Product Competition Strategy In Remanufacturing Supply Chain Under Consumer's Anticipated Regret

At present,environmental pollution and shortage of resources become the key bottlenecks restricting the sustainable development of China's economy.Be generally regarded as a green mechanism to achieve sustainable development,remanufacturing has attracted the attention of many governments and enterprises.The development of remanufacturing is not only driven by government policies,but also closely related to consumers' purchase intention.However,restricted by traditional consumption concepts and inadequate government propaganda,Chinese consumers' vague valuation of remanufactured products leads to anticipated regret during the purchase process,which directly reduces consumers' intention to purchase them.In view of the existing literature on the operation management of remanufactured products does not take into account the consumer's anticipated regret,this paper deduces the substitution needs function of new products and remanufactured products by utilizing the methods of utility analysis,decision-making optimization,mathematical deduction and computer simulation,starting with the analysis of the utility of anticipated regret consumers.On this basis,the product price competition and quality competition strategies of remanufacturing supply chain based on consumer anticipated regret are discussed in detail.Firstly,the mechanism of anticipated regret is analyzed by using “fuzzy ideal point” and the anticipated regret utility of consumers with “fuzzy preference“ in purchasing undifferentiated products is discussed.On this basis,the paper puts forward the calculation formula of anticipated regret negative utility,quantificationally describes the net utility of consumers in the process of purchasing new products and re-products,and creatively deduces the market demand function of the two products under anticipated regret.Results show that under exogenous price,demand for new products will not change with anticipated regret.If the price of remanufactured products is relatively low,some consumers will switch from never buying to buying remanufactured products,resulting in increased demand for remanufactured products with anticipated regret;if the price of remanufacturedIIproducts is relatively high,some consumers will shift from purchasing remanufactured products to not purchasing,which leads to the opposite result.Secondly,the application of anticipated regret is further extended to the field of remanufacturing supply chain.Based on the demand function of new products and remanufactured products,this paper reconstructs the participation scenarios of consumers,Original Equipment Manufacturers(OEM)and Independent Remanufacturers(IR),and establishes a pure price competition game model of remanufactured supply chain considering consumers' anticipated regrets.Furthermore,it uses mathematical derivation and computer simulation to solve the model,and analyses the impact of anticipated regret on supply chain performance such as price,demand and profit under various market conditions.It further explores the market entry strategy,operation mode selection and channel power structure preference under anticipated regret.The results show that,under the pure price game,if the consumer valuates the remanufactured products moderately,the anticipated regret and heterogeneity will increase the difficulty of IR entering the market,but will not change the market entry conditions of IR when the valuation is relatively higher or lower.In the competitive market,the increase of consumers' regret sensitivity will reduce the price of new products and remanufactured products,decrease the demand for new products and enhance the demand for remanufactured products,which is not conducive to the realization of consumer surplus and social welfare.However,anticipated regret may bring higher expected profit to IR in the case of low heterogeneity.In terms of operation mode selection,when the sensitivity of anticipated regret is high and the valuation of remanufactured products is low,IR and consumers prefer the integrated mode(model C),and channel cooperation mode(model FH)is the most favorable for OEM.In the other cases,IR and consumers prefer the perfect competition mode(model FJ).In the control of channel power structure,OEM and IR always have “post-action advantage“,and anticipated regret can affect the size of it.Thirdly,the influence of the dual factors of price and quality on product competition strategy is further studied.The consumer demand function consideringIII product quality under anticipated regret is deduced again,and the OEM-led product quality decision-making under the situation that the quality of new products affects the quality of remanufactured products in the early stage of remanufacturing is discussed.The results show that product quality is negatively correlated with the expected value of remanufactured products,and positively correlated with the anticipated regret sensitivity and heterogeneity of consumers.Under the combined effect of quality decision and price decision,when heterogeneity is at a high level,IR's expected profit and total supply chain profit are positively correlated with anticipated regret sensitivity,while consumer surplus is negatively correlated with it.When heterogeneity is low,the conclusion is opposite.Fourthly,aiming at the scenario that IR has independent quality innovation capability in the mature period of remanufacturing,considering consumers' anticipated regret and valuation discount of the innovation part of remanufactured products,taking IR as the dominant player of quality innovation and price game,a decision-making model of quality innovation in remanufacturing supply chain with consumers' anticipated regret is established.Through sensitivity and comparative analysis,this paper explores the impact of consumer's anticipated regret,heterogeneity and remanufactured product expectation valuation on the value of IR quality innovation.The results show that the optimal quality innovation level is positively correlated with consumer's anticipated regret sensitivity,while the relationship with consumer heterogeneity depends on the expected value of remanufactured products.Under the combined effect of quality innovation strategy and price competition,consumers' anticipated regret will reduce OEM's profit,increase IR's profit,and enhance the economic value of IR's quality innovation.“ Green ” consumer surplus always increases with the sensitivity of anticipated regret,but the total consumer surplus is negatively correlated with it when the expected value of remanufactured products is large.Finally,based on the previous conclusions,the paper puts forward specific measures to improve the remanufacturing competitiveness by using consumers' anticipated regret from the perspective of the government and supply chain enterprises respectively,which provides an effective reference for fully realizing the green performance of remanufactured supply chain...