Actual consumers' response to purchase refurbished smartphones: Exploring perceived value from product reviews in online retailing

Refurbishing is an industrial process whereby used products are returned to good working condition to extend lifespan. As smartphones are short life cycle products replaced at an increasing rate, refurbishing is one of the end-of-life strategies to recover value from used smartphones. Chief among the factors given for refurbishing success is consumers' perception of the aspects of the purchase toward these products. This research investigates the significant factors in consumer perceived value about purchasing refurbished smartphones. Online product reviews are recognized as a promising data source to evaluate consumers' post-purchase behaviour in the actual market. Accordingly, a customer satisfaction model of online refurbished smartphone reviews from e-commerce websites is presented to explore customer satisfaction dimensions (CSDs) toward refurbished smartphones. The results indicate that product characteristics, including function, which is related to satisfactory working, appearance, which is the same as no scratches on body and screen, and battery health, are the most worrying feature of refurbished smartphones that consumers have mentioned. Besides, we find that the similarity of these products to brand new ones and their lower prices are the main reason and motivation for purchasing. The results also show that the perceived value of refurbished smartphones is found as a two-dimensional structure based on perceived incentive and quality and perceived benefit and risk. Eventually, some solutions propose to improve customer perceptions and reduce the misconception of refurbishment concept, which can be used by refurbishers and marketing managers for proper product development and marketing strategies.