The combined impacts of consumer green preference and fairness concern on the decision of three-party supply chain

Abstract

<p style='text-indent:20px;'>Consumer green preference (CGP) and fairness concern have posed significant impact on supply chain, respectively. This paper study the combined impacts of CGP and fairness concern on the supply chain that consists of a manufacturer, a green retailer, and a traditional retailer. Specifically, the optimal decision-makings are solved in seven cases, fairness neutrality (FN), the green retailer and the traditional retailer has vertical fairness concern (VFC) respectively, the two retailers has horizontal fairness concern (HFC) respectively, both retailers have vertical fairness concern (BVFC), both retailers have horizontal fairness concern (BHFC). Our main results via numerical simulation follow. (1) The improvement of CGP benefits the supply chain members except the traditional retailer. (2) The green retailer's VFC benefits itself and the whole supply chain, whereas bad for the manufacturer and the traditional retailer. However, the green retailer's HFC bad for itself, while benefits the manufacturer and the traditional retailer. (3) The traditional retailer's profits are affected by both CGP and fairness concern. (4) The high level of BVFC benefits the two retailers, but bad for the manufacturer. Conversely, the high level of BHFC will intensify competition between retailers and thus bad for them, while the manufacturer can benefit from it.</p>