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.
Bernoulli, D. (1954), “Exposition of a new theory on the measurement of risk”, Econometrica: Journal of the Econometric Society, Vol. 22, No. 2, pp. 23-36.
Bryan, S., and Parry, D. (2002), “Structural reliability of conjoint measurement in health care: An empirical investigation”, Applied Economics, Vol. 34, No. 5, pp. 561-567.
Bryan, S., Gold, L., Sheldon, R., and Buxton, M. (2000), “Preference measurement using conjoint methods: An empirical investigation of reliability”, Health Econ. Health Economics, Vol. 9, No. 5, pp. 385-395.
Busse, M. R., Knittel, C. R., and Zettelmeyer, F. (2013), “Are consumers myopic? Evidence from new and used car purchases”, The American Economic Review, Vol. 103, No. 1, pp. 220-256.
Churchman, C. W., and Churchman, C. W. (1961), Prediction and optimal decision: Philosophical issues of a science of values. Englewood Cliffs, NJ: Prentice-Hall.
Clarke, A. (2010), The second-hand brand: liquid assets and borrowed goods. Cultures of commodity branding. Leftcoast Press, Walnut Creek, pp. 235-253.
Clerides, S. (2008), “Gains from trade in used goods: Evidence from automobiles”, Journal of International Economics, Vol. 76, No. 2, pp. 322-336.
Czaga, P., and Fliess, B. (2004), “Used goods trade: A growth opportunity. Organisation for Economic Cooperation and Development”, The OECD Observer, (246/247), 12.
Degeratu, A. M., Rangaswamy, A., and Wu, J. (2000), “Consumer choice behavior in online and traditional supermarkets: The effects of brand name, price, and other search attributes”, International Journal of research in Marketing, Vol. 17 No. 1, pp. 55-78.
Fishburn, P. C. (1968), “Utility theory”, Management Science, Vol. 14, No. 5, pp. 335-378.
Ghose, A. (2009), “Internet exchanges for used goods: An empirical analysis of trade patterns and adverse selection”, Mis Quarterly, Vol. 33, No. 2, pp. 263-291.
Ghose, A., 2009. Internet exchanges for used goods: An empirical analysis of trade patterns and adverse selection. Mis Quarterly, pp. 263-291.
Green, P. E., and Rao, V. R. (1971), “Conjoint measurement for quantifying judgmental data”, Journal of Marketing research, Vol. 8 No. 3, pp. 355-363.
Green, P. E., and Srinivasan, V. (1978), “Conjoint analysis in consumer research: issues and outlook”, Journal of consumer research, Vol. 5, No. 2, pp. 103-123.
Green, P. E., Krieger, A. M., and Wind, Y. (2001), “Thirty years of conjoint analysis: Reflections and prospects”, Interfaces, Vol. 31, No. 3, pp.56-73.
Gregson, N., and Crewe, L. (1998), “Dusting down second hand rose: Gendered identities and the world of second-hand goods in the space of the car boot sale”, Gender, Place and Culture: A Journal of Feminist Geography, Vol. 5, No. 1, pp. 77-100.
Guiot, D., and Roux, D. (2010)’, “A second-hand shoppers’ motivation scale: Antecedents, consequences, and implications for retailers”, Journal of Retailing, Vol. 86 No. 4, pp. 355-371.
Heese, H. S., Cattani, K., Ferrer, G., Gilland, W., and Roth, A. V. (2005), “Competitive advantage through take-back of used products”, European Journal of Operational Research, Vol. 164, No. 1, pp. 143-157.
Kogan, K. (2011), “Second-hand markets and intra-supply chain competition”, Journal of Retailing, Vol. 87, No. 4, pp. 489-501.
Koschate-Fischer, N., Diamantopoulos, A., and Oldenkotte, K. (2012), “Are consumers really willing to pay more for a favorable country image? A study of country-of-origin effects on willingness to pay”, Journal of International Marketing, Vol. 20, No. 1, pp. 19-41.
