Highlights The traditional retail models and the dual-channel models with/without trade-in are constructed. We examine the conditions for manufacturer and retailer to implement trade-in policies voluntarily. We identify the optimal channel choice for implementing trade-in policies.
Abstract To derive conditions for manufacturer and retailer to implement trade-in policies voluntarily and identify the optimal channel format for trade-in, we construct traditional retail channel model and dual-channel model under two scenarios: without trade-in and with trade-in. We find that the retailer would implement trade-in policy voluntarily in traditional retail channel only if old customers’ market share exceeds a certain threshold. Interestingly, the result is opposite in dual-channel case. The traditional retail channel and the dual-channel could be the optimal choice for implementing trade-in respectively, depending on different value ranges of customers’ acceptance of direct online channel.
Trade-in strategies in retail channel and dual-channel closed-loop supply chain with remanufacturing
2020-02-24
Article (Journal)
Electronic Resource
English
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