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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: 7 February 2022

Aijun Liu, Yun Yang, Jie Miao, Zengxian Li, Hui Lu and Feng Li

The promotion of new energy vehicles (EVs) is an effective way to achieve low carbon emission reduction. This paper aims to investigate the optimal pricing of automotive supply…

Abstract

Purpose

The promotion of new energy vehicles (EVs) is an effective way to achieve low carbon emission reduction. This paper aims to investigate the optimal pricing of automotive supply chain members in the context of dual policy implementation while considering consumers' low-carbon preferences.

Design/methodology/approach

This article takes manufacturers, retailers and consumers in a main three-level supply chain as the research object. Stackelberg game theory is used as the theoretical guidance. A game model in which the manufacturer is the leader and the retailer is the follower is established. The author also considered the impact of carbon tax policies, subsidy policies and consumer preferences on the results. Furthermore, the author investigates the optimal decision-making problem under the profit maximization model.

Findings

Through model solving, it is found that the pricing of EVs is positively correlated with the unit price of carbon and the amount of subsidies. The following conclusions can be obtained by numerical analysis of each parameter. Changes in carbon prices have a greater impact on conventional gasoline vehicles. Based on the numerical analysis of parameter β, it is also found that when the government subsidizes consumers, supply chain members will increase their prices to obtain partial subsidies. Compared with retailers, low-carbon preferences have a greater impact on manufacturers.

Research limitations/implications

The new energy automobile industry involves many policies, including tax cuts, tax exemptions and subsidies. The policy environment faced by the members of a supply chain is complex and diverse. Therefore, the analysis in this article is based only on partial policies.

Originality/value

The authors innovatively combine the three factors of subsidy policy, carbon tax policy and consumer low-carbon preference, with research on the pricing of EVs. The influence of policy factors and consumer preferences on the pricing of EVs is studied.

Details

Kybernetes, vol. 52 no. 6
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 13 July 2015

Iain Watson, Steve Wood and John Fernie

This paper aims to explore the applied context of grocery retail pricing practice to understand how pricing executives approach “regular pricedecision-making (as opposed to…

2209

Abstract

Purpose

This paper aims to explore the applied context of grocery retail pricing practice to understand how pricing executives approach “regular pricedecision-making (as opposed to promotional pricing). The study seeks to inductively develop a model of regular price decision-making in grocery retailing.

Design/methodology/approach

The research uses an inductive methodology involving interviews with pricing executives working for grocery retailers that account for approximately 85 per cent of the UK, and 64 per cent of USA, grocery market retail sales. The approach is appropriate given the underdeveloped research insights into regular pricing within food retailers.

Findings

It is found that regular pricing is undertaken with little sophistication, typically, on the basis of simple, inflexible rules that result in conflicting goals. A typology of three pricing roles was identified, although all share an underdeveloped understanding of the effects of price changes on customer demand and the implications of competitor reactions. These contexts, causes and conditions lead to a range of consequences; notably, a degree of pricing inertia, “customer-less” pricing and “enforced symbiosis” – coping outcomes. Taken together, a theory of “passivity” pricing is identified.

Originality/value

The research presents a contribution to new knowledge in the field of retail marketing by developing theory in retail pricing. In contrast to much extant research on grocery pricing, this paper accesses the insights and opinions of the pricing executives themselves. It exposes the realities of regular price decision-making across two developed retail markets and offers managerial insights.

Details

European Journal of Marketing, vol. 49 no. 7/8
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 31 August 2010

Ching‐Wen Lin and Hsiao‐Chen Chang

The paper aims to explore the adoption attitudes of internal and external motivations by multinational enterprises (MNEs) concerning transfer pricing manipulation and to discuss…

6506

Abstract

Purpose

The paper aims to explore the adoption attitudes of internal and external motivations by multinational enterprises (MNEs) concerning transfer pricing manipulation and to discuss on pricing strategies of MNEs under different motives of transfer pricing manipulation.

Design/methodology/approach

The paper conducts literature reviews regarding motives of transfer pricing manipulation and then conducts questionnaire survey and expert interview to select and generalize the transfer pricing manipulation decision making. Analytic network process (ANP) is then applied to obtain factors' weights and model construction.

Findings

The paper finds that tax minimization is no longer the focus of transfer pricing manipulation strategies of Taiwanese MNEs, and their real concerns are winning maximum economic profits, enhancing the competitiveness of the enterprise, and effectively repatriating profits to parent companies in order to facilitate greater economic profits.

