Consumer value considerations and adoption of remanufactured products in closed-loop supply chains

2018 ◽  
Vol 118 (2) ◽  
pp. 480-498 ◽  
Author(s):  
Yacan Wang ◽  
Benjamin T. Hazen ◽  
Diane A. Mollenkopf
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Perceived Risk ◽  
Closed Loop ◽  
Perceived Value ◽  
Perceived Quality ◽  
Consumer Acceptance ◽  
Closed Loop Supply Chain ◽  
Content Type ◽  
Closed Loop Supply Chains

Purpose The success of closed loop supply chains is contingent upon consumer acceptance of remanufactured products, yet little is known about how consumers value such products. The purpose of this paper is to provide theoretical grounding for understanding consumers’ value perceptions as related to remanufactured products. Design/methodology/approach Diffusion of innovation theory and customer perceived value literature help form the theoretical model, which is tested empirically using survey data of consumers. Structural equation modeling was employed to test the hypotheses. Findings Perceived value of remanufactured products is measured as a function of perceived benefits (environmental benefits; price advantage) and perceived sacrifices (perceived quality; perceived risk), all of which are shown to impact perceived value. Additionally, perceived risk is found to partially mediate the relationship between perceived quality and perceived value. Originality/value This research makes two significant contributions. First, mid-range theory that is contextualized to the closed loop supply chain is developed to aid researchers and practitioners in better understanding the consumer’s role in the closed loop supply chain, as related to the acceptance of remanufactured products. Second, consumer acceptance of remanufactured products represents a form of supply chain demand risk that has previously been unrecognized. The results provide a foundation for incorporating this type of demand risk in to future research efforts.

scholarly journals Warranty Period Decision and Coordination in Closed-Loop Supply Chains Considering Remanufacturing and Consumer Behavior

2019 ◽  
Vol 11 (15) ◽  
pp. 4237 ◽  
Author(s):  
Xiaodong Zhu ◽  
Lingfei Yu ◽  
Wei Li
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Supply Chains ◽  
Closed Loop ◽  
Supply Chain System ◽  
Closed Loop Supply Chain ◽  
Chain System ◽  
Warranty Period ◽  
Closed Loop Supply Chains ◽  
Decision Making Model

The closed-loop supply chain management model is an effective way to promote sustainable economic development and environmental protection. Increasing the sales volume of remanufactured products to stimulate green growth is a key issue in the development of closed-loop supply chains. By designing an effective warranty strategy, customer’s perceived value can be enhanced and market demand can be stimulated. This study cuts through the warranty period of closed-loop supply chain products. Based on the perspective of consumer behavior, game theory is used to construct the optimal decision-making model for closed-loop supply chains. The optimal warranty decision making for new products and remanufactured products under centralized and decentralized decision-making models is discussed. Further, the impact of the closed-loop supply chain system with warranty services and the design of contract coordination is also shown. We show that consumer preference has a positive impact on the sales of remanufactured products and the profits of enterprises; with the extension of the new product and remanufacturing warranty period, the profit of the supply chain system first increases and then decreases, and the value is maximized at the extreme point in the manufacturer-led decision-making model. Furthermore, the leader gains higher profits with bargaining power, but the profit of the supply chain system under decentralized decision model is less than that of the centralized decision model, reflecting the double marginalization effect. The revenue sharing contract and the two-charge contract designed in this study coordinate the closed-loop supply chain system with warranty services, so that the member companies in the supply chain can achieve Pareto improvement.

scholarly journals The Impact of Warranty Efficiency of Remanufactured Products on Production Decisions and Green Growth Performance in Closed-Loop Supply Chain: Perspective of Consumer Behavior

2019 ◽  
Vol 11 (5) ◽  
pp. 1420 ◽  
Author(s):  
Xiaodong Zhu ◽  
Lingfei Yu
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Closed Loop ◽  
Stackelberg Game ◽  
Low Carbon ◽  
Green Growth ◽  
Closed Loop Supply Chain ◽  
Closed Loop Supply Chains ◽  
Warranty Service ◽  
The Impact

Consumers cannot fully assess the quality of remanufactured products prior to purchase. To reduce consumer risk, closed-loop supply chains adopt a warranty strategy to enhance perceived value among customers and stimulate green growth. Based on Stackelberg game theory and considering consumers’ low-carbon and remanufactured product preferences, this paper aims to explore the decision-making efficiency of closed-loop supply chains with warranty services. The results of the study show that consumers’ confidence in purchasing remanufactured products has increased the demand for new products and remanufactured products, in turn also increasing the interest of the member companies of the supply chain, and stimulating the realization of the potential value of remanufacturing, which is conducive to green growth. When a remanufactured product warranty period meets certain conditions, the member companies of the supply chain can obtain optimal profit. The optimal warranty entity selection of a closed-loop supply chain with a warranty service depends on the warranty efficiency of each entity, thus making it necessary to examine the products of each warranty party.

