The Pricing Strategy of the Agricultural Product Supply Chain with Farmer Cooperatives as the Core Enterprise

Abstract

The pricing strategy of agricultural products not only affects the product demand and purchasing behavior of consumers, but also the income distribution of node enterprises and the overall profit of the agricultural supply chain. This paper studies the pricing strategy of the agricultural product supply chain with farmer cooperatives as the core enterprise. Considering the heterogeneous demand of consumers, this paper introduces the degree of agricultural product characteristics and establishes a dynamic pricing model for agricultural products under decentralized decision-making and centralized decision-making and designs a revenue sharing coordination contract. The results indicate that the overall profit of the supply chain obtained by pricing agricultural products through a decentralized decision-making model is lower than that created under centralized decision-making. Improving the degree of agricultural product’s characteristics and adopting the revenue sharing contract is conducive to the Pareto improvement of supply members. The relevant recommendations provide a reference for the product pricing strategy of this type of agricultural product supply chain.