IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v78y2024ics0969698923004137.html
   My bibliography  Save this article

Is the advertisement policy for dual-channel profitable for retailing and consumer service of a retail management system under emissions-controlled flexible production system?

Author

Listed:
  • Mridha, Bablu
  • Sarkar, Biswajit
  • Cárdenas-Barrón, Leopoldo Eduardo
  • Ramana, G.V.
  • Yang, Liu

Abstract

Presently, by reducing carbon emissions, biorefineries are very much careful to build a green environment. Several rules and regulations are imposed by the government to provide a comparatively better eco-friendly environment. To control the carbon emission rate, the cap-and-trade policy is intimated in this flexible biofuel production model. To reduce per unit carbon emission, manufacturers impose the advanced green technology. As online and offline selling is crucial to any industry for increasing customer demand, manufacturers sell their products by dual-channel and advertise to promote their products through online channel to make their biofuel products more popular. Keeping these in mind, a study on a sustainable flexible production of biofuel is considered here by imposing an investment in green technology cap-and-tax policy, and advertising for biofuels. A smart inspection, known as autonomation policy, is considered such that the quantity of impure biofuel is reduced. An offline selling price, online selling price, and online advertisement of biofuel-depended demand are considered for each manufacturer. This study is divided into two cases: with and without investment in green technology. The main goal of this research is to manage a dual-channel retailing for biofuel production systems under multiple manufacturers for gaining more profit. To get global optimality of profit function and decision variables, a classical optimization technique is applied. In addition, numerical experiments are carried out along with sensitivity analysis and graphical representation to show the applicability and optimality of this study. Numerical experiments prove that industries achieve 4.37% more profit when green technology is invested. The flexible production system shows 7.09% more profit than the traditional production system. In case of advertisement policy for dual-channel investment, the proposed model provides 2.55% more profit than the without investment. Numerical results indicate that industries receive 2.56% more profit when autonomation policy is applied for an error-free inspection. Finally, it can be stated that the advertisement policy based on a sustainable flexible biofuel production system with controlled-emissions is the best retailing strategy for the dual-channel supply chain.

