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

Zhen Wang, Yongrui Duan and Jiazhen Huo
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Zhen Wang: School of Economics and Management, Tongji University, Shanghai 200092, China
Yongrui Duan: School of Economics and Management, Tongji University, Shanghai 200092, China
Jiazhen Huo: School of Economics and Management, Tongji University, Shanghai 200092, China

Sustainability, 2020, vol. 12, issue 15, 1-18

Abstract: To develop more competitive strategies for different types of remanufacturing companies under the trade-in remanufacturing policy, this paper investigates 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 by using a consumer utility model. The results suggest that the trade-in remanufacturing policy increases demand for the third-party brand, but does not increase demand for the traditional brand. Further, although trade-in remanufacturing policy increases both brand prices, it also increases consumer surplus and corporate profits. Neither the traditional brand remanufacturer nor the third-party brand remanufacturer can completely monopolize the remanufacturing market. In this situation, the traditional brand remanufacturer should strive to increase consumer loyalty, and the third-party brand remanufacturer should strive for consumer recognition of third-party remanufactured products.

Keywords: trade-in remanufacturing policy; consumer behavior; consumer utility (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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