Original scientific paper
https://doi.org/10.1080/1331677X.2021.1985572
Optimal pricing strategy for green products under salience theory
Zhiyi Meng
Na Zhao
Bin Shen
Chang Zhai
Abstract
Environmental pressures and people’s demands for green consumption have prompted manufacturers to engage in the
research and development of green products. Manufacturers
need to consider the price and greenness of products when making production decisions. This paper analyzes the level of greenness and price competition of duopoly manufacturers in the
consumer market in which both green-sensitive consumers (salience to greenness) and price-sensitive consumers (salience to
price) exist simultaneously according to salience theory. We find
that the regular manufacturer will enter the green market when
all consumers’ average degree of price responsiveness is small or
in a moderate part of the region. In addition, this paper also discusses the influence of salience on manufacturers’ level of greenness and pricing strategy choice. We find that the degree of
salient thinking of consumers influences optimal pricing, optimal
greenness and profits under the uniform pricing and price discrimination mechanisms.
Keywords
Green products; salience theory; uniform pricing; price discrimination
Hrčak ID:
302493
URI
Publication date:
31.3.2023.
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