Risk Assessment for Green Product Positioning  

Oleh:

Chen, Yenming J.

Jenis: Article from Proceeding
Dalam koleksi: The 14th Asia Pacific Industrial Engineering and Management Systems Conference (APIEMS), 3-6 December 2013 Cebu, Philippines, page 1-6.
Topik: Hotelling competition model; non-uniform consumer preference distribution; production cost; environmental quality; stochastic profitability
Fulltext: 1010.pdf (262.46KB)

Isi artikel

This paper examines the conditions under which companies are willing to provide product with high environmental quality when business risks are envisioned. To avoid losses in risky investment, producers usually hesitate to produce green products even that environmental consciousness has become dominated.This paper establishes concrete relations between environmental quality and business risks with regard to market responses and product characteristics. Under condition of investment requirement and the increased sensitivity of customers to environmental quality, the companies are more willing to produce products with higher environmental quality. Considering market uncertainty, stochastic conditions are derived based on our deterministic outcomes.

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