Balancing Risk and Repairs: A Consumer-Driven Model for Electronics Repair Support Duration

• In Event: LOGISTICS and TRANSPORTATION MANAGEMENT: Advances in consumer-centric supply chain management

Abstract

The production and disposal of electronics pose major environmental and economic challenges. Supporting repairs can help firms justify premium pricing, enhance brand image, and promote sustainability without overextending unprofitable services. This study explores how consumer risk perceptions affect willingness to pay for repairs over time. This research includes (1) an experiment evaluating repair decisions for cell phones and refrigerators and (2) a mathematical model identifying the optimal repair service duration for maximizing OEM profitability. The findings will provide actionable insights for OEMs aiming to balance profitability with sustainability and consumer loyalty through strategically timed repair offerings.

Authors

• Haley Paluzzi, Colorado State University

• Meltem Denizel-Karakaya, Iowa State University