Platform-led green advertising: Promote the best or promote by performance

Shaofu Du, Lei Wang, Li Hu and Yangguang Zhu

Transportation Research Part E: Logistics and Transportation Review, 2019, vol. 128, issue C, 115-131

Abstract: With the prevalence of platform economics and consumer green awareness, platform-led green advertising becomes an emerging issue in practice. We investigate this issue by simultaneously considering a product’s green performance and consumer’s green preference. Two strategies discussed systematically with Stackelberg models: Promote by Performance and Promote the Best. The results demonstrate the value of green advertising from both economic and environmental perspectives. The platform can make more profit using the Promote the Best strategy rather than the Promote by Performance strategy, although the former requires more investment. The related boundary and optimal decisions are identified and analyzed.

Keywords: Green consumption; Platform operations; Green advertising; Environmental preference (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (26)

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DOI: 10.1016/j.tre.2019.05.019

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