Article
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Preserved in Portico This version is not peer-reviewed
Online Bundled Pricing Strategy for Agricultural Products Considering Consumers' Organic Preferences
Version 1
: Received: 5 June 2023 / Approved: 6 June 2023 / Online: 6 June 2023 (03:58:56 CEST)
A peer-reviewed article of this Preprint also exists.
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. 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.
Keywords
agricultural products; bundle pricing; consumer organic preference
Subject
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.
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