Abstract
This paper studies the differentiation management of green agricultural products problem of "Farmer supermarket connection" mode. The "Farmer supermarket connection" mode is a direct connection between supermarkets and farmers (or cooperatives), what the supermarket needs and what the farmers produce. The green degree is used to indicate the quality level of health, safety and nutrition of agricultural products. The greater the green degree, the better the quality of agricultural products. In order to meet the needs of all consumers, the supermarket decided to differentiate one kind of agricultural products, namely, the supermarket which operates both ordinary and green agricultural products. It builds on the consumer utility function for ordinary agricultural products and green agricultural products. Based on utility function, it analysis the consumers choice behavior of ordinary agricultural products and green agricultural products. It is concluded that the general demand for agricultural products and the demand of green agricultural products. It is discussed the optimal decision based on Stackelberg game of supermarket choosing one farmer to purchase of common agricultural products and green agricultural products at the same time and supermarket to choose two farmers to purchase of common agricultural products and green agricultural products. It can be seen from the comparison that the supermarket chooses the two farmers to order separately, which is more profitable than the purchase of one. Finally, a "wholesale price + ordering subsidy" coordination mechanism is proposed to realize supply chain coordination. An example is given to verify the rationality of the model and conclusion.
CUI YUQUAN, SU HUI, LIU BINGJIE, QU JINGJING. (2018) Differentiation Management of Green Agricultural Products Based on Utility Analysis, International Review of Management and Business Research, Volume 7, Issue 3.
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