Agency or Self-Run: the Effect of Consumer Green Education on Recyclers’ Distribution Channel Choice under Platform Economy

Ling Zhong, Jiajia Nie, Ming Lim, Senmao Xia

Research output: Contribution to journalArticlepeer-review

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.

Original languageEnglish
JournalInternational Journal of Logistics Research and Applications
Volume(in-press)
Early online date17 May 2021
DOIs
Publication statusPublished - 17 May 2021

Keywords

  • Green supply chain
  • Self-Run channel
  • agency channel
  • consumer green education
  • game theory
  • platform economy

ASJC Scopus subject areas

  • Management Information Systems
  • Control and Systems Engineering
  • Business and International Management
  • Information Systems
  • Computer Science Applications
  • Strategy and Management
  • Management Science and Operations Research
  • Management of Technology and Innovation

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