Industrial Engineering Journal ›› 2013, Vol. 16 ›› Issue (2): 26-33.

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A Study of Remanufactured Product Marketing Strategy of Retailers in New Product Distribution

  

  1. School of Economics and Business Administration, Chongqing University, Chongqing 400030, China
  • Online:2013-04-30 Published:2013-06-08

Abstract: It is known that consumers have different acceptance degree for new products and remanufactured products. The supply chain considered in this paper is composed of manufacturers, retailers and thirdparty remanufacturers who perform the remanufacturing. For such a supply chain, retailers sales strategy of new and remanufactured products is analyzed by using Stackelberg game. It demonstrates that, for a retailer, it is better to sell the thirdpart remanufacturers products than the manufacturers remanufactured products, for, by doing so, it is more beneficial to himself and the thirdparty remanufacturer. From the perspective of the marketing profit, it is better for the retailer to sell the thirdparty remanufacturers products. At last, through numerical simulation, the impact of degree of consumer acceptance to the remanufactured products on the price, the quality, and the equilibrium profits of the retailer under the two kinds of marketing strategy are analyzed.

Key words: optimal pricing, thirdparty remanufacturing, manufacturer engaged in remanufacturing; profits of retailer