Customers' switching behaviour towards remanufactured auto-products, with particular reference to the automotive industry in Thailand

Student thesis: Doctoral Thesis

Abstract

The automotive industry is a major manufacturing sector in the economy of Thailand. However, industrialisation in Thailand, largely based on the traditional 'take-make-dispose' linear economy model, has not only placed increased pressure on the resource base of the economy, but it has also resulted in increased dependency of the industrial sector on large and foreign enterprises and in environmental pollution due to end-of-life vehicles. Dependence of industry and the economy at large on the linear economy model has been at the heart of structural unsustainability underlying the Thai economy. Environmental pollution is also a cause for concern. Hence the case for transition to a circular economy. Transition of the auto-sector in Thailand to the CE model is not without barriers that arise in the market. These become apparent when considering the range of factors associated with prevailing consumption and production behaviours that influence the transition process. In this study, the factors that influence the behaviours of customers and producers of automotive products are investigated. This study on the switching behaviour of customers is based on the 'Push-Pull-Mooring' (PPM) theory of migration; and for investigation of the survey data, the structural equation model (SEM) is adopted. The findings of the demand-side study of the automotive remanufacturing market show that the decision of customers to switch to remanufactured products is significantly related to the special benefits and environmental benefits deriving from the use of these auto products, consumers' attitudes towards such products, and the risk of obsolescence that would be attached to remanufactured auto-products. Particularly, the suspicious attitude of customers towards the so-called 'like-new' remanufactured products were found to have a significant direct and indirect influence on their switching intentions. Meanwhile, the findings of the supply-side study indicate that the factors influencing auto-manufacturers to induce remanufacturing auto-businesses in Thailand are product maturity, financial costs, lack of skilled labour and technical aspects. A sustainable business model (SBM) for remanufacturing and 'circular' practices in the Thai automotive industry is developed as a policy and decision framework based on the empirical findings of the study. The SBM is developed as a practical business model for remanufacturers to launch 'circular' businesses in the auto sector in Thailand.
Date of Award30 Aug 2021
Original languageEnglish
Awarding Institution
  • University Of Strathclyde
SupervisorGirma Zawdie (Supervisor), John Douglas (Supervisor) & Elsa João (Supervisor)

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