IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i21p13807-d952068.html
   My bibliography  Save this article

Pricing Decisions with Effect of Advertisement and Greening Efforts for a Greengocer

Author

Listed:
  • Nita Shah

    (Department of Mathematics, Gujarat University, Ahmedabad 380009, Gujarat, India)

  • Pratik Shah

    (Department of Mathematics, Gujarat University, Ahmedabad 380009, Gujarat, India
    Department of Mathematics, C U Shah Government Polytechnic, Surendranagar 363035, Gujarat, India)

  • Milan Patel

    (Department of Mathematics, Gujarat University, Ahmedabad 380009, Gujarat, India)

Abstract

Organic farming has become popular and in demand among health-conscious people nowadays. Organic vegetables are grown using organic seeds and natural fertilizers. People have turned to using organic food products not only due to them being fresh and full of nutrition but also being eco-friendly. The present study is carried out to outline pricing decisions for a greengrocer of organic products. The grocer grows and sells fresh vegetables with the input of greening efforts. The grocer uses advertisements to promote sales. Product demand is influenced by the selling price of the product, greening efforts, and advertising efforts. The problem is formulated into a mathematical model to obtain optimum policies to maximize the total profit of the greengrocer. The model is validated by an illustration. The impact of small-scale changes in inventory parameters on decision variables is studied to analyze managerial aspects. The results show that the sales volume increases due to advertisements and greening efforts up to a certain level. Once the peak sales level is achieved, such investments are of no use, and they cause a drop in overall profit. The selling price of the product can be reduced in the absence of advertisement efforts, but, eventually, it causes a fall in the sales volume.

