Towards Zero-Carbon Cities: Optimal Sales Strategies of Green Building Materials Considering Consumer Purchasing Behaviors

Abstract

The adoption of green building materials (GBMs) has become increasingly important in reducing carbon emissions and realizing zero-carbon cities. Although some scholars have investigated the decision-making of GBMs adoption in markets, they mainly focused on the impact factors of GBMs adoption without considering consumers’ multi-channel purchasing behavior. Thus motivated, this paper aims to develop a theoretical game model incorporating consumers’ multi-channel purchasing behavior and study the optimal sales strategies of GBMs manufacturers and retailers in markets for promoting GBMs adoption. To do this, not only the equilibrium outcome on sales strategy is examined, but also the effects of different GBMs sales strategies on urban environments and social welfare are theoretically verified. It is found that (1) the equilibrium sales strategy relies on two core parameters, namely matching rate and online return cost. Only when the matching rate is low and the online return cost is at a medium level can the GBMs manufacturer and retailer achieve a strategic consensus, and the equilibrium sales strategy is S (i.e., selling GBMs through the online channel, offline channel, and store-to-online channel). (2) When pursuing total profits of manufacturers and retailers in GBMs markets, the S sales strategy is 100% superior to the D sales strategy (i.e., selling GBMs only through online and offline channels). This is because the introduction of a store-to-online channel can reduce online return losses by providing consumers with physical experiences. (3) When pursuing social welfare (refers to public benefits including consumer surplus, urban environmental impacts, and others), the D sales strategy is optimal if the matching rate is relatively large and the return cost is low. (4) Under certain conditions, governments should incentivize GBMs manufacturers and retailers to adopt the D sales strategy through regulatory instruments, so as to achieve a balance between economic benefits and social benefits.