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What the 'Green' Consumer Wants
... Evidence suggests that consumers are willing to pay a relatively higher price for various green products (Johnston et al., 2001;Roe et al., 2001;Cason and Gangadharan, 2002;Loureiro and Hine, 2002;Loureiro, McCluskey and Mittelhammer, 2002;Moon et al., 2002;Bjørner, Hansen and Russell, 2004;Shen, 2012). However, Nisel (2001) and Hopkins and Roche (2009) found that price is an insignificant determiner in the purchase decision of the consumers. ...
... Past studies indicate that consumers are generally willing to pay a premium price for green products, but the amount that they are willing to pay will vary according to product category and other factors such as potential savings resulting from the purchase, perceived benefits and perceived functionality of the products (Hopkins and Roche, 2009;Hamzaoui-Essoussi and Linton, 2010;Drozdenko, Jensen and Coelho, 2011). A study by the Boston Consulting Group reviewed that different categories of products command different premiums in the market (Hopkins and Roche, 2009). ...
... Past studies indicate that consumers are generally willing to pay a premium price for green products, but the amount that they are willing to pay will vary according to product category and other factors such as potential savings resulting from the purchase, perceived benefits and perceived functionality of the products (Hopkins and Roche, 2009;Hamzaoui-Essoussi and Linton, 2010;Drozdenko, Jensen and Coelho, 2011). A study by the Boston Consulting Group reviewed that different categories of products command different premiums in the market (Hopkins and Roche, 2009). Jay (1990) concluded that green marketers targeting green consumers must be able to balance between the setting of green products prices with consumers' cost sensitivity and their willingness to pay for environmental safety. ...
With a growing awareness on the need to provide better care for the environment, there is a greater need to understand the factors that facilitate environmentally-sustainable behaviour among the populace. Various researchers have studied factors influencing investors' willingness to invest in the past. This study however covers a segment of finance research, specifically behavioural finance as it examines investors' perceived consumer effectiveness (PCE). Specifically, this study examines the role of investor behaviour on corporate environmental strategies, which is relatively an underexplored field of study. This study contributes to the theme of sustainable development, more precisely, sustainable finance. The study of sustainable finance has become the attention of investors around the world and this study aims to analyse whether this sector of investment (green companies) will interest investors. It is proposed that consumers' concern towards the environment and perceived consumer effectiveness are significant predictors of investors' willingness to invest in the shares of environmentally-friendly firms in Malaysia. An understanding of the role of concern for the environment and perceived consumer effectiveness on investors' willingness to invest in environmentally-friendly firms will be useful to the government and NGOs in the formulation of policies that would encourage investment in firms that are sensitive towards the needs of the environment.
... According to Polonsky (1994), a majority of people believe that green marketing refers solely to the promotion or advertising of products with environmental characteristics [10]. According to Hopkins (2009), products category and perceived benefits are important factors in determining consumers' willingness to pay a premium for green products [11]. Similarly, a conclusion according to Yankelovich (2008) stated that consumers' willingness to pay more for green products has declined even through concerns about green issues have risen [12]. ...
... According to Polonsky (1994), a majority of people believe that green marketing refers solely to the promotion or advertising of products with environmental characteristics [10]. According to Hopkins (2009), products category and perceived benefits are important factors in determining consumers' willingness to pay a premium for green products [11]. Similarly, a conclusion according to Yankelovich (2008) stated that consumers' willingness to pay more for green products has declined even through concerns about green issues have risen [12]. ...
Although environment issues influence all human activities, few academic disciplines have integrated green issues into their literature. This is especially true in case of marketing. As society becomes more concerned about the natural environment, businesses have begun to modify their behaviour in an attempt to address society's "new" concerns. The issues of environmentally sensitive marketing has evolved and become more specific over time. If we will make a comparison of the causes of environmental problems related to marketing from the '70s with those of the 21 st century, then first categories of pollution that is ozone depletion and population issues were identified in both eras. Environmentally Conscious Behaviour is consumer behaviour based on some awareness of the environmental impacts associated with a product or services, and a desire to reduce those impacts. Many researchers in the field of consumer's psychology and market research have demonstrated through their studies that how product developers and marketers have capitalized on this positive attitude and effectively differentiated their products in terms of their "environmentally friendly" character. Present paper is based on the study of the consumer's attitude toward the green goods (products or services). It was important to point out that ancient India advocated the use of eco-friendly products in daily life like products manufactured from the plants, and thier leafs, different parts of the trees, natural colour extracted from the different flowers etc. Now because of the extensive environmental degradation, modern human diverted their consumption pattern toward more and more use of the environmentally friendly products in order to protect the natural environment and also to live a healthy and safe life.
... Improving consumer environmental awareness (CEA) has been an increasingly important market driver, providing strong incentives for manufacturers to implement green innovation R&D activities [1], [5], [8]. Consumers are willing to pay a premium for sustainable products because they gain extra utility from these green products [20], [21]. According to a survey by BBMG's Conscious Consumer Report, 75% of Europeans were willing to pay more for environmentally friendly products in 2008, up from 31% in 2005 [22]. ...
... Eq. (19) shows the green manufacturer's profit under the two-part tariff contract, where F is the fixed fee received from the retailer. Eq. (20) is an incentive constraint that ensures that the retailer accepts the coordination contract offered by the manufacturer. That is, the retailer's profit under the two-part tariff contract is higher than its profit in the decentralized system without any government subsidy. ...
Since financing issues of research and development (R&D) directly determine the success of green supply chain initiatives, the choice of funding mechanisms becomes key for green supply chain participants. However, there are few quantitative studies on the financing issues of green supply chains. We study green R&D financing issues for a two-echelon green supply chain, in which a green manufacturer and a regular manufacturer produce and sell green and regular products to a retailer, respectively. External and internal funding mechanisms as well as consumer green loyalty are considered in this study, which encourages green manufacturers to produce environment-friendly products. Three game models, namely, a partially centralized system, government subsidy, and two-part tariff contract scenarios, are formulated to investigate green R&D financing issues. The analytical results show that: (a) Government subsidies cannot effectively promote green manufacturers to improve the greenness of products if the amount of the government subsidy does not exceed a threshold. (b) Under government subsidy schemes, with an increase in subsidies, the output of green products first reaches the level under the partially centralized system, followed by the greenness of products. (c) The two-part tariff contract with a reasonable fixed fee can effectively coordinate retailers and green manufacturers to achieve cooperation, in which the greenness level of products and the retail price are equal to the values under the partially centralized system. (d) Retailers and green manufacturers have different preferences of financing modes; two-part tariff contracts are favored by retailers, while government subsidies are preferred by green manufacturers.
... Price is considered as another factor accounting for the reluctance of consumers towards the adoption of green products (Zaiem, 2005). However, Hopkins (2009) andTanner andWolfing Kast (2003) have pointed out that customers do not perceive price as a hindrance factor for the nonadoption of green products as outlined by Gerpott and Mahmudova (2010). Durif et al. (2012) have also suggested that temporal risks can arise when consumers spend a lot of time in the search of ecological products such as solar water heaters since the search of ecological products demands more effort and travelling time than conventional products (Nicholls and Lee 2006, Hopkins, 2009, Adams and Raisborough 2010. ...
... However, Hopkins (2009) andTanner andWolfing Kast (2003) have pointed out that customers do not perceive price as a hindrance factor for the nonadoption of green products as outlined by Gerpott and Mahmudova (2010). Durif et al. (2012) have also suggested that temporal risks can arise when consumers spend a lot of time in the search of ecological products such as solar water heaters since the search of ecological products demands more effort and travelling time than conventional products (Nicholls and Lee 2006, Hopkins, 2009, Adams and Raisborough 2010. ...
This paper explores the major factors impacting upon the ecological adoption of solar water heaters in Mauritius. The paper applies data reduction technique by using exploratory factor analysis on a sample of 228 respondents and condenses a set of 32 attributes into a list of 8 comprehensible factors impacting upon the sustained adoption of solar water heater in Mauritius. Multiple regression analysis was also conducted to investigate upon the most predictive factor influencing the adoption of solar water heaters in Mauritius. The empirical estimates of the regression analysis have also depicted that the most determining factor pertaining to the ‘government incentives for solar water heaters’ impacts upon the adoption of solar water heaters. These results can be related to sustainable adoption of green energy whereby targeted incentive mechanisms can be formulated with the aim to accelerate and cascade solar energy adoption in emerging economies. A novel conceptual model was also proposed in this paper, whereby, ecological stakeholders in the sustainable arena could use the model as a reference to pave the way to encourage adoption of solar water heating energy. This research represents a different way of understanding ecological customers by developing an expanding on an original scale development for the survey on the ecological adoption of solar water heaters.
... Other researchers that have similar findings are Jensen et al. (2003), Krystallis and Chryssohoidis (2005), Aguilar and Vlosky (2007) and Barber, Taylor and Strick (2009). Past studies indicate that consumers are generally willing to pay a premium price for green products, but the amount that they are willing to pay will vary according to product category and other factors such as potential savings resulting from the purchase, perceived benefits and perceived functionality of the products (Hopkins and Roche, 2009; Hamzaoui-Essoussi and Linton, 2010; Drozdenko, Jensen and Coelho, 2011). A study by the Boston Consulting Group reviewed that different categories of products command different premiums in the market (Hopkins and Roche, 2009). ...
