The Impact of Consumers' Quality Identification on the Decisions of Quality and Price in an Agricultural Product Supply Chain

Abstract

Abstract:

Consumer's perception of the quality of agricultural products in the market will influence the strategies of the upstream enterprises. In this paper, the market is assumed to be under two opposite conditions:one is that agricultural product quality is identifiable and the other unidentifiable. The agricultural products supply chain is divided into three structures depending on the dominant firms and Stackelberg Game Model is used to discuss quality investment and product price. The research reveals that when quality is unidentifiable, the quality investment and product price of the supply chain are affected by the market price elasticity; when quality is identifiable, the quality investment and product price of the supply chain increase with the increase of the quality identification capability, and quality investment and price are relatively high in the producer-driven supply chain, but the integrated decision-making enterprises will make some certain quality investment after careful selection, which can contribute to a benign development of high quality and high price.

Key words: quality identify, agriculture product supply chain, quality investment, price decision, Stackelberg game model

Gu Chuan, Luo Luan. The Impact of Consumers' Quality Identification on the Decisions of Quality and Price in an Agricultural Product Supply Chain[J]. , 2016, 28(12): 225-234.

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