Research On Product Pricing Decision Under Green Product Price Subsidy Policy

With the promulgation of environmental protection laws and policies in various countries around the world and the increase of people’s environmental awareness,green products that hide huge economic and environmental benefits begin to attract the attention of the market,and the related product pricing issue has become one of the important financial decisions of enterprises.To encourage the development of green products,the government usually formulate relevant subsidy policy to stimulate the production of green products and consumer.Under relevant subsidy policies,how to combine product characteristics and market environment to formulate product pricing strategies that are in line with the development of enterprises has become an urgent solution for enterprises.At the same time,it has also become one of the important research directions in academia.The research on subsidy policies mainly focuses on price subsidies.Related research does not consider the pricing issues of both ordinary products and green products,nor does it comprehensively consider the impact of consumer green preferences and product substitution rates on product pricing decisions,which leads to unreasonable pricing decisions related to green products.It will affect the business status and future development of the enterprise.Based on this background,this paper focuses on the market where common products and green products coexist,using optimization theory to establish a basic pricing model for the zero-price subsidy policy of green products,and on this basis to establish the pricing extension model of subsidy policy for manufacturers and consumers.At the same time,in the decision-making process,product pricing factors such as consumer preference,product substitution rate,and different cooperation conditions of participants are comprehensively considered.Then determine the optimal price of green products and ordinary products.And Finally,through actual cases,Analyze the impact of price subsidies on the optimal pricing strategy of decision-making members and further analyze the of other factors on the optimal pricing decision.It also compares and analyzes the optimal pricing decisions under different price subsidy policies.Hope to provide a valuable reference for the actual business decision-making of enterprises.The research of the paper shows that different price subsidy policies will affect the pricing strategy of enterprises to a large extent.Under the manufacturer’s price subsidy policy,the prices of ordinary products and green products will decrease as the price subsidy coefficient increases.Under the consumer price subsidy policy,the price subsidy coefficient has a negative impact on the price of ordinary products and a positive incentive for the price of green products.At the same time,the green bias of consumers is positively correlated with the price of green products,and the product replacement rate is positively correlated with the price of ordinary products.At the same time,consumers’ green preference is positively correlated with the price of green products,and the product replacement rate is positively correlated with the retail price of ordinary products.Moreover,under the consumer price subsidy policy,the price of green products is the highest,And within the framework of the manufacturers’ price subsidy policy,the ecology of green products and the total profits of the upstream and downstream companies are highest.In addition,in the cooperation situations that participants may face,the wholesale prices of ordinary products and green products have the maximum value in the case of horizontal cooperation between the two product manufacturers,and the price is lower in the case of full cooperation and respective vertical cooperation.