Refurbished Computers have the Potential to Become very Profitable

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Hypotheses

If recycled computers are dependable, consumers prefer purchasing refurbished computers over new computers.

If refurbished computers come with an extended manufacturer’s warranty and added perks, consumers are more likely to purchase refurbished rather than new.

Research Design

If done right, the sale of refurbished computers have the potential to become a very profitable undergoing for manufacturers. Companies have to pay attention to customers’ needs and have to tailor their product range and offered services to the demand. While many consumers prefer to purchase new products, there is a significant market for refurbished products as well. Descy (2007) states that “according to the National Safety Council, 63 million computers became obsolete in 2005 alone”. If these computers were to be rebuilt by the manufacturers and redistributed across the globe, electronic waste in landfills could be reduced and companies could make a second profit off of these products. Of course, as Kristen (1999) outlines, consumer participation is needed as many of these old devices are either kept in storage spaces or are simply thrown in the garbage instead of returned to the manufacturers. As Yeh (2005) outlines, consumers look for “post-sale remedies” after purchasing a product. The better the exchange, repair and service arrangements are for a product, the more likely consumers are to take a chance with a refurbished product. Corbitt (1997) mentions in his article the importance of data protection. It is suggested that next to a comprehensive warranty, data stored on computers has to be protected. Companies could offer cloud storage for consumers who purchase refurbished computers so in case the equipment does fail, the data will n...

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