Price dynamics, profit potential, and cannibalisation effect of remanufactured smartphones: Empirical analysis using eBay data

Phantratanamongkol, Supanan (2020). Price dynamics, profit potential, and cannibalisation effect of remanufactured smartphones: Empirical analysis using eBay data. University of Birmingham. Ph.D.

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Abstract

Despite proven benefits of remanufacturing, original equipment manufacturers have yet to fully engage with such an activity due to increased complexities and fears of lost sales. This thesis aims to shed light on the viability of smartphone remanufacturing by empirically investigating live-listing prices of new and remanufactured smartphones on eBay. Using Functional Data Analysis, it uncovers the price dynamics at each life cycle stage, and reveals notable similarities amongst smartphones, regardless of the differences in generations, models, and conditions. This study then explores the relationship between price and volume, and finds that remanufactured smartphones have high profit potential in online secondary markets. By examining the price-volume relationship across multiple product generations, it shows that remanufactured smartphones cannibalise the profit potential of their new counterparts only when the smartphones are mature. These results challenge the belief that remanufactured smartphones are a threat to new smartphones, and signify a future business avenue that is profitable, yet, environmentally-friendly.

Type of Work:

Thesis (Doctorates > Ph.D.)

Award Type:

Doctorates > Ph.D.

Supervisor(s):