Suggested Citation

  • Nita Shah & Pratik Shah & Milan Patel, 2022. "Pricing Decisions with Effect of Advertisement and Greening Efforts for a Greengocer," Sustainability, MDPI, vol. 14(21), pages 1-12, October.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:21:p:13807-:d:952068
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/21/13807/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/21/13807/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Michael Greenstone & Rema Hanna, 2014. "Environmental Regulations, Air and Water Pollution, and Infant Mortality in India," American Economic Review, American Economic Association, vol. 104(10), pages 3038-3072, October.
    2. Ata Allah Taleizadeh & Bita Hazarkhani & Ilkyeong Moon, 2020. "Joint pricing and inventory decisions with carbon emission considerations, partial backordering and planned discounts," Annals of Operations Research, Springer, vol. 290(1), pages 95-113, July.
    3. 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).
    4. Nan Li & Mingjiang Deng & Hanshu Mou & Deshan Tang & Zhou Fang & Qin Zhou & Changgao Cheng & Yingdi Wang, 2022. "Government Participation in Supply Chain Low-Carbon Technology R&D and Green Marketing Strategy Optimization," Sustainability, MDPI, vol. 14(14), pages 1-27, July.
    5. Hovelaque, Vincent & Bironneau, Laurent, 2015. "The carbon-constrained EOQ model with carbon emission dependent demand," International Journal of Production Economics, Elsevier, vol. 164(C), pages 285-291.
    6. Zhang, Linghong & Wang, Jingguo & You, Jianxin, 2015. "Consumer environmental awareness and channel coordination with two substitutable products," European Journal of Operational Research, Elsevier, vol. 241(1), pages 63-73.
    7. Gao Xiang Lou & Hai Yang Xia & Jie Qiong Zhang & Ti Jun Fan, 2015. "Investment Strategy of Emission-Reduction Technology in a Supply Chain," Sustainability, MDPI, vol. 7(8), pages 1-25, August.
    8. Ouardighi, Fouad El & Sim, Jeong Eun & Kim, Bowon, 2016. "Pollution accumulation and abatement policy in a supply chain," European Journal of Operational Research, Elsevier, vol. 248(3), pages 982-996.
    9. S Swami & J Shah, 2013. "Channel coordination in green supply chain management," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 64(3), pages 336-351, March.
    10. Ghosh, Debabrata & Shah, Janat, 2015. "Supply chain analysis under green sensitive consumer demand and cost sharing contract," International Journal of Production Economics, Elsevier, vol. 164(C), pages 319-329.
    11. Jingna Ji & Dengli Tang & Jiansheng Huang, 2022. "Green Credit Financing and Emission Reduction Decisions in a Retailer-Dominated Supply Chain with Capital Constraint," Sustainability, MDPI, vol. 14(17), pages 1-26, August.
    12. Bowon Kim & Jeong Eun Sim, 2016. "Supply Chain Coordination and Consumer Awareness for Pollution Reduction," Sustainability, MDPI, vol. 8(4), pages 1-20, April.
    13. Kangzhou Wang & Yingxue Zhao & Yonghong Cheng & Tsan-Ming Choi, 2014. "Cooperation or Competition? Channel Choice for a Remanufacturing Fashion Supply Chain with Government Subsidy," Sustainability, MDPI, vol. 6(10), pages 1-19, October.
    14. Nita H. Shah & Pratik H. Shah & Milan B. Patel, 2021. "Retailer’s inventory decisions with promotional efforts and preservation technology investments when supplier offers quantity discounts," OPSEARCH, Springer;Operational Research Society of India, vol. 58(4), pages 1116-1132, December.
    15. Nurah M. Alzamel & Eman M. M. Taha & Abeer A. A. Bakr & Naglaa Loutfy, 2022. "Effect of Organic and Inorganic Fertilizers on Soil Properties, Growth Yield, and Physiochemical Properties of Sunflower Seeds and Oils," Sustainability, MDPI, vol. 14(19), pages 1-18, October.
    16. B.C. Giri & A. Dash & A.K. Sarkar, 2020. "A single-vendor single-buyer supply chain model with price and green sensitive demand under batch shipment policy and planned backorder," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 13(3), pages 299-321.
    17. Haiyan Shan & Chen Zhang & Guo Wei, 2020. "Bundling or Unbundling? Pricing Strategy for Complementary Products in a Green Supply Chain," Sustainability, MDPI, vol. 12(4), pages 1-25, February.
    18. Kang Pan & Feng He, 2022. "Does Public Environmental Attention Improve Green Investment Efficiency?—Based on the Perspective of Environmental Regulation and Environmental Responsibility," Sustainability, MDPI, vol. 14(19), pages 1-20, October.
    19. Chenbo Zhu & Juntian Yue & Jing Chen, 2022. "Green Product Development and Order Strategies for Retailers," Sustainability, MDPI, vol. 14(15), pages 1-18, August.
    20. Eva-Marie Meemken & Matin Qaim, 2018. "Organic Agriculture, Food Security, and the Environment," Annual Review of Resource Economics, Annual Reviews, vol. 10(1), pages 39-63, October.
