IDEAS home Printed from https://ideas.repec.org/a/hin/complx/6633893.html
   My bibliography  Save this article

Two-Stage Pricing Decision for Low-Carbon Products Based on Consumer Strategic Behaviour

Author

Listed:
  • Cheng Che
  • Zhihong Zhang
  • Xiaoguang Zhang
  • Yi Chen
  • Wei Zhang

Abstract

The development of information technology has changed the pricing strategy of retailers, and consumers have also made strategic consumption behaviours accordingly. At the same time, changes in the environment have caused changes in the retailer’s products and raised consumers’ environmental awareness. This paper uses a two-stage pricing model to study the low-carbon product pricing decisions of retailers based on strategic consumers with low-carbon preferences in two situations. Through the analysis of low-carbon and ordinary products in two situations, the following conclusions can be drawn: (1) In a market where retailers only sell low-carbon products, product prices and profits increase as consumers’ green preference θ increases. (2) In the low-carbon product and ordinary product markets, the price and profit of low-carbon products increase with regard to consumers’ green preference θ. (3) In the second stage, when consumers’ intertemporal discount factor β for ordinary products is larger than that of low-carbon products, the retailer’s total profit is smaller. The research conclusion comprehensively analyses the impact of customer strategic behaviour on the two-stage pricing decision of green differentiated products, which provides a very important reference for retailers to make pricing optimization decisions.

Suggested Citation

  • Cheng Che & Zhihong Zhang & Xiaoguang Zhang & Yi Chen & Wei Zhang, 2021. "Two-Stage Pricing Decision for Low-Carbon Products Based on Consumer Strategic Behaviour," Complexity, Hindawi, vol. 2021, pages 1-12, January.
  • Handle: RePEc:hin:complx:6633893
    DOI: 10.1155/2021/6633893
    as

    Download full text from publisher

    File URL: http://downloads.hindawi.com/journals/complexity/2021/6633893.pdf
    Download Restriction: no

    File URL: http://downloads.hindawi.com/journals/complexity/2021/6633893.xml
    Download Restriction: no

    File URL: https://libkey.io/10.1155/2021/6633893?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
    ---><---

    More about this item

    Statistics

    Access and download statistics

    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:hin:complx:6633893. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Mohamed Abdelhakeem (email available below). General contact details of provider: https://www.hindawi.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.