Optimal Pricing Strategy Research of Fresh Agricultural Products Based on Consumer Choice Behavior
Abstract
With the weakening of information asymmetry, the retailer's pricing decision can prompt the consumer strategy behavior, which, in turn, will have a great impact on the retailer's pricing strategy. Considering consumer strategy behavior and preferences diversity, this paper utilized the method of consumer utility theory and revenue management theory, studied the optimal pricing strategy problem of fresh agriculture products, and found that it is helpful for retailers to realize profit maximization if all the consumers only choose to buy in the first stage, which can lead to a higher initial selling price. Meanwhile, the retailer’s optimal pricing strategy and profit are positively correlated to freshness sensitivity and negatively correlated to price sensitivity.
Keywords
Consumer strategy behavior, Preference diversity, Revenue management theory, Optimal pricing strategy, Fresh agricultural products.
DOI
10.12783/dteees/seee2016/6547
10.12783/dteees/seee2016/6547
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