Research On Pricing Decision Of Green Supply Chain Considering Consumers’ Preference Under Government Subsidy

Environmental issues like resource scarcity and ecological harm are becoming more and more evident due to the rapid pace of economic globalization,making it necessary to safeguard the environment and encourage green growth.In this context,the green supply chain management model has arisen and is utilized frequently by businesses.This model can reduce resource waste and environmental pollution by adhering to the principle of environmental protection during the processes of product manufacture,distribution,use,and disposal.Pricing,which is the act of charging customers for goods or services,is essential to a sustainable supply chain.All commercial activities in green supply chains are centered on the consumer,and member companies’ pricing and financial success are largely influenced by consumer preferences.Government subsidies are also helpful for the balanced growth of economic and ecological advantages since they are a formidable policy tool for unleashing the potential of domestic demand and motivating businesses to produce.Therefore,it is crucial to examine the issue of price choices for green supply chains that take into account customer preferences under government subsidies.The research object in this paper is the green supply chain.First,starting with the concept of the green supply chain,we systematically analyze the government subsidy factors and consumer preference factors that affect the pricing decision of the green supply chain,and we provide a detailed description of the green supply chain pricing problem to provide theoretical support for the establishment of the model.Second,the Stackelberg game model is built in two scenarios based on the dual-channel sales model,assuming that there are only green consumers in the market: Without and with government subsidies,the inverse induction method is used to determine the best pricing strategy and maximum profit for green supply chain participants,with a focus on how government subsidies,consumer preferences for green products,and consumer channel preferences affect these choices.Eventually,customers in the market are classified into regular consumers and green consumers in accordance with the heterogeneity of consumer preferences,and the consumer utility functions are contrasted under the two alternative scenarios of government subsidies and subsidies.As a result,many customer kinds’ purchase decisions are discovered.Analyze the impact of government subsidies,customer preferences for green products,the degree of greenness of those products,consumer evaluation value mean value,and consumer evaluation value standard deviation on the profitability of those involved in the green supply chain.The results of the study are summarized as follows:(1)The pricing decision-making model of green supply chain considering consumer preference under government subsidy.Government subsidies for consumers who buy green products have been found to have a positive impact on the sales price and demand of green products and a negative impact on the wholesale price,sales price,and demand of common products.This helps manufacturers earn more money and encourages the creation of green products.Government subsidies help boost the overall profit of the green supply chain,despite the fact that they to some extent reduce the sales of retailers selling ordinary products.Regardless of whether the government implements subsidies,consumer preferences for green products have a favorable impact on their demand and sales,while having a negative impact on the wholesale price,sales price,and demand of ordinary products.The preferences of consumers vary between channels as well.The level of customer preference for offline channels has a favorable impact on the selling price,wholesale price,and demand of common products supplied through offline channels,while having a negative impact on the selling price and demand of green products offered through direct internet channels.(2)The pricing decision-making model of green supply chain considering consumer preference under consumer segmentation.It is found that whether manufacturers set lower or medium green product prices,government subsidies to consumers who purchase green products positively affect green product prices and help manufacturers’ economic efficiency.Regardless of whether government subsidies are implemented,consumer green preferences and greenness of green products positively affect manufacturers’ profits when green product prices are medium;manufacturers’ profits are not affected by green product prices when they are low or high.In addition,the mean value of consumer evaluations positively affects manufacturers’ profits regardless of government subsidies or not and regardless of manufacturers’ price strategies.When the price of green products is medium or high,the standard deviation of consumer value positively affects manufacturers’ profits;when the price of green products is low,the standard deviation of consumer value negatively affects manufacturers’ profits.