Abstract
A two-tier water supply chain including a manufacturer and a retailer under revenue-sharing contract is constructed. And the contribution of the model is that marketing effort and water purity has been considered. First, four models including the centralized model (model B) and decentralized models (models BM, I, and II) are established and analyzed. Second, the Stackelberg game model is used to discuss the pricing strategy of water supply chain members in centralized and decentralized scenarios. The comparison results show that revenue-sharing contract is beneficial to improve the level of product greening, the profit of supply chain members, and the overall profit of the water supply chain compared with model BM. However, it leads to the decrease of retailers’ green marketing efforts and the wholesale price of water. In addition, revenue-sharing contract through bargaining makes bigger influence than revenue-sharing contract. Marketing can stimulate the increase of the green product’s market demand on one hand, and on the other hand, it generates the amount of marketing cost. In this study, the profit is that marketing produces cannot offset the cost that it brings. Thus, it will be important to take some measures to make up the loss that marketing generated.
Highlights
As the blood of the earth, the source of life, and the cradle of civilization, water has important resource function, ecological function, and economic function
Consumers are shifting their preferences to more environment friendly brands. e green brand image and green brand value can be transformed into the customer’s brand loyalty when customers have the concept of green consumption [1]. erefore, retailers end up going green marketing [2]
Water purity θ(0 < θ ≤ 1) improvement indicates that manufactures should increase research and development costs, and we assume that all the costs were born by the manufacturers
Summary
As the blood of the earth, the source of life, and the cradle of civilization, water has important resource function, ecological function, and economic function. Two-tier water supply chain models under different Stackelberg scenarios are introduced. Revenuesharing contract is studied by considering both water marketing effort and water purity. (1) How do water supply chain members’ decisions and profitability are impacted when considering water purity and marketing efforts under revenue-sharing contracts? (2) What are the optimal decision strategies for water supply chain members under different scenarios? Decision-strategy for supply chain members is analyzed and compared in different models. (2) Under decentralized scenario, the imparts of revenue-sharing contract on different members and the whole supply chain have been analyzed ere are 4 sections concluded in this study.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
