Non-differentiated green product positioning: Roles of uncertainty and rationality

Yenming J. Chen and Jiuh-Biing Sheu

Transportation Research Part E: Logistics and Transportation Review, 2017, vol. 103, issue C, 248-260

Abstract: This study examines the effect of market uncertainty and consumer rationality on product strategy when a company evaluates its entry into the green market. The risk in launching a green product is high because consumers may not be as environmentally conscious as they claim to be. This study develops a composite condition consisting of preference uncertainty, loss aversion, investment cost, and competition intensity to guide companies to react either conservatively or aggressively. An upgraded non-differentiation strategy is suggested for heterogeneous markets, loss-averse consumers, or high-quality reference when the indicator falls within the greenness range. Unlike conventional competitive analysis for non-green products, differentiation may not always be the best option to benefit the entire society and non-differentiation to green is favorable in the context of our analysis.

Keywords: Green marketing; Green product strategy; Vertical competition game; Purchase preference uncertainty; Consumer loss aversion (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1366554516307141
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:transe:v:103:y:2017:i:c:p:248-260

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/bibliographic
http://www.elsevier. ... 600244/bibliographic

DOI: 10.1016/j.tre.2017.05.005

Access Statistics for this article

Transportation Research Part E: Logistics and Transportation Review is currently edited by W. Talley

More articles in Transportation Research Part E: Logistics and Transportation Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().