Should Manufacturer Adopt Cross-Brand Trade-In Strategy in Cooperation With Recycling Platform?

Abstract

This study explores whether manufacturers should independently implement same-brand trade-ins or collaborate with recycling platforms for cross-brand trade-ins within a concurrent sale and resale framework. In the former strategy, trade-ins are restricted to manufacturers' branded products, while the latter imposes no such limitations. Our findings reveal that manufacturers prefer cross-brand trade-ins due to factors such as reduced market share, high collection costs, or product durability. Interestingly, manufacturers with sufficiently low market share benefit from cross-brand trade-ins, irrespective of collection costs. From a market perspective, same-brand trade-ins are advantageous when used-product durability is relatively high; otherwise, cross-brand trade-ins are more effective.