In:
SAGE Open, SAGE Publications, Vol. 13, No. 4 ( 2023-10)
Abstract:
Plain Language Summary This paper uses the consumer choice model and the decision model to analyze the two approaches for closing the loop, leasing and recycling. In contrast to previous studies of closed-loop supply chains, this paper considers leasing as another way of closing the loop and takes into account its cannibalization effect on the market for new products and its priming effect on consumers with lower willingness to pay. The paper concludes that the leasing strategy cannot completely cannibalize the selling market and is conditional on implementation, while the recycling strategy can completely cannibalize the leasing market and is always effective. This paper has some applications for closed-loop decision making for manufacturers to improve economic and environmental gains. Manufacturers and policy makers should advocate new forms of consumption that encourage consumers to care more about product function than property rights, thus leaving more room for the rental market to acquire greater benefits. This paper does not consider the supply of P2P platforms when portraying the leasing program and does not use empirical studies to verify the conclusions.
Type of Medium:
Online Resource
ISSN:
2158-2440
,
2158-2440
DOI:
10.1177/21582440231218259
Language:
English
Publisher:
SAGE Publications
Publication Date:
2023
detail.hit.zdb_id:
2628279-3
