Production mode and pricing coordination strategy of sustainable products considering consumers’ preference

Abstract

In order to study the pricing and coordination of sustainable supply chain (SSC), this paper investigates the equilibrium results of different production modes under non-cooperative game and cooperative game aiming at the market segmentation demand of sustainable products (SP), environment-friendly products (EFP) and general products (GP) which coexist and can be replaced under different preference levels. Theoretical analysis shows that when consumers have different preference coefficients for products, the critical zone of the manufacturer to choose production modes can be determined, and the system performance under cooperative game is significantly better than that under non-cooperative game. Through the cooperative pricing strategy of Rubinstein bargaining coordination, pareto optimization of profits of supply chain system and its members can be realized under different production modes. The system profits are 33.3% higher than that of non-cooperative game. The analysis of examples further verifies the influence of different production modes and the effectiveness of the coordinated pricing strategy.