Abstract
Background: In response to the specific goals of carbon peaking and neutrality, remanufacture is becoming increasingly popular. With the marketplace being more and more adopted, an independent remanufacturer (IR) could sell its products via either the reselling model or the marketplace model. In order to contribute more to carbon neutrality, we investigate the optimal marketing decision for remanufacturing. We construct two models namely reselling model and the marketplace model, and further explore the effects of each marketing model on the decisions and profits of both the IR and the platform firm. Methods: We examine a platform firm that sells new products and an IR that sells remanufactured products under two marketing models based on game theory: (1) a reselling model in which the IR sells remanufactured products to the platform firm; then the platform firm resells to consumers; (2) a marketplace model in which the IR sells remanufactured products to consumers through the platform. Results: Our results show that aiming at carbon neutrality, the IR would be induced by the marketplace model to undertake remanufacturing operations and remanufacture products as many as it could still meet the market demand. Meanwhile, the marketplace model encourages the IR to rethink its work and manufacture more products under certain conditions. Furthermore, both the platform firm and the IR prefer the marketplace model to the reselling model within a Pareto zone. In addition, we find that both the platform firm and the IR could benefit from the marketplace model when they take carbon neutrality under consideration. Conclusions: This study provides managerial insight from two aspects. Remanufactures could decide their marketing model via thorough consideration of market competition, commission rate, and production cost. The government could do more to protect the marketplace environment in order to stimulate the internal vitality of the platform in the achievement march of carbon neutrality purpose. That is, this study will provide good guidance for sustainable development decision-making of remanufacturing marketing platforms, and further contributes to the achievement of the carbon neutrality goal.
Highlights
Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in Keywords: remanufacturing; marketing decision; sustainable development; supply chain management; carbon neutrality published maps and institutional affiliations
Similar to the result under the Nash game, Proposition 9 illustrates that both the platform firm and the independent remanufacturer (IR) could benefit from the marketplace model even if the platform firm is the leader and the IR acts as follower
We study the impact of the reselling model and marketplace model on the remanufacturing operations of the IR and the marketing channel preference of each partner
Summary
Remanufacturing increasingly has concerns as a significant measure for carbon peaking and neutrality, and has gained lots of progress. We explore the effects of the leadership of the platform firm in the marketplace model on the remanufacturing operations and marketing channel preference of each partner. The manufactures could rethink their remanufacture marketing decision via a certain aspect they do care about, and the government would concentrate on how to manage the marketplace environment to promote the contribution made by the platform in the process of carbon neutrality achievement. We put forward valuable insights into the importance of channel preference and leadership on the profitability of the platform firm and the IR, which is beneficial to the platform firm and the IR and beneficial to sustainable collaborative governance of the supply chain and carbon neutrality achievement of countries in the remanufacturing field.
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