The destiny of replaced technological products: The influence of perceived residual value

Abstract

Technological products are being replaced at an increased rate, inducing the disposition of still functioning devices and generating a growing flow of electronic waste. Following the perspective of the circular economy, this research uses perceived residual value (PRV) to shed new light on the destiny of replaced products. Considering simultaneously consumers’ evaluation of a product in a specific situation, PRV is the value consumers ascribe to post-use possession. A measurement tool of PRV is developed and used to measure its effects on a sample of 1,302 respondents representative of the French population. Results show that the three dimensions of PRV (utilitarian, financial, and affective) influence whether or not a replaced technological product is kept. PRV has a major impact on disposition channels when the replaced product is not kept. These results lead to managerial recommendations, as PRV can be used to foster product recirculation and contribute to reducing the wastage of natural resources.