Agency or Self-Run: the effect of consumer green education on recyclers’ distribution channel choice under platform economy

Zhong, L., Nie, J., Lim, M. K. and Xia, S. (2022) Agency or Self-Run: the effect of consumer green education on recyclers’ distribution channel choice under platform economy. International Journal of Logistics Research and Applications, 25(4-5), pp. 814-836. (doi: 10.1080/13675567.2021.1926949)

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Abstract

Consumer green education has significantly affected the green supply chain and recyclers have started to distribute remanufactured products via online platforms. Through a two-period game model, this study examines the effects of consumer green education on the recycler’s channel choice. The recyclers sell remanufactured products through either the E-retailer’s platform (Agency channel), or their own online platform (Self-Run channel). Surprisingly, our research indicates that a new product seller (E-retailer) can benefit from the remanufactured goods’ cannibalisation in the Agency channel, provided the consumer green education is under-developed. This finding challenges the traditional opinion that the cannibalisation causes loss of profit for new-product sellers. Besides, as the consumer green education effect increases, the recycler prefers the Self-Run channel even with high operational costs. This study provides new insights into the recyclers’ channel choice by considering the consumer green effect, thereby extending the research on the remanufactured products’ distribution channel strategy.

Item Type:Articles
Keywords:Green supply chain, Self-Run channel, agency channel, consumer green education, game theory, platform economy.
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Lim, Professor Ming
Authors: Zhong, L., Nie, J., Lim, M. K., and Xia, S.
College/School:College of Social Sciences > Adam Smith Business School > Management
Journal Name:International Journal of Logistics Research and Applications
Publisher:Taylor and Francis
ISSN:1367-5567
ISSN (Online):1469-848X
Published Online:17 May 2021

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