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The Price-Volume Relationship for New and Remanufactured Smartphones

Lookup NU author(s): Dr Fabrizio Casalin, Dr Gu Pang

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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY-NC-ND).

Abstract

Despite the rapid expansion of secondary markets for remanufactured electronic goods, the understanding of their empirical dynamics such as the price-volume relationships 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 of 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 analysis proposed is a further step toward a better understanding of the price dynamics of new and remanufactured smartphones - and it enables both manufacturers and EOMs to better evaluate the profit potential of one of the fastest growing segments of consumer electronics.

Publication metadata

Author(s): Phantratanamongkol P, Casalin F, Pang G, Sanderson J

Publication type: Article

Publication status: Published

Journal: International Journal of Production Economics

Year: 2018

Volume: 199

Pages: 78-94

Print publication date: 01/05/2018

Online publication date: 24/02/2018

Acceptance date: 21/02/2018

Date deposited: 19/12/2017

ISSN (print): 0925-5273

Publisher: Elsevier

URL: https://doi.org/10.1016/j.ijpe.2018.02.010

DOI: 10.1016/j.ijpe.2018.02.010

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