Cooperative and Non-Cooperative Green Advertising in the Low-Carbon Supply Chain under Monopoly or Competitive Market

Hong Zeng, Dongqin Jiang and Yimeng Li
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Hong Zeng: School of Economics, Guizhou University, Guiyang 550025, China
Dongqin Jiang: School of Management, Guizhou University, Guiyang 550025, China
Yimeng Li: School of Management, Guizhou University, Guiyang 550025, China

Sustainability, 2022, vol. 14, issue 15, 1-22

Abstract: Customers feel a degree of ambiguity associated with low-carbon products, such as remanufactured products, and undervalue them. Although green advertising significantly impacts consumers’ acceptance of remanufactured products and the low-carbon supply chain (LCSC), limited research has been carried out on advertisement decisions for remanufactured products in the LCSC. This study introduces a two-echelon remanufacturing supply chain motivated by the practice of applying green advertising to update consumers’ low-carbon awareness. We use a game-theoretical approach to analyze the remanufacturer’s and retailer’s decisions on the green advertising program (non-coop vs. co-op green advertising) under different competitive scenarios in the LCSC. We find that the LCSC’s and the retailer’s profits are optimal in the non-coop green advertising under the monopoly, but the LCSC’s and the remanufacturer’s profits are optimal in the co-op green advertising under the competition. We suggest that the entry and royalty fees can be applied to coordinate the LCSC under different competitive scenarios.

Keywords: cooperative green advertising; the low-carbon supply chain; coordination; competition (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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