Refurbished Products in the Circular Economy: Understanding Perceived Risks and Vendor Scepticism

A circular economy is an appropriate technique for addressing the scarcity of raw materials and the rise of hazardous waste. It has enormous potential to recover value with used products and promote environmental sustainability. Refurbished products are part of the circular economy. Refurbished products are used products that are repaired, rebuilt, and tested by the company to perform as intended by the manufacturer. This study aims to fill the gap in the literature by examining the effect of perceived risks on vendor scepticism regarding refurbished products, as well as the impact of vendor scepticism on purchase embarrassment and concealment. The study uses the theory of perceived risk to understand how consumers perceive the risks. The results of the study suggest that many risk factors do not significantly impact vendor scepticism, except illegitimate product risk and displeasure risk, vendor scepticism has a significant impact on purchase embarrassment and concealment.