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Article
Publication date: 19 March 2018

Avinash Tripathi and Neeraj Pandey

The discount image associated with odd-ending prices has led to its extensive use by retailers. The purpose of this study is to assess the impacts and applications of nine-ending…

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Abstract

Purpose

The discount image associated with odd-ending prices has led to its extensive use by retailers. The purpose of this study is to assess the impacts and applications of nine-ending vs round-ending prices on the purchase of green and non-green products at different price levels and under different purchase motivations.

Design/methodology/approach

Three experiments are conducted. The first experiment is a 2 (price ending: nine-ending vs round-ending) × 2 (product appeal: green vs non-green) between-subjects study; the second experiment is a 2 (price ending: nine-ending vs round-ending) × 2 (price level: low price vs high price) × 2 (product appeal: green vs non-green) between-subjects study; and the third experiment examined buyers’ preferences of price endings regarding the purchase of green products having either utility (utilitarian) or pleasure (hedonic) motivation.

Findings

This research highlights that consumers prefer zero-ending prices for green products and pleasure motivation products, but they prefer odd endings for low-priced and utilitarian products. These results support the increased reception of round-ending prices. Accordingly, this study contributes to the literature by providing a boundary condition for odd-ending prices. Specifically, the study finds that the effect of nine-ending prices becomes weaker as the price of the product increases.

Practical implications

The findings of this study have practical implications for managers, as the results indicate that pricing green products and high-quality perception products using round digits and pricing low-priced and utility perception products using odd digits will increase consumers’ purchase intentions. Moreover, pricing the products using round-ending prices will reduce the perception of low quality and deter brand loyalty emanating from a low-priced/discount image of a product.

Originality/value

This research contributes to theoretical and practical aspects of behavioural pricing literature. This research uncovers the buyers’ distinct preferences for zero-ending prices and odd-ending prices when purchasing different products based on different motivations and varied price levels. This is the first research of its kind to explore and compare the impact of psychological pricing on green products. The study also resolves a contradiction in past literature regarding the use of nine-ending prices by providing boundary conditions.

Details

Journal of Consumer Marketing, vol. 35 no. 2
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 16 July 2024

Soumita Ghosh, Abhishek Chakraborty and Alok Raj

This study aims to examine how fairness concerns and power structure in dyadic green supply chains impact retail price, supply chain profits and greening level decisions.

Abstract

Purpose

This study aims to examine how fairness concerns and power structure in dyadic green supply chains impact retail price, supply chain profits and greening level decisions.

Design/methodology/approach

This study develops game-theoretic models considering fairness concerns and asymmetric power structures under an iso-elastic demand setting. The research paper employs the Stackelberg game approach, taking into consideration the fairness concern of the channel leader.

Findings

The findings indicate that under fairness, there is an increase in both wholesale and retail prices, as well as greening expenditures. Notably, when comparing the two models (manufacturer Stackelberg and retailer Stackelberg), double marginalization is more pronounced in the retailer Stackelberg setup than in the manufacturer Stackelberg setup. In a traditional supply chain with iso-elastic demand, the follower typically extracts higher profit compared to the leader; however, our results show that, under fairness conditions, the leader achieves higher profit than the follower. Additionally, our study suggests that supply chain coordination is unattainable in a fairness setup. This paper provides insights for managers on the optimal supply chain structure and the level of fairness to maximize profit.

Originality/value

This paper investigates the impact of a leader's fairness on the optimal decisions within a green supply chain, an area that has received limited attention previously. Additionally, the study investigates how fairness concerns manifest in distinct power dynamics, specifically, in the contexts of manufacturer Stackelberg and retailer Stackelberg.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 17 May 2024

Chengli Zheng, Jiayu Jin and Liyan Han

This paper originally proposed the fuzzy option pricing method for green bonds. Based on the requirements of arbitrage equilibrium, this paper draws on Merton's corporate bond…

Abstract

Purpose

This paper originally proposed the fuzzy option pricing method for green bonds. Based on the requirements of arbitrage equilibrium, this paper draws on Merton's corporate bond option pricing model.

Design/methodology/approach

Describing the asset value behavior of green bond issuing enterprises through diffusion-jump processes to reflect the uncertainty brought by carbon emission reduction policies and technologies, using approximation methods to get the analytical pricing formula and then, using a fuzzification technique of Choquet expectation under  λ-additive fuzzy measures after considering fuzzy factors, the paper provides fuzzy intervals for the parity coupon rates of green bonds with different subjective levels for investors.

