Implications of channel structure for marketing remanufactured products

Yu Xiong, Wei Yan

    Research output: Contribution to journalArticlepeer-review

    11 Citations (Scopus)

    Abstract

    Even though more and more manufacturers are selling remanufactured products through their own e-channels or subcontracting the marketing activity to third parties, there is scant literature addressing the implications of channel structures for marketing remanufactured products. To fill this void, we analyse two two-period models in which a manufacturer sells remanufactured products either: 1) through its own e-channel (Model M); 2) through a third party (Model 3P). For both these models, we identify the remanufacturing cost savings thresholds that determine the strategic choice. Our analysis suggests that the retailer can benefit from the strategy of selling remanufactured products through a manufacturer-owned e-channel but that selling remanufactured products through a third party is always detrimental to the reseller. Among other results, we find that when the remanufacturing cost savings is not too pronounced, the manufacturer makes more profit in Model 3P, but when the remanufacturing cost savings is pronounced, the opposite is true.
    Original languageEnglish
    Pages (from-to)126-144
    JournalEuropean Journal of Industrial Engineering
    Volume10
    Issue number1
    DOIs
    Publication statusPublished - 1 Feb 2016

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