The resale–repurchase cycle: how consumer perceptions of gain and loss shape sustainable consumption

Purpose This study aims to explore how reselling unwanted items influences new product purchases within an environmental sustainability context. Drawing on utility theory, prospect theory and mental accounting theory, it examines how individuals perceive gains and losses in resale transactions and how these perceptions shape repurchase decisions. Design/methodology/approach Two experimental studies manipulated resale awareness and resale reference price – the expected value of a pre-owned item – to compare planned resale (purchasing with an intent to resell) and unplanned resale (deciding to resell after ownership). Mediation analysis was used to assess the role of perceived gains and losses in shaping purchase behavior. Findings Resale awareness significantly increases purchase intention. Unplanned resale – where consumers sell a similar item before purchasing a new one – has a stronger impact on purchase intention than planned resale. Perceived gains and losses mediate this relationship, reinforcing the psychological role of resale in consumer decision-making. Originality/value This study advances resale market research by integrating environmental and psychological drivers into consumer decision-making. It demonstrates how perceived gains and losses motivate circular economy participation and influence purchase behavior beyond financial incentives. These findings provide strategic guidance for brands and policymakers aiming to embed resale into sustainability-driven business models.