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Article
Publication date: 13 May 2014

Fei Lee Weisstein, Mohammadreza Asgari and Shir-Way Siew

This paper aims to examine the effect of price promotion presentation formats on consumers’ green purchase intentions across various levels of greenness. Despite the increasing…

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Abstract

Purpose

This paper aims to examine the effect of price promotion presentation formats on consumers’ green purchase intentions across various levels of greenness. Despite the increasing awareness of environmental issues and green products among consumers, there is a gap between their green attitude and purchase intentions. Previous studies show that consumersdegree of greenness varies and that price plays an important role in their green consumption decision-making.

Design/methodology/approach

Two between-subject experiments with 236 participants were used to examine our hypotheses and conceptual model.

Findings

The results show that different formats of price promotion presentations influence consumers’ purchase perceptions differently. Consumers with a high degree of greenness are attracted to promotions emphasizing gain, while those with a low degree of greenness prefer promotions underlining reduced loss. In addition, medium-greenness consumers show similar reactions to both formats. Our studies further demonstrate that consumers’ perceived value mediates the moderated effects of perceived quality and perceived savings on green purchase intentions.

Practical implications

This research helps marketers better design price promotions, taking into account the various levels of consumersgreenness. The focus of reduced loss or gain of the promotional programs should be targeted at consumers with different levels of greenness.

Originality/value

This is the first paper to examine the role of price promotion presentation formats in consumer decision-making regarding green consumption. The study provides new insights concerning how to design price promotions to enhance the green purchase intentions of consumers.

Details

Journal of Product & Brand Management, vol. 23 no. 3
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 4 May 2020

Shan Chen, Fuli Zhou, Jiafu Su, Longxiao Li, Biyu Yang and Yandong He

The paper investigates firms' optimal pricing policies and green strategies in a dynamic green supply chain with consideration of different retail service strategies. The purpose…

Abstract

Purpose

The paper investigates firms' optimal pricing policies and green strategies in a dynamic green supply chain with consideration of different retail service strategies. The purpose of the paper is to address the following research questions: (1) What are the optimal pricing policies and green strategies of the dynamic decentralized supply chain with the competitive or supportive retail service? (2) How does the dynamic consumer's perception of green product affect these equilibrium solutions?

Design/methodology/approach

The paper establishes the dynamic game models and then derives a firm's instantaneous and steady-state feedback equilibrium solutions in three scenarios as follows: (1) the integrated supply chain; (2) the decentralized supply chain with competitive retail service and (3) the decentralized supply chain with supportive retail service. Finally, we conduct numerical analyses to compare the firm's instantaneous and steady-state equilibrium solutions and profit in the three scenarios.

Findings

The theoretical and numerical analysis results suggest that the supportive retail service is less inefficient than the competitive retail service in the decentralized supply chain and that the types of retail service have no influence on the green strategy. Moreover, a firm's myopia leads to lowering the greenness degree, retail service level and severe price competition, resulting in economic losses. Consumers’ initial perception of greenness degree determines whether the retailer should adopt the skimming pricing strategy or penetration pricing strategy. Furthermore, only when consumers’ perception of greenness degree is higher than a threshold, will the manufacturer produce green product with positive greenness degree.

Originality/value

This is one of few studies on the effect of different types of retail service on horizontal competition in green supply chain. The extension of the static study by adopting differential game approaches provides researchers with a deeper understanding of the application of retail service in green supply chain.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 33 no. 1
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 1 February 2022

Ranran Zhang, Jinjin Liu and Yu Qian

This research aims to examine which cooperative contract (wholesale-price contract or cost-sharing contract) can more effectively upgrade the green degree of product and promote…

Abstract

Purpose

This research aims to examine which cooperative contract (wholesale-price contract or cost-sharing contract) can more effectively upgrade the green degree of product and promote demand when considering consumer reference price effect under different power structures.

