Abstract: In the perspective of consumers' heterogeneous preference, consumers are subdivided by brand preference and performance preference, and a study is conducted on the closed-loop supply chain for the dynamic decision-making and impact of advertising, promotion and recycling propaganda under government subsidies by differential game theory. The research shows that, no matter what the situation, advertising efforts and promotional efforts can directly increase the selling price of new products and recycled products, and that recycling efforts can only indirectly affect the selling price and market demand of products through product goodwill. Three types of propaganda efforts will tend to the optimal stable value over time, and change with the dynamic change of product goodwill. And the optimal stable value of promotional efforts is the highest among the three types of propaganda efforts. Government remanufacturing subsidies have always been beneficial to the development of the remanufacturing industry, but recycling subsidies can only play this role under the centralized manners. The benefits of decisions can be maximized under centralized manners, and if centralized manners cannot be achieved, companies can increase revenue through the contract model, and the revenue sharing contract can better achieve the Pareto improvement of the closed-loop supply chain.

Key words: heterogeneous preference, closed-loop supply chain, propaganda strategy, differential game