TY - JOUR
T1 - The price-volume relationship for new and remanufactured smartphones
AU - Phantratanamongkol, Supanan
AU - Casalin, Fabrizio
AU - Pang, Gu
AU - Sanderson, Joseph
N1 - Publisher Copyright:
© 2018 Elsevier B.V.
PY - 2018/5
Y1 - 2018/5
N2 - Despite the rapid expansion of secondary markets for remanufactured electronic goods, the understanding of their empirical dynamics such as the price-volume relationship is still rather limited. In this study, we investigate such dynamics over time for new, manufacturer- and seller-refurbished smartphones using data from eBay UK and eBay US. We find significant negative relationships between price and volume for new smartphones indicating that the profit potential of such markets for sellers is limited. We show, instead, that the price-volume relationships for remanufactured smartphones are positive and significant – suggesting that the secondary markets for such items are potentially highly profitable. Overall, our empirical results suggest that the UK markets have higher profit potential than their US counterparts. The proposed analysis is a further step toward a better understanding of the price dynamics of new and remanufactured smartphones – and it enables both manufacturers and OEMs to better evaluate the profit potential of one of the fastest growing segments of consumer electronic goods.
AB - Despite the rapid expansion of secondary markets for remanufactured electronic goods, the understanding of their empirical dynamics such as the price-volume relationship is still rather limited. In this study, we investigate such dynamics over time for new, manufacturer- and seller-refurbished smartphones using data from eBay UK and eBay US. We find significant negative relationships between price and volume for new smartphones indicating that the profit potential of such markets for sellers is limited. We show, instead, that the price-volume relationships for remanufactured smartphones are positive and significant – suggesting that the secondary markets for such items are potentially highly profitable. Overall, our empirical results suggest that the UK markets have higher profit potential than their US counterparts. The proposed analysis is a further step toward a better understanding of the price dynamics of new and remanufactured smartphones – and it enables both manufacturers and OEMs to better evaluate the profit potential of one of the fastest growing segments of consumer electronic goods.
KW - Price-volume relationship
KW - Regression analysis
KW - Remanufacturing
KW - eBay
UR - http://www.scopus.com/inward/record.url?scp=85042696754&partnerID=8YFLogxK
U2 - 10.1016/j.ijpe.2018.02.010
DO - 10.1016/j.ijpe.2018.02.010
M3 - Article
SN - 0925-5273
VL - 199
SP - 78
EP - 94
JO - International Journal of Production Economics
JF - International Journal of Production Economics
ER -