Suggested Citation

  • Mridha, Bablu & Sarkar, Biswajit & Cárdenas-Barrón, Leopoldo Eduardo & Ramana, G.V. & Yang, Liu, 2024. "Is the advertisement policy for dual-channel profitable for retailing and consumer service of a retail management system under emissions-controlled flexible production system?," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:joreco:v:78:y:2024:i:c:s0969698923004137
    DOI: 10.1016/j.jretconser.2023.103662
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698923004137
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2023.103662?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kar, Sumi & Basu, Kajla & Sarkar, Biswajit, 2023. "Advertisement policy for dual-channel within emissions-controlled flexible production system," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    2. Sarkar, Biswajit & Sarkar, Mitali & Ganguly, Baishakhi & Cárdenas-Barrón, Leopoldo Eduardo, 2021. "Combined effects of carbon emission and production quality improvement for fixed lifetime products in a sustainable supply chain management," International Journal of Production Economics, Elsevier, vol. 231(C).
    3. He, Zhou & Cheng, T.C.E. & Dong, Jichang & Wang, Shouyang, 2016. "Evolutionary location and pricing strategies for service merchants in competitive O2O markets," European Journal of Operational Research, Elsevier, vol. 254(2), pages 595-609.
    4. Correa, Diego F. & Beyer, Hawthorne L. & Fargione, Joseph E. & Hill, Jason D. & Possingham, Hugh P. & Thomas-Hall, Skye R. & Schenk, Peer M., 2019. "Towards the implementation of sustainable biofuel production systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 107(C), pages 250-263.
    5. Huddleston, Patricia T. & Behe, Bridget K. & Driesener, Carl & Minahan, S., 2018. "Inside-outside: Using eye-tracking to investigate search-choice processes in the retail environment," Journal of Retailing and Consumer Services, Elsevier, vol. 43(C), pages 85-93.
    6. Carling, Kenneth & HÃ¥kansson, Johan & Jia, Tao, 2013. "Out-of-town shopping and its induced CO2-emissions," Journal of Retailing and Consumer Services, Elsevier, vol. 20(4), pages 382-388.
    7. Cheung, Millissa F.Y. & To, W.M., 2011. "Customer involvement and perceptions: The moderating role of customer co-production," Journal of Retailing and Consumer Services, Elsevier, vol. 18(4), pages 271-277.
    8. Ji, Jingna & Zhang, Zhiyong & Yang, Lei, 2017. "Comparisons of initial carbon allowance allocation rules in an O2O retail supply chain with the cap-and-trade regulation," International Journal of Production Economics, Elsevier, vol. 187(C), pages 68-84.
    9. Kim, T. & Glock, C. H., 2018. "Production planning for a two-stage production system with multiple parallel machines and variable production rates," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 90347, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    10. Bogomolova, Svetlana & Dunn, Steven & Trinh, Giang & Taylor, Jennifer & Volpe, Richard J., 2015. "Price promotion landscape in the US and UK: Depicting retail practice to inform future research agenda," Journal of Retailing and Consumer Services, Elsevier, vol. 25(C), pages 1-11.
    11. Maruyama, Masayoshi & Wu, Lihui & Huang, Lin, 2016. "The modernization of fresh food retailing in China: The role of consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 30(C), pages 33-39.
    12. Shareef, Mahmud Akhter & Mukerji, Bhasker & Dwivedi, Yogesh K. & Rana, Nripendra P. & Islam, Rubina, 2019. "Social media marketing: Comparative effect of advertisement sources," Journal of Retailing and Consumer Services, Elsevier, vol. 46(C), pages 58-69.
    13. Cui, Xingwen & Xie, Qinghong & Zhu, Jing & Shareef, Mahmud Akhter & Goraya, M. Awais Shakir & Akram, Muhammad Shakaib, 2022. "Understanding the omnichannel customer journey: The effect of online and offline channel interactivity on consumer value co-creation behavior," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    14. Carling, Kenneth & Håkansson, Johan & Jia, Tao, 2013. "Out-of-Town Shopping and Its Induced CO2-Emissions," HUI Working Papers 87, HUI Research.
    15. Al-Amin Khan, Md. & Shaikh, Ali Akbar & Konstantaras, Ioannis & Bhunia, Asoke Kumar & Cárdenas-Barrón, Leopoldo Eduardo, 2020. "Inventory models for perishable items with advanced payment, linearly time-dependent holding cost and demand dependent on advertisement and selling price," International Journal of Production Economics, Elsevier, vol. 230(C).
    16. Wang, Xing-Xin & He, Ai-Zhong, 2022. "The impact of retailers’ sustainable development on consumer advocacy: A chain mediation model investigation," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    17. Raj, Praveen Vijaya Raj Pushpa & Nagarajan, Bagathsingh & Schoenherr, Tobias & Ramkumar, M., 2023. "A comparative investigation of a seller’s disaster payment period policy," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 171(C).
    18. Tsai, Pei-Hsuan & Lin, Guan-Yi & Zheng, Yu-Lin & Chen, Yi-Chong & Chen, Pao-Zhen & Su, Zheng-Cheng, 2020. "Exploring the effect of Starbucks' green marketing on consumers' purchase decisions from consumers’ perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 56(C).
    19. Li, Mengyu & Li, Jinglei & Yasin, Megat Al Imran & Hashim, Norliana Binti & Ang, Lay Hoon & Bidin, Rosmiza, 2022. "Impact of celebrity-endorsed environmental advertisements on green economy development," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    20. Rad, M. A. & Khoshalhan, F. & Glock, C. H., 2018. "Optimal production and distribution policies for a two-stage supply chain with imperfect items and price- and advertisement-sensitive demand: A note," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 84500, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    21. Faaiqa Hartley & Dirk van Seventer & Emilio Tostão & Channing Arndt, 2019. "Economic impacts of developing a biofuel industry in Mozambique," Development Southern Africa, Taylor & Francis Journals, vol. 36(2), pages 233-249, March.
    22. Namin, Aidin & Ratchford, Brian T. & Soysal, Gonca P., 2017. "An empirical analysis of demand variations and markdown policies for fashion retailers," Journal of Retailing and Consumer Services, Elsevier, vol. 38(C), pages 126-136.
    23. Nasiri, G. Reza & Deymeh, Hadi & Karimi, Behrooz & Miandoabchi, Elnaz, 2021. "Incorporating sales and marketing considerations into a competitive multi-echelon distribution network design problem with pricing strategy in a stochastic environment," Journal of Retailing and Consumer Services, Elsevier, vol. 62(C).
