Following the principles of Loss Aversion in Prospect Theory, consumers often invest significant time and effort in searching for favorable deals to avoid potential losses that may occur from purchasing the same product at a higher price. Interestingly, they sometimes neglect a product in good condition, which contradicts this theory because it loses its value completely. This study suggests a new conceptual model that integrates the 'Legitimate Peripheral Participation (LPP) framework.' It improves understanding of the process through which consumers continuously reconstruct their perception of value through the interaction between their experiences and value perception in products throughout the entire product lifecycle. The study involved 480 participants from an online crowdsourcing platform who were asked to recall and respond regarding various stages of a product's lifespan. Study 1 indicates that customers are willing to pay to prices nearly equivalent to the original for brand-new products, yet they view the value of second-hand items as markedly less. This phenomenon is named "Decayed-Loss Neglect," indicating a decreased sensitivity to loss after purchase. This finding also suggests the possibility of heightened consumer sensitivity to intangible benefits such as positive memories and post-purchase familiarity. Study 2 formulated hypotheses and models for different time periods of a product's lifespan. Structural equation modeling was employed to assess the impact of perceived value from one stage on the consumer experience in the following stage, as well as how this experience influences the product's perceived value during that stage. The findings reveal that factors related to the initial purchase do not significantly influence consumers' perceptions of a product's value. Direct consumer experiences, which are significantly influenced by the value perceptions formed in earlier stages, play a crucial role in reconstructing the product's value. Emotional and utilitarian values have a significant impact on the continued use of the product, while social value notably influences the intention to resell in the second-hand market. These insights provide valuable guidance for businesses in aligning their strategies with consumer perceptions and behaviors, and they contribute significantly to academic discussions on consumer behavior.