Findings

The paper proposes and argues the classical and fuzzy option pricing methods in turn for both corporate ordinary bonds and green bonds, considering carbon risk or climate risk. It implements the scenario analysis varying with industry emission standards and discusses the sensitiveness of the related key parameters of the option.

Practical implications

The fuzzy option pricing for the green bonds provides the scope of the variable equilibrium values, operational theoretical supports and some policy implications of carbon reduction and promoting green funding.

Originality/value

The logic of introducing the fuzziness of the option pricing for the green bonds lies with considering the existence of fuzzy information about the project supported by the green bond and the subjectivity of investors and it also responds to changes in technological uncertainty and policy uncertainty in the process of “carbon peaking and carbon neutrality.”

Details

China Finance Review International, vol. 14 no. 2
Type: Research Article
ISSN: 2044-1398

Keywords

Article
Publication date: 18 January 2024

Nor Nazihah Chuweni, Nurul Sahida Fauzi, Asmma Che Kasim, Sekar Mayangsari and Nurhastuty Kesumo Wardhani

Sustainability represents innovative elements in determining the profitability of real estate investments, among other factors, including the green component in real estate…

Abstract

Purpose

Sustainability represents innovative elements in determining the profitability of real estate investments, among other factors, including the green component in real estate. Evidence from the literature has pointed out that incorporating green features into residential buildings can reduce operational costs and increase the building’s value. Although green real estate is considered the future trend of choice, it is still being determined whether prospective buyers are willing to accept the extra cost of green residential investment. Therefore, this study aims to investigate the effect of housing attributes and green certification on residential real estate prices.

Design/methodology/approach

The impact of the housing attribute and green certification in the residential sectors was assessed using a transaction data set comprising approximately 861 residential units sold in Selangor, Malaysia, between 2014 and 2022. Linear and quantile regression were used in this study by using SPSS software for a robust result.

Findings

The findings indicate that the market price of residential properties in Malaysia is influenced by housing attributes, transaction types and Green Building Index certification. The empirical evidence from this study suggests that green certification significantly affects the sales price of residential properties in Malaysia. The findings of this research will help investors identify measurable factors that affect the transaction prices of green-certified residential real estate. These identifications will facilitate the development of strategic plans aimed at achieving sustainable rates of return in the sustainable residential real estate market.

Practical implications

Specifically, this research will contribute to achieving area 4 of the 11th Malaysia Plan, which pertains to pursuing green growth for sustainability and resilience. This will be achieved by enhancing awareness among investors and homebuyers regarding the importance of green residential buildings in contributing to the environment, the economy and society.

Originality/value

The regression model for housing attributes and green certification on house price developed in this study could offer valuable benefits to support and advance Malaysia in realising its medium and long-term goals for green technology.

Details

International Journal of Housing Markets and Analysis, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 14 August 2017

Kushagra Kulshreshtha, Vikas Tripathi, Naval Bajpai and Prince Dubey

This paper aims to explore surprising facets of consumer delight behavior. The study is the empirical juncture of three studies based on consumer survey on the Indian television…

1142

Abstract

Purpose

This paper aims to explore surprising facets of consumer delight behavior. The study is the empirical juncture of three studies based on consumer survey on the Indian television market. Study 1 traces the existence of greenies in India among brownies prevailing around the globe by using the surprise-delight model. Study 2 is a pre-intervention research design confirming greenies preferences to television attributes such as screen technology, annual energy cost saving, screen resolution, screen size and free gifts. Study 3 signifies a price intervention design by allowing customers to include their preference by replacing the annual energy cost saving with price.

Design/methodology/approach

This paper is a harvest of studies based on discriminant analysis for identifying green and brown customers and a two-level conjoint analysis for identifying attributes contributing to green behavior.

Findings

The empirical generalization of a study comes out with unique findings of the greenies and brownies and their preference and attitude toward green attribution and substitution. A “preferential green shift” appeared as a vital output owing to knowledge–attitude–practice from these consecutive studies. This gap exists because of the price factor. The authors suggest the measures for improvement in product offering by targeting and positioning green products from the findings and the preferential green shift.

Research limitations/implications

Future research may focus on other segments of products such as automobiles, i.e. cars. Despite the availability of the non-probabilistic sampling technique, the probabilistic sampling technique can be used. Finally, a larger sample size could have given a better generalization of results.

Originality/value

The gap in knowledge–attitude–practice was evident. This gap was caused by the presence of “price” concern. The study revealed that heavy consumer durable buyers are aware of the benefit of green, but the reality of price cannot be ignored and finally make a purchasing decision on the basis of price criteria. Hence price is recommended as another criterion to be considered in the technology acceptance models.