Design/methodology/approach

This research investigates a dyadic green supply chain composed of one manufacturer and one retailer. Four Stackelberg game models with a cost-sharing contract or a wholesale-price contract are built in retailer-led and manufacturer-led scenarios, respectively. Using backward induction, the optimal green decision under each model is obtained. In addition, the optimal cooperative contract is proposed by comparing these four models.

Findings

It is found that under consumer reference price effect, a cost-sharing contract outperforms a wholesale-price contract in upgrading product greenness and promoting demand. Under any single contract, the retailer-led situation is more conducive to improving product greenness than the manufacturer-led situation. Moreover, consumer reference price effect would reduce the sharing ratio of a cost-sharing contract when the manufacturer dominates, but it could mitigate the problem of double marginalization by reducing wholesale and retail prices under both types of contracts, which would enhance consumer surplus.

Originality/value

It is a new attempt to incorporate consumer reference price effect and power structure into a green supply chain framework and proposes a novel demand function that simultaneously emphasizes consumer reference price effect, consumer environmental awareness and product green attribute. In addition, it provides managerial insights for business managers to choose green cooperative contracts with consumer reference price effect under different power structures.

Details

Kybernetes, vol. 52 no. 5
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 4 January 2023

Pan Liu

To study these issues, the authors chose a GFSC with one producer and one material supplier as research object, the supplier will offer green material to the producer and the…

Abstract

Purpose

To study these issues, the authors chose a GFSC with one producer and one material supplier as research object, the supplier will offer green material to the producer and the producer will make green food using green production technology. Then, the authors proposed that consumers' perceived value was determined by the trustworthiness levels of the related green and quality-safety information provided by the supplier and the producer. Then, considering the trustworthiness levels of the green and quality information provided by the supplier and the producer, the authors improved the demand function. Afterwards, we constructed four investment models and their income models are built and then a cost-sharing and revenue-sharing contract (hereafter, CSRS) was adopted to coordinate the GFSC.

Design/methodology/approach

With the growth of consumers environmental awareness and life level, consumers' requirements for green and high quality food are growing. In recently years, to increase consumers' perceived trustworthiness on the product greenness and quality levels, stakeholders in green food supply chain (hereafter, GFSC) start to adopt the blockchain-based traceability system (hereafter, BLTS). For investors, they need to know the investment conditions and how to coordinate the GFSC.

Findings

(1) When the revenue-sharing coefficient is less than three-fourths and higher then a certain vaule, the cost-sharing and revenue-sharing contract can make the GFSC coordinate. (2) The investment cost threshold of the BLTS has a positive relationship with the trustworthiness improvement levels of the green and quality information, the green degree of food products and the quality of food products. (3) In the proposed four investment situations, as the growth of consumers perceived credibility coefficient about the greenness information and the quality information, chain members' revenues will increase. In addition, comparing with co-investing the BLTS, benefits of chain members are lower than them in the sole investment model.

Originality/value

(1) The demand function we proposed can help chain members forecast market demand to support production or ordering decisions. (2) The investment decision policies can offer a theoretical reference for chain members to use the BLTS. (3) The CSRS will offer the theoretical reference for coordinating the supply chain after using the BLTS. Furthermore, our study method can be referenced by other scholars. (4) The study method can offer a method reference for researchers who do a similar discussion in a manufacturing supply chain. Although, our research cannot guide the industrial practices, it can serve as a reference of the similar research in industry.

Details

Kybernetes, vol. 53 no. 3
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 9 March 2021

Birgit Leisen Pollack

The purpose of this study is to provide insights into mechanism by which environmentally friendly initiatives positively affect a service firm's revenue stream. First, it explores…

Abstract

Purpose

The purpose of this study is to provide insights into mechanism by which environmentally friendly initiatives positively affect a service firm's revenue stream. First, it explores attributes consumers associate with green services. Second, it affirms the mediating role of warm emotions in connecting green services to satisfaction and customer loyalty. Third, it investigates a set of amplifiers of warm emotions. These are the green tendencies of the consumer and perceived motives for adopting environmentally friendly practices.

