Pre-sale pricing strategy for fresh agricultural products under O2O

Abstract

Fresh agricultural products are indispensable necessities in daily life. The imbalance between supply and demand leads to large price fluctuations in normal state, thus torturing producers and consumers. When fresh agricultural products are pre-sold online, we discuss the optimal pricing strategies of suppliers and retailers in different periods based on dual-channel business model. Demand uncertainty is reduced to maximize supply chain profit. Research shows that the retailer has lower optimal price under centralized strategy than that under decentralized strategy. However, the supplier has the same optimal price under the two strategies. In official and discount sales periods, the optimal pricing is closely related to online market share. Suppliers and retailers adjust market shares to achieve optimal profit of supply chain. The optimal profit of supply chain increases first, and then decreases with the increase of consumer price elasticity index. Therefore, the suppliers and retailers can adjust sales strategy to affect consumer price elasticity index, thus achieving an optimal profit of supply chain.