scholarly journals The optimal product-line design and incentive mechanism in a supply chain with customer environmental awareness

2021 ◽  
Vol 0 (0) ◽  
pp. 0
Author(s):  
Zhi-tang Li ◽  
Cui-hua Zhang ◽  
Wei Kong ◽  
Ru-xia Lyu
Keyword(s):  
Market Segmentation ◽  
Production Cost ◽  
Consumer Surplus ◽  
Product Line ◽  
Green Products ◽  
Product Line Design ◽  
The Difference ◽  
Line Design ◽  
D Investment ◽  
Quality Difference

<p style='text-indent:20px;'>Due to the increasing awareness of sustainable development, the manufacturer's product-line design gets wide attention. Nowadays, the traditional manufacturer that produces non-green products is considering whether to introduce upgraded green products. This paper studies the manufacturer's optimal product-line design considering the quality difference between non-green and green products. Besides, our model also investigates the difference in unit production cost, green research and development (R&amp;D) investment, and market segmentation. The results show that, from the manufacturer's perspective, producing green products is a better choice when non-green products are of low quality. In addition, the retailer is always inclined to sell green products. Further, the consumers' preference for non-green and green products is divided. And the consumer surplus under different product-line designs is analysed. Finally, two contracts are proposed and compared to encourage the manufacturer to produce green products.</p>

Product-Line Design in the Presence of Consumers’ Anticipated Regret

2020 ◽  
Vol 66 (12) ◽  
pp. 5665-5682 ◽  
Author(s):  
Tianxin Zou ◽  
Bo Zhou ◽  
Baojun Jiang
Keyword(s):  
Product Quality ◽  
Product Line ◽  
Quality Level ◽  
Purchase Decisions ◽  
Anticipated Regret ◽  
Product Line Design ◽  
Line Design ◽  
Quality Difference

Consumers are often uncertain about their valuations for product quality when choosing among different products and will learn their valuations only after buying and using a product. Some consumers may thus experience overpurchase or underpurchase regret, depending on whether they have purchased a higher- or lower-quality level than what they would have chosen had they known their true valuations. When consumers anticipate their potential postpurchase regret, their purchase decisions may be affected. Our analysis shows that overpurchase regret lowers the firm’s profit, but underpurchase regret can benefit the firm if consumers’ overpurchase regret is not strong. When the firm optimally designs its product line, the quality difference between its offerings will be larger (smaller) if consumers’ anticipated regret increases (reduces) its profit. Surprisingly, although anticipated regret tends to reduce consumers’ utility, in equilibrium, the presence of anticipated regret can increase consumers’ expected surplus. We further examine when the firm should allow consumers to return their products by paying a restocking fee and how the optimal restocking fee will change with consumers’ propensities for the two types of regret. We also experimentally show that consumers’ propensities of underpurchase and overpurchase regret are different and can be influenced by the firm’s messages. This paper was accepted by Juanjuan Zhang, marketing.

Clonal Selection Algorithms for Optimal Product Line Design: A Comparative Study

2021 ◽  
Author(s):  
Michail Pantourakis ◽  
Stelios Tsafarakis ◽  
Konstantinos Zervoudakis ◽  
Efthymios Altsitsiadis ◽  
Andreas Andronikidis ◽  
...  
Keyword(s):  
Comparative Study ◽  
Clonal Selection ◽  
Product Line ◽  
Product Line Design ◽  
Clonal Selection Algorithms ◽  
Selection Algorithms ◽  
Line Design
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