... Past studies indicate that consumers are generally willing to pay a premium price for green products, but the amount that they are willing to pay will vary according to product category and other factors such as potential savings resulting from the purchase, perceived benefits and perceived functionality of the products (Hopkins and Roche, 2009; Hamzaoui-Essoussi and Linton, 2010; Drozdenko, Jensen and Coelho, 2011). A study by the Boston Consulting Group reviewed that different categories of products command different premiums in the market (Hopkins and Roche, 2009). Jay (1990) concluded that green marketers targeting green consumers must be able to balance between the setting of green products prices with consumers' cost sensitivity and their willingness to pay for environmental safety. ...
This study aims to examine the price that consumers are willing to pay for green products relative to their non-green substitute and the actual price of the products in the market. While the price factor of green products has been investigated in previous studies, the focus has not been on the price that consumers are willing to pay for green products in comparison to non-green substitutes and actual price of the products in the market. In addition, the effects of demographic factors on the price that consumers are willing to pay for green products are also examined here. The study examined three categories of green products i.e. shampoo, light bulb and air-conditioners. The price that the respondents are willing to pay is obtained through a questionnaire. The results show that respondents are willing to pay significantly higher prices for green products relative to the non-green substitutes but the prices are significantly lower than the actual prices in the market across all the three categories of products. Furthermore, only ethnicity and income are found to influence the price consumers are willing to pay for green shampoo. The findings suggest that respondents are willing to pay premium prices for green products but are unlikely to purchase the green products due to the significant difference between the prices they are willing to pay for green products and the actual prices of these products in the market.
... Consumers are upcycling or recycling waste materials and purchasing products with green eco-labels to avoid environmental degradation [33]. Consumers are increasingly sensitive to brand sustainability and have an increased awareness about the impact of the brands they use on the environment and society [15,34]. ...
Green color priming has been introduced as a cue for consumer perceptions of sustainability. Nevertheless, the color green is not necessarily effective in every brand’s sustainability strategy. This study aims to understand the impact of a brand’s color and gender in an investigation of the relationship between sustainability and brand equity, including perceived quality. This study examined Interbrand’s Best Global Brands, conducted an international online survey of more than 400 participants, and demonstrated the relationship between brand color, brand gender, and sustainability using the process macro analysis method. In study 1, it was found that the use of the color green in sustainability color strategy is limited depending on the brand gender of the Best Global Brands through case analysis. In the empirical analysis of study 2, it was discovered that a majority of brands created higher brand equity in the color green than in iconic colors when implementing sustainability strategies. However, brands with a high level of feminine personality with graceful and tender characteristics created a higher level of brand equity when implementing their sustainability strategies with iconic colors than with green. These findings suggest that iconic colors are more effective than the color green in sustainability strategies when the masculine personality level is low, and the feminine personality level is high.
... Hopkins and Roche [3] in their paper, stated that the factors like product category and perceived benefits play a vital role while determining whether consumers are willing to pay a higher price for green products. As mentioned by Jansson et al. [4] in their research that the consumers who are inclination towards green products can be classified into various categories like values which they want to perceive from products, their beliefs about products, norms, habits and their affordability for purchasing those products. ...
The paper aims towards understanding the factors responsible for the adoption of green products by consumers in the Indian market. A well-structured survey questionnaire was developed and circulated to 327 participants. Various factors associated with the adoption of green products were taken into account. They were analyzed by using descriptive statistics and factor analysis. The paper concludes that 61.2% of the respondents were willing to adopt green products and the 77.1% of the respondents are aware of green products and various benefits associated with them. An effort was made to understand the influence of green labelling on the adoption of green products by consumers. From the survey, it was inferred that green labelling is an important tool used by consumers for verifying and procuring green products. It was also found that factors like “concerns about the environment” and “recommendations from family and friends” significantly influence consumer's purchase decisions about green products.
... From the consumer's perspective, a product that is environmentally preferable relative to comparable products is a green product (Bonini & Oppenheim, 2008;Chen, 2001;Hopkins & Roche, 2009;Tseng & Hung, 2013); similarly, a green building is environmentally preferable relative to comparable conventional buildings. The perception of green products has long been researched in the field of marketing, leading to the creation of the subfield of "green marketing." ...
A green building is "a building that, in its design, construction or operation, reduces or eliminates negative impacts, and creates positive impacts, on our climate and natural environment" (World Green Building Council). Green building, sometimes referred to as green building or sustainable building, aids in creating homes that are healthy for both people and the environment. Green buildings are boon to investors, generating high returns yielding high as compared to investments in conventional buildings or other investments, in a shorter term (Majumdar, 2008). The aim of this research is to explore the research studies available on green buildings. The paper covers the researches undertaken from the user perspectives. This research study offers valuable directions to the businesses engaged in the construction of green buildings to concentrate on factors such as physical characteristics, location and position, perceived newness, perceived price, perceived value, surrounding area, safety, the calibre of the managers' customer service, green awareness, architectural factors, environmental attitude, social influence, etc.
... In the 2020s, improvements in energy and resource efficiency will play a particularly important role in decreasing industrial emissions, paving the way for broad emissions reductions (Razmjoo, A, et al, 2022) . Understanding the mechanism of perception of green products is useful for a number of reasons: from the consumer perspective, a product that is environmentally preferable relative to comparable products is a green product (Bonini & Oppenheim, 2008;Chen, 2001;Hopkins & Roche, 2009;Tseng & Hung, 2013), similarly for building design -a green building is environmentally preferable relative to comparable conventional buildings. Perception of green products has long been studied in the field of marketing which eventually established a sub discipline known as green marketing. ...
Green buildings are also referred to as 'green construction' or ‘sustainable buildings'. Their development reduces reliance on fossil fuels and reduces the total negative environmental effect. The overarching objective of the green buildings is to improve the residents' quality of life through environmentally and environmentally friendly developments. There is an immense potential in the green buildings in India, however research is not sufficient in this direction. The current paper is an attempt to make investigation of green buildings in India with special reference to Delhi. The results suggest that the awareness and usage is increasing for Green buildings in India. The results also suggest that education has strong relationship with the usage of green buildings in India.
... Research posits that price plays a significant role in car purchase (Choo & Mokhtarian, 2004;Shende, 2014;Vrkljan & Anaby, 2011). In the context of ecological behavior, earlier studies stated that environmental awareness cannot warrant the readiness to purchase green products as other factors like price, trust, and relevance are critical in decision making (Cherian & Jacob, 2012;Hopkins, 2009). Some studies suggest that consumers will readily shell out more for green products (Klein, 1990;Manaktola & Jauhari, 2007), while others have a contradictory view (Khan & Kirmani, 2015). ...
Environmental issues have gauged the attention of marketers and researchers all around the world. Automobile industry has a major environmental impact due to fuel consumption and emissions. A threadbare understanding of the automobile buyer is necessary to better connect with consumers with changing lifestyles, attitudes, and personalities, basically to cater to their sensibilities and psyche, gradually accommodating contemporary environmental viewpoints. Marketers have religiously focused upon studying the car buying behavior and its links with lifestyles. The present study aims to offer a preview of the relationship between lifestyles and ecological behavior among urban car consumers in an emerging economy like India. The findings of the study suggest factors like need for achievement, need for uniqueness, price consciousness, and need for status affect the ecological behavior of the Indian car buyers.
... Li and Wang (2021) study the impacts of different subsidy policies on material recycling technology innovation based on the theoretical deduction method. Hopkins andRoche (2009), Hong andGuo (2019), and Drozdenko et al. (2011) discuss the impacts of consumers' environmental awareness and consumption behavior on enterprises' GTI decisions but draw opposite conclusions. The former two argue that consumers are willing to pay the consumption premium for green products, thus promoting GTI, while the latter believes that consumers are not willing to pay a premium for green products, which is not good for GTI. ...
Green technological innovation (GTI) aims to realize management innovation and technological innovation with the goal of protecting the environment. The health model is an important aspect of evaluating whether a system is sustainable. There are few studies on the health of green technological innovation system (GTIS), and almost no indicators to evaluate whether GTIS status is sustainable. Here, we first put forward the concept and framework of GTI health. Drawing on the theoretical analysis of natural ecosystems and commercial ecosystems, a health evaluation index system of GTIS is constructed. Using panel data analysis, the GTI status of 30 provinces in China during 2012-2019 is evaluated, the health index and health grade are calculated , and the key factors affecting GTIS health are determined. Through robustness analysis, the consistency of the research framework is verified and several unique insights into the healthy development of GTIS are presented. The results show that there is heterogeneity in GTIS health grades in different provinces, but health grades of most provinces show upward trends within 8 years. Government funds, foreign direct investment, pollution control investment, green product sales revenue, and green technology trading volume are the foci of healthy improvement of GTIS, and they are all positive indicators.
