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Show, don't tell: Education and physical exposure effects in remanufactured product markets

Huseyn Abdulla¹; James D. Abbey²; A. Selin Atalay³; Margaret G. Meloy⁴

¹ Department of Supply Chain Management, Haslam College of Business The University of Tennessee 916 Volunteer Blvd Knoxville Tennessee 37996 USA · ² Department of Information and Operations Management, Mays Business School Texas A&M University 4217 TAMU College Station Texas 77843 USA · ³ Department of Management Frankfurt School of Finance and Management Adickesallee 32‐34 Frankfurt 60322 Germany · ⁴ Department of Marketing, Smeal College of Business The Pennsylvania State University 455 Business Building University Park Pennsylvania 16802 USA

AbstractWe study the effectiveness of two theoretically and practically relevant interventions designed to increase familiarity with and thereby stimulate the appeal of and willingness to pay (WTP) for remanufactured (refurbished) consumer products that are often found repulsive by consumers: (1) educating consumers about the remanufacturing process, (2) providing physical exposure to remanufactured products. We find that education does not cause an increase in the appeal of and WTP for remanufactured consumer products. Providing physical exposure to remanufactured products, relative to text and text‐plus picture or video modalities, significantly increases both the appeal and WTP as a result of increasing perceived quality and decreasing disgust. Sellers can benefit from marketing remanufactured consumer products through physical channels (i.e., brick‐and‐mortar, outlet, showroom stores) as opposed to solely through online channels, which is the common practice among many sellers.

DOI

10.1002/joom.1248

Volume

70 (2)

Pages

243-256

Language

en

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