Research On Ordering And Pricing Of Organic Agricultural Products Based On Consumer Utility Theory

During the past decades of reform and opening up,China’s industrial development has shown an amazing speed,and the per capita income level has gradually increased.However,problems such as air pollution,water pollution and soil pollution are also becoming more and more worrying.After that,the safety of eating has become a serious topic or problem.Therefore,the most green and safe organic agricultural products naturally become the first choice of people.However,the frequent occurrence of food safety accidents directly affects people’s trust in organic agricultural products.The key factor of the low degree of trust,quality information asymmetry,seriously affects consumers’ willingness to consume organic agricultural products.In order to get consumers’ trust,it will increase a lot of costs,which brings many difficulties to people to consume low price and high quality organic produce.Though compared with developed countries,China’s organic agricultural products market is late and has many problems,but its potential is unlimited.Therefore,based on the practical situation,this paper takes the utility theory,inventory theory and mathematical methods as the research means to analyze and discuss the order and pricing problems of organic agricultural products retailers.First of all,under the completely competitive environment,the quality information asymmetry will affect the utility of consumers,and then lead to the change of market demand.Therefore,this paper adds the key factors of the quality information asymmetry to the consumer utility function and considers it in the traditional inventory model of agricultural products.Then,the two ordering ways of the retailer: single order of single variety and multi variety unified order are studied.Finally,the results of the research are verified and stated by the specific value.Then,for the retailers in the imperfect competition environment,the information cost of reducing the information asymmetry of quality information can be transferred to the sale price of organic agricultural products.Based on this complex reality,the key factors of the quality information asymmetry are added to the consumer utility function,and the optimal pricing model of the retailer is derived by mathematical method.Then,according to the specific value,we analyze the consumer utility and the optimal retailer’s pricing influenced by the asymmetry of quality information.