... Product type and perceived benefit are important factors in influencing customers' willingness to spend top dollar for environmentally friendly items, while another study demonstrated the importance of value as a major roadblock to the adoption of emerald products. (Hopkins, 2009 ;). According to D' Souza et al. (2006), all of the commodities sold should be ecologically friendly, but it is also vital to pay the best prices for them. ...
Green products are described as being environmentally friendly, non-toxic, and made from biological materials and components that have a positive impact on societal well-being (Schlegemich et al., 1996). The paper examines the impact of factors (environmental concern, environmental awareness, product awareness, product price), that influence consumer purchase intention during the COVID-19 pandemic in Bangladesh's ecological goods condition. The primary goal of this study is to study the elements that influence consumer purchase intention during the COVID-19 pandemic in Bangladesh's ecological goods condition. The information was gathered from 205 respondents via a structured questionnaire with five-point Likert scales and multiple items. The approach of convenience and judgmental sampling are applied. Frequency, mean, standard deviation, and regression analysis are used to examine the data. According to the regression analysis, the research identifies that factors environmental concern, environmental awareness, product awareness, product price significantly influence consumer purchase intention during the COVID-19 pandemic in Bangladesh's ecological goods condition. This paper may be contributed to this green purchase intention issue. Companies can be profited by knowing the influential factors of consumers' green products purchase decisions. This paper creates consciousness among green consumers, researchers, academicians, politicians, government, and greening practicing firms. Therefore, there is an indispensable need to identify the influential factors of consumers' green products purchase decisions in order to rush into the green purchasing decision among all consumers to save this world for the next generations.
... Grundey and Zaharia (2008) focused on environmental marketing and ecological labeling where consumers have possibility to access green products and its services, and in return, consumers compromise their preferences with green business practices. According to Hopkins and Roche (2009), consumers are keen to pay a premium for eco-friendly products. Zhu and He (2017) explored the GPD problems with different supply chain structures to find out optimal pricing and design strategies for development intensive green product and marginalcost-demanding green products. ...
As the people are becoming conscious about protection of the environment from pollutant caused by human beings, businesses are adopting green technology to procure green products to save the environment from pollution. Consequently, it is a challenging task at the firm manager to capture the market providing best green quality at fair price in a given economy. The paper plans to discuss two situations in two models. In model 1, the optimal green quality and sales prices of the manufacturer and the retailer in both decentralize and centralize systems of a two-echelon supply chain system are investigated. The profit functions of the manufacturer and the retailer include procurement costs, selling prices and cost for green level development and then it is analyzed by calculus method to obtain the optimal values of the decision variables. The model 2 focuses on price competition of two substitute products where demand of the end customers depends on price and quality of green product. Both the firms of green and regular products manufacturer are corporate social responsible. In this model, profit functions of the firms 1 & 2 are formulated separately considering revenues from sales items, cost of green quality and contribution for activities of social responsibility. The main objective is to find out optimal prices and green quality in order to maximize the profit functions of individual and integrated systems. The proposed models are analyzed mathematically and numerical examples are illustrated to justify the feasibility of the model in reality.
... In this study, we consider two types of consumer's behavior characteristics: consumer environmental awareness (CEA) and consumer's reference behavior. e former is an important factor that motivates firms to develop green products [14,15]. e latter is a crucial factor that affects green product demand [16,17]. ...
Carbon tax policy has been shown to be an effective incentive for the reduction of carbon emissions, and it also profoundly influences supply chain cooperation. This paper explores the interaction between carbon taxes and green supply chain cooperation. Specifically, we analyze the impact of a carbon tax on green supply chain coordination and further optimize the carbon tax to achieve a win-win situation for both the supply chain and the environment. Because consumer’s behavior has a significant impact on green product demand, we consider the problems above under two types of consumer’s behavior characteristics: consumer’s environmental awareness and consumer’s reference behavior. A game-theoretic model is employed to describe a green supply chain consisting of a manufacturer and a retailer, combining important factors such as the carbon tax rate, green investment coefficient, and degree of reference effect. Then, we obtain the optimal carbon tax rate by balancing the total tax revenue and product greenness. A revenue-sharing contract is introduced to achieve green supply chain coordination, and the impact of the carbon tax on coordination is analyzed. The results show the following. (1) The carbon tax rate and the difference between the power of the manufacturer and retailer are the main factors determining green supply chain coordination. (2) Maximum greenness can be achieved when development costs are higher, while the maximum tax revenue is obtained when the development cost is lower, but with the loss of greenness. (3) If the power of the manufacturer is low, coordination can be achieved under the optimal carbon tax. If the power of the manufacturer is at a medium level, coordination can be achieved by increasing the carbon tax; as a result, increased greenness will be realized, but with the loss of tax revenue. However, when the power of the manufacturer is strong, coordination cannot be achieved. (4) Price reference behavior can promote supply chain coordination, but consumer’s environmental awareness cannot.
1. Introduction
With the degradation of the environment, increasing attention has been directed toward global warming. For sustainable development, many countries have been committed to reducing carbon emissions. For example, at the 2009 United Nations Climate Conference in Copenhagen, the Chinese government declared that carbon dioxide emissions per unit of GDP would be decreased by 40%–50% in 2020 compared with the levels in 2005 [1]. Carbon dioxide is widely emitted by the transportation and manufacturing sectors [2]. Carbon tax policy has been proven to be effective for emissions reduction [3–5], but it also exerts some side effects on enterprises [6]. From the perspective of the green supply chain, carbon tax policies imposed on an enterprise could decrease the profit within the supply chain, thus affecting supply chain cooperation. However, previous research [7–9] has mostly focused on decision-making and cooperation problems within the supply chain under a given carbon tax level, rather than considering the interaction between carbon taxes and supply chain cooperation. Therefore, it is important to examine the interaction between carbon taxes and supply chain cooperation.
Currently, to meet the requirements of carbon tax regulations, a growing number of enterprises have been striving for sustainability by committing to designing, producing, and promoting green products to reduce carbon emissions [10]. In this context, green products have been regarded as one of the important factors in achieving economic growth, energy conservation, and environmental sustainability [11]. Benjaafar et al. inferred that introducing carbon emissions into a supply chain optimization models can promote emissions reduction in the supply chain [12]. Meanwhile, carbon taxes increase production costs, thus imposing burdens on enterprises. Consequently, it has been increasingly challenging for governments to enact appropriate policies to reduce carbon emissions and improve supply chain performance at the same time [13]. In addition, consumer’s behavior is a crucial factor affecting product demand and sustainable decisions. In this study, we consider two types of consumer’s behavior characteristics: consumer environmental awareness (CEA) and consumer’s reference behavior. The former is an important factor that motivates firms to develop green products [14, 15]. The latter is a crucial factor that affects green product demand [16, 17]. In reality, many enterprises are concerned about carbon emissions, for example, HP, IBM, Ge, etc. They are not only beginning to design green products but also enhancing supply chain management and cooperation to achieve the goal of emission reduction. However, it is hard to achieve supply chain cooperation. Therefore, it is meaningful to study supply chain green decisions and cooperation considering consumer environmental awareness under a carbon tax policy. Therefore, we consider the interaction between the carbon tax rate and supply chain cooperation and optimize the tax rate in the context of CEA and consumer’s reference behavior. Specifically, we aim to answer the following questions:(i)Is carbon tax policy favorable for improving the greenness of products?(ii)Can carbon tax policy promote supply chain coordination to incentivize supply chain members to cooperate?(iii)Can carbon tax policy be beneficial for both product greenness and supply chain coordination simultaneously?
To investigate the above problems, a two-echelon supply chain is introduced. This is used to explore the interaction between green supply chain cooperation and carbon tax policy, where a manufacturer acts as the leader and determines the product’s greenness and wholesale price, and a retailer acts as the follower and determines the retail price of green products. Moreover, traditional products without green attributes (i.e., greenness) compete with green products in the market. Through consumer utility, we obtain the demand functions for both green and traditional products. In addition, the government decides the carbon tax rate to limit carbon emissions. Unit carbon emissions are associated with the greenness of products. The higher the greenness, the higher the product R&D cost, and the lower the unit carbon emission. Finally, the impact of the carbon tax on supply chain cooperation is analyzed by introducing a revenue-sharing contract.
The results show the following. (1) When the carbon tax and development cost are at high levels, the greenness increases with the carbon tax; otherwise, the greenness decreases with increasing carbon tax. Therefore, there exists an optimal carbon tax to maximize the greenness when the development cost is high. (2) Cooperation can be promoted when the government increases the carbon tax because the retailer plays a crucial role in coordination, and the region of cooperation is expanded when the carbon tax increases. (3) When the manufacturer’s power is relatively low, optimal carbon tax and supply chain cooperation can be achieved simultaneously, whereas when the manufacturer’s power is relatively high, cooperation cannot be achieved. In addition, when the manufacturer’s power is at a moderate level, cooperation can be achieved but with a loss of tax revenue in such a case.
The main contributions of this paper are as follows. We investigated a green supply chain cooperation problem and the interaction between carbon taxes and supply chain cooperation, taking consumer’s reference behavior into consideration, which fills a research gap in supply chain cooperation. Our result provides a reference for pricing and green product design and a meaningful reference for policymakers.
