The Pricing Strategies on China's Green Food Products at Growth Stage of Industrial Life Cycle

Abstract

According to industry life cycle theory, as well as the current industrial development situation, this study proposed that green food industry in China was at its growth stage. Although consumer at this stage has increasing awareness toward green products, the problem of information asymmetry as well as limited purchasing power, hinders their willingness to pay at premium for green products, which in turn results in an awkward dilemma for the pricing practice of green firm. Based on the characteristics of consumer behaviors at growth stage, we discussed some practical suggestions on firm's pricing strategies.