Research limitations/implications

It is found from the model that most of the transfer pricing manipulation motives are based on low‐price strategies, which circumvent the exchange rate risks of low quotes. A possible reason is that current business operational patterns that have been limited to the electronic industry adopt the quantity‐based pricing strategy of “narrow profit margin and large volume.” However, the transfer pricing manipulation has great influence on the financial structures of the enterprises. The enterprises, as a result, must understand and reinforce the working of pricing transfer manipulation in the business development.

Originality/value

The paper collects questionnaires and investigation results from experts and scholars and uses ANP to construct a complete pricing strategic decision‐making model that may be taken by actual MNEs under different motives, in order to provide reference to MNEs when making transfer pricing manipulation strategies.

Details

Industrial Management & Data Systems, vol. 110 no. 8
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 10 May 2019

Sof Thrane, Martin Jarmatz, Michael Fetahi Laursen and Katrine Kornmaaler

The purpose of this paper is to analyze price decision-making through a practice-based approach. The paper investigates the micro-level practices used to arrive at sales price

Abstract

Purpose

The purpose of this paper is to analyze price decision-making through a practice-based approach. The paper investigates the micro-level practices used to arrive at sales price decisions.

Design/methodology/approach

In this study, a qualitative study approach is used to develop findings abductively. The data are gathered through an in-depth case study at two firms: semi-structured interviews, meeting observations, shadowing and pricing documents.

Findings

This paper finds that pricing is a collective decision-making process involving multiple actors across the organization. The case firms work on solving information, coordination and control problems to arrive at sales prices by enacting interlinked practices. Pricing is therefore neither a structure nor a single decision but a process consisting of multiple micro-level practices that enable firms to make pricing decisions.

Originality/value

This paper develops a practice-based approach to pricing that conceptualize the micro-level practices used to to make pricing decisions in the face of information, coordination and control problems. The paper is interdisciplinary and adds to the accounting literature and the market literature, which have tended to study pricing as a decision made by one decision maker, and not as an organizational process where multiple actors share, evaluate, interpret and coordinate information and decisions.

Details

Qualitative Research in Accounting & Management, vol. 16 no. 1
Type: Research Article
ISSN: 1176-6093

Keywords

Article
Publication date: 30 October 2019

Zhenning Zhu, Lingcheng Kong, Jiaping Xie, Jing Li and Bing Cao

In the hybrid electricity market, renewable energy power generator faces the uncertainty of power market demand and the randomness of the renewable energy generation output. In…

Abstract

Purpose

In the hybrid electricity market, renewable energy power generator faces the uncertainty of power market demand and the randomness of the renewable energy generation output. In order to improve the grid-connected quantity of green power, the purpose of this paper is to design the pricing mechanism for renewable energy power generator with revenue-sharing contract in a two-stage “multi-single” electricity supply chain which contains a single dominant power retailer and two kinds of power suppliers providing different power energy species.

Design/methodology/approach

Considering the dual uncertainties of renewable energy power output and power market demand, the authors design the full-cooperative contract decision-making model, wholesale price contract decision-making model and revenue-sharing contract decision-making model to compare and optimize grid-connected pricing in order to maximize profit of different parties in power supply chain. Then, this paper performs a numerical simulation, discusses the existence of the equilibrium analytical solutions to satisfy the supply chain coordination conditions and analyzes the optimal contract parameters’ variation characteristics and their interaction relationship.

Findings

The authors find that the expected profits of the parties in the hybrid power supply chain are concave about their decision variables in each decision-making mode. The revenue-sharing contract can realize the Pareto improvement for all parties’ interest of the supply chain, and promote the grid-connected quantity of green power effectively. The grid-connected price will reduce with the increase of revenue-sharing ratio, and this impact will be greater on the renewable energy power. The greater the competition intensity in power supply side, the smaller the revenue-sharing ratio from power purchaser. And for the same rangeability of competition intensity, the revenue-sharing ratio reduction of thermal power is less than that of the green power. The more the government subsidizing green power supplier, the smaller the retailer sharing revenue to it.

Practical implications

Facing with the dual uncertainties of green power output and market demand and the competition of thermal power in hybrid electricity market, this study can provide a path to solve the problem of renewable energy power grid-connecting. The results can help green power become competitive in hybrid power market under loose regulations. And this paper suggests that the government subsidy policy should be more tactical in order to implement a revenue-sharing contract of the power supply chain.