Krantz, D. H. (1964), “Conjoint measurement: The Luce-Tukey axiomatization and some extensions”, Journal of Mathematical Psychology, Vol. 1, No. 2, pp. 248-277.
Kuhfeld, W. F. (2005), Marketing research methods in SAS. Experimental Design, Choice, Conjoint, and Graphical Techniques. Cary, NC, SAS-Institute TS-722.
Kwarteng, M. A., Pilik, M., & Jurickova, E. (2017). Mining Interest in Online Shoppers’ Data: An Association Rule Mining Approach. Acta Polytechnica Hungarica, Vol. 14, No. 7, pp. 1-15.
Lee, H. G. (1998). Do electronic marketplaces lower the price of goods? Communications of the ACM, Vol. 41, No. 1, pp. 73-80.
Leismann, K., Schmitt, M., Rohn, H., and Baedeker, C. (2013), “Collaborative consumption: towards a resource-saving consumption culture”, Resources, Vol. 2, No. 3, pp. 184-203.
Luce, R. D., and Tukey, J. W. (1964), “Simultaneous conjoint measurement: A new type of fundamental measurement”, Journal of mathematical psychology, Vol. 1, No. 1, pp. 1-27.
Malhotra, N. K. (1982), “Structural Reliability and Stability of Nonmetric Conjoint Analysis”, Journal of Marketing Research, Vol. 19, No. 2, pp. 199.
Mccullough, J., and Best, R. (1979), “Conjoint Measurement: Temporal Stability and Structural Reliability”, Journal of Marketing Research, Vol. 16, No 1, pp. 26-31.
Oraiopoulos, N., Ferguson, M. E., and Toktay, L. B. (2012), “Relicensing as a secondary market strategy”, Management Science, Vol. 58, No. 5, pp. 1022-1037.
Orme, B. (2010), Getting Started with Conjoint Analysis: Strategies for Product Design and Pricing Research. Second Edition, Madison, Wis.: Research Publishers LLC.
Pilík, M., Juřičková, E., & Adu Kwarteng, M. (2017). On-line shopping behaviour in the Czech Republic under the Digital Transformation of Economy. Economic Annals-XXI, 165.
Rao, V. R. (2014), Applied conjoint analysis, New York, NY: Springer.
Scott, J. E., and Wright, P. (1976), “Modeling an organizational buyer’s product evaluation strategy: Validity and procedural considerations”, Journal of Marketing Research, Vol. 13, No. 3, pp. 211-224.
Shevlin, B. (2008), “When and How to Use Refurbished Equipment for IT Needs”, IT Professional Magazine, Vol. 10, No. 1, pp. 46.
Shulman, J.D. and Coughlan, A.T., 2007. Used goods, not used bads: Profitable secondary market sales for a durable goods channel. Quantitative Marketing and Economics, Vol. 5, No. 2, pp.191-210.
Simon, H. A. (1957), Models of man: social and rational; mathematical essays on rational human behavior in social setting. Wiley. ASIN: B0007ELZJ4.
Swan, P. L. (1972), “Optimum durability, second-hand markets, and planned obsolescence”, Journal of Political Economy, Vol. 80 No.3, pp. 575-585.
Tversky, A. (1967), “A general theory of polynomial conjoint measurement”, Journal of Mathematical Psychology, Vol. 4, No. 1, pp. 1-20
Van Damme, I. (2014), Second-Hand Trade and Respectability: Mediating Consumer Trust in Old Textiles and Used Clothing (Low Countries, Seventeenth and Eighteenth Centuries). In Selling Textiles in the Long Eighteenth Century, pp. 193-209, Palgrave Macmillan UK.
Williams, C. C., and Paddock, C. (2003), “The meanings of informal and second-hand retail channels: some evidence from Leicester”, The International Review of Retail, Distribution and Consumer Research, Vol. 13, No. 3, pp. 317-336.