Servitization as a strategy for remanufacturing: An experimental study

Abstract

Although remanufacturing has attracted the attention of academia and practitioners, there is a lack of empirical studies regarding servitization strategy in a remanufacturing context. We aim to address this gap by examining how servitization may influence the likelihood of purchasing a remanufactured battery for an electric vehicle. We also test if price increases the purchase likelihood, even when additional services are provided as part of the service package. We conducted a 2 x 2, full factorial, between-subjects experiment. The results reveal that the offer of additional service influences the effect that price has on the purchase likelihood. Our study contributes to fill the gap in the literature by identifying under which conditions low price is not a significant predictor of the likelihood of purchasing a remanufactured EV battery. Our findings may help managers develop strategies to improve the sales of remanufactured products, especially considering the use of additional services. New studies can benefit from our findings by focusing on how additional services can improve perceived value and reduce the perceived risk of remanufacturing. Finally, we conclude that servitization is a promising strategy for increasing the perceived value and the purchasing intentions of remanufactured products.

Keywords

• price
• service
• perceived value
• perceived risk
• experiment