Research On Optimal Pricing Of Remanufactured Products Based On Consumer Ambiguity Attitude

Remanufactured products are remanufactured by a special process to produce a product equivalent to a new product.As a special product,due to the lack of recycling and production information in remanufactured products,consumers not have a deep understanding of remanufactured product,which seriously affects their purchasing decisions.The theory of ambiguity aversion shows that people’s disgust and avoidance emotion would be more intense if they are confused about the unknown objects.Other studies have also shown that consumers’ ambiguity attitudes can affect remanufacturing preferences.So,considering the impact of ambiguity attitudes on remanufacturing preferences,what is the distribution of discount coefficients?As a key parameter of the demand function,what is the impact of the discount factor on the price of new products,remanufactured products and the profit of remanufacturers?In order to solve these problems,This paper combines behavioral experiments and mathematical models to explore the impact of consumer ambiguous attitudes on the pricing of remanufactured products.Firstly,the behavioral experiment verifies the relationship between the consumer’s ambiguous aversion attitude and the discount coefficient,and obtains the distribution map of the consumer heterogeneity discount coefficient by measuring consumer ambiguous aversion attitudes and willingness to pay.Secondly,in the model part,we establish the profit maximization model of the heterogeneity discount coefficient for the two situation,which the monopoly manufacturer simultaneously produces new products and remanufactured products whether the amount of recycling is restricted.The discount coefficient distribution data is from the behavioral experiment.And compares the results of this research with the traditional identity discount coefficient,to find the difference between the two models in prices and profits.In addition,the sensitivity analysis of the discount coefficient is conducted to explore the impact of changes in the discount factor.The results show that compared with the traditional identity discount coefficient model:In the case of two-stage production without recycling constraint,the price of both new products and remanufactured products calculated based on the heterogeneity discount coefficient is higher than the traditional method,and the profit of the manufacturer is determined by the respective cost of the new product and the remanufactured products.In the case of two-stage production with recycling constraint,there is almost no difference between the price of new products calculated by the two methods,and the remanufactured product price and profit calculated by the heterogeneity discount coefficient are higher.In addition,through the sensitivity analysis of the discount coefficient,it is found that with the increase of the discount coefficient,the price and demand of remanufactured products will increase,and the price of new products will remain basically the same,while the sales volume will continue to decrease.Besides the total profit of monopolistic manufacturers will rise first and then downward.Different from the traditional identity discount coefficient pricing method,this paper considers the heterogeneity of discount coefficient caused by different fuzzy attitudes in the pricing model,and provides more useful guidance for monopolistic manufacturers’production and pricing strategies.