With the development of the Internet, many brand name manufacturers including Apple, Lenovo, and Canon offer remanufactured products through their official website. Confronting the competition from remanufactured products that are available from the manufactured-owned channel, more and more retailers have recognized that customer service level is one of the most important performance metrics and have aggressively attempted to obtain larger market shares by providing high levels of post-sale services. Although numerous researchers have studied various competitive strategies in remanufacturing, to the best of our knowledge, there is little research highlighting whether and how economic performance and sustainability issues related to remanufacturing operations are affected by the retailer’s service levels. In this paper, we fill this gap by developing two models for the closed-loop supply chain where all remanufactured products are available from the manufactured-owned channel, while the equilibrium behavior of the retailer can be characterized under two possible scenarios: (1) Confronting the cannibalization from direct channels where the retailer only responds on prices (i.e., Model P); or (2) on providing competitive prices and high service levels for new products (i.e., Model S). Our analysis suggests that, from managers’ perspective, if the manufacturers care more about economic benefits, encouraging the retailer to provide higher levels of post-sale services is a beneficial strategy. If they are more concerned with environmental performance, Model P is preferred. However, from the angle of environmental groups and agencies, if the level of eco-centrism is too pronounced, though Model S has a greater profitability for both parties, a more significant welfare loss due to environmental hazard is perceived by the society. As a result, besides avoiding indulging in overproducing on new products, environmental groups and agencies should take emissions trading or taxation into consideration to stimulate remanufacturing operations.

Purpose: Celebrity endorsement advertising receives increased attention in the relevant literature. Approaching from the abnormal stock market return perspective, the purpose of this paper is to investigate the potential risks and expected profit associated with celebrity endorsement. The factors that are included in this investigation are the attributes relating to celebrities and the endorsed firms. Design/methodology/approach: Data were collected from over 300 firms that use celebrity endorsements and are listed in two of the biggest stock exchanges in China. The study uses the event study method to analyze the proposed relationships. Findings: Some of the findings in the current study are consistent with or contrast to those in previous research. Specifically, this study finds that the celebrities’ demographics such as age and gender have little influence on financial return of the endorsed firm. However, investors respond rather negatively toward using actor celebrities to endorse a product or a brand, especially for high-tech products. The match-up endorsement has a positive effect on the firm’s abnormal return. Research limitations/implications: The current study has implications for the relevant literature and practitioners. Very few studies have used stock market return to measure celebrity endorsement effectiveness. This study provides insights into the influence of various factors associating with celebrities and the endorsed firm, extending the celebrity endorsement research into a broader domain. In particular, this study has practical implications for firms that have used or intend to use actor celebrity endorsement. Originality/value: This study is the first to use event study method to comprehensively analyze influence of attributes relating to both the celebrities and the endorsed firms in China on stock market return.

In the last decades, many brand name OEMs, including IBM and Benz, have started embracing remanufacturing operations through collaborating with the independent third-party remanufacturers. Based on observations from current practice, we formulate two theoretical models for an OEM who produces new products itself but with two possible options for remanufacturing: 1) forgoing remanufacturing operations and all unmet demand of remanufactured products are satisfied by third-party remanufacturers or 2) entering into remanufacturing operations under a collaboration with the third-party remanufacturers. Our results reveal that the OEMs began to embrace remanufacturing mainly because they want to protect the new product and reduce the cannibalization effect by limiting the secondary market. In particular, we find that, compared with forgoing remanufacturing operations, collaboration with the third-party remanufacturers is always beneficial for the OEM but may be detrimental to the third-party remanufacturer and our environment. To limit the perverse incentives of the OEM, a revenue sharing contract, in which both parties can reach the Pareto gains, has been developed for both parties. We also find the non-collaboration will be more friendly to the environment.

In recent decades, more and more consumers are becoming concerned about the environment and increasingly tend to buy remanufactured products. However, despite the emergence of green consumerism, many original equipment manufacturers (OEMs) are unlikely to engage in remanufacturing themselves and instead prefer to contract it to third-party remanufacturers (TPRs). Although the literature has recently highlighted the difference between outsourcing and authorizing remanufacturing, it does not explore how green consumerism impacts the choice between these two remanufacturing modes. To fill this gap, in this study, we develop two theoretical models according to which the OEM can outsource or authorize its remanufacturing operations to a TPR to satisfy green consumers who prefer remanufactured products. By comparing optimal outcomes, such as quantities, profit, and environmental factors, our analysis shows that a substantial proportion of environmentally conscious consumers prefer the strategy of remanufacturing outsourcing, which provides a win–win–win strategy for the OEM, the TPR, and the environment; otherwise, the OEM chooses to authorize remanufacturing, which negatively affects the TPR and the environment. As such, we suggest that governments try to increase the proportion of the population that favors green consumerism or implement measures that encourage OEMs to adopt remanufacturing outsourcing.

To obtain a competitive advantage in the marketplace, firms usually need to adopt an innovation program as a key strategic initiative. New product innovation is usually accompanied by discarding the old products and results in negative effects on the environment. Conversely, to maintain environmental sustainability, a greater number of governments have enacted regulations to promote remanufacturing as an integral part of manufacturers’ existing businesses. However, at the firm level, remanufacturing may induce the cannibalization of new product sales. The primary goal of this paper is to provide firms with guidelines for the operational decisions on remanufacturing under the product innovation race. In particular, from a profit-maximization perspective, we suggest that the cost-efficient firm should look for cost-reduction opportunities in remanufacturing operations; otherwise, it should invest more resources into new product development. Our analysis also provides insights for environmental groups and agencies by indicating that improved environmental sustainability should involve not only setting collection targets but the implementation of additional reuse targets as well.