Modeling mobile phone user preferences on incentives and convenience of mobile phone take-back program in the Philippines: A choice experiment approach

• Main Author: Balisado, Sheila C.
• Format: text
• Published: Animo Repository 2013
• Subjects: Cell phones—Recycling; Cell phone users; Consumers' preferences; Industrial Engineering; Operations Research, Systems Engineering and Industrial Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/6115; https://animorepository.dlsu.edu.ph/context/etd_masteral/article/13217/viewcontent/CDTG005429_F_Redacted.pdf
• Institution: De La Salle University

Take-back programs were implemented to address the growing concern on mobile phone wastes. These programs collect retired mobile phones for reuse and recycle purposes in order to maximize its potential life and manage its disposal. However, take- back programs that were implemented in the past have only less than 10% collection rate, which implies that current efforts were not enough to collect majority of mobile phones that retire per year. Analyzing mobile phone user preferences is one of the ways to address the problem of low participation rate in take-back programs. Related studies on mobile phone user preferences have identified incentives and convenience as important attributes of take-back program. However, these preferences were only obtained through surveys and interviews where there is only independent selection of attributes. There has been no research done to understand the interactions among these attributes in an experimental setting. Furthermore, analysis on the choice process of mobile phone users, particularly their considerations on several attributes in their decision-making to participate in take- back program, were not considered by past studies. With this, the objective of the study is to analyze the choice behavior of mobile phone users. Behavior in this case pertains to how mobile phone users decide to join in take-back program. It must be noted that mobile phone users in the study are only limited to young age group of 20 to 30 years old, and belong to high-income level. A choice experiment was conducted using simulation model to present different scenarios of take-back program. These scenarios represent different combinations of attributes of incentives and convenience, which can provide insights as to how varying conditions affect decision- making of mobile phone users. Data obtained from the experiment were analyzed using Selection by Aspects algorithm from Barthelemy and Mullet (1992). Results were able to show that mobile phone users consider attributes of incentive, cost of collection, and waiting time on site when deciding to participate in take-back program. Also, relationship among attributes was observed wherein the level of incentive is balanced with the level of convenience offered by the take- back program. Given higher level of incentive, mobile phone users are willing to exert more time, cost and effort in joining take-back program. Particular considerations on incentives and convenience of take-back program were also dependent on the type of mobile phone (smartphone vs. non-smartphone) that will be disposed. When disposing smartphones, owners require cash incentive and security in the collection of phones. On the other hand, when mobile phone users decide to dispose their non-smartphones, they are more particular with the convenience of take-back program. Cash incentive is not a strict requirement for them, but they highly prefer drop-off collection method where there is only minimal cost and no waiting time on collection site. Finally, brand of mobile phone and its age were proven to be insignificant factors to the choice behavior of mobile phone users in joining take-back program. Overall, the study was able to demonstrate another approach to elicit preferences of mobile phone users, through modeling of their choice process. Results of the study can provide insights to corporations that will implement mobile phone take-back programs. Important attributes to the choice of take-back program can serve as inputs to its actual design. Furthermore, corporations that currently implement take-back programs can also use the study to analyze what is lacking with their current practice and how can it still be improved to increase its collection rate of mobile phones.