Research on the Pricing Model of the Dual-Channel Reverse Supply Chain Considering Logistics Costs and Consumers' Awareness of Sustainability Based on Regional Differences

With the prevalence of Internet technology, many recycling centers have developed a dual-channel reverse supply chain by introducing online recycling channels on the basis of offline third-party recyclers (TPR). In addition, great imbalanced development has been observed in different regions in China, as supported by the literature review. It is necessary to help companies in the supply chain to adjust their pricing strategies according to regional differences. This paper is aimed at answering the following two questions: (1) After introducing online channels, what strategies should the recycling center adopt to adjust online recycling prices and to readjust the transfer price of offline channels? (2) How do recycling centers and TPR in city A & B modify their pricing strategies in accordance with logistics costs or consumers' awareness of sustainability changes in city B? To solve the above questions, models were made to study the pricing strategies of recycling centers and the TPR based on the Stackelberg game in a dual-channel reverse supply chain in two cities. The results indicate that recycling centers will benefit from the increase in consumers' awareness of sustainability and the reduction in logistics costs of the online channel in city B; this is in contrast to the TPR in this city. We also find that the revenue of the TPR in city A will be affected when the above two factors in city B change. Its increase or decrease depends on the selection of pricing strategy by the recycling center.