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Behavior-Based Pricing of Green product Supply Chain in different channels considering consumer preference differences

  

  • Received:2022-03-23 Revised:2022-05-27 Published:2022-07-22

Abstract: This paper conducts a comparative analysis of different behavioural pricing strategies for green product supply chains (GPSCs). We assume that there are two types of consumers with different preferences for green products in the market. We construct a two-stage game model of GPSCs and non-GPSCs under three pricing strategies and compare the impact of different pricing strategies on GPSCs. We find that behaviour-based pricing (BBP) can promote the improvement of the level of greenness and that the growth rate of the level of greenness is the fastest under the strategy with retailer BBP. Under each BBP strategy, the pricing strategy for green products in different sales stages is affected by factors such as the rate of consumers with no difference in preferences, the cost coefficient of the level of greenness, and the sensitivity coefficient of the level of greenness. BBP is beneficial for improving the profit growth rate of green product retailers with a decrease in the rate of consumers with no difference in preferences.

Key words: Behaviour-based pricing, Green product supply chain, Differences in consumer preferences

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