Abstract
Consumers focus on level of service while purchasing electronic products. This study focuses on consumer buying behavior. We determine the Stackelberg outcome for a market when a durable electronic product has three different forms: new product, remanufactured product and refurbished product. Under the dynamic game model, the optimal differential pricing strategy is implemented, and the double marginal effect is coordinated through a revenue-sharing contract and two toll contracts to increase the system’s revenue capacity. Our research shows that as the degree of consumer preference increases, the service differentiation of the three products is reduced. A lower level of consumer preference affects the pricing decision of new products and significantly affects the pricing of remanufactured products and refurbished products.
Highlights
Electronic waste has significant value in recycling and remanufacturing, while causing environmental pollution
This paper focuses on the internal cycle remanufacturing of electronic products and studies the closed-loop supply chain operation mode
A combination of symbolic model construction and numerical simulation was used to construct a pricing model based on consumer preferences
Summary
Electronic waste has significant value in recycling and remanufacturing, while causing environmental pollution. Raw material-production-sales-consumption-recycling-remanufacturing is a closed-loop supply chain (CLSC) management model for product remanufacture. Apple will sell remanufactured products with the “Apple certified” logo to consumers through a 50–70% discount on new products through online sales channels, thereby achieving the dual optimization of social and economic benefits This shows that the differential pricing model has important and practical significance for CLSC management. Guo Junhua [17] studied pricing decisions and coordination mechanisms in closed-loop supply chains based on the differentiated willingness of consumers to pay for products (willingness to pay). To summarize, based on the existing research, this paper considers the consumer preference for green remanufacturing products (remanufactured products, refurbished products) and discusses the issues of differential pricing and coordination decision making of CLSCs from the perspective of dynamic gaming. The numerical simulation shows the effect of the coordination mechanism on the supply-chain system
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