Secondhand product quality disclosure strategy of the retailer under different supply chain structures

Abstract

In a two‐stage supply chain comprising a manufacturer and a retailer selling secondhand products and new products, we incorporate the manufacturer's channel decisions to examine the retailer's quality disclosure strategy of secondhand products. The quality disclosure of secondhand products may or may not be implemented, but the direct channel is always introduced. Interestingly, the retailer withholds (discloses) information of secondhand products with sufficiently high quality when it is lower (higher) than consumers' acceptance of direct channel in dual‐channel structure. If the secondhand product quality is lower than consumers' direct channel acceptance, the quality is disclosed only when it is medium.