The strategy of product packaging used several times has extra fixed cost and it is more price sensitive. The consumers have extra expense but it's refundable as a deposit , so that the fraction of extra cost can be return back to the consumers. Returnable packaging can achieve the best financial and environmental performance only with consumers behavior or price sensitivity. Thus, the game depends mostly on the consumer's willingness to send back and pay more for expensive packaging with the refundable deposit.
The aim of this game theory is to offer a suitable framework for the low carbon strategy in the processes of packaging planning via a product returnable package.
Paul: In the United States, some states have a "Beverage Container Deposit Law".
"...When a retailer (store) buys beverages from a distributor, a deposit is paid to the distributor for each container (bottle or can) purchased. The consumer pays the deposit (fee) to the retailer when buying the beverage, and receives a refund when the empty container is returned to a supermarket... The distributor then reimburses the retailer (store) the deposit amount for each container, plus an additional handling fee.."
Link: http://www.ncsl.org/research/environment-and-natural-resources/state-beverage-container-laws.aspx
The contemporary marketing advocates Recycle, Reduce and Reuse and therefore establishing a process for reuse has to be formulated to enhance 3Ps- People, Planet and Profits.Returning the packaging needs to be reinforced for value creation.
Paul Stock Helpful example (source), appreciate your response sir
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