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Reverse Logistics Pricing Strategy for a Green Supply Chain: A View of Customers’ Environmental Awareness

Chen, Daqiang and Joshua, Ignatius and Danzhi, Sun and Shalei, Zhan and Chenyu, Zhou and 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. 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
Uncontrolled Keywords: Green supply chain, Reverse logistics pricing strategy, Customer environmental awareness, Stackelberg equilibrium, Nash equilibrium, Cooperative game
Subjects: H Social Sciences > HG Finance
Divisions: Faculty of Social Sciences > Essex Business School
Faculty of Social Sciences > Essex Business School > Management Science and Entrepreneurship Group
Depositing User: Elements
Date Deposited: 11 Sep 2018 12:05
Last Modified: 04 Nov 2019 17:15
URI: http://repository.essex.ac.uk/id/eprint/22890

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