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Product pricing and green decision-making considering consumers' multiple preferences under chain-to-chain competition

Shijuan Wang (School of Traffic and Transportation, Lanzhou Jiaotong University, Lanzhou, China) (School of Information Engineering, Lanzhou University of Finance and Economics, Lanzhou, China)
Linzhong Liu (School of Traffic and Transportation, Lanzhou Jiaotong University, Lanzhou, China)
Jin Wen (School of Mathematics and Statistics, Northwest Normal University, Lanzhou, China)
Guangwei Wang (Graduate School of Horticulture, Chiba University, Chiba, China)

Kybernetes

ISSN: 0368-492X

Article publication date: 21 October 2022

Issue publication date: 2 January 2024

396

Abstract

Purpose

It is necessary to implement green supply chains. But green development needs to be gradual and coexist with ordinary products in the market. This paper aims to study the green and ordinary product pricing and green decision-making under chain-to-chain competition.

Design/methodology/approach

This paper considers consumers' multiple preferences and takes two competitive supply chains with asymmetric channels as the research object. Through the construction of the game models involving different competitive situations, this paper studies the pricing, green decision-making and the supply chains' profits, and discusses the impact of consumer green preference, channel preference, green investment and competition on the decision-making and performance. Finally, this paper further studies the impact of the decision structure on the environmental and economic benefits of supply chains.

Findings

The results show that consumer green preference has an incentive effect on the green supply chain and also provides an opportunity for the regular supply chain to increase revenue. Specifically, consumers' preference for green online channels improves the product greenness, but its impact on the green retailer and regular supply chain depends on the green investment cost. Moreover, competition not only fosters product sustainability, but also improves supply chain performance. This paper also points out that the decentralization of the regular supply chain is conducive to the environmental attributes of the green product, while the environment-friendly structure of the green supply chain is different under different conditions. In addition, the profit of a supply chain under centralized decision is not always higher than that under decentralized decision.

Originality/value

The novelty of this paper is that it investigates the pricing of two heterogeneous alternative products and green decision-making for the green product under the competition between two supply chains with asymmetric channels, in which the green supply chain adopts dual channels and the regular supply chain adopts a single retail channel.

Keywords

Acknowledgements

Funding: This study is supported by National Natural Science Foundation of China (Nos. 71671079 and 71361018) and the Excellent Postgraduate Student “Innovation Star” Project of Gansu Province (2022CXZX-525).

Citation

Wang, S., Liu, L., Wen, J. and Wang, G. (2024), "Product pricing and green decision-making considering consumers' multiple preferences under chain-to-chain competition", Kybernetes, Vol. 53 No. 1, pp. 152-187. https://doi.org/10.1108/K-05-2022-0782

Publisher

:

Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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