Optimal green product segmentation and differential pricing in a platform supply chain

Abstract

Low-carbon development is a global trend and a requirement from governments and industries. Many companies produce green products based on brown products to implement green product segmentation strategies, and the platform economy can help them achieve green development. Considering a manufacturer who can choose a pure brown, green low-price segmentation or green high-price segmentation strategy, we construct three corresponding platform supply chain models. By comparing the optimal results of the three models, we observe how the manufacturer performs in terms of economic and ecological benefits, as well as social welfare. Our results show that the proportion of green consumers and the green preference of green consumers have a positive impact on the manufacturer's profit. The manufacturer can make the most profit when it produces both brown and green products and sets a higher price for the green products. The green product segmentation improves social welfare, and the manufacturer can achieve a win‒win situation in terms of economic and social benefits.