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Research on the Pricing Model of the Dual-Channel Reverse Supply Chain Considering Logistics Costs and Consumers’ Awareness of Sustainability Based on Regional Differences

Author

Listed:
  • Juhong Chen

    (School of economics and management, Xi’an University of Technology, Xi’an 710048, China)

  • Di Wu

    (School of economics and management, Xi’an University of Technology, Xi’an 710048, China)

  • Peng Li

    (School of economics and management, Xi’an University of Technology, Xi’an 710048, China)

Abstract

With the prevalence of Internet technology, many recycling centers have developed a dual-channel reverse supply chain by introducing online recycling channels on the basis of offline third-party recyclers (TPR). In addition, great imbalanced development has been observed in different regions in China, as supported by the literature review. It is necessary to help companies in the supply chain to adjust their pricing strategies according to regional differences. This paper is aimed at answering the following two questions: (1) After introducing online channels, what strategies should the recycling center adopt to adjust online recycling prices and to readjust the transfer price of offline channels? (2) How do recycling centers and TPR in city A & B modify their pricing strategies in accordance with logistics costs or consumers’ awareness of sustainability changes in city B? To solve the above questions, models were made to study the pricing strategies of recycling centers and the TPR based on the Stackelberg game in a dual-channel reverse supply chain in two cities. The results indicate that recycling centers will benefit from the increase in consumers’ awareness of sustainability and the reduction in logistics costs of the online channel in city B; this is in contrast to the TPR in this city. We also find that the revenue of the TPR in city A will be affected when the above two factors in city B change. Its increase or decrease depends on the selection of pricing strategy by the recycling center.

Suggested Citation

  • Juhong Chen & Di Wu & Peng Li, 2018. "Research on the Pricing Model of the Dual-Channel Reverse Supply Chain Considering Logistics Costs and Consumers’ Awareness of Sustainability Based on Regional Differences," Sustainability, MDPI, vol. 10(7), pages 1-31, June.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:7:p:2229-:d:155128
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    Cited by:

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    2. Zhen Li & Jia Zhao & Qingfeng Meng, 2022. "Dual-channel recycling e-waste pricing decision under the impact of recyclers’ loss aversion and consumers’ bargaining power," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(10), pages 11697-11720, October.
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    4. Yao Kang & Juhong Chen & Di Wu, 2020. "Research on Pricing and Service Level Strategies of Dual Channel Reverse Supply Chain Considering Consumer Preference in Multi-Regional Situations," IJERPH, MDPI, vol. 17(23), pages 1-21, December.
    5. Di Wu & Juhong Chen & Ruyu Yan & Ruijun Zhang, 2019. "Pricing Strategies in Dual-Channel Reverse Supply Chains Considering Fairness Concern," IJERPH, MDPI, vol. 16(9), pages 1-17, May.
    6. Lijuan Yang & Eldon Y. Li & Yu Zhang, 2020. "Pricing and Subsidy Models for Transshipment Sustainability in the Three Gorges Dam Region of China," Sustainability, MDPI, vol. 12(17), pages 1-20, August.
    7. Jiaying Xu & Qingfeng Meng & Yuqing Chen & Jia Zhao, 2023. "Dual-Channel Pricing Decisions for Product Recycling in Green Supply Chain Operations: Considering the Impact of Consumer Loss Aversion," IJERPH, MDPI, vol. 20(3), pages 1-15, January.
    8. Haoxuan Zheng & Xingwei Li & Xiaowen Zhu & Yicheng Huang & Zhili Liu & Yuxin Liu & Jiaxin Liu & Xiangye Li & Yuejia Li & Chunhui Li, 2022. "Impact of Recycler Information Sharing on Supply Chain Performance of Construction and Demolition Waste Resource Utilization," IJERPH, MDPI, vol. 19(7), pages 1-22, March.

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