analysing the purchase intention of the spanish …
TRANSCRIPT
Beatriz Jiménez-Parra and Sergio RubioUniversity of Extremadura
Azucena Vicente-MolinaUniversity of the Basque Country
7th International Conference on Industrial Engineering and Industrial Management
Valladolid, July 10-12, 2013
Project supported by Gobierno de Extremadura and FEDER. GR10070.
ANALYSING THE PURCHASE INTENTION OF THE SPANISH CONSUMER
A STUDY ABOUT REMANUFACTURED PRODUCTS
• INTRODUCTION
• MAIN OBJECTIVES
• PROPOSED MODEL: Variables and hypotheses
• METHODOLOGY: Sample and data analysis
• RESULTS AND DISCUSSION
• CONCLUSIONS
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Used products which have been restored to a like-new condition and provided withperformance characteristics and durability at least as good as those of the originalproducts
Nowadays, there is an increasing interest from the academia and companies inEnd-Of-Life (EOL) strategies. Particularly, in REMANUFACTURING operations andremanufactured products
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Many companies (Hewlett-Packard, IBM, Caterpillar, Canon, Electrolux,…) havebegun to implement REMANUFACTURING activities in order to…
• Comply with…
LEGISLATION (EPR): WEEE and ELV Directives (Europe), SHAR Law (Japan), RCRA (USA), etc.
SOCIAL PRESSURE
• Obtain…
ECONOMIC BENEFITS: Energy savings, less dependency on raw materials,…
ENVIRONMENTAL BENEFITS: Competitive advantages and environmentally responsible reputation
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Traditionally, research in Closed-Loop Supply Chain (CLSC) has focused in analysingremanufacturing activities from a SUPPLY PERSPECTIVE:
• Collection
• Reverse logistics
• Disassembly
• Assembly
• Inventory management ,…
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Traditionally, research in Closed-Loop Supply Chain (CLSC) has focused in analysingremanufacturing activities from SUPPLY PERSPECTIVE:
• Collection
• Reverse logistics
• Disassembly
• Assembly
• Inventory management,…
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But, what happens with the DEMAND PERSPECTIVE?
MARKET POINT OF VIEW?
Enterprises do know a lot about remanufacturing operations. Nevertheless,they want to sell remanufactured products
Return of EOL products EOL laptopOriginal Equipment
Manufacturer (OEM) Remanufacturing process
Warehousing
¿MARKETING FOR REMANUFACTURED PRODUCTS?
Remanufactured laptop 6
• They need MARKETS (Marketing Strategies)Are there any markets for remanufactured products?
• They need CONSUMERS (Consumer behaviour)Are there any consumers for remanufactured products?
Companies should keep in mind…
RESEARCH AIMS
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In order to give some guidelines to enterprises in this sector, so they candesign and implement the most appropiate marketing strategies
1. Identifying potential consumers of a specific remanufactured product category: a REMANUFACTURED LAPTOP
2. Describing the variables which can influence their purchase intentions
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We propose a model, based on the Theory of Planned Behaviour (Ajzen, 1985; Ajzen, 1991), in order to describe the…
INTENTION TO PURCHASE AREMANUFACTURED LAPTOP (PI)
“The greater or lesser likelihood that aconsumer will purchase this product ratherthan the original one, being aware of themain characteristics of remanufacturedproducts”
We describe the PI on the basis of thefollowing four variables…
Variables and Hypotheses
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Variables and Hypotheses
1. ATTITUDE TOWARDS THE PURCHASE OF A REMANUFACTURED LAPTOP (AP)
“The degree to which a person has a favourable or unfavourable evaluation orappraisal of the purchasing of a remanufactured laptop”
The more favourable an individual’s attitude is to a particular behaviour the strongerwill be the intention to perform that behaviour (Ajzen’s Theory of Planned Behaviour)
A significant relationship exists between ATTITUDES and INTENTIONS: Alwitt & Pitts(1996), Barr et al. (2001b), Cheung et al., (1999), Cook et al. (2002), Fransson &Gärling (1999), Mostafa (2006), Lobb et al. (2007), Steel (1996).
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Variables and Hypotheses
H1: A favourable Attitude towards Purchasing a remanufacturedlaptop will positively influence the Purchase Intention for that classof remanufactured product
1. ATTITUDE TOWARDS THE PURCHASE OF A REMANUFACTURED LAPTOP (AP)
“The degree to which a person has a favourable or unfavourable evaluation orappraisal of the purchasing of a remanufactured laptop”
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Variables and Hypotheses
2. SUBJECTIVE NORM (SN)
“The individual’s perception of what their closest referents (family, friends,classmates, workmates, etc.) think they should do about whether to purchase aremanufactured laptop”
Reference groups have a significant and direct influence on the individual’s opinionand buying behaviour: Azjen (1991), Burnkrant & Cousineau (1975), Rivera et al.(2009), Lamb & Hair, (2006)
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Variables and Hypotheses
2. SUBJECTIVE NORM (SN)
“The individual’s perception of what their closest referents (family, friends,classmates, workmates, etc.) think they should do about whether to purchase aremanufactured laptop”
H2: A favourable Subjective Norm towards purchasing aremanufactured laptop will positively influence the PurchaseIntention for these remanufactured products
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Variables and Hypotheses
3. MOTIVATIONS (M)
“The reasons that may lead an individual to purchase a remanufactured laptop, suchas the fact that the remanufactured laptop is marketed at a lower price than theoriginal one”
GENERAL MOTIVATION THEORYThere are several reasons which can explain the individuals’ behaviour: Benware &Deci (1984), Childers et al. (2001), Connell & Wellborn (1990), Colquitt et al. (2000),Katzell & Thompson (1990), Mowen (2000), Raynor (1982), Reeve & Deci (1996),Sherman et al. (2003).
