PACIS 2019 Proceedings

Abstract

Environmental sustainability has been a critical issue for both firms and governments. This issue has received increasing attention from both industry and academia. On one hand, firms are facing the pressure to offer green products, which could be designed aided by technologies such as Internet of Things and big data. On the other hand, firms face higher costs and prices when offering green products. Furthermore, firms are threatened by the uncertainty from consumers’ heterogeneity in their awareness to environment. This article aims to investigate the optimal selling strategy from the perspectives of both firms and environment. The initial finding highlights the tension between firms and environment by showing that the firm’s profit-maximizing selling strategy may not align with the best environmental outcome.

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