Pricing Strategy and Coordination of Agricultural Product Supply Chain Considering Traceability Level and Online Evaluation
Abstract
1. Introduction
- In various SC models, what equilibrium results will be achieved by the decisions made by each member?
- What is the impact on the SC when the order of SC leaders and DM is different?
- What is the impact of the traceability level effect and the traceability level sensitivity coefficient on the SC?
- How should the inner mechanism of SC contract coordination be explored, and how can the rationality of the coordination function be validated?
2. Literature Review
2.1. The Importance of Agricultural Product Traceability
2.2. The Impact of Online Reviews and How Companies Can Respond to Negative Reviews
2.3. Analysis of Different Cost-Sharing Models
2.4. Supply Chain Optimization Research
3. Research Methodology
3.1. Methodology Introduction
3.2. Problem Description
4. Model Solution and Analysis
4.1. TT Model
4.2. MM Model
4.3. RM Model
4.4. MR Model
4.5. RR Model
4.6. Model Equilibrium Analysis
5. Joint Coordination Contract
6. Case Analysis
- The selection of parameters aligns with the actual circumstances of the agricultural product market as much as possible.
- The established parameters satisfy all the assumptions of model construction mentioned in the preceding content.
- , , ;
6.1. Model Analysis
- (1)
- As a characteristic of the centralized DM mode, there is a game with aligned interests in the DM process, and all SC members collaborate with each other. Its core objective is the maximization of the SC’s overall profit. That is why the TT model achieves the highest profit and the best traceability level in the SC.
- (2)
- Although both are cooperative-led SCs, in the RM model, the cooperative can only make up for the negative evaluation losses by controlling the acquisition price. In the MM model, cooperatives bear the negative evaluation losses and traceability costs, and can enhance the traceability level to meet consumers’ traceability demands. To compensate for these costs, cooperatives boost sales by enhancing traceability levels and lowering acquisition prices.
- (3)
- In the SC where cooperatives bear the traceability costs, under the MR model, LS e-commerce is the dominant player in the SC. It can expand its market share by selling goods at low prices and in high volumes, and requires a high traceability level to enhance the competitiveness of the SC. Within the MM model, cooperatives independently determine the acquisition price and bear the traceability costs. To cover their costs, cooperatives will proactively raise the acquisition price to ensure their own profit maximization.
- (4)
- Regarding the MM model and the RR model, while the entities responsible for bearing traceability costs differ and the SC leaders vary, the decision regarding the traceability level is consistently made by the SC leader. The similarity between market prices and traceability level mainly stems from the commonality between consumers’ market expectations and traceability needs. The difference in acquisition prices stems from the different bearers of traceability costs, which leads to adjustments in pricing strategies.
- (5)
- In the RM model, LS e-commerce bears the traceability costs, but the dominant player is the cooperative. It needs to increase the acquisition price to cover the traceability costs and the negative evaluation loss it bears. Therefore, LS e-commerce tends to raise the market price to stabilize its own profits. Within the RR model, LS e-commerce takes the leading role in the SC and determines the traceability level. To meet consumers’ traceability demands, it will proactively enhance the traceability level.
- (6)
- Both are SCs dominated by LS e-commerce. In the MR model, LS e-commerce decides on market prices and does not bear traceability costs. They are more willing to adopt low market prices to capture market share and may force cooperatives to enhance traceability levels. Additionally, cooperatives also need to set higher acquisition prices to offset traceability costs and negative evaluation losses.
- (7)
- When LS e-commerce platforms bear the traceability costs, they usually tend to reduce investment in traceability to achieve the goal of cost control. Meanwhile, LS e-commerce may pass on some traceability costs to other members, which also leads to an increase in market prices.
6.2. Sensitivity Analysis
6.3. Verification of the Effect of the Coordination Contract
6.4. Discussion
7. Conclusions
- (1)
- In the agricultural product SC, centralized DM significantly enhances traceability capabilities and overall profits through system collaboration and information integration, demonstrating the management advantage of optimizing resource allocation. On the one hand, members in the SC can implement unified procurement, planning, and distribution, reducing resource waste and efficiency losses caused by multi-level DM. On the other hand, centralized DM is more suitable for promoting a value proposition of low price and high quality, which aligns with consumers’ demands for high cost-effectiveness and traceability of agricultural products.
- (2)
- The total SC profit, market demand for agricultural products, traceability level, and market price of the MM model and the RR model can all remain consistent. However, the cooperatives in the MM Model can make up for the losses through transfer payments, resulting in their acquisition prices being higher than those in the RR model. Among the four non-centralized DM models, the total SC profit of the MR model is the highest, and this result is also verified through case analysis. The total profit and the agricultural products traceability level under all SC decision models are all positively correlated with the traceability level effect and the traceability level sensitivity coefficient.
- (3)
- SC managers can optimize the cooperative relationships among members in the SC by designing coordination contracts. Introducing appropriate contract parameters can ensure that when certain conditions are met, members in the SC can achieve maximum benefits and transfer profits by adjusting the acquisition price. Core enterprises in the SC can establish incentive-compatible contractual mechanisms to coordinate the interests of members and prevent the stability of cooperation from being affected by unfair distribution. At the same time, efforts should be made to promote the reengineering of SC processes, taking into account fairness and sustainability while pursuing efficiency, in order to achieve a common improvement in system resilience and competitiveness.
