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Platform-led green advertising: Promote the best or promote by performance

•Platform green marketing is discussed from an operations perspective.•Product’s green performance and consumer’s green preference are taken into decision model.•The optimal decisions are obtained and compared in PP strategy and PB Strategy.•Value of platform-led green advertising is demonstrated fr...

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Bibliographic Details
Published in:Transportation research. Part E, Logistics and transportation review Logistics and transportation review, 2019-08, Vol.128, p.115-131
Main Authors: Du, Shaofu, Wang, Lei, Hu, Li, Zhu, Yangguang
Format: Article
Language:English
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Summary:•Platform green marketing is discussed from an operations perspective.•Product’s green performance and consumer’s green preference are taken into decision model.•The optimal decisions are obtained and compared in PP strategy and PB Strategy.•Value of platform-led green advertising is demonstrated from both economic and environmental perspectives. With the prevalence of platform economics and consumer green awareness, platform-led green advertising becomes an emerging issue in practice. We investigate this issue by simultaneously considering a product’s green performance and consumer’s green preference. Two strategies discussed systematically with Stackelberg models: Promote by Performance and Promote the Best. The results demonstrate the value of green advertising from both economic and environmental perspectives. The platform can make more profit using the Promote the Best strategy rather than the Promote by Performance strategy, although the former requires more investment. The related boundary and optimal decisions are identified and analyzed.
ISSN:1366-5545
1878-5794
DOI:10.1016/j.tre.2019.05.019