As an increasing number of firms move to omnichannel operation for business sustainability, it is also necessary for fresh produce firms to adopt an omnichannel model by integrating online and offline channels. We focus on a fresh produce supply chain consisting of a supplier who sells online directly and a physical store retailer. The purpose of this paper is to explore the optimal channel selection strategy considering the fresh-keeping efforts of supply chain members. Specifically, we examine the conditions under which the supply chain members should cooperate to adopt the deliver-from-store (DFS) model and further investigate the impact of consumers’ freshness sensitivity and offline hassle cost on supply chain members’ sales model options. Several important conclusions are shown as follows. First, the retailer’s profit increases with the increasing freshness sensitivity in the dual-channel model, while it decreases if consumers are sufficiently sensitive to freshness in the DFS model. Second, if adopting the DFS model, online demand and total market demand expand, and the performance of the supplier and the retailer heavily depends on the size of the commission rate. Third, there always exists a win–win situation with an appropriate range of commission rate when the consumer’s hassle cost is large. This paper contributes to the omnichannel strategy research of fresh produce supply chain management and the results provide management insights for the sustainable development of the fresh produce industry in the omnichannel retailing environment.

Purpose This paper investigates how a regulator pursuing social welfare maximization designs an optimal subsidy scheme to stimulate technology innovation in the presence of a consumer green premium. Specifically, the authors solve the following questions: (1) Does the consumers' green premium affect the design of the subsidy scheme? (2) How should the firm choose a green technology innovation strategy under the optimal subsidy scheme? (3) Does technology innovation bring higher social welfare and lower environmental impact? Design/methodology/approach The authors first develop a game model to explore the impact of subsidy schemes on social welfare without considering technology innovation. Then the authors investigate two innovation strategies, in-house innovation and external introduction, under the optimal subsidy scheme. Finally, they illustrate the optimal choices of innovation strategy for the firm, consumers and regulators. Findings The results reveal that the subsidy scheme will not always increase social welfare, which depends on the environmental improvement coefficient of the unit green level. The optimal subsidy level increases with the green premium, but it is not related to the size of the consumer green segment. Moreover, the success rate of in-house innovation will raise the optimal green level, but the company benefits from an increased success rate of in-house innovation only when the green segment is large enough. The green segment size and external green level jointly determine the choice of technology innovation strategy. Originality/value This research is the first to analyze this problem while considering the green demand and subsidy scheme simultaneously as drivers of a firm's technology innovation, thereby providing new managerial implications for decisions by the regulator and firms.

PurposeImplementing effective marketing strategies can reduce consumers' perceived risks and promote the development of the remanufacturing market. The paper aims to explore the impact of two marketing strategies on the remanufacturing decisions of an original equipment manufacturer (OEM) and investigates the design of the optimal warranty service (WS) and consumer education (CE) strategies. Moreover, the authors also examine the optimal marketing strategy choices using the three criteria of OEM: profitability, consumer surplus and environmental impact (EI).Design/methodology/approachThe authors develop a stylized model by game theory, which characterizes how an OEM that produces and sells both new and remanufactured products (RPs) should design the optimal remanufacturing marketing activity, and how to choose between different remanufacturing marketing strategies. Moreover, consumer's utility theory is used to describe consumers' perception of different remanufacturing marketing strategies to derive product demand.FindingsThe results reveal that increasing the warranty and education levels will not always improve the firm's profitability; the result depends heavily on the size of the functionality-oriented consumer (FOC) segment. Remanufacturing marketing strategies might harm the OEM, consumers and environment under certain conditions. Moreover, the optimal marketing strategy selections are jointly influenced by the FOC segment and the new production cost. There exist triple-win regions in which the OEM should not hesitate to perform WS and CE.Originality/valueFew studies focus on the design and choice of remanufacturing marketing strategies, especially considering the role of consumer perceived behavior. This research contributes the behavioral remanufacturing marketing management and provides managerial implications for the implementation of OEM remanufacturing marketing strategy.