IDEAS home Printed from https://ideas.repec.org/a/hin/jnddns/7743647.html
   My bibliography  Save this article

Research on Pricing Decision of Direct Sales Green Supply Chain Based on Consumers’ Valuation

Author

Listed:
  • Yong-Gang Ye
  • Xiao-Feng Liu
  • Daqing Gong

Abstract

Consumer’s valuation of merchandise is an important factor affecting consumer buying behavior. When the consumer’s valuation exceeds the price of product, the consumer generally makes a decision to purchase the product; conversely, when the consumer’s estimate is lower than the price of product, the consumer will usually refuse to buy the product. From the perspective of consumer product valuation, this study assumed that the consumer’s product valuation obeys a uniform distribution, and a novel consumer demand function was proposed. On this basis, we studied enterprises’ pricing decisions in the supply chain of green agricultural products and obtained the equilibrium prices and optimal profits of the enterprises in several different scenarios, including Vertical Nash game model (VNM), firm A Stackelberg game model (FASM), firm B Stackelberg game model (FBSM), and cooperative game model (CM). In addition, the influence of parameters, such as green level, green preference payment coefficient, and green cost on the optimal profit, was discussed based on game theory and numerical simulation analysis. It was found that equilibrium prices always existed in several different scenarios, and when consumer’s green preference payment coefficient was large enough, the optimal profit of firm B was greater than the optimal profit of firm A. Furthermore, in CM, the sum of optimal profit of firm A and optimal profit of firm B is maximum for four scenarios. Finally, in the three competitive scenarios, green level, green preference payment coefficient, and green cost, have a positive or negative effect on the optimal profits of firm A or firm B. The research conclusions of this study provided theoretical support for the decision-making of enterprises and related management departments.

Suggested Citation

  • Yong-Gang Ye & Xiao-Feng Liu & Daqing Gong, 2021. "Research on Pricing Decision of Direct Sales Green Supply Chain Based on Consumers’ Valuation," Discrete Dynamics in Nature and Society, Hindawi, vol. 2021, pages 1-17, November.
  • Handle: RePEc:hin:jnddns:7743647
    DOI: 10.1155/2021/7743647
    as

    Download full text from publisher

    File URL: http://downloads.hindawi.com/journals/ddns/2021/7743647.pdf
    Download Restriction: no

    File URL: http://downloads.hindawi.com/journals/ddns/2021/7743647.xml
    Download Restriction: no

    File URL: https://libkey.io/10.1155/2021/7743647?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xijia Liu & Xiaoshu Liu & Anna Shi & Chenwei Li, 2023. "Agricultural Products’ Bundled Pricing Based on Consumers’ Organic Preferences," Sustainability, MDPI, vol. 15(17), pages 1-14, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hin:jnddns:7743647. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mohamed Abdelhakeem (email available below). General contact details of provider: https://www.hindawi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.