Pricing policies of green supply chain considering targeted advertising and product green degree in the Big Data environment

Abstract

In the Big Data era, targeted advertising develops to a more precise direction, and to improve their marketing accuracy and success rate, many enterprises begin to use it. However, the operation model of targeted advertising has changed. Meanwhile, for a green supply chain, products green degree is also an important factor in influencing sale. To study the pricing policies of a green supply considering targeted advertising input and products greening costs in the Big Data environment, a green supply chain with one green manufacturer and one retailer was chosen. Then, the operation model of targeted advertising in the Big Data environment was analyzed, and the demand function was revised. Based on these, four Game situations were proposed based on the Stackelberg game and Nash Equilibrium game theories and the change trends of prices with the green degree and the input level of targeted advertising were analyzed. Results indicated that the optimal retail price and the wholesale price had a negative correlation with the green degree and the input level of targeted advertising. In addition, the green manufacturer or the retailer as the leader will improve their own benefits, this shows that “first-mover advantage” is existing. For green supply chain members, this study offered a theoretical guidance on pricing policies considering targeted advertising and products green degree in the Big Data environment.