ANALYSIS CONSUMERS- WILLINGNESS-TO-PAY FOR REMANUFACTURED PRODUCT
Evi Yuliawati1,3; Pratikto1; Sugiono2; Oyong Novareza2
1Department of Mechanical Engineering, Faculty of Engineering, Jalan Veteran, Malang, Indonesia 2Department of Industrial Engineering, Faculty of Engineering, Jalan Veteran, Malang, Indonesia 3Department of Industrial Engineering, Faculty of Industrial Engineering, Institut Teknologi Adhi Tama Surabaya, Jalan Arif Rahman Hakim 100, Surabaya, Indonesia
Abstract
Remanufacturing industry has transformed into a crucial business concern due to the favorable profit achieved by a corporate. The returned products caused by end-of-used and end-of-life can be traded back both on the second-hand market and remanufactured products market. Despite the utilization of secondary resources in the making of remanufactured products, these products function similarly to the new ones. Based on that consideration, this study investigates how the consumers willingness-to-pay (WTP) on remanufactured products. This research was directed on remanufactured electronic products extensively used by university students, namely gadget. The Gadget has been selected due to the increasing demands of purchasing this product among the society, as well as the availability of various brands in the market. As for the students, the selection is based on the consideration that they are capable of providing an appraisal to distinguish remanufactured products from the new ones, particularly in term of brand and pricing. The result indicates that the students put brands into considerations when making decisions to WTP for remanufactured products. This results in the urgency for the original-equipment-manufacturer (OEM) to promote their remanufactured products well publicly. The incapability of positioning remanufactured product brands will generate competition with new products market.
Keywords: gadget; product brand; remanufactured product; willingness-to-pay
Topic: International Symposium of Engineering, Technology, and Health Sciences