IDEAS home Printed from https://ideas.repec.org/a/taf/reroxx/v35y2022i1p2960-2983.html
   My bibliography  Save this article

Optimal pricing strategy for green products under salience theory

Author

Listed:
  • Zhiyi Meng
  • Na Zhao
  • Bin Shen
  • Chang Zhai

Abstract

Environmental pressures and people's demands for green consumption have prompted manufacturers to engage in the research and development of green products. Manufacturers need to consider the price and greenness of products when making production decisions. This paper analyzes the level of greenness and price competition of duopoly manufacturers in the consumer market in which both green-sensitive consumers (salience to greenness) and price-sensitive consumers (salience to price) exist simultaneously according to salience theory. We find that the regular manufacturer will enter the green market when all consumers’ average degree of price responsiveness is small or in a moderate part of the region. In addition, this paper also discusses the influence of salience on manufacturers’ level of greenness and pricing strategy choice. We find that the degree of salient thinking of consumers influences optimal pricing, optimal greenness and profits under the uniform pricing and price discrimination mechanisms.

Suggested Citation

  • Zhiyi Meng & Na Zhao & Bin Shen & Chang Zhai, 2022. "Optimal pricing strategy for green products under salience theory," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 35(1), pages 2960-2983, December.
    • Handle: RePEc:taf:reroxx:v:35:y:2022:i:1:p:2960-2983
    DOI: 10.1080/1331677X.2021.1985572
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1331677X.2021.1985572
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1331677X.2021.1985572?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.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zolfagharinia, Hossein & Zangiabadi, Maryam & Hafezi, Maryam, 2023. "How much is enough? Government subsidies in supporting green product development," European Journal of Operational Research, Elsevier, vol. 309(3), pages 1316-1333.
    2. Shehawy, Yasser Moustafa & Ali Khan, Syed Md Faisal, 2024. "Consumer readiness for green consumption: The role of green awareness as a moderator of the relationship between green attitudes and purchase intentions," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).

    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:taf:reroxx:v:35:y:2022:i:1:p:2960-2983. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rero .

    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.