Originality/value

This paper studies the renewable energy electricity grid-connected pricing under the uncertainty of power supply and market demand, and compares different contract decision-making strategies in order to achieve the power supply chain coordination. The paper also analyzes the competition between thermal power and renewable energy power in hybrid electricity market.

Details

Industrial Management & Data Systems, vol. 119 no. 9
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 12 September 2023

Mingzhen Song, Lingcheng Kong and Jiaping Xie

Rapidly increasing the proportion of installed wind power capacity with zero carbon emission characteristics will help adjust the energy structure and support the realization of…

Abstract

Purpose

Rapidly increasing the proportion of installed wind power capacity with zero carbon emission characteristics will help adjust the energy structure and support the realization of carbon neutrality targets. The intermittency of wind resources and fluctuations in electricity demand has exacerbated the contradiction between power supply and demand. The time-of-use pricing and supply-side allocation of energy storage power stations will help “peak shaving and valley filling” and reduce the gap between power supply and demand. To this end, this paper constructs a decision-making model for the capacity investment of energy storage power stations under time-of-use pricing, which is intended to provide a reference for scientific decision-making on electricity prices and energy storage power station capacity.

Design/methodology/approach

Based on the research framework of time-of-use pricing, this paper constructs a profit-maximizing electricity price and capacity investment decision model of energy storage power station for flat pricing and time-of-use pricing respectively. In the process, this study considers the dual uncertain scenarios of intermittency of wind resources and random fluctuations in power demand.

Findings

(1) Investment in energy storage power stations is the optimal decision. Time-of-use pricing will reduce the optimal capacity of the energy storage power station. (2) The optimal capacity of the energy storage power station and optimal electricity price are related to factors such as the intermittency of wind resources, the unit investment cost, the price sensitivities of the demand, the proportion of time-of-use pricing and the thermal power price. (3) The carbon emission level is affected by the intermittency of wind resources, price sensitivities of the demand and the proportion of time-of-use pricing. Incentive policies can always reduce carbon emission levels.

Originality/value

This paper creatively introduced the research framework of time-of-use pricing into the capacity decision-making of energy storage power stations, and considering the influence of wind power intermittentness and power demand fluctuations, constructed the capacity investment decision model of energy storage power stations under different pricing methods, and compared the impact of pricing methods on optimal energy storage power station capacity and carbon emissions.

Highlights

  1. Electricity pricing and capacity of energy storage power stations in an uncertain electricity market.

  2. Investment strategy of energy storage power stations on the supply side of wind power generators.

  3. Impact of pricing method on the investment decisions of energy storage power stations.

  4. Impact of pricing method, energy storage investment and incentive policies on carbon emissions.

  5. A two-stage wind power supply chain including energy storage power stations.

Electricity pricing and capacity of energy storage power stations in an uncertain electricity market.

Investment strategy of energy storage power stations on the supply side of wind power generators.

Impact of pricing method on the investment decisions of energy storage power stations.

Impact of pricing method, energy storage investment and incentive policies on carbon emissions.

A two-stage wind power supply chain including energy storage power stations.

Details

Industrial Management & Data Systems, vol. 123 no. 11
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 28 May 2021

Zhenning Zhu, Lingcheng Kong, Gulizhaer Aisaiti, Mingzhen Song and Zefeng Mi

In the hybrid electricity market consisting of renewable and conventional energy, the generation output of renewable power is uncertain because of its intermittency, and the power…

Abstract

Purpose

In the hybrid electricity market consisting of renewable and conventional energy, the generation output of renewable power is uncertain because of its intermittency, and the power market demand is also fluctuant. Meanwhile, there is fierce competition among power producers in the power supply market and retailers in the demand market after deregulation, which increases the difficulty of renewable energy power grid-connection. To promote grid-connection of renewable energy power in the hybrid electricity market, the authors construct different contract decision-making models in the “many-to-many” hybrid power supply chain to explore the pricing strategy of renewable energy power grid-connecting.