Design/methodology/approach

This research involved two studies. A critical incident study was used to tap into the consumer's perspective on green services. A total of 262 attributes of green services were categorized into overarching themes. A quantitative study addressed the mediating relationships and amplifiers of warm emotions. Pooled across three services, a total of 846 observations were analyzed.

Findings

The findings reveal that a consumer views a service as environmentally friendly if it exhibits green attributes in either the core service, service delivery process, service environment or peripheral service activities. The results of Study II affirm that warm emotions mediate the relationship between perceptions of the environmental friendliness of a service and customer satisfaction as well as customer loyalty. The study findings suggest that positive emotions are further strengthened by the level of greenness of the consumer and by a firm's money saving motives as well as environmental preservation motives the consumer attributes to the adoption of green practices.

Originality/value

This study advances the authors' understanding of what attributes consumers associate with service greenness. This research expands on the service greenness and positive emotions connection by including an initial set of amplifiers of positive emotions to include the greenness of the consumer and motives for adopting green practices.

Details

Journal of Service Theory and Practice, vol. 31 no. 4
Type: Research Article
ISSN: 2055-6225

Keywords

Article
Publication date: 20 February 2023

Yuhong Wang, Xiaoqi Sheng and Yudie Xie

This study aims to establish a centralized decision-making game model and manufacturer-led Stackelberg game model based on factors of risk aversion of supply chain members and…

Abstract

Purpose

This study aims to establish a centralized decision-making game model and manufacturer-led Stackelberg game model based on factors of risk aversion of supply chain members and product greenness. The research aims to study whether the introduction of the “cost + risk sharing” contract affects coordination of this type of green supply by calculating the optimal decision of each mode.

Design/methodology/approach

This research designs a supply chain model under centralized and decentralized decision-making. This model uses the Stackelberg game to calculate the optimal decision under decentralized decision-making to evaluate the effect of a green supply chain and then analyze the “cost + risk sharing” contract and the degree of coordination of the supply chain. A sensitivity analysis is conducted on the centralized mode for the impact of variables on the supply chain.

Findings

This research finds a double marginalization effect in decentralized decision-making, and the risk aversion coefficient plays a decisive role in the utility of supply chain members. The specific range of risk- and cost-sharing factors allows supply chain members to achieve Pareto improvements and provides decision-making based on the corresponding management strategies according to each other’s risk preference degree.

Research limitations/implications

The influence of each variable on the green supply chain in the centralized mode is studied by MATLAB numerical simulation. It provides reference for green supply chain members to formulate corresponding management strategies according to each other's risk preference degree.

Originality/value

This research innovatively considers manufacturers and retailers to explore the market demand for product greenness. It introduces a novel “cost + risk sharing” contract to coordinate the green supply chain.

Details

Chinese Management Studies, vol. 18 no. 1
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 21 October 2022

Shijuan Wang, Linzhong Liu, Jin Wen and Guangwei Wang

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…

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.

Details

Kybernetes, vol. 53 no. 1
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 2 March 2020

Xueping Zhen, Shuangshuang Xu, Dan Shi and Fangjun Liu

This study aims to explore the government’s subsidy preference and pricing decisions of a manufacturer who produces traditional and green product simultaneously under different…

Abstract

Purpose

This study aims to explore the government’s subsidy preference and pricing decisions of a manufacturer who produces traditional and green product simultaneously under different government subsidy policies.

Design/methodology/approach

The authors establish a model consisting of a government, a set of heterogeneous consumers and a manufacturer. Three government subsidy policies are investigated without government subsidy (NS), government subsidy to consumer (CS) and government subsidy to the manufacturer (MS).

Findings

The results show that the government subsidy can increase both the green product’s demand and the manufacturer’s profit. The subsidy level and government’s utility under the CS policy are equal to those under the MS policy. Furthermore, if the government’s subsidy level is exogenous, there exists a Pareto improvement region when social welfare for unit greenness level is high. That is, if the government’s subsidy level under the CS policy is higher than that under the MS policy, both government and manufacturer prefer the CS policy; otherwise, they prefer the MS policy.