The remainder of this paper is organized as follows. A literature review is presented in Section 2. Section 3 introduces the basic assumptions and notations, and the supply chain model is formulated; then, the results of the model are analyzed, and we summarize the major conclusions of the numerical analysis. Finally, Section 4 summarizes the main research content and results.
2. Literature Review
Three streams of research are closely related to our work. First, we review the research on carbon taxes in green supply chains. Second, our work is related to research on reference behaviors in operational management. Third, relevant research on supply chain coordination is reviewed. Finally, we distinguish our study from the three streams of research mentioned above.
2.1. Carbon Tax
Reduction of greenhouse gas emissions is becoming a vital issue, and almost all developed and developing countries are now implementing policies for carbon emission reduction [18]. Numerous studies have focused on carbon taxes. Carbon taxes restrict the demand for fuels and thereby reduce the emissions of harmful greenhouse gases. Generally, carbon taxes are not always as high as possible. For example, a falling tax rate encourages manufacturers to produce and reduce emissions [19]. The optimization problem of carbon taxes has previously been studied [20]. Modak and Kelle integrated corporate social responsibility (CSR) investments into the supply chain strategy and operations and concluded that the optimal recycling rate and appropriate investment in recycling activities increase with an increase in the carbon tax rate [21]. There has also been other research regarding carbon taxes. For example, Ulph and Ulph analyzed the optimal time path for a carbon tax, and the numerical results suggested that a carbon tax should initially rise and then fall [22]. Kverndokk considered the optimal extraction of exhaustible resources and came to the same conclusion: the optimal carbon tax should initially rise and eventually fall [23]. Some scholars have suggested that the optimal tax should increase monotonically or follow a U-shaped pattern [24, 25]. However, the above studies did not consider the carbon tax in the context of a supply chain.
There are some research gaps in the studies on optimal carbon taxes for green supply chains. Most of the studies have focused on the decisions and cooperation problems of the supply chain under a carbon tax. Hariga et al. presented three operational models to determine the optimal lot-sizing and shipping quantities to reduce carbon emissions. In those experiments, a minor increase in operational cost with carbon tax regulation is outweighed by the cost savings resulting from carbon-related costs [26]. Turken et al. investigated the effect of environmental regulations in the form of a carbon tax on the plant capacity and location decisions of a firm. They proposed two novel policy options: (1) a per unit per mile transportation penalty and (2) a collective transportation emissions policy with a limit on total transportation emissions. Turken et al. also revealed that stricter regulations without high penalties would not ensure compliance, as the benefits from the increasing scale associated with a centralized plant frequently outweigh the regulatory penalties, and a per unit carbon tax had no effect on regional production of emissions [27]. Xu et al. investigated the joint production and pricing of a manufacturing firm with multiple products under cap-and-trade and carbon tax regulations. Their results showed that the optimal quantity of products produced under a carbon tax regulation is determined by the emissions’ trading prices and the tax rate [9]. Yu and Han studied the impact of a carbon tax on carbon emissions and retail prices in a two-echelon supply chain consisting of a manufacturer and a retailer. The results indicated that with an increase in the carbon tax, both the optimal emission reduction level and the optimal retail price initially increase and then remain stable [28]. Sinha and Modak developed an economic production quantity model that elucidates a new side of CO2 emissions reduction [29]. Zhang investigated the impact of the carbon tax on enterprise operation and obtained the coopetition supply chain and carbon tax mechanism [30]. Chen et al. investigated how a carbon emissions taxation scheme can be designed to reduce carbon emissions [31].
In general, there are two streams in the previous literature: the optimization of the carbon tax and the relationship between the carbon tax and operation decisions in the supply chain. However, there exists a research gap in the existing literature: few papers focus on the relationship between the optimal carbon tax and supply chain coordination. Our results show that by adjusting the carbon tax, the government can promote the coordination of supply chains and reduce carbon emissions. The optimal carbon tax policy to promote coordination between the supplier and retailer is obtained by balancing the tax revenue and the product greenness.
2.2. Consumer’s Reference Behavior
Consumers are always concerned about product value when choosing products on shelves. The final decision of consumption is a function of gains and losses with respect to a reference outcome [32]. Consumer’s reference behavior plays an important role in this process of comparison, thereby influencing firms’ operational decisions, such as product pricing and decisions regarding product greenness [33, 34].
Kopalle et al. studied a novel household heterogeneity translation model considering consumers’ price reference behavior and developed a normative pricing policy for retailers that maximizes category profit using individual-level estimates [35]. Hsieh and Dye investigated an inventory model based on price reference effects and established an optimal dynamic pricing model to determine a pricing strategy that maximizes the discounted total profit [36]. The results suggested that the strength of the memory factor is important for a retailer to measure because a high memory factor value represents consumers with a longer memory of perceived gains or losses. The optimal discounted total profit initially increases as the memory factor increases but decreases when the memory factor is relatively high. Some dynamic price studies have also considered price reference behavior [37, 38]. In these two previous studies, the price reference effect dominated the optimal pricing and inventory policy of the firm. The expected steady-state reference price was compared to the steady-state reference price in a model with a deterministic reference price effect, and the results showed that the former was always higher. Consumer’s environmental awareness is a common behavior in real life. At present, consumers are frequently concerned about environmental protection. Green preference and green product design have attracted extensive attention from scholars. Zhang et al. investigate the impacts of consumer environmental awareness and retailer’s fairness concerns on environmental quality [39]. Chen studied product design and marketing decisions based on consumer preferences for environmental attributes [40]. The development of green products depends heavily on the joint efforts of both the supply chain and the government. Therefore, the government should create a regulatory environment that is benign to green product innovation. Chitra inferred that green consumers affect marketing issues, and a preference for greenness will promote the purchase of green products [41]. The higher the consumer environmental preference is, the higher the price will be that the consumer is willing to pay for low-carbon products. Consumer’s green preference is in favor of supply chain performance on the environment [42]. Moreover, as competition intensifies, the profits of manufacturers with inferior eco-friendly operations will always decrease. Li et al. infer that consumers should avoid excessive pursuit of green product design; otherwise, they hurt the environment by investigating the impact of consumer preference for green product design [43].
Consumer’s reference behavior plays an important role in firms’ operational decisions, and consumer environmental awareness is a common behavior in real life. The literature above is about the influence of consumers’ green preference on enterprises’ decision-making, such as pricing and green manufacturing. There exists a gap in the existing literature, which is that the consumer’s behavior has not been concerned. In our research, the green preference and price reference behavior are considered.
2.3. Cooperation
Supply chain cooperation is defined as “long-term relationships where participants generally cooperate, share information, and work together to plan and even modify their business practices to improve joint performance” [44]. In general, supply chain cooperation means achieving better performance. In the supply chain, there are many coordination strategies to choose from, such as revenue sharing, buybacks, quantity discounts, and two-part tariff contracts. Among these contracts, revenue sharing has attracted the attention of many scholars and is widely used in actual supply chains [45]. For example, Xu et al. proposed a two-way revenue sharing contract to coordinate multiple distributors in a dual-channel supply chain, and the results showed that the manufacturer could prompt the retailer to cooperate by providing this contract [46]. Shi et al. studied reverse revenue-sharing contracts in a closed-loop system and proposed a function to calculate the optimal ratio of the transfer collection price. The results also suggested that reverse revenue-sharing contracts are more attractive for manufacturers than a two-part tariff [47]. Panda et al. explored channel coordination in a socially responsible manufacturer–retailer closed-loop supply chain and found that a revenue-sharing contract resolved channel conflict [48]. Modak et al. used the subgame perfect equilibrium and alternative offer bargaining strategy to resolve channel conflict and distribute surplus profit [49]. Wang and Zhao designed a revenue-sharing contract to reduce carbon emissions, and both the supplier and the retailer achieved Pareto improvement. In addition, they developed a function to determine the revenue sharing ratio using the Rubinstein bargaining model [50]. Yu et al. considered a cooperation problem in the low-carbon supply chain and found that the environmental awareness of consumers and tax rates considerably affect the emission reduction [51]. There have also been some supply chain coordination studies conducted under carbon policies. Revenue-sharing contracts have been designed to improve the performance of supply chain members based on different carbon policies [52]. Xu et al. studied the coordination problem in a two-echelon supply chain, and the effect of government policy-making on distributing the optimal emission quota was investigated. The results showed that a reasonable revenue-sharing contract is essential to increase supply chain members’ profits even under low-carbon conditions [53]. Modak et al. concluded that the optimal recycling rate increases with the CSR activity of the manufacturer, and a profit-sharing contract provides the best channel performance in a closed-loop distribution channel consisting of a socially responsible manufacturer, multiple retailers, and a third-party collector [54]. Feng infers that win-win results can be achieved by establishing profit-sharing contracts considering the preference of green consumers [55]. Previous papers often focus on two aspects, including the choice of contract and the conditions of the contract. However, the above literature still has a gap between cooperation and consumer’s behavior. Therefore, we investigate the supply chain cooperation problem under the context of consumer’s reference behavior and the carbon tax.
