IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v10y2018i11p3977-d179551.html
   My bibliography  Save this article

How Green Building Product Decisions from Customers Can Be Transitioned to Manufacturers: An Agent-Based Model

Author

Listed:
  • Qingfeng Meng

    (School of Management, Jiangsu University, Zhenjiang 212013, China)

  • Hongming Zhu

    (School of Management, Jiangsu University, Zhenjiang 212013, China)

  • Zhen Li

    (School of Management, Jiangsu University, Zhenjiang 212013, China)

  • Jianguo Du

    (School of Management, Jiangsu University, Zhenjiang 212013, China)

  • Xiangyu Wang

    (Australasian Joint Research Centre for Building Information Modelling, School of Built Environment, Curtin University, Perth, WA 6845, Australia
    Department of Housing and Interior Design, Kyung Hee University, Seoul 130-701, Korea)

  • Mi Jeong Kim

    (Department of Housing and Interior Design, Kyung Hee University, Seoul 130-701, Korea)

Abstract

The development of green building products is of great significance to the sustainability of construction projects. Both the financial ability and adoption behavior of customers have a great influence on the decisions made by manufacturers regarding the development of green building products. To clarify how customer behavior related to green building products can be transitioned to manufacturers, this paper presents a multiagent model that considers the interactions between customers and manufacturers, describing the decision process of manufacturers through the swarm intelligence algorithm and taking complex characteristics of agents into account. Results show that the customer’s financial ability has a positive impact on the green decisions of manufactures. In addition, the average greenness of products produced by manufacturers is found to be lower than that required by customers. Furthermore, building products within a certain range of greenness has strategic advantages in market competition, leading to higher sales and a monopoly position.

