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Chinese Journal of Management Science ›› 2016, Vol. 24 ›› Issue (11): 146-152.doi: 10.16381/j.cnki.issn1003-207x.2016.11.017

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Price on Fresh Agricultural Products by C2B Based on F2F

SHAO Teng-wei1,2, LV Xiu-mei1   

  1. 1. School of Finance, Chongqing Technology and Business University, Chongqing 400067, China;
    2. Postdoctoral Research Station of Agricultural and Forest Economic Management, Southwest University, Chongqing 400700, China
  • Received:2015-05-22 Revised:2015-12-26 Online:2016-11-20 Published:2017-01-23

Abstract: It usually undergoes multistage links for fresh agricultural product from field to kitchen in China. Very link will add transaction cost to fresh agricultural product accordingly, which makes the fresh agricultural product price very high. Furthermore, the price of fresh agricultural product changes radically and the quality of product becomes insecure because of information asymmetry and supply chain opaque. With the arrival of internet era, e-commerce which can reduce the transaction cost and information asymmetry gives out a new idea to solve the problems of agricultural product quality security and dislocation between production and need in China. Based on the transaction cost theory, the supply chain management theory and the internet thought, a direct docking of production and marketing model between consumers and producers is made by the advance booking of crowd-funding on fresh agricultural goods. Firstly, it builds a joint utility model on the side of demanders that many scattered consumers join to an organized consumer group. The theoretical analysis shows that the delivered value increases obviously when these scattered consumers join to a consumer group. Secondly, a Nash bargaining model is built on the side of suppliers that small-scale farms join to a polymerized producers group, it finds the polymerized producers can not only obtain scale economy, scope economy and ecological economy but also improve the bargaining power of producers to enter the market and further improve the operating efficiency of agriculture. Thirdly, the accounting equation containing all costs and between organized consumer group and polymerized producers group is used and further reduction on transaction costs for producers and consumers is shown, which can make the supply chains of fresh agriculture products transparent to ensure food safety. Finally, a ladder price is designed to encourage consumer to take an active participant in the advance booking of crowd-funding by the means of online and offline. It shows that, compared with traditional multistage circulation of offline, fresh agricultural products being directly circulated from farms to families by the advance booking of crowd-funding exists obvious advantages such as the reduction of intermediate links, logistics costs, circulation loss, the risk of market and quality, which not only makes consumers to get more customer delivered value but also polymerize bulk of orders for the producers by the attract of ladder prices. Therefore there exists an unique Nash equilibrium to realize the Pareto improvement between agricultural producers and consumers. In addition, a practical example is given to test the validity of the research result. The data from the example's actual operation affirms that the price strategy of advance booking by crowd-funding is much better than the price strategy of traditional booking of spot goods. Solutions are provided for the direct docking of production and marketing on fresh agricultural goods by the means of internet plus. It can help agricultural crowd-funding projects to increase the success rate if research findings are used availably.

Key words: fresh agricultural products, the advance booking of crowd-funding, price strategy

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