scholarly journals Who Drives Green Innovation? A Game Theoretical Analysis of a Closed-Loop Supply Chain under Different Power Structures

2020 ◽  
Vol 17 (7) ◽  
pp. 2274 ◽  
Author(s):  
Dooho Lee
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Closed Loop ◽  
Stackelberg Game ◽  
Innovation Strategy ◽  
Market Demand ◽  
Green Innovation ◽  
Closed Loop Supply Chain ◽  
Innovation Strategies ◽  
Market Leadership

As awareness of environmental protection increases worldwide, enterprises have been building their supply chains in ways that conserve natural resources and minimize the creation of pollutants. One of the practical ways to make supply chains more sustainable is for enterprises to utilize green innovation strategies and to increase resource reuse. In this work, we focus on a closed-loop supply chain (CLSC) consisting of a manufacturer, a retailer, and a collector. In the investigated CLSC, the manufacturer and the retailer drive the green innovation strategy either individually or simultaneously to boost market demand. In the reverse flow of the CLSC, the collector is responsible for collecting consumers’ used products and transferring them to the manufacturer for remanufacturing. By combining two types of the market leadership and three types of green innovation strategies, we establish six different Stackelberg game models and solve them analytically. Through an extensive comparative analysis, we show who should have market leadership and who should drive the green innovation strategy in the CLSC. Various numerical examples are also given to support our major findings. One of our key findings suggests that the supply chain members must participate in green innovation activities at the same time to achieve a win-win scenario in the CLSC.

scholarly journals The antecedents of Muslim customers’ intention to invest in an Islamic bank’s term deposits: evidence from a Muslim majority country

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sri Rahayu Hijrah Hati ◽  
Sigit Sulistiyo Wibowo ◽  
Anya Safira
Keyword(s):  
Perceived Risk ◽  
Online Survey ◽  
Perceived Value ◽  
Perceived Quality ◽  
Equation Modeling ◽  
Product Knowledge ◽  
Islamic Banks ◽  
Content Type ◽  
Islamic Bank

Purpose The purpose of this study is to examine the impacts of product knowledge, perceived quality, perceived risk and perceived value on customers’ intention to invest in Islamic Banks. This study specifically examines an Islamic bank’s term deposits. Design/methodology/approach Structural equation modeling was used to analyze the data collected from 217 customers of an Islamic bank in Indonesia using an online survey. Findings This study highlights the central and dual roles of perceived risk as both the independent and the intervening variable that mediates the relationship between product knowledge and Muslim customer intention to invest in an Islamic bank’s term deposits. Research limitations/implications This study only investigates term deposits as one type of investment in Islamic banks. This study contributes to the literature by examining the role of product knowledge, perceived quality, perceived risk and perceived value on Muslim customer intention to invest in Islamic term deposits. Practical implications The results of this study highlight the requirement for Islamic banks to educate customers to improve the depositors’ product knowledge because Muslim customers’ risk and value perception and intention are strongly influenced by product knowledge. Originality/value The investigation of perceived risk is particularly relevant for Islamic financial products because of the inherent nature of risk sharing in Islamic finance. This study investigates the role of product knowledge in influencing the Muslim customers’ perception of risk, quality, value and their intention to invest in Islamic bank term deposits. Ideally, the profit loss sharing concept (PLS) should be applied; however, in this context, revenue sharing is applied because of Indonesia’s central bank regulation.

A multi-objective model for sustainable closed-loop supply chain of perishable products under two carbon emission regulations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saman Esmaeilian ◽  
Dariush Mohamadi ◽  
Majid Esmaelian ◽  
Mostafa Ebrahimpour
Keyword(s):  
Mathematical Model ◽  
Supply Chain ◽  
Life Cycle ◽  
Carbon Emission ◽  
Closed Loop ◽  
Perishable Products ◽  
Supply Chain Network ◽  
Closed Loop Supply Chain ◽  
Content Type ◽  
Trade Model

Purpose This paper aims to minimize the total carbon emissions and costs and also maximize the total social benefits. Design/methodology/approach The present study develops a mathematical model for a closed-loop supply chain network of perishable products so that considers the vital aspects of sustainability across the life cycle of the supply chain network. To evaluate carbon emissions, two different regulating policies are studied. Findings According to the obtained results, increasing the lifetime of the perishable products improves the incorporated objective function (IOF) in both the carbon cap-and-trade model and the model with a strict cap on carbon emission while the solving time increases in both models. Moreover, the computational efficiency of the carbon cap-and-trade model is higher than that of the model with a strict cap, but its value of the IOF is worse. Results indicate that efficient policies for carbon management will support planners to achieve sustainability in a cost-effectively manner. Originality/value This research proposes a mathematical model for the sustainable closed-loop supply chain of perishable products that applies the significant aspects of sustainability across the life cycle of the supply chain network. Regional economic value, regional development, unemployment rate and the number of job opportunities created in the regions are considered as the social dimension.