    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. Bowon Kim & Jeong Eun Sim, 2016. "Supply Chain Coordination and Consumer Awareness for Pollution Reduction," Sustainability, MDPI, vol. 8(4), pages 1-20, April.
    2. Yang Tong & Yina Li, 2018. "External Intervention or Internal Coordination? Incentives to Promote Sustainable Development through Green Supply Chains," Sustainability, MDPI, vol. 10(8), pages 1-20, August.
    3. Chen, Wenbo, 2018. "Retailer-driven carbon emission abatement with consumer environmental awareness and carbon tax: Revenue-sharing versus Cost-sharingAuthor-Name: Yang, Huixiao," Omega, Elsevier, vol. 78(C), pages 179-191.
    4. Yenipazarli, Arda, 2017. "To collaborate or not to collaborate: Prompting upstream eco-efficient innovation in a supply chain," European Journal of Operational Research, Elsevier, vol. 260(2), pages 571-587.
    5. Shan Chang & Bin Hu & Xiuhong He, 2019. "Supply Chain Coordination in the Context of Green Marketing Efforts and Capacity Expansion," Sustainability, MDPI, vol. 11(20), pages 1-22, October.
    6. Yang, Huixiao & Luo, Jianwen & Wang, Haijun, 2017. "The role of revenue sharing and first-mover advantage in emission abatement with carbon tax and consumer environmental awareness," International Journal of Production Economics, Elsevier, vol. 193(C), pages 691-702.
    7. Avinadav, Tal & Levy, Priel, 2023. "The effect of an uncertain commission rate on the decisions of a capital-constrained developer," Operations Research Perspectives, Elsevier, vol. 11(C).
    8. Liming Zhao & Ling Li & Yao Song & Cong Li & Yujie Wu, 2018. "Research on Pricing and Coordination Strategy of a Sustainable Green Supply Chain with a Capital-Constrained Retailer," Complexity, Hindawi, vol. 2018, pages 1-12, January.
    9. Wen Cheng & Qunqi Wu & Fei Ye & Qian Li, 2022. "The Impact of Government Interventions and Consumer Green Preferences on the Competition between Green and Nongreen Supply Chains," Sustainability, MDPI, vol. 14(10), pages 1-34, May.
    10. Sim, Jeongeun & Kim, Bowon, 2021. "Regulatory versus consumer pressure and retailer responsibility for upstream pollution in a supply chain," Omega, Elsevier, vol. 101(C).
    11. Heydari, Jafar & Bineshpour, Pegah & Walther, Grit & Ülkü, M. Ali, 2022. "Reconciling conflict of interests in a green retailing channel with green sales effort," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    12. Zhongwei Feng & Chunqiao Tan, 2019. "Pricing, Green Degree and Coordination Decisions in a Green Supply Chain with Loss Aversion," Mathematics, MDPI, vol. 7(3), pages 1-25, March.
    13. Kelei Xue & Guohua Sun & Yuyan Wang & Shuiye Niu, 2021. "Optimal Pricing and Green Product Design Strategies in a Sustainable Supply Chain Considering Government Subsidy and Different Channel Power Structures," Sustainability, MDPI, vol. 13(22), pages 1-26, November.
    14. Xia, Senmao & Ling, Yantao & de Main, Leanne & Lim, Ming K. & Li, Gendao & Zhang, Peter & Cao, Mengqiu, 2022. "Creating a low carbon economy through green supply chain management: investigation of willingness-to-pay for green products from a consumer’s perspective," LSE Research Online Documents on Economics 116895, London School of Economics and Political Science, LSE Library.
    15. Abhishek Srivastava & Abhishek Chakraborty & Arqum Mateen, 2022. "Role of power imbalance on channel coordination under greening investments," OPSEARCH, Springer;Operational Research Society of India, vol. 59(4), pages 1522-1554, December.
    16. Chen, Xu & Wang, Xiaojun & Chan, Hing Kai, 2017. "Manufacturer and retailer coordination for environmental and economic competitiveness: A power perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 97(C), pages 268-281.
    17. Maher Agi & Xinghao Yan, 2020. "Greening products in a supply chain under market segmentation and different channel power structures," Post-Print hal-02898158, HAL.
    18. Konur, Dinçer, 2017. "Non-collaborative emission targets joining and quantity flow decisions in a Stackelberg setting," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 105(C), pages 60-82.
    19. Jingna Ji & Dengli Tang & Jiansheng Huang, 2022. "Green Credit Financing and Emission Reduction Decisions in a Retailer-Dominated Supply Chain with Capital Constraint," Sustainability, MDPI, vol. 14(17), pages 1-26, August.
    20. Arash Sepehri & Umakanta Mishra & Ming-Lang Tseng & Biswajit Sarkar, 2021. "Joint Pricing and Inventory Model for Deteriorating Items with Maximum Lifetime and Controllable Carbon Emissions under Permissible Delay in Payments," Mathematics, MDPI, vol. 9(5), pages 1-27, February.

    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:gam:jsusta:v:14:y:2022:i:21:p:13807-:d:952068. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.