Decision-Making in Dual-Channel Green Supply Chain Considering Market Structure

Abstract

With the increasing awareness of environmental protection among consumers, green products are increasingly favored by the general public. The rapid development of e-commerce has increased the channels for consumers to contact and purchase green products. In this paper, consumers' perceived differences in product greenness among different channels are considered and three models of manufacturer-dominated Stackelberg game, retailer-dominated Stackelberg game and Nash equilibrium with equal power are constructed based on the difference pricing between online and offline channels. Also, the results of dual-channel structure are compared with those of single-channel respectively. The results show that when the green R & D costs are relatively high, manufacturers and retailers are motivated to compete as channel leaders, but for the entire supply chain, Nash's decision-making can improve product greenness and profitability of the supply chain. When green R & D costs are low, manufacturers' profits are higher under asymmetric power supply chains and lowest under vertical Nash decisions. Under the three kinds of power structure, product greenness and manufacturer's profit are higher than single channel under dual-channel structure. The comparison of retailer's profit in dual channel and single channel depends on green R & D costs.

Decision-Making and Performance Analysis of Closed-Loop Supply Chain under Different Recycling Modes and Channel Power Structures

“…They derive that if the sales cost is high, a powerful retailer can lower the selling prices and make the supply chain system more efficient. Considering consumers' perceived differences in product greenness among different channels, Xu and Zhang [60] build three models of manufacturer-dominated Stackelberg game, retailer-dominated Stackelberg game and Nash equilibrium to investigate how the different market structure affect the green decision-making and profit of a dual-channel green supply chain. Sane Zerang et al [61] present a three-echelon CLSC where the market demand is sensitive with selling price and marketing efforts under centralized and three decentralized policies respectively.…”

Supply chain channel conflict coordination with consumer network acceptance

“…While changing the company's business model and sales methods, it has continuously improved the consumer shopping experience, but also accompanied by the conflicts, selections and design of supply chain channels (Wu et al , 2012). Currently, on the development of supply chain channels (Jaśkowski et al , 2018; Kozlenkova et al , 2015) and research (Peng et al , 2018; Zhang et al , 2018; Xu and Zhang, 2018; Chang and Gotcher, 2010) have caused discussions among many industry delegates and scholars. Two streams of research are closely related to this study: supply chain channel conflict and coordination strategy.…”

“…We will discuss the supply chain conflict from the three aspects of causes, performance and results. In terms of cause, some scholars believe that the main reason for the conflict is in the traditional distribution channels, the distributor is independent of the manufacturer's economy, both sides aim at maximizing their interests, resulting in the classic double marginalization problem (Zhong, 2002; Zhang et al , 2018; Xu and Zhang, 2018). The main source of channel conflicts comes from differences in goals, differences in desired product lines, multiple distribution channels and inadequacies in performance (Mahmoud et al , 2011).…”

Social-Welfare Aspects of Green Decision-Making in Channel Competition with Government Financial Intervention

“…Previous studies have explored the issue that a manufacturer aiming to increase market demand often introduces a direct channel to sell a product [20]. In modern business, online shops have emerged as powerful, independent retailers that can compete with manufacturers and other physical retailers.…”