Environmental Collaboration under Various Contracts in the O2O Closed-Loop Supply Chain

This study considers the dynamic pricing and green advertising incentive decisions in the O2O closed-loop supply chain. Through green advertising efforts, the manufacturer and the retailer push up the consumers’ environmental consciousness and the return rate of the end-of-use products. Based on the...

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Main Authors: Yang Bai, Xueying Meng
Format: Article
Language:English
Published: Wiley 2022-01-01
Series:Discrete Dynamics in Nature and Society
Online Access:http://dx.doi.org/10.1155/2022/2767766
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author Yang Bai
Xueying Meng
author_facet Yang Bai
Xueying Meng
author_sort Yang Bai
collection DOAJ
description This study considers the dynamic pricing and green advertising incentive decisions in the O2O closed-loop supply chain. Through green advertising efforts, the manufacturer and the retailer push up the consumers’ environmental consciousness and the return rate of the end-of-use products. Based on the manufacture directing Stackelberg game theory, this research looks into three different green advertising decisions (noncooperative, unilateral cooperative, and bilateral cooperative) under wholesale price contract, revenue-sharing contract, and financial support contract in the O2O CLSC. The results show that the bilateral cooperative incentive strategy always makes both the manufacturer and the retailer invest more in green advertising efforts and increase profits. Without affecting sales, implementing the bilateral cooperative incentive mechanism under the financial support contract is the best strategy to mitigate channel conflict, promote Pareto improvement, and ultimately achieve sustainable development goals.
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institution Kabale University
issn 1607-887X
language English
publishDate 2022-01-01
publisher Wiley
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series Discrete Dynamics in Nature and Society
spelling doaj-art-a2746feaea2f46439aefb00e0b5a9afb2025-02-03T06:07:33ZengWileyDiscrete Dynamics in Nature and Society1607-887X2022-01-01202210.1155/2022/2767766Environmental Collaboration under Various Contracts in the O2O Closed-Loop Supply ChainYang Bai0Xueying Meng1Business SchoolBusiness SchoolThis study considers the dynamic pricing and green advertising incentive decisions in the O2O closed-loop supply chain. Through green advertising efforts, the manufacturer and the retailer push up the consumers’ environmental consciousness and the return rate of the end-of-use products. Based on the manufacture directing Stackelberg game theory, this research looks into three different green advertising decisions (noncooperative, unilateral cooperative, and bilateral cooperative) under wholesale price contract, revenue-sharing contract, and financial support contract in the O2O CLSC. The results show that the bilateral cooperative incentive strategy always makes both the manufacturer and the retailer invest more in green advertising efforts and increase profits. Without affecting sales, implementing the bilateral cooperative incentive mechanism under the financial support contract is the best strategy to mitigate channel conflict, promote Pareto improvement, and ultimately achieve sustainable development goals.http://dx.doi.org/10.1155/2022/2767766
spellingShingle Yang Bai
Xueying Meng
Environmental Collaboration under Various Contracts in the O2O Closed-Loop Supply Chain
Discrete Dynamics in Nature and Society
title Environmental Collaboration under Various Contracts in the O2O Closed-Loop Supply Chain
title_full Environmental Collaboration under Various Contracts in the O2O Closed-Loop Supply Chain
title_fullStr Environmental Collaboration under Various Contracts in the O2O Closed-Loop Supply Chain
title_full_unstemmed Environmental Collaboration under Various Contracts in the O2O Closed-Loop Supply Chain
title_short Environmental Collaboration under Various Contracts in the O2O Closed-Loop Supply Chain
title_sort environmental collaboration under various contracts in the o2o closed loop supply chain
url http://dx.doi.org/10.1155/2022/2767766
work_keys_str_mv AT yangbai environmentalcollaborationundervariouscontractsintheo2oclosedloopsupplychain
AT xueyingmeng environmentalcollaborationundervariouscontractsintheo2oclosedloopsupplychain