A behaviour-based pricing model of the green product supply chain

Environ Sci Pollut Res Int. 2021 Dec;28(46):65923-65934. doi: 10.1007/s11356-021-15659-8. Epub 2021 Jul 29.

Abstract

We study the pricing strategies of supply chains of green products under behaviour-based pricing. Considering consumer preferences for green product functional attributes and environmental attributes, we construct a two-stage supply chain. The optimal behaviour pricing of green products is solved, and the effects of green sensitivity and the cost coefficient on the optimal price are analysed. We find that when consumers are less sensitive to the greenness, with the increase in the market share of green products, green product retailers will increase the loyalty price. An increase in greenness sensitivity and a decrease in the greenness cost coefficient will increase the wholesale prices and retail prices of green products. Consumer attention to the greenness and a decrease in the initial market share of green products will be conducive to promoting the greenness and improving the environment. Consumers' emphasis on the greenness of their products will lead to higher profits for the manufacturers and retailers of green products.

Keywords: Behaviour-based pricing (BBP); Green degree; Green product supply chain (GPSC).

MeSH terms

  • Commerce*
  • Consumer Behavior*
  • Costs and Cost Analysis