Consumer demand for remanufactured products remains limited because consumers often cannot directly evaluate product quality before purchase. We investigate how brand trust, perceived risk, environmental awareness, and subjective knowledge influence purchase intention toward remanufactured products under conditions of information asymmetry.
We extend Signaling Theory by showing that consumer acceptance of remanufactured products depends on the joint effects of brand trust and receiver knowledge, offering a new explanation for how environmental awareness translates into purchase intention under information asymmetry.
Data were collected through a survey of 96 Mexican consumers, with remanufactured tires as the empirical context, employing partial least squares structural equation modeling (PLS-SEM) to simultaneously assess direct, indirect, and moderating relationships among the study constructs.
Brand trust emerged as the primary mechanism reducing information asymmetry and fostering purchase intention. Environmental awareness influenced purchase intention only indirectly through brand trust, while subjective knowledge strengthened signal effectiveness. Perceived risk showed no significant effect on consumer purchase intention.
We advance Circular Economy and sustainable consumption research by identifying brand trust as the mechanism through which environmental awareness shapes purchase intention. We also extend Signaling Theory by showing that receiver knowledge strengthens signal effectiveness under conditions of information asymmetry across markets.
The findings help managers strengthen consumer trust through credible market signals and guide policymakers in designing certification, communication, and educational initiatives that reduce information asymmetry, increase acceptance of remanufactured products, and accelerate the transition toward a Circular Economy.
Consumer demand for remanufactured products remains limited because consumers often cannot directly evaluate product quality before purchase. We investigate how brand trust, perceived risk, environmental awareness, and subjective knowledge influence purchase intention toward remanufactured products under conditions of information asymmetry.
We extend Signaling Theory by showing that consumer acceptance of remanufactured products depends on the joint effects of brand trust and receiver knowledge, offering a new explanation for how environmental awareness translates into purchase intention under information asymmetry.
Data were collected through a survey of 96 Mexican consumers, with remanufactured tires as the empirical context, employing partial least squares structural equation modeling (PLS-SEM) to simultaneously assess direct, indirect, and moderating relationships among the study constructs.
Brand trust emerged as the primary mechanism reducing information asymmetry and fostering purchase intention. Environmental awareness influenced purchase intention only indirectly through brand trust, while subjective knowledge strengthened signal effectiveness. Perceived risk showed no significant effect on consumer purchase intention.
We advance Circular Economy and sustainable consumption research by identifying brand trust as the mechanism through which environmental awareness shapes purchase intention. We also extend Signaling Theory by showing that receiver knowledge strengthens signal effectiveness under conditions of information asymmetry across markets.
The findings help managers strengthen consumer trust through credible market signals and guide policymakers in designing certification, communication, and educational initiatives that reduce information asymmetry, increase acceptance of remanufactured products, and accelerate the transition toward a Circular Economy.