Beyond cost saving. Other factor consideration in online purchases of used electronic goods: a conjoint analysis approach

Abstract

The market for second-hand and refurbished goods continues to record strong growth in most economies around the world. One obvious motivating factor in consumer choice of second-hand goods is price affordability. However, as the used market evolves, especially with the adoption of online e-commerce platforms, consumers' inclination for used goods have also become complex. This paper investigates other appealing factors beyond price affordability (cost saving) in consumer choice of usable electronic goods. To do this, a consumer preference model was designed to reveal the key factors that drive consumer choices in the used electronic goods market. A case study using an emerging economy (Czech Republic) where used goods outlets are rampant coupled with the propensity for used electronic gadgets. The study adopted a simple random technique geared towards all the regions in the Czech Republic. The aggregate conjoint analysis method was used to model consumer preferences to determine the importance they attach to attributes most considered by consumers in the online used goods transactions. The result indicates that in respect of online purchases of used electronic appliances, a product's 'number of years in use' is the next most important motivating factor after cost saving (price affordability). The study would help give a general insight into consumer preferences in the used electronic goods market.