- (4)
- Within the same SC DM model, followers often earn lower profits than leaders. This phenomenon highlights the crucial influence of power structure on profit distribution. To enhance overall competitiveness and collaborative efficiency, SC members must not only strengthen cooperation but also actively strive for DM leadership to improve their bargaining position. Within the constraints of coordination contracts, companies must rationally utilize their bargaining power and optimize profit distribution mechanisms to promote sustainable SC development.
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
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Reference | Content | Models or Methods | Scarcity |
---|---|---|---|
[12] | Taking producers, supermarkets, and e-commerce platforms as the main bodies, this paper analyzes the behavioral strategies of the three parties involved in the dual-channel SC quality and safety traceability of agricultural products. | Evolutionary game theory | The level of agricultural product traceability is not considered the main factor affecting SC choice. |
[16] | This study explores how consumer perception influences purchasing behavior. | BRA model (Benefit-Risk Analysis Framework) | The impact of the traceability level on consumer buying patterns has not been fully considered. |
[20] | From a mathematical modeling perspective, this paper explores the optimal effort level for manufacturers to respond to negative reviews in a competitive environment and the influence of related parameters on the DM of manufacturers. | Constructing the profit function | It does not take into account who specifically bears the costs of negative reviews. |
[24] | Study the influence of online reviews on consumers’ intention to purchase | Vignette study | No theoretical model was established, and the research conclusions were limited to a single scenario. |
[40] | Analyze the influence of variable costs borne by manufacturers in the dual-channel agricultural product SC on DM within the SC. | Stackelberg game theory | The impact of retailers bearing variable costs on SC decisions was not taken into account. |
Centralized DM | TT Model | ||
---|---|---|---|
Decentralized DM | Manufacturer-led | Retailer-led | |
Manufacturers decide on the traceability level and bear the traceability costs. | MM model | MR model | |
Retailers decide on the traceability level and bear the traceability costs. | RM model | RR model |
Parameters | Meaning |
---|---|
Market price of agricultural products | |
Acquisition price of agricultural products | |
Cost of agricultural products | |
Traceability level | |
Price sensitivity coefficient | |
Traceability level sensitivity coefficient | |
Initial negative rating ratio | |
Traceability level effect | |
Market demand | |
Consumer perception | |
Negative review rate | |
Profits from LS e-commerce | |
Cooperative profits | |
Overall profit of the SC |
Parameter | ||||||||
Value | 100 | 5 | 2 | 0.1 | 0.7 | 100 | 0.9 | 0.7 |
DM Model | |||||||
---|---|---|---|---|---|---|---|
TT model | / | 0.3031 | 27.7271 | 44.5761 | / | / | 988.9212 |
MM model | 27.7711 | 0.1512 | 38.8894 | 22.2364 | 493.3148 | 247.2290 | 740.5438 |
RM model | 27.8080 | 0.0111 | 38.9043 | 22.1925 | 492.3416 | 246.2484 | 738.5900 |
MR model | 16.6785 | 0.1516 | 38.8635 | 22.2881 | 247.2303 | 494.4606 | 741.6909 |
RR model | 16.6529 | 0.1512 | 38.8894 | 22.2364 | 247.2290 | 493.3148 | 740.5438 |
Model | Conclusion |
---|---|
TT model | , . , . |
MM model compared with RM model | , , . |
MM model compared with MR model | , , . |
MM model compared with RR model | , . |
RM model compared with RR model | , , . |
MR model compared with RR model | , , . |
MM model and MR model compared with RM model and RR model | , |
1.2 | 1.5 | 1.8 | 2.1 | 2.4 | 2.7 | 3.0 | |
740.5438 | 740.5438 | 740.5438 | 740.5438 | 740.5438 | 740.5438 | 740.5438 | |
247.2290 | 247.2290 | 247.2290 | 247.2290 | 247.2290 | 247.2290 | 247.2290 | |
493.3148 | 493.3148 | 493.3148 | 493.3148 | 493.3148 | 493.3148 | 493.3148 | |
988.9212 | 988.9212 | 988.9212 | 988.9212 | 988.9212 | 988.9212 | 988.9212 | |
219.1219 | 273.9023 | 328.6827 | 383.4631 | 438.2435 | 493.0239 | 547.8043 | |
769.7993 | 715.0189 | 660.2385 | 605.4581 | 550.6777 | 495.8973 | 441.1169 |
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Gan, Y.; Ren, H.; Huang, X. Pricing Strategy and Coordination of Agricultural Product Supply Chain Considering Traceability Level and Online Evaluation. Sustainability 2025, 17, 8995. https://doi.org/10.3390/su17208995
Gan Y, Ren H, Huang X. Pricing Strategy and Coordination of Agricultural Product Supply Chain Considering Traceability Level and Online Evaluation. Sustainability. 2025; 17(20):8995. https://doi.org/10.3390/su17208995
Chicago/Turabian StyleGan, Yueyang, Haiping Ren, and Xiaoqing Huang. 2025. "Pricing Strategy and Coordination of Agricultural Product Supply Chain Considering Traceability Level and Online Evaluation" Sustainability 17, no. 20: 8995. https://doi.org/10.3390/su17208995
APA StyleGan, Y., Ren, H., & Huang, X. (2025). Pricing Strategy and Coordination of Agricultural Product Supply Chain Considering Traceability Level and Online Evaluation. Sustainability, 17(20), 8995. https://doi.org/10.3390/su17208995