Details of Research Outputs

As an environmentally friendly transport mode, alternative fuel vehicles (AFVs) largely address environmental concerns by reducing harmful gas emissions. However, research on the pricing and advertising strategies of AFVs, notably the optimal level of commitment to advertising by AFV retailers, is still largely overlooked. Therefore, this paper explores the pricing and advertising strategies of CV (conventional vehicle) and AFV retailers when considering different advertising formats, namely, informative and persuasive, within a competitive market. We compare the profits of the two competitive retailers to arrive at the optimal decisions, as well as the investment levels of advertising. In addition to the effectiveness of the two stated advertising strategies, we derive some practical and counterintuitive results where for instance, the optimal price of the AFV retailer is positively correlated with the utility of the two types of advertising. Additionally, investment advertising does not necessarily bring benefits to AFV retailers. This study offers both valuable theoretical and practical contributions to the pricing and marketing of AFVs.