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Why You Should Offer a Take-Back Program for Your Old Products

February 26, 2024
in Business
Why You Should Offer a Take-Back Program for Your Old Products
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New research suggests that consumers value a product more highly when its manufacturers take responsibility for its disposal.

February 26, 2024

Colour Laboratory/Stocksy

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Countries around the world are enacting legislation, known as extended producer responsibility regulations, to make companies more accountable for the end-of-life phase of their products. While companies may fear that these take-back programs would lead to increased costs that drive away consumers, new research suggests differently. A series of studies and field experiments have shown that consumers value a product more highly when it’s part of a take-back program, show a greater willingness to pay, and don’t require any additional purchase incentives.

Extended producer responsibility regulations — which make manufacturers more accountable for the end-of-life phase of their products — are gaining traction in the U.S. and around the world. Some companies, such as Apple, Adidas, Dell, and IKEA, aren’t waiting for regulations and have initiated take-back strategies that allow consumers to return used products to be put back into the production cycle. Other companies have hesitated, fearing that the increased cost of such programs will have to be offset by higher product prices that drive away customers.

Anna Tari is a doctoral candidate in marketing at the Questrom School of Management, Boston University.

Remi Trudel is an associate professor of marketing at the Questrom School of Management, Boston University.

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Copyright for syndicated content belongs to the linked Source : Harvard Business – https://hbr.org/2024/02/why-you-should-offer-a-take-back-program-for-your-old-products

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