Liu, X.; Liu, X.; Shi, A.; Li, C. Agricultural Products’ Bundled Pricing Based on Consumers’ Organic Preferences. Sustainability2023, 15, 13256.
Liu, X.; Liu, X.; Shi, A.; Li, C. Agricultural Products’ Bundled Pricing Based on Consumers’ Organic Preferences. Sustainability 2023, 15, 13256.
Liu, X.; Liu, X.; Shi, A.; Li, C. Agricultural Products’ Bundled Pricing Based on Consumers’ Organic Preferences. Sustainability2023, 15, 13256.
Liu, X.; Liu, X.; Shi, A.; Li, C. Agricultural Products’ Bundled Pricing Based on Consumers’ Organic Preferences. Sustainability 2023, 15, 13256.
Abstract
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.
Business, Economics and Management, Business and Management
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
