Supply Chain Pricing Decision Considering Consumers’ Environmental Awareness And Firms’ Dual Fairness Concerns

In supply chain management,it is very important to make appropriate pricing decision for products,which will directly affect the operation efficiency and optimal profit of each enterprise,and the pricing decision of products will be affected by the external influence of supply chain power structure,consumers’ environmental awareness and enterprises’ fairness concern.In addition,in China’s important industrial sectors,cement has become the focus of promoting green economy because of its high environmental load and high degree of energy dependence.In view of this,this paper takes the supply chain in which cement industry is located as an example to study the pricing decision-making problem of supply chain in different power structures,considering consumers’ environmental awareness and enterprises’ dual equity concerns.The main research work of this paper is as follows:(1)Pricing decision of supply chain based on consumer’s environmental awareness and retailer’s fairness concern in manufacturer leading supply chain.Existing relevant studies only consider consumers’ environmental awareness or retailers’ dual-fairness concerns,without comprehensively considering the impact of both.Moreover,most of the literatures only consider the cases where other enterprises pay attention to equity concerns,but fail to consider the cases where other enterprises do not pay attention to fairness concerns.So this article puts consumers’ environmental concern into the product demand function,constructs supply chain pricing models in which all enterprises have no fairness concern,manufacturer do not pay attention to retailers’ dual fairness concerns and manufacturer pay attention to retailers’ dual fairness concerns,find optimal pricing decision of each enterprise in the supply chain under different circumstances is obtained.Furthermore,combining with the field survey data of supply chain dominated by A cement manufacturing enterprise,this paper explores the influence of consumers’ environmental awareness and retailers’ dual fairness concerns on supply chain pricing decisions.Results indicate that,first of all,in a supply chain dominated by cement manufacturer,consumers’ environmental awareness always contributes to the profits of each enterprise in the supply chain.Second,whether cement manufacturer focus on the cement retailer’s dual-fairness concerns,the retailer’s vertical fairness concern is conducive to its own profit growth,but to cause a decline of manufacturer’s profit,retailer’s horizontal fairness concerns is not conducive to its own profit,but can promote the profit growth of the leading manufacturer.Finally,dual-fairness concern of cement manufacturer focuses on retailers to get(all the enterprises in the supply chain profit,finally,cement manufacturer’s concern about the dual-fairness concerr of cement retailers is beneficial to the profit of all enterprises in the supply chain.(2)Pricing decision of supply chain based on consumer’s environmental awareness and manufacturer’s fairness concern in retailer leading supply chain.The existing literature only studies the supply chain pricing problem of consumers’ environmental awareness and manufacturers’ vertical fairness concern,and does not consider the influence of manufacturers’ horizontal equity concerns on this basis.Therefore,this paper is based on the existing literature,constructs supply chain pricing models in which all enterprises have no fairness concern,retailer do not pay attention to manufacturers’ dual fairness concerns and retailer pay attention to manufacturers’ dual fairness concerns,combined with the data of C cement retailer leading supply chain,this paper explores the influence of consumers’ environmental awareness and manufacturers’ dual equity concerns on the pricing decision of supply chain.Results indicate that,first of all,in a retailer leading supply chain,the enhancement of consumers’ environmental awareness is not always beneficial to the profits of enterprises.When retailers pay attention to manufacturers’ dual-fairness concerns,manufacturers’ profits will decrease with the enhancement of consumers’ environmental awareness.Secondly,regardless of whether retailer pay attention to manufacturers’ dual-fairness concerns,manufacturers’ vertical fairness concerns are always conducive to their own profit growth,but not conducive to retailers’ profit growth.Manufacturers’ horizontal fairness concerns will lead to their own profit reduction,but conducive to retailers’ profit growth.Finally,retailers’ attention to manufacturers’ dual-fairness concerns is beneficial to the profits of all firms in the supply chain.