Optimizing sales mode selection and marketing effort for a B2C marketplace under green product investment uncertainty

Purpose - This study investigates the circumstances under which a business to customer (B2C) marketplace chooses to implement green marketing to promote green product investment (GPI). It further identifies the optimal sales model approach for implementing green marketing under uncertainty about the effects of GPI. Design/methodology/approach - We examine an e-commerce (EC) supply chain involving a manufacturer who determines the product's greenness level and a B2C marketplace who can operate in either an agency or a reselling mode and engages in green marketing to promote sales of green products. Using the backward induction method, we develop an analytical model to drive the optimal decisions and profits under each sales model. Findings - Our research demonstrates that high GPI uncertainty drives B2C marketplaces to adopt green marketing strategies. These initiatives not only prompt manufacturers to invest in eco-friendly products but also boost profits for all parties involved. Nevertheless, these benefits depend on the choice of a sales model between agency and reselling. Our findings offer a novel practical application into the relationship between GPI uncertainty and green marketing. When the GPI uncertainty is high, green marketing is profitable for the B2C marketplace regardless of which sales mode is adopted. However, when uncertainty is low, green marketing only benefits the B2C marketplace in the agency mode. Moreover, the interaction between GPI uncertainty and the referral fee exerts a moderating influence on the preferred sales mode for both the manufacturer and the B2C marketplace. Practical implications - Our findings offer a novel practical application into the relationship between GPI uncertainty and green marketing. When the GPI uncertainty is high, green marketing is profitable for the B2C marketplace regardless of which sales mode is adopted. However, when uncertainty is low, green marketing only benefits the B2C marketplace in the agency mode. Moreover, the interaction between GPI uncertainty and the referral fee exerts a moderating influence on the preferred sales mode for both the manufacturer and the B2C marketplace. Originality/value - Overall, our research contributes to a deeper understanding of the complex but beneficial interplay between GPI uncertainty, green marketing and sales mode selection in an EC supply chain.