Pricing and coordinating of green manufacturing supply chain considering consumers' anticipated regret

To describe the psychological behaviour of consumers in purchasing choices between common products and green products, this study explores how consumers' anticipated regret influences the pricing decisions and coordinating contract in green manufacturing supply chain. Firstly, the centralized decision model and manufacturer leadership model are constructed. In addition, the impacts of regret sensitivity coefficient, regret probability, product greenness, and green preference coefficient are analyzed. Finally, the revenue-sharing contract is established to coordinate green manufacturing supply chain. The results are: (1) When regret sensitivity coefficient is higher, enterprises can implement penetration pricing strategy (Available at https://www.paddle.com/resources/penetration-pricing#what-is-penetration-pricing) combined with commitment marketing strategy. (2) When consumers' green preference is higher, the probability of consumers' anticipated regret becomes lower. (3) When sharing ratio is within a certain interval, revenue-sharing contract can achieve the optimal allocation of profits.