Pricing Policies of Green Dual-Channel Supply Chain with Fairness Concerns and Altruistic Preferences Based on Consumers’ Environmental Awareness and Channel Preference

Genhasi Ge (), Daoping Wang and Mesumbe Bianca Epede
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Genhasi Ge: School of Economics and Management, University of Science and Technology Beijing, Beijing 100083, China
Daoping Wang: School of Economics and Management, University of Science and Technology Beijing, Beijing 100083, China
Mesumbe Bianca Epede: School of Economics and Management, University of Science and Technology Beijing, Beijing 100083, China

IJERPH, 2022, vol. 19, issue 20, 1-28

Abstract: Taking into consideration fairness concerns and altruistic preferences of manufacturers, this paper aims to propose a green dual-channel supply chain that incorporates consumers’ environmental awareness (CEA) and channel preference. The purpose of this work is to explore and further compare the optimal outcomes in a green dual-channel supply chain in three scenarios, which are the fairness-neutrality scenario (Model N ), the manufacturer is concerned with fairness scenario (Model F ), and the manufacturer has altruistic preference (Model A ), respectively. The game-theoretical models with different fairness preferences, comparative, and numerical analyses are used to put forward the impacts of consumers’ channel preference and CEA on pricing, profits, and utilities, and to identify the differences in decisional outcomes between the three models. The results indicate that CEA always contributes to developing the green market while adversely affecting common products. Moreover, consumers’ channel preferences might enable the manufacturer and retailer to enhance profitability under certain conditions. The findings also reveal that manufacturer’s fairness concerns can possibly increase the demand for green products but impair the overall performance of the supply chain in general. Moreover, while the manufacturer’s altruistic preference benefits the retailer’s profits, it has a detrimental effect on the performance of the green supply chain. The practical implications of this research come to promote green consumption and increasing consumer awareness of environmental protection are effective ways to develop a green supply chain. It is also important to note that in order to maintain the durability and stability of the sup-ply chain, the manufacturer must maintain a moderate level of fairness preference behaviors so that downstream retailers will remain enthusiastic about establishing long-term relationships.

Keywords: pricing policies; green dual-channel supply chain; fairness concern; altruistic preference; CEA; channel preference (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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