The Remanufactured Product Pricing Strategies Based on Heterogeneous Consumers under the Condition of Competition
Wu Ying
Xiong Zhong-kai
Abstract:Aiming at the pricing of the original equipment manufacturer ( OEM) and the independent oper-ator ( IO) on remanufactured products in competitive environment, a two-period model was developed con-sidering consumers′heterogeneity of the demand for new and remanufactured products.The optimal collec-tion rate and optimal price were obtained and compared under the conditions that the OEM selling new products and remanufactured products with same price or different prices.Finally the effect of parameters on the profits of the OEM and the IO was discussed by numerical examples.The conclusions state that if the OEM sets uniform price for all products,the price of remanufactured products is higher and the quantity greater and the OEM and the IO make more profit.The results mean that even with the competition of the IO, the OEM setting uniform price for all products is better than setting different prices for new and reman-ufactured products.
Keywords:remanufacturingheterogeneity of demandpricing strategies
Publication Date:2015-01-01
Online Publishing Date:2025-08-15(First online date of this platform, not the publication date of the document)
Pages:7( 34-40 )
