Investigation of the Effect of Risk Perceptions of the Generation Z Consumers' Against Refurbished Products on Their Purchase Intention

Abstract

Changes in the consumption culture of individuals, the economic problems experienced and the increase in environmental awareness cause significant increases in the sales of refurbished products, especially technological devices. While the growth of the refurbished product market contributes to consumers having these products at more economical prices, it also contributes to the reduction of the production costs of the enterprises and, from an environmental point of view, to the prevention of possible waste and damages that may arise during the production of new products. Therefore, it would not be wrong to argue that the sales of refurbished products will increase gradually and to predict that the refurbished product market will grow by diversifying. The present study investigates the effect of perceived risk dimensions of young consumers living in Turkey on their intention to purchase refurbished products. The reason why the Z generation was chosen in the study is to learn the buying habits of new or renewed products in technological products and to examine their attitudes towards refurbished products as a generation born and grown up in technology. Another reason for the selection of the Z generation in the research is that the Z generation, which constitutes an important part of society in Turkey, directs technological trends. It is thought that the findings of the research will make significant contributions to the marketing decisions of the companies producing technology for the Z generation, lawmakers and researchers. The research was carried out between January and March 2022 with 415 participants living in Istanbul, Turkey’s largest city, determined by the convenience sampling method. In this research, regression analysis was used to test the hypotheses. The research was carried out with 415 participants. As a result of the research, it was determined that social risk has a low positive and significant effect on the effect of perceived risk dimensions of Generation Z consumers on the purchase intention of the refurbished product, performance risk has a low negative significant effect, psychological risk has a good positive and significant effect, time risk has a low positive significant effect, and physical risk has a low negative and significant effect. These results show that the psychological risk perception of Z generation consumers is important in their renewed product preferences. For this reason, companies should be careful to offer products that meet the expectations of consumers for refurbished products and not disappoint Z generation consumers.