Pricing and green promotion effort strategies in dual-channel green supply chain: considering e-commerce platform financing and free-riding

Abstract

Purpose This paper aims to explore product pricing and green promotion effort policies and further analyzes the influences of financing interest rate, green promotion effort and free-riding behavior on the optimal strategies. Design/methodology/approach Research will be conducted with the aid of Stackelberg game research method, considering that the manufacturer has financial constraints and financing from e-commerce platform, and consumers have dual preferences, based on the two models of no green promotion effort for physical store and green promotion effort for physical store to explore dual-channel green supply chain strategies. Findings This research puts forward the following findings, in the two models: the rise in financing interest rate leads to an increase in wholesale and selling prices of dual channels and a decrease in demand of dual channels. The green promotion effort has a positive impact on wholesale prices, selling prices and demand of dual channels. The rise of free-riding rate makes offline wholesale and selling prices fall, whereas online wholesale and selling prices rise. Originality/value This research results can provide reference for the decision-making in the context of supply chain financing and free-riding.