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Reverse logistics pricing strategy for a green supply chain: a view of customers’ environmental awareness

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posted on 2023-06-09, 20:29 authored by Daqiang Chen, Joshua Ignatius, Danzhi Sun, Shalei Zhan, Chenyu Zhou, Marianna MarraMarianna Marra, Mehmet Demirbag
The effectiveness of a reverse logistics strategy is contingent upon the successful execution of activities related to materials and product reuse. Green supply chain (GSC) in reverse logistics aims to minimize byproducts from ending up in landfills. This paper considers a retailer responsible for recycling and a manufacturer responsible for remanufacturing. Customer environmental awareness (CEA) is operationalized as customer word-of-mouth effect. We form three game theoretic models for two different scenarios with different pricing strategies, i.e. a non-cooperative pricing scenario based on Stackelberg equilibrium and Nash equilibrium, and a joint pricing scenario within a cooperative game model. The paper suggests that stakeholders are better off making their pricing and manufacturing decision in cooperation.

History

Publication status

  • Published

File Version

  • Accepted version

Journal

International Journal of Production Economics

ISSN

0925-5273

Publisher

Elsevier

Volume

217

Page range

197-210

Department affiliated with

  • Strategy and Marketing Publications

Full text available

  • Yes

Peer reviewed?

  • Yes

Legacy Posted Date

2020-02-03

First Open Access (FOA) Date

2020-03-04

First Compliant Deposit (FCD) Date

2020-02-03

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