In summary, this study examines the interaction between supply chain cooperation and carbon taxes in a two-echelon supply chain considering consumer’s behavior. Some important factors should be considered simultaneously to study this problem, such as the optimal carbon tax and consumer’s behavior; however, previous research has only considered these factors separately. We also investigate the interaction between coordination and the carbon tax. The difference between our study and others in the literature is presented in Table 1.
Literature
Decisions under the carbon tax
Optimal carbon tax
Consumer’s behavior
Coordination
Yu and Han [28]
√
√
Ulph and Ulph [22]
√
Hsieh and Dye [34]
√
Cao et al. [47]
√
√
Xu et al. [48]
√
√
Our paper
... The concept is complex and many variables affect it. characteristics of 'green' consumer (Akturan, 2018), marketing and brand factors like price, promotion, relevance, perceived quality and trust, and environmental issues (Hopkins & Roche, 2009;Kim & Choi, 2005;Weisstein, Asgari, & Siew, 2014), affecting consumer intentions for buying green products. In the opinion of the consumer, false claims cause a suspicion, which in turn has negatively impacts on green trust, purchase intention and WOM (Chen & Chang, 2013b;Leonidou & Skarmeas, 2017). ...
... In Ref [8], it was concluded that a large number of customers are willing to buy environmentally friendly products and pay more for products/services to show their increased environmental awareness and preference for green products. Empirical studies have also confirmed that consumers are willing to pay a premium for green products, owing to the additional utility they achieve from purchasing such products [7,[9][10][11][12]. ...
Consumer environmental awareness (CEA) can affect green consumption decisions in different and confusing ways. In order to explain the reasons for these divergences, this study divides CEA into two main components: the subjective effect and the social effect. Then, we integrate the two effects into the classic Hotelling model to study the influence of CEA’s subjective effect and social effect on price competition and product differentiation strategy. It was found that the subjective and social effects of CEA have opposite impacts on price competition and product differentiation strategies. The subjective effect of CEA increases the price and profit level of enterprises, and enlarges the difference in the environmental friendliness of products. Meanwhile, the social effect of CEA reduces the enterprises’ price and profit level, and narrows the difference in the environmental quality of products. Therefore, we suggest that it is necessary for producers of green products to distinguish between these two effects. Numerical examples are provided to verify our findings. Finally, some possible suggestions regarding the competition of green products are put forward which take into consideration the subjective and social effects of CEA. The main contribution of this paper is to theoretically explain the opposite effects of the two different components of CEA on environmentally friendly product pricing and differentiation strategy; this presents a possible explanation as to why the behavior regarding CEA differs, and provides theoretical support for enterprises to price and differentiate green products.
... The Demographic Differences -Age has shown significant statistically differences with all the sub-groups. This may suggest that age plays a major role in the concerns of the tourists for the environment, where older-aged groups will show more appreciation for the smaller things in life (Hopkins, and Roche, 2009), thus saving the environment for younger generations, and the realization of the younger-aged groups that they have to save the environment for their future as well as for other generations. ...
The continual development of the hospitality industry has led to negative impacts on the environment. However, the development of green hotels could be a solution to this problem. As more tourists are becoming gradually concerned about environmentally friendly products and services, it is crucial for the hotel industry to take an interest and participate in the green initiative. A questionnaire method was used to collect data from 209 participants using the intercept approach in several main tourist sites in Bangalore, India. The analysis showed that tourists staying in hotels in Bangalore give substantial influence on their intention to choose green hotels and thus environmentally friendly services and products. Therefore, it is of primary importance for green hotel operators/managers to continuously educate their guests about the importance of being environmentally friendly and the environmental impacts of their behaviors.
... The Demographic Differences -Age has shown significant statistically differences with all the sub-groups. This may suggest that age plays a major role in the concerns of the tourists for the environment, where older-aged groups will show more appreciation for the smaller things in life (Hopkins, and Roche, 2009), thus saving the environment for younger generations, and the realization of the younger-aged groups that they have to save the environment for their future as well as for other generations. ...
Tourists use social media to share their experiences and obtain information about travel and tourism destinations. Information shared by tourists is different than information published by destination marketing organizations (DMOs) in the sense that it does not include formal messages and photographs. Some researchers have proven that user-generated content (UGC) through social media exerts an influence on the perceived image of a tourist destination and the motivations for visiting it. Tourists and travelers tend to use a combination of official and unofficial information to make travel decisions. Nowadays, there are still plenty of opportunities to advance destination image research using social media. With these ideas in mind, this chapter aims to review different types of Web 2.0 platforms and discuss their influence on destination image formation and sustainability perception.
... behaviors and product demand, which accordingly affect the product design and pricing decisions of firms. For example, consumers' environmental awareness (CEA) is becoming an important factor in product consumption, which is a market-driven factor that motivates firms to develop and design green products (Schlegelmilch et al., 1996;Hopkins and Roche, 2009). CEA is taken into account in the study on green-product design and pricing in previous literature (Chen, 2001;Su et al., 2012;Nouira et al., 2014;Zhu and He, 2017). ...
Consumers’ reference behaviors are largely ignored in previous research on green product design. This study investigates a green-product design problem in a two-echelon supply chain by considering consumers’ reference behaviors, where the reference point is associated with a functional product that has a utility-based reference form. Tax regulation and the environmental awareness of consumers are also considered in investigating their effects on the green-product design and pricing strategies. Analytical results show that consumers’ reference behaviors significantly influence the green-product design and pricing decisions. When faced with consumers who have different recognition levels of reference, the product design and pricing strategies should be adjusted. Tax regulation and consumer green awareness also affect the firms’ decisions. Tax regulation can encourage firms to increase the greenness degree of their product only when the tax level or the green development cost is at a low level, while consumer green awareness always plays a positive role in green design. By comparing the results between different supply chain structures, we find that the retailer-led supply chain outperforms the manufacturer-led supply chain in environmental performance improvements. The best environmental performance is achieved when the supply chain is coordinated.
... The Demographic Differences -Age has shown significant statistically differences with all the sub-groups. This may suggest that age plays a major role in the concerns of the tourists for the environment, where older-aged groups will show more appreciation for the smaller things in life (Hopkins, and Roche, 2009), thus saving the environment for younger generations, and the realization of the younger-aged groups that they have to save the environment for their future as well as for other generations. ...
The continual development of the hospitality industry has led to negative impacts on the environment. However, the development of green hotels could be a solution to this problem. As more tourists are becoming gradually concerned about environmentally friendly products and services, it is crucial for the hotel industry to take an interest and participate in the green initiative. A questionnaire method was used to collect data from 209 participants using the intercept approach in several main tourist sites in Bangalore, India. The analysis showed that tourists staying in hotels in Bangalore give substantial influence on their intention to choose green hotels and thus environmentally friendly services and products. Therefore, it is of primary importance for green hotel operators/managers to continuously educate their guests about the importance of being environmentally friendly and the environmental impacts of their behaviors.
... Consumer environmental awareness (CEA) is a critical market-driven factor that facilitates green product development and consumption, which should be considered in green product pricing. Empirical studies have shown that consumers are willing to pay a premium for green products, owing to the additional utility they gain from purchasing such products ( Schlegelmilch et al., 1996;Hopkins and Roche, 2009). In 2014, a Eurobarometer survey on the environment in the 28 member states of the European Union found that 75% of Europeans are willing to pay more for environmentally friendly products, up from 72% in 2011. ...
... Consumers' behaviors are critical factors affecting the green purchase behaviors and product demand, which accordingly affect the product design and pricing decisions of firms. For example, consumers' environmental awareness (CEA) is becoming an important factor in product consumption, which is a market-driven factor that motivates firms to develop and design green products (Schlegelmilch et al., 1996;Hopkins and Roche, 2009). CEA is taken into account in the study on green-product design and pricing in previous literature (Chen, 2001;Su et al., 2012;Nouira et al., 2014;Zhu and He, 2017). ...
Consumers' reference behaviors are largely ignored in previous research on green product design. This study investigates a green-product design problem in a two-echelon supply chain by considering consumers' reference behaviors, where the reference point is associated with a functional product that has a utility-based reference form. Tax regulation and the environmental awareness of consumers are also considered in investigating their effects on the green-product design and pricing strategies. Analytical results show that consumers' reference behaviors significantly influence the green-product design and pricing decisions. When faced with consumers who have different recognition levels of reference, the product design and pricing strategies should be adjusted. Tax regulation and consumer green awareness also affect the firms' decisions. Tax regulation can encourage firms to increase the greenness degree of their product only when the tax level or the green development cost is at a low level, while consumer green awareness always plays a positive role in green design. By comparing the results between different supply chain structures, we find that the retailer-led supply chain outperforms the manufacturer-led supply chain in environmental improvements. The best environmental performance is achieved when the supply chain is coordinated.
... Price consciousness and ecological behavior. Previous research indicates that environmental awareness alone cannot guarantee the willingness of consumers to purchase green products because factors, such as price, trust, relevance, brand and product quality, play a role in customers' decision-making (Hopkins, 2009). A recent survey conducted on the British consumers shows that price is the largest barrier for consumers to purchase green products (Bonini and Oppenheim, 2008). ...
