Research On The Quality And Price Of Environmentally Friendly Products That Consider Fairness Concerns And Consumers' Environmental Awareness

The rapid development of the economy has caused serious damage to the ecological environment,and solving environmental problems has become an urgent task.The state and the government continue to implement environmental protection policies to improve the environment and promote energy conservation and emission reduction.Affected by the government's environmental protection policy,people's lifestyles and consumer attitudes have great changes,and consumer environmental awareness(CEA)has gradually increased.In order to actively respond to the government's environmental policy,and to meet consumer demand for environment products,at the same time,to obtain more profits,some manufacturers began to produce environmental products with environmental quality.When manufacturers add environmental quality to environmental products,the production costs of environmental products are bound to increase.At this time,the manufacturer will increase the wholesale price to guarantee the profit.The increase of wholesale price has led retailers to believe that their profits have been unfairly squeezed,so measures will be taken to punish manufacturers.In summary,manufacturers need to consider both the consumer's demand for environmental products and the retailers' fairness concern when adding environmental quality to environmental products.Therefore,this paper combines consumer environmental awareness(CEA)and retailers' fairness concerns to study the retailer and manufacturer' optimization strategies.This paper focuses on the impacts of consumer environmental awareness(CEA)and retailer's fairness concerns on environmental quality,wholesale price and retail price of the green product in a one-manufacturer and one-retailer supply chain.The manufacturer produces one green product,and the green product has the environmental quality.This study compares three decision scenarios:decentralized model(Scenario1),retailer is fair-minded and incurs an unfavorable disutility(Scenario 2),retailer is fair-minded and incurs a favorable disutility(Scenario 3).Assume that the manufacturer is the leader,the retailer is the follower,we apply the backward method to solve the Stackelberg game and give the optimal solutions of the environmental qualities,wholesale prices and retail prices.Our analysis reveals that:(1)retailer's fairness concerns will not change the environmental quality of the green product,and only affect the wholesale price and retail price;(2)retailer's power in the supply chain and the degree of the fairness concerns jointly determine whether the retailer benefits from the fairness concerns;(3)fairness concerns may change the trend of the retailer's profit with CEA when the retailer is concerned about favorable disutility.