The price-volume relationship for new and remanufactured smartphones

Supanan Phantratanamongkol, Fabrizio Casalin, Gu Pang*, Joseph Sanderson

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

3 Citations (Scopus)
253 Downloads (Pure)

Abstract

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.

Original languageEnglish
Pages (from-to)78-94
Number of pages17
JournalInternational Journal of Production Economics
Volume199
Early online date24 Feb 2018
DOIs
Publication statusPublished - May 2018

Keywords

  • eBay
  • Price-volume relationship
  • Regression analysis
  • Remanufacturing

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics and Econometrics
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering

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