Purpose
The purpose of this paper is to identify what lifestyles best explain and impact ecological behavior among young Indian consumers.
Design/methodology/approach
This paper adapts the lifestyle scale developed by He et al. (2010) and the Actual Commitment scale to the Indian context to describe its impact on the young consumer’s ecological profile. The study is based on an extensive literature review. The data were obtained from a questionnaire handed out to a sample of 250 students. With the information obtained, and after the scale validation process, a structural equation analysis has been conducted.
Findings
Findings of the study highlight that environmental patterns and lifestyle factors are those that best characterize the ecological market segment. This group of young consumers is characterized by their self-identity and a feeling of uniqueness. They are people who always try to improve themselves and take actions which pose a new challenge for them. They are also characterized by having an ecological lifestyle, selecting and recycling products and taking part in events to protect the environment. This type of consumer is a present and future investment for firms that are committed to the environment.
Originality/value
The results of this study might interest consumer behavior researchers and those firms that care about the ecological consumers. Moreover, previous studies have not dealt with young consumers. Further research is needed including new psychographic variables.
... Further, attitudes in relation to concern for the environment have not been explicitly analyzed and the relationships between green attitudes and values and behaviour are still ambiguous (do Paço et al., 2013). Understanding the mechanism of perception of green products is useful for a number of reasons: from the consumer perspective, a product that is environmentally preferable relative to comparable products is a green product (Bonini & Oppenheim, 2008;Chen, 2001;Hopkins & Roche, 2009;Tseng & Hung, 2013). Similarly for building design, a green building is environmentally preferable relative to comparable conventional buildings. ...
This exploration is motivated by some of the author’s observations and building users’ comments in some of the highly rated green buildings in North America. The observations and users’ comments were collected earlier from buildings in Tucson (Arizona), San Francisco (California), Seattle (Washington), and Las Vegas (Nevada). Green buildings are very efficient in their consumption of energy, water, and natural resources; they also provide their occupants with a healthier and productive environment. However, the author’s observations and users’ comments are in accordance with the claims of some other studies: that the performance of highly rated green buildings is less than what is targeted by the concept of sustainability. The book presents the findings of two studies, which took place in two Leadership in Energy and Environmental Design (LEED) buildings in Calgary, Canada. The studies examine green buildings from a human experiential perspective to explore factors involved in the perceptions, experiences, and preferences of laypersons. These findings introduce an interdisciplinary perspective to inform future research on improving the current green building rating systems.
... (do Paço, Alves, Shiel, & Filho, 2013). Understanding the mechanism of perception of green products is useful for a number of reasons: from the consumer perspective, a product that is environmentally preferable relative to comparable products is a green product (Bonini & Oppenheim, 2008;Chen, 2001;Hopkins & Roche, 2009;Tseng & Hung, 2013), similarly for building design -a green building is environmentally preferable relative to comparable conventional buildings. Perception of green products has long been studied in the field of marketing which eventually established a sub discipline known as green marketing. ...
Research has consistently shown that architects differ from the public in what they prefer in buildings. Today, as building design and construction evolve to more sustainability, some recent studies show that the overall level of satisfaction of occupants of green buildings still does not exceed the level of satisfaction in conventional structures. Satisfaction is typically measured, with Post Occupancy Evaluation, which gathers feedback from building occupants about aspects such as comfort, indoor air quality, and aesthetics. This raises some questions: Do people perceive green building design as consistent with their desire for sustainability? Do ratings of green buildings by systems such as LEED or BREAM affect the level of satisfaction of laypeople? Can owners and occupants of green buildings be considered as green consumers, who are attracted to green products because of their willingness to mitigate the impact of human activities on the environment? This article examines Peattie's (2001) green purchase perception matrix as a means of understanding occupants' perceptions of green-labeled buildings. Additionally, two other concepts from consumer behavior studies: Schema Congruity and Stimulus Organism Model have been discussed. An analytical approach has been taken to identify the influential factors. As a result, the authors propose a green building perception Theoretical framework that addresses different situations which leads to a degree of compromise that occupants could accept in green buildings and level of confidence that building systems are indeed making a difference environmentally. Understanding and using this framework may help green building designers to improve the level of satisfaction of building's owners and occupants. The discussion is critical for future research on how green building design attributes can be used as a catalyst for green consumption behavior.
... As a result, consumers tend to retrench financially and make decisions based on self-interest, including price and product performance, eschewing the "warm glow" associated with activities such as charity donation (Green and . Hopkins (2009) confirms that consumers' willingness to pay more for green attributes during the recent recession was maintained only when the green attribute had the ability to provide costs savings to consumers. Finally, Flatters and Willmott (2009) expected a significant decrease in ethical consumption during the recent recession since it is not clearly linked with consumer self-interest. ...
Research examining consumer support for corporate social responsibility (CSR) has grown significantly over the past decade, demonstrating a generally positive level of support. However, our understanding of how consumers value CSR is limited by the context of relatively stable economic growth over the past decade. During times of economic uncertainty, when consumers retrench in their decision-making to attributes such as price and quality, this level of support for CSR is questionable. In the heart of the recession, we interview consumers and find that they do indeed find some CSR expendable. However, we find consumer support for other forms of CSR – those that add functional value to products – grow even more valuable during times of recession. The context of the recession extends not only previous research showing largely consistent support for CSR, but also provides a more nuanced examination of how consumers receive value from CSR.
In recent years, the rise of e‐commerce has led to the dominance of some platforms in the market. Both these platforms and third‐party logistics providers are now offering online logistics services. Under this context, the brand manufacturers face challenges of deciding whether to outsource their logistics needs to third‐party logistics service providers (LSPs), rely on the e‐commerce platform itself, or establish collaborative partnerships with them. The combination between the decision to outsource or cooperate and the choice of service providers yields four typical scenarios: outsourcing to the platform without cooperation (Case PB), outsourcing to the platform with cooperation (Case P), outsourcing to the LSP without cooperation (Case LB), and outsourcing to the LSP with cooperation (Case L). This paper proposes a game‐theoretic model to investigate the manufacturer's optimal selection of logistics mode. We examine the economic and environmental performances of four logistics modes, with a particular emphasis on the mutual benefits and costs shared between manufacturers and their logistics partners. Our results reveal that collaboration in sustainable logistics improvement leads to higher sustainability levels, augmented logistics fees, and increased sales volumes compared to noncollaborative strategies. Additionally, we find that outsourcing to the e‐commerce platform generally results in higher profits and superior environmental performance for manufacturers, contingent upon the sustainability enhancement being sufficiently effective. Empirical evidence from surveys and interviews with industry experts supports our theoretical findings, underscoring the critical role of collaboration in achieving both economic and environmental sustainability within the supply chain. This study contributes to the literature on logistics outsourcing by evaluating manufacturers' strategic decisions in selecting logistics modes and accentuates the importance of cooperation in advancing sustainable logistics practices.
The motive of this study is to identify the factors influencing the willingness to pay (WTP) a premium price for socially responsible food products (SRFPs) in India. This study is based on primary survey of 398 respondents. Descriptive statistics and factor analysis have been used for data analysis. Further, logistic regression was used to examine the factors affecting the WTP a premium price for SRFPs. Results demonstrate that respondents of higher age are more likely to pay premium prices for SRFPs. Male consumers are two times more likely to have higher WTP for SRFPs. WTP a premium price is significantly influenced by the consumers' reference group, pro‐environmental intention, and concern for the animals. Gender, age, consumers' reference group, pro‐environmental intention, and concern for the animals determine WTP premium prices for SRFPs. There are relatively very limited researches on this topic in emerging economies including India, where the adoption of socially responsible products is in early stage. The practical implications of this study are to help in increasing the sales of the SRFPs and producers to develop appropriate policy design.
Eco-friendly refers to goods and materials that are not detrimental to the environment. This product promotes green living and green manufacturing practices that use less or different types of resources. The paper examines the influence of factors like social media, reference groups, promotional activities, and government initiatives that influence consumers buying intention towards eco-friendly products during coronavirus outbreaks in Bangladesh's eco-friendly product condition. The primary goal of this study is to study the elements that influence consumers' buying intentions for eco-friendly products during the coronavirus pandemic from the perspective of Bangladesh. The information was gathered from 205 respondents via a structured questionnaire with five-point Likert scales and multiple items. The approach of purposive sampling is applied. Frequency, mean, standard deviation, and regression analysis are used to examine the data. According to the regression analysis, the research identifies that factors social media, reference groups, promotional activities, and government initiatives significantly influence consumers' green products purchase decisions. This paper may be contributed to this green buying intention and buying decision issues. Companies can be profited by knowing the influential factors of consumers' eco-friendly products buying intention. This paper creates consciousness among environmental consumers, investigators, academicians, officials, government, and greening working companies. Hence, there is an obligatory need to recognize the persuasive aspects of consumers' eco-friendly products buying intention in order to rush into the eco-friendly products buying among all consumers to save this world for afterward generations.
