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Chinese Journal of Management Science ›› 2013, Vol. 21 ›› Issue (5): 94-102.

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The Optimal Pricing Policy for Remanufactured Products Considering Luxury and Green Preferences in the Market

DING Xue-feng1, DAN Bin2, HE Wei-jun1, ZHENG Hao-hao1   

  1. 1. School of Economics and Management, China Three Gorgers University, Yichang 443002, China;
    2. School of Economics and Business Administration, Chongqing University, Chongqing 400044, China
  • Received:2011-12-31 Revised:2013-01-05 Online:2013-10-30 Published:2013-10-15

Abstract: In the market there exist three type consumers:the luxury,the green and the price-sensitive. the luxury one prefer to buy the new products when both the remanufactured products and new products will be sold,the green one is benefit of ‘green image’ from remanufactured products, and the sensitive one depend on the price of which is lower.Considering that,in this paper optimal pricing for remanufactured products is studied. It is founded that,price for remanufactured products vary with different market segment and the price discrimination policy can make manufacturer achieve more profits than single-price policy. When the segment of luxury consumers and green consumers exists functional relationships, the remanufacturing recovers acquire the same profit with discriminating price, which make one way for them protecting environment and undertaking responsibility of source saving. According to the characteristics of the different market structures, manufacturers implement proper price discrimination policy is recommended in this paper.At last, the results was tested by numerical example.

Key words: remanufacturing, green consumer, luxury consumer, price discrimination

CLC Number: