Willingness to Pay for Eco-Certified Refurbished Products: The Effects of Environmental Attitudes and Knowledge
Refurbishing products, which are increasingly sold in business-to-consumer markets, is a key strategy to reduce waste. Nevertheless, research finds that consumers’ willingness to pay (WTP) for refurbished products is low. Strategies for a higher WTP are needed in order to grow consumer markets for refurbished products. Eco-certification of refurbished products may be a key strategy here. Drawing on the consumer WTP literature concerning “green” products, we investigate the impact of independent eco-certificates. Our analysis is based on a survey of 231 potential customers. The results suggest that, across various product categories, the WTP for products with refurbished components is significantly lower. Adding an eco-certificate tends to return the WTP toward the virgin product level. We show that consumers with proenvironmental attitudes particularly exhibit green buying behavior. Our findings indicate that eco-certification is often worthwhile because it enhances the business rationale for producing products with refurbished components.