Optimal Pricing and Blockchain Adoption Strategies for the Refurbisher Considering Consumer Deliberation Behavior

Abstract

Refurbishment plays an important role in realizing circular economy. In this study, consumers' deliberative behavior is incorporated into addressing pricing and blockchain adoption strategies for the refurbisher. The study found that consumer deliberation is favorable to the refurbisher when both refurbishment cost and consumers' perceived quality are high. Meanwhile, under high refurbishment cost and low blockchain cost, adopting blockchain is beneficial regardless of the quality of refurbished products. Otherwise, blockchain should be adopted only when quality exceeds a threshold. Furthermore, impacts of deliberation cost or refurbishment cost on the refurbisher's willingness adopting blockchain may be opposite under different consumers deliberation behaviors. Finally, robustness of conclusions is validated in the extensions.