Suggested Citation

  • Qingfeng Meng & Hongming Zhu & Zhen Li & Jianguo Du & Xiangyu Wang & Mi Jeong Kim, 2018. "How Green Building Product Decisions from Customers Can Be Transitioned to Manufacturers: An Agent-Based Model," Sustainability, MDPI, vol. 10(11), pages 1-16, October.
  • Handle: RePEc:gam:jsusta:v:10:y:2018:i:11:p:3977-:d:179551
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/10/11/3977/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/10/11/3977/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zhu, Wenge & He, Yuanjie, 2017. "Green product design in supply chains under competition," European Journal of Operational Research, Elsevier, vol. 258(1), pages 165-180.
    2. Yenipazarli, A. & Vakharia, A., 2015. "Pricing, market coverage and capacity: Can green and brown products co-exist?," European Journal of Operational Research, Elsevier, vol. 242(1), pages 304-315.
    3. Qianqian Shi & Jianbo Zhu & Qian Li, 2018. "Cooperative Evolutionary Game and Applications in Construction Supplier Tendency," Complexity, Hindawi, vol. 2018, pages 1-13, January.
    4. Raza, Syed Asif & Rathinam, Sivakumar & Turiac, Mihaela & Kerbache, Laoucine, 2018. "An integrated revenue management framework for a firm’s greening, pricing and inventory decisions," International Journal of Production Economics, Elsevier, vol. 195(C), pages 373-390.
    5. Adepetu, Adedamola & Keshav, Srinivasan & Arya, Vijay, 2016. "An agent-based electric vehicle ecosystem model: San Francisco case study," Transport Policy, Elsevier, vol. 46(C), pages 109-122.
    6. Chen, Yenming J. & Sheu, Jiuh-Biing, 2017. "Non-differentiated green product positioning: Roles of uncertainty and rationality," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 103(C), pages 248-260.
    7. Kim, Byung-Do & Blattberg, Robert C & Rossi, Peter E, 1995. "Modeling the Distribution of Price Sensitivity and Implications for Optimal Retail Pricing," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(3), pages 291-303, July.
    8. Eppstein, Margaret J. & Grover, David K. & Marshall, Jeffrey S. & Rizzo, Donna M., 2011. "An agent-based model to study market penetration of plug-in hybrid electric vehicles," Energy Policy, Elsevier, vol. 39(6), pages 3789-3802, June.
    9. Liu, Zugang (Leo) & Anderson, Trisha D. & Cruz, Jose M., 2012. "Consumer environmental awareness and competition in two-stage supply chains," European Journal of Operational Research, Elsevier, vol. 218(3), pages 602-613.
    10. Zhang, Tao & Zhang, David, 2007. "Agent-based simulation of consumer purchase decision-making and the decoy effect," Journal of Business Research, Elsevier, vol. 60(8), pages 912-922, August.
    11. Wang, Tao & Seo, Seongwon & Liao, Pin-Chao & Fang, Dongping, 2016. "GHG emission reduction performance of state-of-the-art green buildings: Review of two case studies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 56(C), pages 484-493.
    12. Oliver, Henry & Volschenk, Jako & Smit, Eon, 2011. "Residential consumers in the Cape Peninsula's willingness to pay for premium priced green electricity," Energy Policy, Elsevier, vol. 39(2), pages 544-550, February.
    13. Meng, Qingfeng & Li, Zhen & Liu, Huimin & Chen, Jingxian, 2017. "Agent-based simulation of competitive performance for supply chains based on combined contracts," International Journal of Production Economics, Elsevier, vol. 193(C), pages 663-676.
    14. Wu, Peng & Song, Yongze & Shou, Wenchi & Chi, Hunglin & Chong, Heap-Yih & Sutrisna, Monty, 2017. "A comprehensive analysis of the credits obtained by LEED 2009 certified green buildings," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P1), pages 370-379.
    15. Ruey-Chyn Tsaur, 2015. "Green product pricing decision analysis with application to personal computers," International Journal of Production Research, Taylor & Francis Journals, vol. 53(1), pages 307-320, January.
    16. Shan Chen & Xu Wang & Lin Ni & Yingbo Wu, 2017. "Pricing Policies in Green Supply Chains with Vertical and Horizontal Competition," Sustainability, MDPI, vol. 9(12), pages 1-23, December.
    17. Yu, Yugang & Han, Xiaoya & Hu, Guiping, 2016. "Optimal production for manufacturers considering consumer environmental awareness and green subsidies," International Journal of Production Economics, Elsevier, vol. 182(C), pages 397-408.
    18. Zhang, Yurong & Wang, Jingjing & Hu, Fangfang & Wang, Yuanfeng, 2017. "Comparison of evaluation standards for green building in China, Britain, United States," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P1), pages 262-271.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Camelia Delcea & Liliana Crăciun & Corina Ioanăș & Gabriella Ferruzzi & Liviu-Adrian Cotfas, 2020. "Determinants of Individuals’ E-Waste Recycling Decision: A Case Study from Romania," Sustainability, MDPI, vol. 12(7), pages 1-28, April.
