An empirical analysis of consumer durable replacement intentions

Abstract

Despite the dominant role of replacement purchases in many durable categories, previous research has not emphasized modeling replacement behavior. In this paper, we develop a descriptive model for replacement intentions based on variables associated with product and household characteristics, and empirically estimate this model with cross sectional data for a set of home appliances. Results indicate that the perceived condition of the currently owned unit and its age are significantly related to replacement intentions. Whether or not a spouse is working and expected future household financial situation are also significant explanatory variables. Implications and directions for future research are also discussed.