Abstract

The potential broad market of green consumption has encouraged an increasing number of enterprises to carry out green technology innovation activities. This paper examines a two-stage supply chain of e-commerce sales channels under different cooperative models. We find that consumers’ green preferences are the main factor that affects green product market demand. The manufacturer and the retailer can raise the levels of green technology innovation and extend green promotional services to expand product market demand in online and offline channels. However, consumers’ e-commerce preferences and online free-riding behaviors affect the manufacturer’s sales channel choice. The retailer can improve the level of green promotional services to hold offline channel market demand, while promotional behaviors have a positive/negative spillover effect on online market demand if the level of free riding falls above/below consumers’ e-commerce preferences. The higher the cooperative level is, the later the manufacturer will open the online channel and close the offline channel to ensure a high level of green promotional service from the cooperative retailer. The results show that the stronger the level of cooperation among all members is, the better the economic, ecological, and social benefits will be. Therefore, we design a revenue-cost sharing contract that can effectively motivate green technology innovation and green promotional services and afford all members win-win profits.

Highlights

  • With the marked improvement of consumers’ environmental awareness, consumers pay more and more attention to products’ green attributes or carbon labels during purchasing products

  • This paper focuses on the impact of consumers’ green preference and free-riding behavior on the operational efficiency and channel strategy of the e-commerce green supply chain, which could provide a reference for green research and development (R&D) and the production operation of enterprises

  • We only focus on the two in this case, the retailer cannot obtain any revenue for zero offline market demand, and cases of offline channels and dual-channel supply chains

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Summary

Introduction

With the marked improvement of consumers’ environmental awareness, consumers pay more and more attention to products’ green attributes or carbon labels during purchasing products. Consumers who experience sales services at retail stores are persuaded to buy the product, they may turn to purchase products from the online channel with a lower price to maximize their surplus [14]; that is, the online channel exhibits free-riding behavior from the retailer’s promotional service This phenomenon is not conducive to cooperation among all members and should be given more attention. The consumer utility selection theory is used to determine product market demand This approach can help us analyze the effects of consumers’ green and e-commerce preferences, the manufacturer’s level of green technology innovation, and the retailer’s promotional services on product market demand.

Literature Review
E-Commerce Supply Chain Management
Retail Service and Free-Riding Management
Research Gaps
Green Technology Innovation and Promotional Services
Product Market Demand
Market
Cooperative Models
Findings
Conclusions
Full Text
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