Impact of Trade-In Remanufacturing Policy and Consumer Behavior on Remanufacturer Decisions

Wang, Zhen; Duan, Yongrui; Huo, Jiazhen

doi:10.3390/su12155980

Cited by 6 publications

(5 citation statements)

References 25 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Our work is related to the stream of literature in CLSC management on remanufacturing that investigates impacts of distinct recycling/remanufacturing entities and market leading pattern [22][23][24], recycling laws and regulations [25,26], multi-channel competition [27,28], stochastic demand [29], remanufacturing license fee [30], consumer preference [31][32][33]. To the best of our knowledge, this stream of literature mainly considers all stakeholders being completely rational and pursuing profit maximization as the sole goal, without analyzing supply chain members' behaviors such as fairness concern.…”

Section: Literature Reviewmentioning

confidence: 99%

Fairness Concern in Remanufacturing Supply Chain—A Comparative Analysis of Channel Members’ Fairness Preferences

et al. 2022

View full text Add to dashboard Cite

Remanufacturing is a sustainable product reutilization strategy to realize responsible consumption and production. However, it has remained a largely untapped opportunity for enhancing productivity due to some behavioral matters such as fairness concerns of remanufacturing related firms. Concerning the emerging and development of remanufacturing industry, this paper provides a game-theoretic analysis for a remanufacturing supply chain (RSC) consisting of one leading manufacturer and a following retailer, with the inclusion of fairness concern. We propose and compare several scenarios of channel members’ fairness preferences as, both members are fairness concerned, only one member is fairness concerned, and both members are fair neutral, to expound how fairness concern affects RSC strategies and resulting utilities. We also demonstrate dynamic evolution and stable state of channel members’ selections of whether being fairness concerned in the long term. Analytical results show that favorable scenarios for the RSC to achieve desired objective are relevant to its preference for improved supply chain performance or enhanced environmental benefit. Whatever the preference is, however, it is detrimental for both members to be fairness concerned in the short term. In the long term, evolutionary stable strategies of fairness concerns indicate that both members or only one member would choose to be fairness concerned. The eventual status relies on the initial state of fairness preference. The results are especially relevant as a reference for remanufacturing related strategies, thus enhancing production sustainability as well as environmental benefits.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Fairness Concern in Remanufacturing Supply Chain—A Comparative Analysis of Channel Members’ Fairness Preferences

et al. 2022

View full text Add to dashboard Cite

show abstract

“…Cole et al (2017) studied buyback and trade-in policies for used products as a source for a remanufactured consumer product affect system performance. Wang et al (2020) investigated the impact of the trade-in remanufacturing policy and consumer choice behavior on decisions of a traditional brand remanufacturer and a third-party brand remanufacturer. Najafi-Ghobadi et al (2021) found a threshold on the optimal advertising policy depends on customers forward-looking behavior, advertising coefficient (both direct and word-of-mouth advertising) and discount rate.…”

Section: Literature Review and Contributionmentioning

confidence: 99%

The retailer’s trade-in activity under the manufacturer’s upgrading strategy

Yang

Wang²,

Shan³

2022

JM2

View full text Add to dashboard Cite

Purpose This paper aims to study the impact of manufacturer’s upgrading strategy of durable products on the retailer’s decision on trade-in program and her decision on the secondary market. Design/methodology/approach This paper develops a channel that consists of a manufacturer and a retailer, where the manufacturer releases an upgraded product, and the retailer introduces a trade-in program for consumers, simultaneously, decides whether to enter the secondary market. These approaches are modeled through Stackelberg game. Findings This paper reveals that the optimal conditions for manufacturer to release upgraded products and retailer to resell used products in the secondary market, and it reveals that under what conditions it is profitable for retailer to enter the secondary market under product upgrade levels. Practical implications If the manufacturer’s upgrade level is low, it is profitable for the retailer to enter the secondary market. However, if the manufacturer’s upgrade level is high, it is unprofitable for the retailer to enter the secondary market. Originality/value In this paper, the active secondary market, upgrading of new products, consumer market segmentation and especially, the upgrade degree of new products as a function of consumer demand are considered simultaneously.

show abstract

“…On the contrary, efficient technological innovation and Big Data marketing weaken the initiative of the manufacturer. Wang et al [28] analyzed the influence of consumer behavior and the trade-in remanufacturing policy on remanufacturer decisions by using a consumer utility model. e trade-in policy raised brand prices and increased corporate profits and consumer surplus.…”

Section: Literature Reviewmentioning

confidence: 99%

Pricing and Production Decisions for New and Remanufactured Products

Feng

Zhu

et al. 2022

Complexity

View full text Add to dashboard Cite

Remanufacturing widely exists in production activities. Two different game models are involved while considering reverse channels: (1) In Model P, the manufacturer provides new and remanufactured products to two retailers. New products are sold through an online platform (retailer R1), while remanufactured products are sold in offline physical stores (retailer R2) in a decentralized scenario. (2) In Model C, the manufacturer provides new and remanufactured units to only one retailer (retailer R) that operates both online and offline channels in a centralized scenario. This research showed that a manufacturer’s profitability and industry profits in Model P were higher than those in Model C from the perspective of economic performance; the sum of the profits of both retailers in Model P was worse than the profits of the retailer in Model C. Moreover, Model P was found to be greener than Model C from the perspective of environmental sustainability. From a social viewpoint, Model P had a higher consumer surplus than Model C; the higher the cost of distributing a remanufactured unit, the more disadvantageous the model to the consumers.

show abstract

Impact of Trade-In Remanufacturing Policy and Consumer Behavior on Remanufacturer Decisions

Cited by 6 publications

References 25 publications

Fairness Concern in Remanufacturing Supply Chain—A Comparative Analysis of Channel Members’ Fairness Preferences

Fairness Concern in Remanufacturing Supply Chain—A Comparative Analysis of Channel Members’ Fairness Preferences

The retailer’s trade-in activity under the manufacturer’s upgrading strategy

Pricing and Production Decisions for New and Remanufactured Products

Contact Info

Product

Resources

About