Optimal pricing with consumer environmental awareness and manufacturer’s fairness concern in supply chain

EasyChair Preprint no. 71

Abstract

The paper considers the impact of consumer environmental awareness (CEA) and manufacturer’s fairness concern on wholesale price and retail price in supply chain. We discuss two decision scenarios: decentralized model (scenario 1), manufacturer is concerned about disadvantageous inequity (scenario 2). Our analysis shows that: (1) when manufacturer is fair-minded, he wants to risk losses in favor of splitting the channel profit equally; (2) without fairness concern, both members’ profits increase with CEA; however, with fairness concern, both members’ profits may decrease with CEA; (3) compared with decentralized model, in case 2, manufacturer’s profits decline inevitably while retailer’s profits have half the chance to increase; manufacturer will not remove unfairness, but even risk losses.

Keyphrases: Consumer environmental awareness, Fairness concern, Green product., Pricing

@Booklet{EasyChair:71,
  author = {Linghong Zhang and Yanyan Liu and Chunyan Duan},
  title = {Optimal pricing with consumer environmental awareness and manufacturer’s fairness concern in supply chain},
  howpublished = {EasyChair Preprint no. 71},
  doi = {10.29007/9mnt},
  year = {EasyChair, 2018}}