Design/methodology/approach

Considering the dual-uncertainty of renewable energy power output and electricity market demand, the authors construct different decision-making models of wholesale price contract and revenue-sharing contract to compare and optimize grid-connecting pricing, respectively, to maximize the profits of different participants in the hybrid power supply chain. Besides, the authors set different parameters in the models to explore the influence of competition intensity, government subsidies, etc. on power pricing. Then, a numerical simulation is carried out, they verify the existence of the equilibrium solutions satisfying the supply chain coordination, compare the differences of pricing contracts and further analyze the variation characteristics of optimal contract parameters and their interaction relations.

Findings

Revenue-sharing contract can increase the quantity of green power grid-connection and realize benefits Pareto improvement of all parties in hybrid power supply chain. The competition intensity both of power supply and demand market will have an impact on the sharing ratio, and the increase of competition intensity results in a reduction of power supply chain coordination pressure. The power contract price, spot price and selling price have all been reduced with the increase of the sharing ratio, and the price of renewable power is more sensitive to the ratio change. The sharing ratio shows a downward trend with the increase of government green power subsidies.

Originality/value

On the basis of expanding the definition of hybrid power market and the theory of newsvendor model, considering the dual-uncertainty of green power generation output and electricity market demand, this paper builds and compares different contract decision-making models to study the grid-connection pricing strategy of renewable energy power. And as an extension of supply chain structure types and management, the authors build a “many-to-many” power supply chain structure model and analyze the impact of competition intensity among power enterprises and the government subsidy on the power grid-connecting pricing.

Details

Industrial Management & Data Systems, vol. 121 no. 7
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 6 November 2017

Pedro Ferreira and Hugo Barbosa

This paper aims to contribute to the understanding of what influences consumers’ choice of mandatory prescribed drugs, by looking with more detail to the substitution of branded…

Abstract

Purpose

This paper aims to contribute to the understanding of what influences consumers’ choice of mandatory prescribed drugs, by looking with more detail to the substitution of branded drugs by generics. Specifically, this research looks at three factors that can influence this decision, namely, participative decision-making, perceived risk and price consciousness, within the recent changes introduced in the Portuguese pharmaceutical market by new legislation.

Design/methodology/approach

A cross-sectional study was conducted, using a self-administered questionnaire, to survey a sample of consumers/patients that visited a doctor and were prescribed some kind of drug. Data were treated using factor analysis for dimensionality reduction purposes and regression analysis to test the main hypothesis.

Findings

The results show that participative decision-making has no impact on purchase decision of generics, while perceived risk and price consciousness show a predictive power regarding purchase intention of generic drugs.

Research limitations/implications

Although the results are only applicable to the Portuguese context, it draws important conclusions regarding consumers’ behaviour when choosing between branded and generic drugs.

Practical implications

Knowing what influences consumers’ choices of generic drugs contributes to tune marketing strategies and actions. For public institutions, this paper offers insights on how to adapt public policies.

Originality/value

This paper is valuable because it is the first to look at the Portuguese pharmaceutical market from a consumer behaviour perspective since new legislation was set up.

Details

International Journal of Pharmaceutical and Healthcare Marketing, vol. 11 no. 4
Type: Research Article
ISSN: 1750-6123

Keywords

Article
Publication date: 1 June 2001

Joel E. Urbany

Economic theory depicts a price‐setter who is cognizant of both the incremental profit implications of changing price and likely competitive reactions. Marketplace observations…

2997

Abstract

Economic theory depicts a price‐setter who is cognizant of both the incremental profit implications of changing price and likely competitive reactions. Marketplace observations suggest otherwise; several studies and anecdotal evidence find a tendency for pricing to be driven by cost and market share rather than marginal profit. Further, recent evidence suggests that competitive reactions are often overlooked. This paper develops an explanation of these observations via decision accountability. The literature on accountability is based on the premise that in any social or organizational context, people are compelled to make decisions that can be justified. This justification involves searching for criteria on which those decisions will be judged by others and decision making which can be rationalized on those criteria. New evidence reviewed here suggests that people tend to justify decisions on the basis of more familiar and less ambiguous criteria, giving too little weight to more ambiguous but important considerations. The omission of future profit projections and competitive behavior in decision making, then, can be explained by ambiguity surrounding the estimation of these factors (relative to more concretely measured and familiar internal criteria). I examine three case studies that illustrate how firms have changed information strategy, culture, and competitive thinking in the interest of making profitability and competitive information more justifiable inputs for pricing decisions.

Details

Journal of Product & Brand Management, vol. 10 no. 3
Type: Research Article
ISSN: 1061-0421

Keywords

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