Optimal pricing of green agriculture products in a marketing-mix program

Abstract

China has made great efforts to support high-quality development (HQD) of green agriculture. In recent years, a marketing-mix program involving both preselling and spot selling of green agricultural product has gained popularity across the country. Considering the driving effects of high-quality green agricultural products in supermarket and the difference between preselling and spot selling consumers in product valuation, this paper optimizes the dynamic pricing of the seller of green agricultural products in the preselling period and the spot selling period. The results show that the seller could raise the preselling price and lower the spot selling price, if the product has a prominent driving effect; the seller could raise both preselling and spot selling prices, if the product is perceived by consumers as worthy of waiting for in the supermarket; such a marketing-mix program is suitable for products popular among most consumers. The research findings help enhance the awareness of HQD among enterprises of green agricultural products.