Pricing and Distribution Strategies of Fresh Agricultural Product Supply Chain considering Substitutes

He, Xiaomei; Zhang, Chi; Guo, Xiaotong

doi:10.1155/2022/6453615

Cited by 3 publications

(2 citation statements)

References 45 publications

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“…Formula ( 1) is the objective function that represents the maximum profit of agricultural product e-commerce platforms, which is equal to sales revenue minus agricultural product costs and distribution costs; Constraint (2) refers to consumers reverse prices; Constraint (3) indicates that consumer surplus is equal to the difference between the consumer's reverse price and the actual paid price; Constraint (4) signals that consumers will choose to purchase the largest remaining bundled package; Constraint (5) describes that the pricing of the package is not less than the sum of the agricultural product costs within the package; Constraints ( 6) and (7) show that the price of each package is not greater than the sum of the prices divided into multiple packages; Constraint (8) denotes that the bundle purchased by consumers does not exceed their budget; Constraint (9) means that consumers will only purchase when their consumer surplus is not less than 0; Constraint (10) indicates that each consumer can purchase at most one package; Constraint (11) expresses that when the price of the bundle reaches a certain threshold, the distribution cost is borne by the platform; Constraint (12) represents 0-1 variables.…”

Section: Symbolsmentioning

confidence: 99%

“…Many scholars have studied the optimal pricing problem of agricultural products from the perspective of supply chain using game theory. He et al (2022) [7] studied the pricing strategies when the supplier has a limited output and the retailer has substitute suppliers in a fresh agricultural product supply chain. Wang et al (2017) [8] built a fresh produce supply chain consisting of a supplier and a retailer and derived the optimal pricing strategy of supplier in the presence of portfolio contracts and circulation losses.…”

Section: Introductionmentioning

confidence: 99%

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Agricultural Products’ Bundled Pricing Based on Consumers’ Organic Preferences

Liu,

Shi

et al. 2023

Sustainability

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To improve the market competitiveness of agricultural e-retailers, we offer an interactive bundle pricing strategy (IBPS). Compared to existing fixed bundling strategies, IBPS takes into account the variability of customer needs and provides consumers with more and more flexible choice opportunities. As more and more consumers tend to buy more environmentally friendly and healthy organic produce, a hybrid bundle pricing model for organic and inorganic produce is developed with the goal of maximizing retailers’ profit and optimizing consumers’ surplus, taking into account consumers’ organic preferences. Meanwhile, we introduce a free shipping strategy to further stimulate consumption. Then, we propose a heuristic algorithm to solve it and derive the optimal price for various bundled packages. Through numerical analysis, we draw some conclusions and propose corresponding management insights: (1) Compared with traditional online retailing methods, IBPS can effectively stimulate consumption and increase retailers’ profits; (2) as the free shipping threshold increases, total profits show a trend of first increasing and then decreasing, indicating that an appropriate free shipping threshold can optimize retailers’ profits; (3) as consumers’ green preferences increase, the sales of organic products increase while the total profit rises, so it is suggested that retailers increase consumer green preference through appropriate advertising; (4) the higher the consumption level, the higher the total value of consumers’ word purchases, so retailers can appropriately increase the free shipping threshold at high consumption levels.

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Section: Symbolsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Agricultural Products’ Bundled Pricing Based on Consumers’ Organic Preferences

Liu,

Shi

et al. 2023

Sustainability

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Online Bundled Pricing Strategy for Agricultural Products Considering Consumers' Organic Preferences

Liu¹,

Siekelová²

2023

Preprint

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Compared with the traditional bundle pricing strategy with fixed products, this paper proposes a more flexible interactive bundle pricing strategy (IBPS) for agricultural e-retailers. Since more and more consumers tend to buy more environmentally friendly and healthy organic agricultural products, we consider consumers' organic preferences and build a mixed bundle pricing model for organic and inorganic agricultural products. A free shipping strategy is introduced to maximize retailer profit and optimize consumer surplus. Through numerical analysis, we find: (1) Compared with the traditional online retailing method, IBPS can effectively stimulate consumption and higher retailer profit; (2) As the free shipping threshold increases, the total profit shows a trend of first increasing and then decreasing, indicating that a suitable free shipping threshold can optimize the retailer profit; (3) As the consumer green preference increases, the total sales of agricultural products decrease, but the organic sales improve, while total profit rises; (4) The higher the level of consumption, the higher the sales volume of organic products and there is an upward trend in the profits of e-retailers.

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Pricing and manufacturing strategy of dual-channel green supply chain under common product competition

Hou¹,

Gao²

2022

BCPBM

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As consumers' green demand continues to rise, the competition between ordinary products and green products is becoming more and more intense. In order to study the impact of product competition and consumer green demand on product price and product greenness, as well as the optimal manufacturing strategy of dual-channel green supply chain, for a manufacturer and a retailer that can produce common products and green products, a set of The dual-channel supply chain composed of traditional retail channels and online direct sales channels, according to the different production modes of manufacturers, established a dual-channel supply chain game model of traditional production mode, green production mode and mixed production mode, and compared the products under the three production modes Price, greenness, and manufacturer's profit are verified with examples. The results show that: based on the consistent pricing strategy, consumer channel preference directly affects product price and greenness; product competition and consumer green demand sensitivity coefficients both promote product prices and product greenness; the manufacturer's optimal manufacturing strategy For the mixed production mode.

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Pricing and Distribution Strategies of Fresh Agricultural Product Supply Chain considering Substitutes

Cited by 3 publications

References 45 publications

Agricultural Products’ Bundled Pricing Based on Consumers’ Organic Preferences

Agricultural Products’ Bundled Pricing Based on Consumers’ Organic Preferences

Online Bundled Pricing Strategy for Agricultural Products Considering Consumers' Organic Preferences

Pricing and manufacturing strategy of dual-channel green supply chain under common product competition

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