Impacts Of Reference Price Effect And Corporate Social Responsibility On The Pricing Strategy Of A Remanufacturing Supply Chain

Abstract

Consumers' reference price effects (RPE) impact market pricing transactions and play a vital role in enterprise pricing decisions. Meanwhile, due to consumers' widespread concern about environmental and ecological issues, more enterprises are taking part in the activity of corporate social responsibility (CSR). Motivated by CSR practices, we examine social work donations (SWD) as a CSR activity. Given practical complexities, we used the profit maximization principle and game theory to focus on a two-echelon supply chain consisting of one manufacturer and one retailer taking part in CSR activity under RPE, where the manufacturer takes part in SWD as CSR practice and collects used products from customers. Five models are developed to investigate the in uence of reference price and CSR on remanufacturing supply chain decisions; in specific, the high parameter of reference price benefits the supply chain members' profits, but too high of investment efforts in CSR might hurt the supply chain members. In addition, under the decentralized system, giving appropriate government subsidies can reduce profit losses when RPE exists. Finally, we propose a two-part tariff (TPT) contract to coordinate the decentralized CSR remanufacturing supply chain. Our research can be directly applied to remanufacturing supply chains under RPE in CSR environments.