The decision analysis of consumer purchasing for refurbished products

Abstract

Promoting refurbished products can positively impact environmental performance and play a vital role in reducing waste. This study employs the concept of the theory of perceived risk to examine the influence of social and financial risk, online retail channels and return policy on consumer-perceived risk. Additionally, it proposes that an online retail channel with a lenient return policy may enhance the intention of consumers to purchase refurbished products. The hypotheses were examined using partial least square structural equation modelling. The findings suggest that social risk, return policy and financial risk significantly enhance the perceived risk of purchasing refurbished products, but the online retail channel does not substantially impact perceived risk, which may be if both online and offline channels provide the same level of support and policy. The results also indicate that perceived risk mediates consumers’ online purchase intention for refurbished products. This study is distinctive because it analyses the effects of social and financial risk, return policy and retail channel on consumers’ perceived risk when purchasing refurbished products online. This study examines the concepts of online purchasing of refurbished products, which have received limited attention in existing literature. While previous studies have looked at these concepts separately, we aim to provide a comprehensive analysis by studying them together. By implementing the findings of this study, businesses can contribute to the circular economy, conserve resources, potentially reduce environmental imprints and enhance sustainability performance.