Pricing Strategies for Remanufacturers: Considering Both Consumer Preference and Competition

In this paper, we develop a remanufacturing supply chain model consisting of two competitive firms, both offering new and remanufactured products. We first analyze the market demand in the different pricing strategy combinations according to consumer preferences and consumer types. Then, we solve and analyze the pricing decisions of the two firms in the Nash game and Stackelberg game, respectively. Finally, we discuss the influence of the proportion of green consumers and informed consumers on the optimal decisions. The results show that, in the Nash equilibrium, if there are few green consumers in the market, it is better for firms to implement unified pricing strategy; and if there are lots of green consumers, differential pricing strategy will be more profitable. Differently, if the proposition of uninformed consumers is medium, or the proposition of uninformed consumers is small but the proposition of green consumers is medium, asymmetric Stackelberg equilibrium regions will exist. We also find that the proportion of green consumers has a greater impact on firms that choose differential pricing strategy than who choose unified pricing strategy.