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Variables and Hypotheses
H3: The level of Motivations towards purchasing a remanufacturedlaptop will positively influence the Purchase Intention for thiscategory of remanufactured product
3. MOTIVATIONS (M)
“The reasons that may lead an individual to purchase a remanufactured laptop, suchas the fact that the remanufactured laptop is marketed at a lower price than theoriginal one”
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Variables and Hypotheses
4. MARKETING MIX VARIABLES (MMV)
“Marketing instruments (product, price, distribution and promotion) which mightinfluence the consumer’s intention to purchase a remanufactured laptop”
Marketing mix instruments have a significant influence on buying decision making:Álvarez et al. (2003), Chamorro (2007), Gázquez-Abad & Hélène de Cannière (2008),Izaguirre & Vicente (2008); Kotler et al. (2006), Pauwels et al. (2002), Prins & Verhoef(2007), Volle (2001)
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Variables and Hypotheses
4. MARKETING MIX VARIABLES (MMV)
“Marketing instruments (product, price, distribution and promotion) which mightinfluence the consumer’s intention to purchase a remanufactured laptop”
H4: There is a relationship between the Marketing Mix Variables forremanufactured laptop marketing and the Purchase Intention forthese remanufactured products
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Sample and Data Analysis
Technical specifications of the sampleUniverse 80205 undergraduates
Geographical area National (Spain)
Sample size 1529 surveys
Sample error ± 2.50 %
Confidence level 95%; p = q = 0.5
Sample design Random sampling
Fieldwork April - May 2011
Pre-tests 1st test: 13 experts (March 2011)2nd test: 56 undergraduates (March 2011)
Information analysis
Smart-PLS vn 2.0 and IBM SPSS Statistics vn 19.0
A structural equation model was used toperform data analysis, applying partial leastsquares (PLS), in a two-stage procedure:
Information was gathered by a self-administered questionnaire
1. Measurement Model Validation: validityand reliability were confirmed
2. Structural Model Evaluation: explanatorypower was confirmed
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Data Analysis
MEASUREMENT MODEL VALUATION (I)
*** p < 0.01; α > 0.50; CRI > 0.70; AVE > 0.50
cross-loadings < loadings (0.70) 15
Data Analysis
STRUCTURAL MODEL EVALUATION
*** p < 0.01; ** p < 0.05 VIF < 3.3 T → 1
SSE: Sum of squares of the prediction errors; SSO: Sum of squares of the observartions
(1 – SSE/ SS0) = Q2; Q2 > 0.00
Explanatory power
MEASUREMENT MODEL VALUATION (II)
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Hypotheses Standardized β t-value(Bootstrap) Test Results
H1: AP → PI 0.233*** 8.92 SUPPORTED
H2: SN → PI 0.191*** 7.98 SUPPORTED
H3: M → PI 0.205*** 8.41 SUPPORTED
H4: MMV → PI -0.108*** 2.63 SUPPORTED
All the coefficients were significant, so the four hypotheses can beaccepted
Hypotheses Test
*** p < 0.01
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H1: A favourable Attitude towards Purchasing a remanufactured laptop willpositively influence the Purchase Intention for that class of remanufacturedproduct
A consumer segment interested in remanufactured computers
GREEN CONSUMER (Atasu et al., 2008) Promotional actions
Discussion
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H2: A favourable Subjective Norm towards purchasing a remanufacturedlaptop will positively influence the Purchase Intention for theseremanufactured products
Discussion
SOCIAL REFERENTS (family, friends, workmates, classmates, etc.) are keyelements in purchasing intention
Firms should consider marketing activities designed to engage thesereferents in the purchasing process → to increase the likelihood of theconsumer’s purchase intention
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H3: The level of Motivations towards purchasing a remanufactured laptopwill positively influence the Purchase Intention for this category ofremanufactured product
Discussion
Negative motivations: TECHNOLOGICAL ASPECTS Consumers are notlooking for a computer with the latest technology or with the greatestnumber of additional options
They look for a “good enough “ performance at an attractive price
Positive motivations: PRICE and ENVIRONMENTAL ISSUES Importantelements in firms’ marketing policies
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H4: There is a relationship between the Marketing Mix Variables forremanufactured laptop marketing and the Purchase Intention for theseremanufactured products
Discussion
DISTRIBUTION CHANNELS (conventional establishments and Internet)negative evaluation due to not having a specific distribution channel forremanufactured laptops
BRAND REPUTATION and DESIGN/APPEARANCE important attributes toconsumers
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1. The results allow us to infer some common characteristics ofconsumers of remanufactured computers:• Favourable attitude towards these products• Clear motivation of respect for the environment• Positive consideration of the opinion of their close social referents (familiy, friends,
etc.) in their purchase decision• Important influence of the product’s price and the brand’s reputation in their
intention to purchase
2. Marketing campaings should…• Be directed not only at the potencial consumer but also at their closest social
circles• Take into account as “key drivers” such as the price and the brand’s reputation• Analyse whether the proper way of remanufactured product commercialization
through specific retailers is necessary
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This is a novel study which addresses some of the “gaps” in researchthat have been identified in the recent literature on CLSC. It representsa further step in “closing the loop” in the supply chain by integratingthe discipline of Marketing in the Suppy Chain Management.
• Analysing whether similar results can be obtained with other products, consumersor firms in other sectors
• Developing potential commercial activities and marketing policies for firmsinterested in offering remanufactured products
3. Some future research:
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THANK YOU FOR YOUR ATTENTION!
QUESTIONS?
7th International Conference on Industrial Engineering and Industrial Management
Valladolid, July 10-12, 2013
Project supported by Gobierno de Extremadura and FEDER. GR10070.
[email protected]@unex.es