Trade-old-for-remanufactured and leasing strategy selection considering consumer's psychological cost
Based on Trade-Old-for-Remanufactured(TOR)and leasing,a two-stage game model of a monopolistic manufacturer was constructed.The boundary conditions of four production decisions of manufacturer were dis-cussed.The influence of consumers psychological cost and functional quality perception for purchasing remanufac-tured products on product demand,manufacturer's profit and production decisions were studied.Considering the ex-isting fixed cost of leasing,the influence of government TOR subsidy on manufacturer's production decisions and the environmental impact under different production decisions were explored.The research showed that manufacturer's profit was positively correlated with consumer's perception of remanufactured product's function quality while nega-tively correlated with psychological cost;only when the psychological cost was below the threshold,the implemen-tation of TOR was profitable;manufacturer could expand market share and obtain higher profit through leasing;manufacturer adopted leasing strategy when the psychological cost was high or government increased the subsidy when the psychological cost was low,through which economic and environmental benefits could be maximized.
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