Optimal decisions in a dual-channel remanufacturing supply chain with reference quality effect under WTP differentiation

Lili Dai (), Jiawu Peng () and Yanyan Zheng ()
Additional contact information
Lili Dai: Yunnan University of Finance and Economics
Jiawu Peng: National University of Defense Technology
Yanyan Zheng: Xi’an Polytechnic University

Operational Research, 2024, vol. 24, issue 4, No 4, 37 pages

Abstract: Abstract This study investigates a pricing problem in a dual-channel remanufacturing supply chain consisting of a manufacturer and a retailer with market segmentation and reference quality effects. In the era of e-commerce economy, the reference quality effect plays an increasingly important role in influencing consumers’ purchasing behavior, product pricing, and demand changes. It is crucial for manufacturers to develop optimal sales channels of remanufactured products based on consumers’ purchasing behavior. To this end, we study the manufacturer’s optimal decision problem in two classical business scenarios: selling remanufactured products through retail or direct channels. The objective is to explore the impact of the channel coefficient, remanufactured product acceptance, and the reference quality effect on optimal decisions in the remanufacturing supply chain, as well as their combined impact on profitability. The findings suggest that the reference quality effect has a negative impact on the manufacturer’s profit, and the optimal channel choice remains uncertain. Within a specific range, the reference quality effect hurts the profits of supply chain members. In addition, the extended model shows that the manufacturer’s profit is highest when the remanufactured product is sold in two channels, but the profits decrease as the reference quality parameter increases.

Keywords: Remanufacturing; Dual channel; Reference quality effect; WTP differentiation; Game theory (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s12351-024-00865-2 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:operea:v:24:y:2024:i:4:d:10.1007_s12351-024-00865-2

Ordering information: This journal article can be ordered from
https://www.springer ... search/journal/12351

DOI: 10.1007/s12351-024-00865-2

Access Statistics for this article

Operational Research is currently edited by Nikolaos F. Matsatsinis, John Psarras and Constantin Zopounidis

More articles in Operational Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().