchase intention of remanufactured short life-cycle products.

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