Modeling Closed Loop Supply Chain Systems

2012 ◽  
pp. 313-342
Author(s):  
Roberto Poles
Keyword(s):  
Supply Chain ◽  
System Dynamics ◽  
Supply Chains ◽  
Inventory Control ◽  
Production Planning ◽  
Closed Loop ◽  
Economic Benefits ◽  
Reverse Supply Chain ◽  
Closed Loop Supply Chains ◽  
Operational Processes

In the past, many companies were concerned with managing activities primarily along the traditional supply chain to optimize operational processes and thereby economic benefits, without considering new economic or environmental opportunities in relation to the reverse supply chain and the use of used or reclaimed products. In contrast, companies are now showing increased interest in reverse logistics and closed loop supply chains (CLSCs) and their economic benefits and environmental impacts. In this chapter, our focus is the study of remanufacturing activity, which is one of the main recovery methods applied to closed loop supply chains. Specifically, the authors investigate and evaluate strategies for effective management of inventory control and production planning of a remanufacturing system. To pursue this objective, they model a production and inventory system for remanufacturing using the System Dynamics (SD) simulation modeling approach. The authors primary interest is in the returns process of such a system. Case studies will be referred to in this chapter to support some of the findings and to further validate the developed model.

scholarly journals Decision Analysis of E-commerce Closed-loop Supply Chain with Different Recycling Modes

2021 ◽  
Vol 257 ◽  
pp. 02019
Author(s):  
Sijia Liu ◽  
Yanting Huang
Keyword(s):  
Supply Chain ◽  
Optimal Strategy ◽  
Mixed Mode ◽  
Closed Loop ◽  
Optimal Solution ◽  
The Other ◽  
Price Sensitivity ◽  
Closed Loop Supply Chain ◽  
Closed Loop Supply Chains ◽  
The Game Theory

According to an e-commerce closed-loop supply chain dominated by manufacturers, which is composed of manufacturers and e-commerce platforms, divided into three different recovery mode: manufacturers recycling mode alone, electric business platform recycling mode alone, and manufacturers and electric business platform mixed mode, using the game theory to solve, compares three closed-loop supply chains found: (1)When the recycling price sensitivity is high, the optimal strategy of the manufacturer is the manufacturers recycling mode alone; when the price sensitivity of recycling is low, the manufacturer’s best strategy is the independent recycling mode of the e-commerce platform. No matter how sensitive the recycling price is, the profits of the manufacturer under the mixed recycling mode are always lower than those under the other two recycling modes. (2) When the recycling price sensitivity is high, the optimal strategy of the electric business platform is the mixed recycling mode; when the price sensitivity of recycling is low, the optimal solution of the electric business platform is the independent recycling mode of the electric business platform. (3) When the recovery price sensitivity is low, the best strategy of both is the separate recycling mode of the electric business platform.

Determining the impact of e-commerce quality on customers’ perceived risk, satisfaction, value and loyalty

2019 ◽  
Vol 11 (4) ◽  
pp. 576-587 ◽  
Author(s):  
Ιoannis Tzavlopoulos ◽  
Katerina Gotzamani ◽  
Andreas Andronikidis ◽  
Chris Vassiliadis
Keyword(s):  
Path Analysis ◽  
Customer Loyalty ◽  
Perceived Risk ◽  
Perceived Value ◽  
Perceived Quality ◽  
Ease Of Use ◽  
Future Research ◽  
Content Type ◽  
The Impact

