The Optimal Green Product Quality And Price Strategies Considering Consumer Environmental Awareness And Government Subsidy

With the increasingly serious environmental problems,the importance of environmental protection has been increasingly focused.The government implements environmental protection policies and strengthen publicity as well as guidance,consumers pay more and more attention to environmental protection,and the acceptance capacity of environmental protection products is gradually increasing.In such circumstances,many enterprises pay more and more attention to the production of green products with higher environmental quality.In addition,although consumers’ environmental awareness is gradually enhanced,there are still quantities of non-green consumers in the market.Their demand and purchase behavior also affect the production decision of environmental protection products enterprises greatly.It is also necessary for enterprises to pay attention to the difference in the income level of consumers,and consumers with different income levels have different demands on the functional properties of products.Therefore,considering the heterogeneity of consumers,it is worth studying deeply.Because of the high cost of environmental protection,the enterprises need the support of government policies to promote green production.This paper comprehensively considers the heterogeneity of consumers’ awareness of environmental protection and income level,and analyzes the influence of consumers proportion of high environmental awareness,high-income consumers proportion and different environmental subsidy modes on environmental protection enterprises’ decision-making from the practical background of the existing green production subsidy mode,and then studies the impact on economic and environmental benefits,in order to provide reference for the production decision-making and government subsidy decision-making of environmental protection enterprises.The main work of this paper is as follows.Firstly,considering the heterogeneity of consumers,the market is divided into four segmental markets based on consumers’ environmental awareness and income level,and the product green degree and price decision-making model are constructed to analyze the optimal decision-making of enterprises under different market strategies,and then to explore the influence of the proportion of consumers with high environmental awareness,the proportion of high-income people,the consumer quality valuation and other factors on the optimal decisionmaking,enterprise profits and environmental impact Environmental benefits,etc.The results show that consumers’ utility evaluation of product quality and market share of each segment have a great influence on the choice of enterprise’s market strategy,and then affect enterprise’s profit and environmental performance.Green product development does not always increase environmental quality but may reduce environmental friendliness.The strategy of maximizing the profit of the monopolist may not always conflict with the strategy of maximizing the environmental quality.Based on the analysis before,the optimal decision-making and optimal value under three different situations(no government subsidy,manufacturer subsidy and consumer subsidy)are compared and analyzed,and the effectiveness of the conclusions is verified by numerical simulation.The results show that: Government subsidies for environmental protection are conducive to enhancing market demand and product green degree,increasing manufacturers’ profits,thus encouraging manufacturers to produce environmental protection products,and promoting environmental protection.Under the restriction of government budget,the strategy of profit maximization does not conflict with the strategy of enhancing environmental quality.Under the budget constraint,the subsidy intensity of the two kinds of government subsidies has different degrees of impact on enterprise profits and environmental quality.Compared with consumer subsidies,manufacturer subsidies have greater impact potential on the increase of environmental quality when they are large enough.When the government intervenes,it is necessary to find the balance point between subsidy budget and environmental benefits,so as to promote the development of environmental quality.This paper brings consumers’ environmental awareness and income level into the market segmentation variables innovatively at the same time,which is more close to the reality,and pays attention to the influence of government subsidies on enterprise production decisionmaking,and further explores the influence of two kinds of financial subsidies on enterprise decision-making and environmental quality,so as to provide theoretical reference for enterprises and the government to make better decisions.