Implementation of the repairability index in the smartphone industry

: an analysis on willingness to pay, perceived quality and purchase intention

Abstract

Smartphones are important means of communication that are rapidly advancing in technology. Its rather short replacement cycles continue to drive a growing volume of electronic waste. The introduction of a Repairability Index, which provides information on the reparability of an electrical device, is an attempt to extend useful life. By influencing consumers' purchase decisions, pressure is built up on manufacturers to enable their equipment to be repaired more cost-effectively and to provide replacement parts. The objective of this study is to investigate the influence of the Repairability Index on consumers' Willingness to Pay, Perceived Quality, and Purchase Intention. The importance of repairability is examined in the context of customer-preferred smartphone features to control for interaction effects. In a qualitative preliminary study, these preferred features were identified. Then, the main study was conducted using an experimental approach in which participants were presented with a manipulated smartphone advertisement. The results show that the Repairability Index influenced consumer purchase behavior by exerting a positive effect on Willingness to Pay and Perceived Quality. However, no effect was found on the overall Purchase Intention. This result is independent of age and gender, but stronger among individuals with high environmental awareness. Attitudes towards repair reinforced the effect of repairability on Perceived Quality. No interaction effect could be found between repairability and preferred features, however, preferred smartphone features revealed a great importance on all three variables in the experiment and therefore managers should not neglect them.

Date of Award	30 Jun 2021
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Sérgio Paulo Moreira (Supervisor)