    2. Ayisha Siddiqua & Maisa El Gamal & Waheed Kareem Abdul & Lama Mahmoud & Fares M Howari, 2022. "E-Device Purchase and Disposal Behaviours in the UAE: An Exploratory Study," Sustainability, MDPI, vol. 14(8), pages 1-23, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhen Li & Hongming Zhu & Qingfeng Meng & Changzhi Wu & Jianguo Du, 2019. "Manufacturers’ Green Decision Evolution Based on Multi-Agent Modeling," Complexity, Hindawi, vol. 2019, pages 1-14, April.
    2. Chenbo Zhu & Juntian Yue & Jing Chen, 2022. "Green Product Development and Order Strategies for Retailers," Sustainability, MDPI, vol. 14(15), pages 1-18, August.
    3. Jiguang Wang & Jianhong Chang & Yucai Wu, 2020. "The Optimal Production Decision of Competing Supply Chains When Considering Green Degree: A Game-Theoretic Approach," Sustainability, MDPI, vol. 12(18), pages 1-20, September.
    4. Linghong Zhang & Bowen Xue & Xiyu Liu, 2018. "Carbon Emission Reduction with Regard to Retailer’s Fairness Concern and Subsidies," Sustainability, MDPI, vol. 10(4), pages 1-28, April.
    5. Qingfeng Meng & Zhen Li & Jianguo Du & Huimin Liu & Xiang Ding, 2019. "Negotiation for Time Optimization in Construction Projects with Competitive and Social Welfare Preferences," Complexity, Hindawi, vol. 2019, pages 1-13, January.
    6. Zolfagharinia, Hossein & Zangiabadi, Maryam & Hafezi, Maryam, 2023. "How much is enough? Government subsidies in supporting green product development," European Journal of Operational Research, Elsevier, vol. 309(3), pages 1316-1333.
    7. Xia, Senmao & Ling, Yantao & de Main, Leanne & Lim, Ming K. & Li, Gendao & Zhang, Peter & Cao, Mengqiu, 2022. "Creating a low carbon economy through green supply chain management: investigation of willingness-to-pay for green products from a consumer’s perspective," LSE Research Online Documents on Economics 116895, London School of Economics and Political Science, LSE Library.
    8. Jianbo Zhu & Miao Fang & Qianqian Shi & Peng Wang & Qian Li, 2018. "Contractor Cooperation Mechanism and Evolution of the Green Supply Chain in Mega Projects," Sustainability, MDPI, vol. 10(11), pages 1-15, November.
    9. Yantao Ling & Jing Xu, 2021. "Price and greenness competition between duopoly firms considering consumer premium payments," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(3), pages 3853-3880, March.
    10. Yang Tong & Yina Li, 2018. "External Intervention or Internal Coordination? Incentives to Promote Sustainable Development through Green Supply Chains," Sustainability, MDPI, vol. 10(8), pages 1-20, August.
    11. Zongyu Mu & Qiujie Li & Gengxin Dai & Ke Li & Guangming Zhang & Fan Zhang, 2022. "Government Subsidy Policy and Online Selling Strategy in a Platform Supply Chain with Green R&D and DDM Activities," Sustainability, MDPI, vol. 14(15), pages 1-23, August.
    12. EuiBeom Jeong & GeunWan Park & Seung Ho Yoo, 2019. "Incentive Mechanism for Sustainable Improvement in a Supply Chain," Sustainability, MDPI, vol. 11(13), pages 1-18, June.
    13. Dong, Ciwei & Liu, Qingyu & Shen, Bin, 2019. "To be or not to be green? Strategic investment for green product development in a supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 131(C), pages 193-227.
    14. Mukherjee, Arka & Carvalho, Margarida, 2021. "Dynamic decision making in a mixed market under cooperation: Towards sustainability," International Journal of Production Economics, Elsevier, vol. 241(C).
    15. Wang, Moran & Guo, Xiaolong & Wang, Shouyang, 2022. "Financial hedging in two-stage sustainable commodity supply chains," European Journal of Operational Research, Elsevier, vol. 303(2), pages 803-818.
    16. Li, Jin & Hu, Zening & Shi, Victor & Wang, Qian, 2021. "Manufacturer's encroachment strategy with substitutable green products," International Journal of Production Economics, Elsevier, vol. 235(C).
    17. Xiaoli Zhang & Guoyi Xiu & Fakhar Shahzad & Yupeng Duan, 2021. "Optimal Financing Strategy in a Capital-Constrained Supply Chain with Retailer Green Marketing Efforts," Sustainability, MDPI, vol. 13(3), pages 1-19, January.
    18. Zhaofu Hong & Hao Wang & Yeming Gong, 2019. "Green product design considering functional-product reference," Post-Print hal-02312293, HAL.
    19. Chen, Wenbo, 2018. "Retailer-driven carbon emission abatement with consumer environmental awareness and carbon tax: Revenue-sharing versus Cost-sharingAuthor-Name: Yang, Huixiao," Omega, Elsevier, vol. 78(C), pages 179-191.
    20. Zhang, Dengjun & Xie, Yifan, 2022. "Customer environmental concerns and profit margin: Evidence from manufacturing firms," Journal of Economics and Business, Elsevier, vol. 120(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:10:y:2018:i:11:p:3977-:d:179551. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.