Formulating second-hand market value as a function of product specifications, age, and conditions

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Abstract

Second-hand market value is important for manufacturers in that it affects the profitability of both new product sales and end-of-life recovery. To gain a better understanding of second-hand market value, this paper presents an empirical study of buy-back price using laptop computers and mobile phones as examples. A thousand items that were on the market in recent years were examined, and their current buy-back prices were estimated using the pricing engine of a real buy-back company. The statistical analysis provided a model that could assess the value of used products. The model links a product's specifications to its second-hand market value. It also incorporates the impacts of product age and cosmetic and hardware conditions. Based on the results of the analysis, the design implications for improving the value of used products were discussed.

Original languageEnglish (US)
Article number032001
JournalJournal of Mechanical Design, Transactions Of the ASME
Volume134
Issue number3
DOIs
StatePublished - Mar 21 2012

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Keywords

  • buy-back price
  • consumer electronics
  • design for reuse
  • end-of-life
  • second-hand market

ASJC Scopus subject areas

  • Mechanical Engineering
  • Mechanics of Materials
  • Computer Graphics and Computer-Aided Design
  • Computer Science Applications

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