Study On Green Preferences And Optimal Pricing Of Re Manufactured Products

Developing recycling economy and promoting green manufacturing is an important way to achieve optimal allocation of resources and improve resource utilization.Indeed,Remanufacturing is a high-level form of recycling economy,and has won the government and the industry's attention.However,in the field of marketing for remanufactured products,the situation is getting quite complicated:On the one hand,the introduction of remanufactured products may cannibalize the original new product business,forcing the manufacturer to consider about the balance between the new and the remanufactured.On the other hand,changes on consumer preferences in consumer market,especially the rise of green consumers,had made the manufacturers into a dilemma:What is the true mechanism of consumer preference?And How to produce and price remanufactured products?In order to answer these questions,this paper designed the Consumer Greenness Questionnaire based on Focus Group Interviews and literature research.972 consumers were measured according to the questionnaire,in this research,to study the distribution of consumer greenness in the market.At the same time,we made a behavioral inter group experiment,using the price discounts and environmental attributes of the remanufactured products as the operational variables of the experiment,to investigate consumer preferences for new and remanufactured products,in three different product categories.The data of experimental results were analyzed by SPSS and other data processing software.And assumptions on consumer preferences versus price discounts,and the environmental attributes of the product,were tested.Based on this,the paper then constructs an optimal pricing model for remanufacturing products.Also,the optimal level of remanufacturing and price discounts was calculated accordingly.The research indicates that,the greenness of consumers under the current market status is roughly 0.7.And consumer preferences for re manufactured products are positively correlated with consumers' greenness,while preferences for new products are not significantly related to consumers' greenness.Also,the introduction of remanufactured products to the consumer market will squeeze the new product business,but overall,manufacturers are profitable.To be noted,it should be appropriate to reduce the price of new products to adapt to the new competitive environment,when remanufactured products are to enter the market.The research also found that,the manufacturers' production and pricing of new and re manufactured products depend on the cost savings of the remanufacturing process and the average greenness level of consumers in the market.Based on the empirical and behavioral research,this paper revealed the consumer's preferences mechanism and studied the optimal remanufacturing production and pricing,under different market conditions,which makes up for the relevant research gap and provides decision support and theoretical basis for the enterprise's re manufacturing strategy.