Net zero waste buildings are not as widespread a concept as are net zero energy buildings, but are gaining momentum in urban regions. Municipal authorities and all stakeholders in the construction sector around the globe are adapting to work toward zeroing waste. Although the ultimate target is zero waste, the policies and tools adopted in building construction basically work on the values of 3Rs (reduce, reuse, and recycle), trying to minimize waste in landfills and incinerators for ecological and economic gain, thus compelling the use of a cradle-to-cradle model instead of a cradle-to-grave model. This shifts the paradigm and slowly advances toward zero waste and sustainability. The emerging trends of practices and challenges include source reduction (tops the list of solid waste, EPA), salvaging and reusing (deconstruction), recycling C&D materials, rebuying C&D materials, waste to wealth, and waste to energy (WtW, WtE).
Following the oil industry, fashion manufacturing is the second largest polluting industry of the agricultural land leading to various unfavorable impacts on the environment. Sustainable fashion, also lightly known as eco-fashion, is a part of the rising design reality and trend. The aim is to build an approach that can bear the unlimited load of human impact on the environment and social obligation. Zero waste needs that human activity to only use nature’s assets at a rate that can be restored naturally. Hypothetically, the long-term result of environmental degradation is the incapability to withstand human life. Such dilapidation on a comprehensive scale could entail extinction for the human race. Fashion is a complex business involving long and diverse supply chains of production, textile manufacture, raw material, garment construction, transportation, retail, consumption, and eventually disposal of clothes. The carbon footprint of this industry is tremendous. Obvious pollutants like pesticides that meet the common eye are used in producing natural fabrics. The hazardous dyes are used largely in manufacturing textiles discarding huge amounts of waste.
This chapter offers flexible approaches and easy-to-create zero-waste methods to help develop and create new designs out of discarded fashion. The chapter will include beautifully created illustrations converted into wearable outfits out of waste garments. This exercise of design research rejuvenates the method of eradicating fabric waste by utilizing zero waste pattern cutting to increase conceivable results. This conceptualization of new inventions created by the zero-waste concept may lead to the making of future aesthetics in production and economies. The “wealth from waste” is a new approach in the fashion frontier, developing new innovative sustainable textiles made from agricultural waste, plant fibers, including cactus, mushrooms, coconut, pineapple, banana, Aloe vera, and many more. Further, the life-cycle assessment and involvement of the waste management of fashion and textile industries in contributing the circular economy has also been focused.
GI, which is an intellectual property right, is perceived as quality product, differentiated product, and local product, identified with its production origin, produced with the contribution of human elements and at the same time a part of culture. GI, which is becoming more and more accepted in the international arena, adds a multi-dimensional value to it both as a local development tool and is being used for the protection and promotion of cultural values. At the same time, it can be used to have an important market segment in the trade of products in the international arena. GI, which provide competitive advantage for certain products with a perception of quality in trade, has started to find a place in the legal legislation of many countries. D-8 OEC, which dates back to 1996, is one of the important economic cooperation organizations formed by eight Muslim countries. Countries within this organization have the potential to make the most of the benefits of the GI system with their biodiversity and cultural diversity. One of these products is rice. D-8 countries, which have approximately 20% of the world production, also have 15 GI registered rice that they have registered in their national legislation. Bangladesh, Indonesia, Nigeria, and Pakistan are among the leading countries in the D-8 OEC, which are an important production center especially for aromatic rice. Among the D-8 countries, the GI system has been used for a long time in some countries (Turkey and Malaysia), while in others there is either no specific national legal basis or the system is in a new development state. With this study, the general situation of the GI system in D-8 countries has been presented and a general evaluation has been made on rice. As a result, it is revealed that the efforts of the D-8 countries to carry out joint studies in many fields should also be demonstrated on the issue of intellectual property rights and that the studies should turn into more action.
This paper investigates the effects of environmental regulation and consumers’ environmental awareness on the optimal investment strategies of a monopolist's environmental innovation. We develop a dynamic optimal control model in which two kinds of environmental innovation are considered (i.e., end-of-pipe and cleaner production technologies innovation), and the installed abatement capacity and green performance of the product are state variables. We explore the monopolist's optimal investment strategies and find that there exists a complementarity or substitutability relationship between the monopolist's steady-state investments in end-of-pipe and cleaner production technologies innovation, which depends on the value of consumers’ environmental awareness. Further, we consider the optimal investment strategies from the perspective of social planner. By comparing investment strategies under the monopolist and social planner optimum cases, we show that the monopolist can achieve socially optimal innovation investment levels under a given environmental policy. Finally, we relax the assumption of a given policy and characterize the first-best and second-best policies, respectively, then compare R&D incentives of the two policies by numerical examples. We find that the first-best policy generates higher end-of-pipe and cleaner production technologies innovation incentives than the second-best emission tax policy.
This paper develops a dynamic optimal control model to investigate the effects of consumer environmental awareness and emission tax on firms' green innovation investment and pricing strategies. Our main results show the following: (i) when both consumer environmental awareness and emission tax are present, the firm's reaction to environmental awareness may be non-monotone, although a higher emission tax always yields higher green innovation investment and price; (ii) competition in an environmentally sensitive market increases the investment of the firm's green innovation; (iii) raising emission tax may be a better policy choice than promoting consumer environmental awareness when the market size is small.
Coğrafi işaretler bir sınai mülkiyet hakkı olup Türkiye'deki yasal mevzuatı 1995 yılında yayınlanan 555 sayılı KHK'ye dayanmaktadır. Daha sonra 22.12.2016 tarihinde çıkartılan 6769 sayılı Sınai Mülkiyet Kanunu ile yasal altyapısı güçlenen coğrafi işaret sisteminde Türkiye'de Nisan 2021 tarihi itibari ile 707 tescilli ve 740 adet ise başvuru aşamasında ürün bulunmaktadır. Kastamonu ili toplam 20 adet tescilli ürün ve 15 adet başvuruda bulunan ürün ile Türkiye'de coğrafi işaretli ürüne sahip (tescil + başvuru) en zengin 10 ilden biridir. Bu çalışmanın amacı bu kadar zengin bir çeşitliliğe sahip Kastamonu ili Merkez ilçesinde tüketicilerin coğrafi işaret algısı ve bu algının tercihe dönüşmesi konusunda durumun ortaya konulmasıdır. Bu kapsamda 203 kişi ile anket çalışması yürütülmüştür. Araştırma sonucunda tüketicilerin %88.67'sinin coğrafi işareti kavramını duyduğu, bu kişilerin %34.44'ünün ise konu hakkında yeterli bilgilerinin olduğu belirlenmiştir. Coğrafi işaret kavramı hakkında bilgisi olan tüketicilerin %71.67'si coğrafi işaret etiketini bir kalite göstergesi olarak algılamaktadır. Bu tüketicilerin %68.33'ü ise bu tip ürünler için fazla ödeme yapma konusunda istekli olduklarını bildirmiştir. Sonuç olarak coğrafi işaret konusunda özellikle 2016 yılında çıkan kanun sonrası önemli bir gelişme yaşanan Kastamonu ilinde coğrafi işaret konusunda tüketicilerin önemli ölçüde olumlu algı ve bunlarında davranışa dönüştüğü görülmektedir. Coğrafi işaret sisteminin daha etkin kullanımı ve tüketicilerin daha fazla bilgilendirilmesi ile bu sistemin önemli bir yerel kalkınma aracı olacağı düşünülmektedir.
Abstract
Geographical indication is an industrial property right and its legal basis goes back to 1995 year 555 Decree Law in Turkey. There are 707 registered and 740 application stage products as of the date of April 2021 in Turkey where the legal framework of geographical indications system has been strengthened with Industrial Property Law No. 6769, issued on 12/22/2016. Kastamonu province, with a total of 20 registered and product included in the product 15 applications with a geographical indication is one of the richest 10 provinces in Turkey. The aim of this study is to reveal the geographical indication perception of consumers in the Central district of Kastamonu province, which has such a rich variety, and the situation of turning this perception into preference. In this context, a survey was conducted with 203 people. As a result of the research, they stated that 88.67% of the consumers heard the concept of geographical sign and 34.44% of these people had sufficient information about the subject. 71.67% of the consumers who have knowledge about the concept of geographical indication perceive the geographical indication label as a quality indicator. 68.33% of these consumers stated that they were willing to pay more for such products. As a result, it is seen that in Kastamonu province, where an important development has been experienced in the geographical indication area, especially after the law enacted in 2016, the consumers have a significant positive perception and behavior. It is thought that this system will be an important local development tool with more effective use of the geographical indication system and more information to the consumers.
in this modern era where the booming mixture of culture and generation, the most influential aspect that controls the emotions and the decisions of the mass consumer base and the public is social media. The major retail and shopping experience base in today's day and age is via communication and networking which enhances online shopping. With the introduction of pandemic it has become a complete e-commerce based shopping, browsing and complete experience. With this a new technologies of green consumerism green blogging has taken a huge popularity among the consumers. With influencers and celebrities and organizations who promote a green lifestyle and fight for either injustice or a better future for the earth in general. There are several organizations who are setting up AI and virtual reality experience towards electronic shopping. Which also include spreading awareness about green and sustainable industries, saving energy and zero waste in fashion. It also highlights the major issues in the fashion industry and one major organization that has taken up the initiative to spread the prejudice and inhumane behaviors of the global fashion industry and branched out into the entire world, they work in every corner of the world to make sure consumers and the public pick up and start focusing on green consumerism in the fashion industry.
