HighlightsUnder our conditions, promoting green products in a uncertain market becomes viable.Green product policies based on multiple factors such as competition, market size.The factors also include cost, green consciousness, environmental expectation.Governments can accordingly prioritize green products for subsidizing.
AbstractThis study examines the effect of market uncertainty and consumer rationality on product strategy when a company evaluates its entry into the green market. The risk in launching a green product is high because consumers may not be as environmentally conscious as they claim to be. This study develops a composite condition consisting of preference uncertainty, loss aversion, investment cost, and competition intensity to guide companies to react either conservatively or aggressively. An upgraded non-differentiation strategy is suggested for heterogeneous markets, loss-averse consumers, or high-quality reference when the indicator falls within the greenness range. Unlike conventional competitive analysis for non-green products, differentiation may not always be the best option to benefit the entire society and non-differentiation to green is favorable in the context of our analysis.
Non-differentiated green product positioning: Roles of uncertainty and rationality
2017-05-08
13 pages
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
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