Purpose The quality assessment of e-commerce services is of particular research interest, as it has been widely found that quality is directly linked to customer satisfaction and loyalty, which in turn leads to improved sales results, the creation of reputation and enhanced competitiveness for active companies in the industry. The purpose of this paper is to investigate the quality in e-commerce and to examine the relationships developed among its individual dimensions and satisfaction, perceived value, perceived risk and customer loyalty. Design/methodology/approach Initially, exploratory factor analysis with the equamax rotation method was applied to identify the perceptions of consumers regarding quality, value, satisfaction, risk and loyalty. The effect of the factors that make up perceived quality of e-services on customer value, satisfaction, risk and loyalty was examined by using OLS regression analysis. Likewise, path analysis was applied to confirm the impact of perceived quality on total consumer satisfaction, perceived value and loyalty, utilizing perceived risk as a moderating variable. Findings The authors found that quality overall has a positive and statistically significant relationship with perceived value, satisfaction and loyalty and negative with perceived risk. From the individual dimensions of quality, it has been found that ease of use of websites, design, responsiveness and security lead to increased levels of perceived value, while ease of use, responsiveness and personalization lead to an increase in the overall satisfaction of consumers. Overall, it has been documented that high levels of quality lead to higher satisfaction and perceived value, mitigating perceived risk and positively impacting the adoption of desirable consumer behaviors as reflected in customer loyalty. Research limitations/implications In this respect, future research in the field of e-commerce can examine the quality of the respective electronic services taking into account different product and business categories. In addition, the future research can focus on the impact of high satisfaction, perceived value and customer loyalty on various sizes of business performance, including sales, market share, competitiveness, financial efficiency and sustainability. Practical implications Given the clear relationship between quality, perceived value and satisfaction, e-commerce businesses have the potential to benefit significantly from improvements in the quality of their services, as this leads to increased levels of perceived value, high level of satisfaction and hence enhanced customer loyalty, which is in turn reflected in increased sales, positive word-of-mouth, improved reputation and brand loyalty. In this way, e-businesses will be able to improve their financial position, achieve higher market shares, maintain their competitive advantage, attract new development resources and become sustainable on a long-term basis. Social implications Businesses need to understand the factors that determine the quality in e-commerce to be able to achieve customer satisfaction and reduce perceived risk through improved quality. These factors, which consumers perceive as important for quality, are critical. Originality/value The concepts of quality, perceived value, risk, satisfaction and loyalty are considered to be interlinked in both traditional consumer research and e-commerce, as high levels of perceived quality are believed to lead to positive assessments of the cost-benefit and, hence, the perceived value (Cronin et al., 2000; Sweeney and Soutar, 2001; Korda and Snoj, 2010) and loyalty. In this context, this study attempted to study the relationship of these five variables, through both regression and path analysis, resulting in similar results. According to the findings of the study, perceived quality of website services has a positive and statistically significant impact on perceived value, satisfaction and an opposite effect on perceived risk, while the last is mitigating variable for and loyalty.

A Closed-Loop Logistics Model for Green Supply Chain Management

2011 ◽  
Vol 2 (3) ◽  
pp. 1-15
Author(s):  
A. H. Basiri ◽  
A. Shemshadi ◽  
M. J. Tarokh
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Closed Loop ◽  
Green Supply Chain Management ◽  
Green Supply Chain ◽  
Chain Model ◽  
Closed Loop Supply Chain ◽  
Chain Management ◽  
Closed Loop Supply Chains ◽  
Supply Chain Model

Recently, with the environmental crisis, Green supply chain management (or GSCM), and in particular closed loop supply chain model, has received considerable attention by researchers. Closed loop supply chain model aims at reduction of waste and generating profit for enterprises through integrating forward and reverse logistics. Unfortunately, there is limited research on general models for closed loop supply chains in literature. In this paper, extending and enhancing previous models, a general model is proposed for closed loop supply chains using linear programming. The goal of this study is to minimize the leakage of a closed loop supply chain to avoid waste and reduce SCM costs.

Dynamic Pricing Game Under Different Channel Power Structures in a Closed-Loop Supply Chain

2020 ◽  
Vol 30 (04) ◽  
pp. 2050052
Author(s):  
Junhai Ma ◽  
Fang Zhang ◽  
Hui Jiang
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Dynamic Pricing ◽  
Reference Price ◽  
Closed Loop ◽  
Stable Region ◽  
Power Structures ◽  
Closed Loop Supply Chain ◽  
Channel Power ◽  
Advantageous Position

The importance of closed-loop supply chains has been widely recognized both in academic communities and in industrial sectors. This paper starts from the traditional supply chains and the new self-supply chain of GREE to extract realistic problems, to mainly investigating two noncooperative dynamic pricing policies in a dual-channel closed-loop supply chain consisting of a manufacturer and a retailer. Then, it studies the influence of different channel power structures on dynamic decisions and their complexities. Furthermore, the reference price affects the purchase decisions of consumers. Therefore, the model takes into account the influence of reference price of the market demands. Results show that the manufacturer who opens up a direct channel can make a huge profit in the game. In the dynamic game evolution process, the game leader is in a more advantageous position when the system is in a stable region; once entering into the bifurcating region or chaotic region, the game follower needs to adjust his price to follow the leader’s decision in order to make a profit. In addition, the system’s stable region becomes smaller when the market demand becomes more sensitive to the difference between the reference price and the actual price. In this model, if the manufacturer acts as a leader, he is in a more advantageous position when the market is sensitive to channel competition in the stable stage while the result is opposite in the unstable stage.

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