    24. Allard, Thomas & Babin, Barry & Chebat, Jean-Charles & Crispo, Martine, 2009. "Reinventing the branch: An empirical assessment of banking strategies to environmental differentiation," Journal of Retailing and Consumer Services, Elsevier, vol. 16(6), pages 442-450.
    25. Bikash Koli Dey & Sarla Pareek & Muhammad Tayyab & Biswajit Sarkar, 2021. "Autonomation policy to control work-in-process inventory in a smart production system," International Journal of Production Research, Taylor & Francis Journals, vol. 59(4), pages 1258-1280, February.
    26. Alrawad, Mahmaod & Lutfi, Abdalwali & Alyatama, Sundus & Al Khattab, Adel & Alsoboa, Sliman S. & Almaiah, Mohammed Amin & Ramadan, Mujtaba Hashim & Arafa, Hussin Mostafa & Ahmed, Nazar Ali & Alsyouf, , 2023. "Assessing customers perception of online shopping risks: A structural equation modeling–based multigroup analysis," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    27. Kim, Taebok & Glock, Christoph H., 2018. "Production planning for a two-stage production system with multiple parallel machines and variable production rates," International Journal of Production Economics, Elsevier, vol. 196(C), pages 284-292.
    28. Ullah, Mehran & Sarkar, Biswajit, 2020. "Recovery-channel selection in a hybrid manufacturing-remanufacturing production model with RFID and product quality," International Journal of Production Economics, Elsevier, vol. 219(C), pages 360-374.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hota, Soumya Kanti & Sarkar, Biswajit & Ghosh, Santanu Kumar & Cheikhrouhou, Naoufel & Treviño-Garza, Gerardo, 2024. "What should be the best retail strategy to deal with an unequal shipment from an unreliable manufacturer?," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    2. Mishra, Mowmita & Ghosh, Santanu Kumar & Sarkar, Biswajit & Sarkar, Mitali & Hota, Soumya Kanti, 2024. "Risk management for barter exchange policy under retail industry," Journal of Retailing and Consumer Services, Elsevier, vol. 77(C).
    3. Chauhan, Ruchi & Majumder, Arunava & Kumar, Varun, 2023. "The impact of adopting customization policy and sustainability for improving consumer service in a dual-channel retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    4. Saxena, Neha & Sarkar, Mitali & Sarkar, Biswajit, 2024. "Which retail strategy for shelf life products can satisfy consumers under game policy?," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    5. Sarkar, Biswajit & Dey, Bikash Koli, 2023. "Is online-to-offline customer care support essential for consumer service?," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    6. Sarkar, Biswajit & Kar, Sumi & Pal, Anita, 2024. "Does the bullwhip effect really help a dual-channel retailing with a conditional home delivery policy?," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
    7. Datta, Alotosh & Sarkar, Biswajit & Dey, Bikash Koli & Sangal, Isha & Yang, Liu & Fan, Shu-Kai S. & Sardar, Suman Kalyan & Thangavelu, Lakshmi, 2024. "The impact of sales effort on a dual-channel dynamical system under a price-sensitive stochastic demand," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    8. Kar, Sumi & Basu, Kajla & Sarkar, Biswajit, 2023. "Advertisement policy for dual-channel within emissions-controlled flexible production system," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    9. Biswajit Sarkar & Bikash Koli Dey & Mitali Sarkar & Ali AlArjani, 2021. "A Sustainable Online-to-Offline (O2O) Retailing Strategy for a Supply Chain Management under Controllable Lead Time and Variable Demand," Sustainability, MDPI, vol. 13(4), pages 1-26, February.
    10. Ventura, José A. & Bunn, Kevin A. & Venegas, Bárbara B. & Duan, Lisha, 2021. "A coordination mechanism for supplier selection and order quantity allocation with price-sensitive demand and finite production rates," International Journal of Production Economics, Elsevier, vol. 233(C).
    11. Cai, Ya-Jun & Lo, Chris K.Y., 2020. "Omni-channel management in the new retailing era: A systematic review and future research agenda," International Journal of Production Economics, Elsevier, vol. 229(C).
    12. Bikash Koli Dey & Hyesung Seok, 2024. "Intelligent inventory management with autonomation and service strategy," Journal of Intelligent Manufacturing, Springer, vol. 35(1), pages 307-330, January.
    13. Yang, Lei & Tang, Ruihong, 2019. "Comparisons of sales modes for a fresh product supply chain with freshness-keeping effort," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 125(C), pages 425-448.
    14. Zhou, Qin & Meng, Chao & Yuen, Kum Fai & Sheu, Jiuh-Biing, 2021. "Remanufacturing authorization strategy for an original equipment manufacturer-contract manufacturer supply chain: Cooperation or competition?," International Journal of Production Economics, Elsevier, vol. 240(C).
    15. Jing Li & Pingyu Zhang & Kevin Lo & Meng Guo & Mark Wang, 2015. "Reducing Carbon Emissions from Shopping Trips: Evidence from China," Energies, MDPI, vol. 8(9), pages 1-15, September.
    16. Zhao, Pengxiang & Kwan, Mei-Po & Qin, Kun, 2017. "Uncovering the spatiotemporal patterns of CO2 emissions by taxis based on Individuals' daily travel," Journal of Transport Geography, Elsevier, vol. 62(C), pages 122-135.
    17. Dhahri, Akrem & Gharbi, Ali & Ouhimmou, Mustapha, 2022. "Integrated production-delivery control policy for an unreliable manufacturing system and multiple retailers," International Journal of Production Economics, Elsevier, vol. 245(C).
    18. Kim, Hongbum & Ryu, Min Ho & Lee, Daeho & Kim, Jang Hyun, 2022. "Should a small-sized store have both online and offline channels? An efficiency analysis of the O2O platform strategy," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    19. Carling, Kenneth & Han, Mengjie & Håkansson, Johan & Meng, Xiangli & Rudholm, Niklas, 2014. "Measuring CO2 Emissions Induced by Online and Brick-and-mortar Retailing," HUI Working Papers 106, HUI Research.
    20. Jia, Tao & Carling, Kenneth & Håkansson, Johan, 2013. "Trips and their CO2 emissions to and from a shopping center," Journal of Transport Geography, Elsevier, vol. 33(C), pages 135-145.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:78:y:2024:i:c:s0969698923004137. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.