Details

foresight, vol. 19 no. 4
Type: Research Article
ISSN: 1463-6689

Keywords

Article
Publication date: 19 February 2020

Ata Allah Taleizadeh, Mahsa Noori-Daryan and Shib Sankar Sana

This paper aims to deal with optimal pricing and production tactics for a bi-echelon green supply chain, including a producer and a vendor in presence of three various scenarios…

Abstract

Purpose

This paper aims to deal with optimal pricing and production tactics for a bi-echelon green supply chain, including a producer and a vendor in presence of three various scenarios. Demand depends on a price, refund and quality where the producer controls quality and the vendor proposes a refund policy to purchasers to encourage them to order more.

Design/methodology/approach

In the first scenario, the members seek to optimize their optimum decision variables under a centralized decision-making method while in the second scenario, a decentralized system is assumed where the members make a decision about variables and profits under a non-cooperative game. In the third scenario, a cost-sharing agreement is concluded between the members to provide a high-quality item to the purchasers.

Findings

The performance of the proposed model is investigated by illustrating a numerical example. A sensitivity analysis of some key parameters has been done to study the effect of the changes on the optimal values of the decision variables and profits. From sensitivity analysis, the real features are observed and mentioned in this section.

Originality/value

This research examines the behavior of partners in a green supply chain facing with a group of purchasers whose demand is the function of a price, greenery degree and refund rate. This proposed mathematical model is developed and analyzed which has an implication in supply chain model.

Details

Journal of Modelling in Management, vol. 15 no. 4
Type: Research Article
ISSN: 1746-5664

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: 11 June 2019

Vinay Ramani, Sanjeev Swami and Debabrata Ghosh

The purpose of this paper is to study the impact of collaboration between supply chain entities in a dyadic setting where the manufacturer invests in greening and technology…

Abstract

Purpose

The purpose of this paper is to study the impact of collaboration between supply chain entities in a dyadic setting where the manufacturer invests in greening and technology adoption effort leading to a price premium effect for the supply chain players.

Design/methodology/approach

The paper uses game theoretic approach to analyze the model of inter-firm interaction in a vertical channel setting consisting of a retailer and manufacturer. The paper studies strategic decisions of the channel members in a decentralized and centralized structure and extends this to decision making under contractual settings.

Findings

A two-part tariff completely coordinates the green supply chain, while a cost sharing and revenue sharing contract only achieve partial coordination. Nevertheless, a cost sharing, as well as a revenue sharing contract, increases the greening and technological adoption effort by the manufacturer while yielding the supply chain members a strictly larger profit. Furthermore, a revenue sharing contract in comparison to a cost sharing contract, leads to a larger greening and technological adoption effort by the manufacturer, lower wholesale and retail prices and a strictly larger profit for both the manufacturer and the retailer.

Originality/value

This paper contributes to the green supply chain pricing, technology and contract literature considering strategic interactions between a manufacturer and retailer in a supply chain under price premium effects of greening activities and technological advancements.

Details

Benchmarking: An International Journal, vol. 28 no. 5
Type: Research Article
ISSN: 1463-5771

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: 15 February 2013

Wadu Mesthrige Jayantha and Wan Sze Man

It is known that people's expectation towards their living “green” is increasing. Green features are now regarded as one of the important considerations of buyers in purchasing a…

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Abstract

Purpose

It is known that people's expectation towards their living “green” is increasing. Green features are now regarded as one of the important considerations of buyers in purchasing a property. This research paper aims to investigate the significance of the green features of residential buildings to property buyers.

Design/methodology/approach

HK‐BEAM certification and HK‐GBC Award are used as the measurement of green residential buildings. The study used a hedonic price model to determine whether there is a relationship between green features and residential property price and the influence of green features on the residential property price if there is such relationship.

Findings

The empirical results show that green features have a significant and positive relationship with residential property price. People are willing to pay more for green buildings recognized by HK‐BEAM and HK‐GBC. They are willing to pay a sale price premium ranging from 3.4 percent to 6.4 percent. Furthermore, a relatively larger premium is found in Hong Kong Island compared to the New Territories.

Research limitations/implications

The results imply that environmentally friendly green buildings both increase the value of a property and attract property buyers; and well‐recognized green building schemes add value to properties and hence increase the property price.

Originality/value

The study has contributed an indication of the amount a buyer would be willing to pay for quality green buildings as a reference for users, developers and investors. The study sheds light on the ability of the market to capitalize environmental considerations in investment decisions.

Details

Journal of Facilities Management, vol. 11 no. 1
Type: Research Article
ISSN: 1472-5967

Keywords

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