Research limitations/implications

This paper considers the market where there is a monopoly green manufacturer and a government that only provides subsidy policy. In fact, competition from traditional manufacturers and carbon taxes are also worth exploring in future research.

Practical implications

This study provides some suggestions for government subsidy and provides guidance for the manufacturer’s pricing decisions under different government subsidy policies.

Originality/value

This paper is the first to compare government subsidy to consumer with a government subsidy to the manufacturer and investigate the pricing decisions of a manufacturer who produces traditional and green product simultaneously by considering an endogenous subsidy level of government.

Details

Nankai Business Review International, vol. 11 no. 3
Type: Research Article
ISSN: 2040-8749

Keywords

Article
Publication date: 24 October 2022

Ping Shi, Kun Han and Rui Hou

With the global spread of environmental education, environmental awareness is becoming increasingly important in daily life and economic activities. Sustainable development, as…

Abstract

Purpose

With the global spread of environmental education, environmental awareness is becoming increasingly important in daily life and economic activities. Sustainable development, as the most effective development approach to address global climate change, has gradually become a research hotspot in countries around the world. The authors combine sustainable development with supply chain management and incorporate into the study the objective issue of corporate fairness preferences in real society to explore the pricing and product greenness decision problem of a secondary sustainable supply chain consisting of a manufacturer producing green products and a retailer selling green products. In particular, the authors explore how supply chain decisions change when both the manufacturer and the retailer focus on fairness and how this fairness behavior affects pricing and product greenness decisions in sustainable supply chains.

Design/methodology/approach

The authors consider that the manufacturers' greening efforts lead to expanded demand at the retail end. Upstream and downstream firms in the supply chain have preferences for the fairness of transactions. The impact of the fairness behavior of upstream and downstream firms in the supply chain on supply chain decisions is explored by building a Stackelberg game model.

Findings

The results of this study show that the fairness concern behavior of manufacturers and retailers in the supply chain has an impact on product greenness, product pricing and corporate profits.

Originality/value

This study on the fairness concern behavior of supply chain firms integrates behavioral economics and supply chain management. First, the authors consider the equilibrium problem of supply chain members in the centralized channel when there are no fairness preferences. Second, the decision problem of firms in the decentralized channel when fairness is considered and when fairness preferences are not considered is explored. The authors compare these three cases to derive the corresponding propositions. Finally, the authors verify the previous conclusions and draw other conclusions using arithmetic analysis.

Details

Management Decision, vol. 61 no. 5
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 30 August 2022

Ayşen Coşkun, Michael Polonsky and Andrea Vocino

To achieve the UN’s 2030 agenda, consumers will need to behave more responsibly and make less environmentally harmful purchases. This study aims to investigate the antecedents of

Abstract

Purpose

To achieve the UN’s 2030 agenda, consumers will need to behave more responsibly and make less environmentally harmful purchases. This study aims to investigate the antecedents of consumers’ pro-environmental purchase intentions based on a range of motivating (i.e. attitudes, locus of control) and inhibiting factors (i.e. apathy and myopia) for a low-involvement product. It also tests the moderating effect of the greenness of a low-involvement product (green vs nongreen) on the consumer’s pro-environmental purchase intentions.

Design/methodology/approach

An online panel survey of 679 Turkish consumers was used. Structural equation modeling was used to test the hypothesized relationships.

Findings

The results suggest that while inhibiting factors (i.e. apathy and myopia) may not directly impede such purchase intentions, they could prevent consumers from considering the environmental characteristics of low-involvement products.

Practical implications

The insights are expected to assist marketers and policymakers to understand consumer psychological mechanisms when encouraging and promoting pro-environmental behavior in the context of low-involvement purchases, enhancing consumers contributing to the 2030 objectives.

Originality/value

This study examines the role of inhibiting factors behind the purchase of low-involvement goods. It also tests the moderating effect of the greenness of a low-involvement product on pro-environmental purchase intentions.

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