The main purpose of the study was to establish the relationship between the Price and consumer attitude of eco friendly product in Chidambaram. Sample for the study was selected through simple random sampling. Area of the research was in and out of Chidambaram. Data from 100 samples were gathered through a questionnaire. Data was analyzed with the help of Linear Multiple Regression. Results of the study show that most of the statements of price did predict consumer attitude. There is significant relationship exists between price and consumer attitude.
Experts in economics, management science, and especially marketing have long been interested in and recognized the importance of running profitable businesses while also considering societal and environmental concerns. Marketing for social good is increasingly becoming a part of many university curricula under various names such as social marketing, green marketing, and sustainability marketing. The importance of these studies is growing all over the world as an increasing number of businesses comply with the UN's 17 Sustainable Development Goals (SDGs). However, the level of existing literature, particularly the availability of teaching cases, reflects a scarcity of real case studies, particularly those focusing on marketing for social good. Although experts recognize the significance of emerging markets, real case studies, especially those focusing on marketing issues related to societal and environmental concerns, are few and far between. This case study book fills that void by illustrating examples from both developed and emerging markets. This book is made up of long and short real-life cases of varying complexity from various industries such as hotels, chemicals, handloom, and dairy. It also provides a framework, recent advances in social and sustainability marketing knowledge, and a pedagogical tool for instructors and researchers (both academic and industry) to provide a unique and comprehensive source of knowledge on social and sustainability marketing. Through various marketing strategies, processes, and programs, the case studies presented focus on creating, communicating, and delivering customer value to socially responsible consumers. By illustrating a range of actual marketing situations, these case studies help readers acquire the skills they need to make informed marketing decisions. This is a must-have book for marketers who want to reach out to socially responsible customers.
This paper extends the environmental management literature by theorizing on and empirically validating the impacts of three different institutional environmental forces (IEFs): coercive, normative, and mimetic institutional environmental forces. We use a multi-method research design with two studies to examine the impacts of these forces by first investigating the environmental behaviors of individuals when they encounter these forces in their daily life, then examining their response towards environmental messages that reflect these three different forces. Specifically, we examine in Study 1 how these forces affect the environmental behaviors of individuals in terms of their participation in sorting and reducing waste, and other environmental activities through a mass survey. In Study 2, we investigate how the environmental messages of firms based on their environmental initiatives are emotionally received by individuals through electroencephalography (EEG). The findings suggest the importance of using normative and mimetic IEFs in addition to coercive IEFs to motivate participation in environmental initiatives.
Over the past decades, environmental sustainability has raised at the top of the international political agenda and has been recognized as a key driver of innovation. As a result, the number of companies developing green products has been rapidly growing and consumers have shown an increasing interest for these products. Thus, understanding the main characteristics of green products, identifying factors affecting their price and consumers’ willingness to pay more for them, sales channels and promotional tools (the 4Ps of Green Marketing) would be very useful for companies aiming at designing, developing and marketing green products. For this reason, deeply understanding Green Marketing would foster, on the one hand, cleaner production through the development of green products and, on the other hand, sustainable consumption through the successful marketing of them. To this aim, this study reviews the body of knowledge on the topic, through a systematic review of the literature. Specifically, this paper analyzes: 1) the dominant definitions of Green Marketing (and related concepts) and their evolution over time, 2) the different steps to build a Green Marketing Strategy, and 3) the characteristics of Green Marketing Mix elements. After searching for academic publications in three databases (EBSCO, Scopus, and Web of Science) and selecting publications based on their relevance for the stated aims, 114 studies have been included in the review. Results show that the definition of Green Marketing has changed over time according to the growing relevance of environmental sustainability. Regarding the Green Marketing Strategy, several ways of segmenting consumers have been identified; studies converge in giving greater relevance to green brand positioning rather than to green product positioning and many of them see it as a chance of differentiation. Referring to the Green Marketing Mix, results show that: many types of green products exist; consumers are willing to pay a premium price according to products’ functional attributes or their responsibility towards the natural environment; closed-loop supply chain and reverse logistics play a key role; a careful definition of advertisement contents is essential and ecolabels can be important tools. This study provides an in-depth analysis and synthesis of the body of knowledge so far produced in the field of Green Marketing and, as such, it has important implications for managers, scholars, and students.
This study focused on the effectiveness of fear appeal messages used to arouse a threat in green advertising. An experiment recruited 175 participants to test the influence of the advertising appeal (fear vs. non-fear appeal), source (for-profit vs. non-profit organizations), and involvement with the environment on attitude toward the ad (Aad), attitude toward the product (Ap) and purchase intention (PI). Results revealed that a fear appeal in a green ad negatively affected Aad and Ap and that participants who were highly involved with the environment were more likely to have positive attitudes toward the green ad and advertised green product as well as a stronger intent to purchase it. The source type in the green ad did not affect ad effectiveness and involvement with the environment did not moderate the effects of either appeal or source.
International furniture markets certify ecolabel has been growing, but the domestic market has not yet developed. Unfortunate, because these products have two advantages that ensure environmental sustainability and promote a furniture market. This study was expected to open and developed the domestic market for ecolabel-certified furniture. The aim of this study was to develop marketing strategies for ecolabel-certified furniture on each of green consumer stratifications. Consumer stratification was conducted to group a wider market. This grouping was meant to make the marketing strategies drawn up can be used appropriately. The formulation of the marketing strategies for ecolabel-certified furniture was done through an analysis of consumer preferences over the strategies in
question. The components used were: satisfaction, safety, socialization, and sustainability, as well as government policies which could open markets. The respondents were 408 potential consumers in Jakarta and its surroundings. The method used was purposive and convenience sampling, in which the survey was conducted at exhibitions and showrooms. Ward Method, Stepwise Discriminant Analysis and Biplot Analysis were used to generate consumer stratifications. Before that, reliability tests were conducted using Crombach Alpha method. In addition, data was explored and reduced using Component Principle Analysis. Preference analysis was performed using the method proposed by Thurston Case V. This study results four stratifications of green consumers. There were similarities and differences in preference on each of the stratification of the component of green marketing strategy as well as the marketing strategies of furniture-certified ecolabel for the targeted consumers.
The purpose of this research is to understand the Current situation of Eco fashion and its position in the grassroots level in Bangladesh; what does the local consumer thinks about it and to find out what will be the possible obstacles in the way of Eco fashion to emerge in Bangladeshi market. Possible solution for development and what kind of Governmental help will be expected. Motivating the RMG sectors to develop the Eco fashion sector in Bangladesh is one of the reflecting intention. Raising consumer awareness about Eco fashion is the prime motto of this research. In order to understand the consumer perception, a survey was held in Bangladesh. Basically, the survey was more focused about Eco fashion, what the consumer's preference and perception regarding Eco fashion. The results and findings were really surprising. Most of the people in Bangladesh lack knowledge about Eco fashion. Those who have some knowledge are real basic. Environment friendly issues motivate Bangladeshi people most towards Eco fashion. The main demotivating point regarding Eco fashion is its costing and price in market. All the participants in the survey morally supports ethical fashion without any doubt and does not matter whether it is about Eco fashion or about non-eco. But dramatically they lack knowledge about the proper meaning of ethical fashion. What they basically support is that, maximising benefits to people and community and minimising impact on earth which is the base of Eco fashion. Reasons; why Eco fashion is still outlined in Bangladesh is the RMG sector and the Govt. is not really conscious about the positive impacts with Eco fashion. Also the income level of our general people has a big impact towards the development of Eco fashion. People hear in this country are not motivated by what they see or feel. In Bangladesh people are mainly motivate by their income and society. Public awareness regarding environmental issues has got massive importance and we are all aware about this. This is why Eco fashion is a hot topic now. But lack of knowledge and lack of attention is damaging the possibilities of Eco fashion to emerge in Bangladesh fashion sector. It is high time to speak up and save something great for better future.
The rapid economic growth has increased the demand for products and services in the market place. On the other hand there is a viceversa effect on the environment. This unsustainable growth was taken due consideration and this research was done with an objective to explore the environmental knowledge of consumers and their impact on green purchase behavior in the context of urban and rural scenario. This study indicates the intercorrelation effect of environmental knowledge and its impact on selected green product purchase behaviour. The study result provides a reasonable support for the companies who come out with green product offering and to design their marketing campaign as well.
While there have been a variety of studies on green marketing and environmental labels, there has been little academic research on Millennials' interpretation of environmental terminology, also referred to as green terminology. There is confusion on the part of consumers and manufacturers regarding the use of green terminology. Although environmentally preferable products carry a positive image with most Millennials, only some retailers have been able to effectively send 'green' messages. The purpose of this paper is to examine the meanings that Millennials attach to terms currently being used to promote environmentally preferable products. Marketers can create more effective messages if they understand how consumers are interpreting the terminology used in the messages.
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