Nowadays, the brown products are losing market coverage to their green alternatives due to consumers' increasing environmental awareness. Confronted with this threat, many traditional manufacturers currently producing only brown product are contemplating the launch of green product. Base on this background, this paper explores the optimal product choice for the manufacturer. We first derive the optimal results for each product choice. Then we analyse the optimal product choice for the manufacturer. Next, we study how to induce the production of green product. Finally, the fraudulent behaviour on product's environmental attributes is addressed. Main findings are as follows. First, manufacturer's optimal product choice is to produce green product if the investment-to-value ratio and the unit production cost for green product are low and to produce brown product if the investment-to-value ratio and the unit production cost for green product are high. Second, the two-part tariff contract is applicable to stimulate the manufacturer to produce green product under certain conditions. While exterior intervention is necessary under other conditions. Third, when the manufacturer and the retailer diverge in product preference, the manufacturer has a strong incentive to behave fraudulently, and this type of manufacturer needs strict supervision.

This paper studies how consumers’ psychological factors influence their intentional purchasing behavior towards eco-labeled products and investigates why consumers choose eco-labeled products. Based on the Theory of Planned Behavior, we develop an extended model including six constructs. Among these constructs, consumers’ intentional purchasing behavior, attitude towards the behavior, subjective norm, and perceived behavioral control are applied from the original theoretical framework. Health consciousness and environmental awareness are integrated additionally to reflect consumers’ concerns about the natural environment and their health. Next, we conduct and analyze a survey-based empirical study with 336 samples using the Structural Equation Modeling. Our findings show that consumers’ attitude towards the behavior is positively influenced by environmental awareness, but the effects of it on intentional purchasing behavior are insignificant. Also, subjective norm has a positive influence on intentional purchasing behavior, but its effects on attitude towards the behavior are not significant. Moreover, the results also show that the total effects of health consciousness on intentional purchasing behavior are significantly higher than the effects of environmental awareness. Our results can provide a reference for business managers to attract consumers through eco-labeling as well as government policymaking.