RETRACTED: The influence of consumer brand loyalty on brand remanufacturing market strategy

Abstract

This paper analyzed how consumer brand loyalty influences brand remanufacturers’ market strategy when independent remanufacturers (IRs) enter the market and when they do not. The authors developed and analyzed four market models, “no IR enter and no brand remanufacture (n),” “no IR enter and brand remanufacture (nR),” “IR enter and no brand manufacture (nr),” and “IR enter and brand remanufacture (nrR)”. They then analyzed the results using sensitivity analysis and comparative analysis. The research found that new product prices, brand remanufactured product prices, and general re-product prices are positively correlated with brand loyalty; with the increasing level of brand loyalty, brand manufacturers’ profit increases, while the IR’s profit is lowered. Further, when the manufacturing costs of new products are high, the model preference for the brand manufacturers is always [Formula: see text]; when the costs are lower, the level of the consumer brand loyalty affects the model preference. In models nr and nrR, brand loyalty may increase the brand consumer surplus, but reduces the average consumer surplus, total consumer surplus, and total social welfare.