Pricing Policies in a Retailer Stackelberg O2O Green Supply Chain

Gan Wan, Gang Kou, Tie Li, Feng Xiao and Yang Chen
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Gan Wan: School of Management and Economics, University of Electronic Science and Technology of China, Cheng Du 611731, China
Gang Kou: School of Business Administration, Southwestern University of Finance and Economics, Cheng Du 611130, China
Tie Li: School of Management and Economics, University of Electronic Science and Technology of China, Cheng Du 611731, China
Feng Xiao: School of Business Administration, Southwestern University of Finance and Economics, Cheng Du 611130, China
Yang Chen: School of Business Administration, Southwestern University of Finance and Economics, Cheng Du 611130, China

Sustainability, 2020, vol. 12, issue 8, 1-16

Abstract: Due to the popularization of the concept of “new retailing”, we study a new commercial model named O2O (online-to-offline), which is a good combination model of a direct channel and a traditional retail channel. We analyze an O2O supply chain in which manufacturers are responsible for making green products and selling them through both online and offline channels. The retailer is responsible for all online and offline channels’ orders, and the manufacturer gives the retailer a fixed fee. We construct a mathematical function model and analyze the greenness and pricing strategies of centralized and decentralized settings through the retailer Stackelberg game model. Due to the effects of the double marginalization of supply chain members, we adopt a simple contract to coordinate the green supply chain. The paper’s contributions are that we obtain pricing and greening strategies by taking the cooperation of offline channels and online channels into consideration under the O2O green supply chain environment.

Keywords: green products; pricing policy; retailer Stackelberg game; O2O (online-to-offline) supply chain; channel coordination (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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