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

Chen, Daqiang, Ignatius, Joshua, Sun, Danzhi, Zhan, Shalei, Zhou, Chenyu, Marra, Marianna and Demirbag, Mehmet (2019) Reverse logistics pricing strategy for a green supply chain: a view of customers’ environmental awareness. International Journal of Production Economics, 217. pp. 197-210. ISSN 0925-5273

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Abstract

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.

Item Type: Article
Schools and Departments: University of Sussex Business School > Strategy and Marketing
Depositing User: Marianna Marra
Date Deposited: 03 Feb 2020 12:30
Last Modified: 04 Mar 2020 02:00
URI: http://sro.sussex.ac.uk/id/eprint/89716

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