Pricing and branding for remanufactured fashion products

Research output: Journal article publicationJournal articleAcademic researchpeer-review

32 Citations (Scopus)

Abstract

This paper explores this particular business operation with respect to their optimal pricing and brand investment decisions. By exploring a stylized basic analytical model, we derive the closed form analytical optimal decisions and explore how they vary with different major model parameters. We uncover that compared to the centralized supply chain optimal decisions, the fashion retailer will over-price the remanufactured fashion product and under-invest on branding under the decentralized setting. A coordination mechanism is hence proposed to help. The situations under which the fashion retailer should set the remanufactured product's price higher than the new product's price are determined. Furthermore, we prove analytically that the presence of a government sponsor for remanufacturing is beneficial to the consumers. Finally, an alternative model with a multiplicative branding effect is investigated. It is interesting to note that the findings obtained under the basic model are still true under the alternative model. Managerial implications and future research are discussed.
Original languageEnglish
Pages (from-to)1385-1394
Number of pages10
JournalJournal of Cleaner Production
Volume165
DOIs
Publication statusPublished - 1 Nov 2017

Keywords

  • Government sponsors
  • Pricing and branding
  • Remanufactured fashion products

ASJC Scopus subject areas

  • Renewable Energy, Sustainability and the Environment
  • Environmental Science(all)
  • Strategy and Management
  • Industrial and Manufacturing Engineering

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