Fashion retail competition on product greenness with overconfidence

Cheng, Bayi; Wang, Yuqi; Shi, Xinyan; Zhou, Mi

doi:10.1051/ro/2021178

Cited by 4 publications

(2 citation statements)

References 30 publications

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“…Zhou [50] analyzed manufacturer's overconfidence in product greenness through cost-sharing contracts for coordinating an SC. Cheng et al [10] studied the effect of overconfidence of competitive retailers in a green fashion supply chain.…”

Section: Overconfidence Behaviour In Supply Chainmentioning

confidence: 99%

Effect of fairness and overconfidence on pricing strategy of substitute bundles in a two-echelon supply chain

et al. 2023

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Cognitive biases - fairness and overconfidence, affect the decision-making process. The manufacturer/retailer prefers to sell the products as bundles in a duopoly market because it fetches more benefits to supply chain (SC) partners. Till now, none considered the pricing of substitute bundles, produced and sold at the manufacturer’s level. Considering these, the effects of the above cognitive behaviours on the bundlingpricing strategy are investigated. We develop several SC models, depending on the partner’s cognitive biases, with two manufacturers, producing substitute bundles of two uncorrelated items and selling through a retailer. Using the Stackelberg game, prices and profits are evaluated. It is observed that overconfidence does not increase retailer’s and overconfident - manufacturer’s profits but is beneficial for another rational manufacturer. Against the retailer’s fairness concern, her profit is augmented, but both manufacturers’ profits are adversely affected. The combined effect of both cognitive biases is adjuvant for the retailer but maleficent for manufacturers. Managerial insights are presented.

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Section: Overconfidence Behaviour In Supply Chainmentioning

confidence: 99%

Effect of fairness and overconfidence on pricing strategy of substitute bundles in a two-echelon supply chain

et al. 2023

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“…Therefore, consumers' environmental awareness also leads consumers to underestimate or overestimate the true valuation of the green product, eventually affects the price they're willing to pay [21]. More specifically, the higher a consumer environmental awareness is, the more he is willing to pay [8]. Since the new green product and the incumbent non-green product are substitute and the green product has price premium in the market, consumers' uncertain valuations of the new green product probably result in consumers experiencing post-purchase regret when they find that the forgone alternative would have been more preferable [2].…”

Section: Introductionmentioning

confidence: 99%

Greening level and pricing decisions of the green product supply chain in the presence of consumers’ anticipated regret

Liu

2022

RAIRO-Oper. Res.

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When a firm introduces a new improved eco-friendly product into the market of the congeneric non-green product with the same baseline attribute, consumers are uncertain about the true valuation of this green product. Thus, when choosing between the green product and non-green product, consumers will anticipate the potential regret in the future and try to minimize it, and their purchasing decisions will be affected. This paper investigates the impact of consumers’ anticipated regret on the manufacturer’s and retailer’s optimal pricing and greening level decisions of these two kinds of products. By a game theoretic model in which the manufacturer is the leader, we derive the optimal wholesale price, greening level and retail price. Our analysis shows that the manufacturer and retailer can benefit or loss from consumers’ two types of anticipated regret in equilibrium. Furthermore, the green product’ optimal wholesale price and retail price, and greening level all decrease with green product-purchase regret but increase with non-green product-purchase regret in equilibrium. Interestingly, we also find that the non-green product’s optimal wholesale price and retail price are not affected by the consumers’ anticipated regret and the green product. This study provides retailers and manufacturers with new marketing management insights from the perspective of consumers’ anticipated regret behavior, and outlines the guidelines for them on invoking or mitigating consumers’ regret to increase profit or demand at the right time.

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The Effect of Optimism on Competitive Manufacturers under Carbon Cap-and-Trade Policy

Wang,

Yang

2023

2023 35th Chinese Control and Decision Conference (CCDC)

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Fashion retail competition on product greenness with overconfidence

Cited by 4 publications

References 30 publications

Effect of fairness and overconfidence on pricing strategy of substitute bundles in a two-echelon supply chain

Effect of fairness and overconfidence on pricing strategy of substitute bundles in a two-echelon supply chain

Greening level and pricing decisions of the green product supply chain in the presence of consumers’ anticipated regret

The Effect of Optimism on Competitive Manufacturers under Carbon Cap-and-Trade Policy

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