Pricing and Ordering Strategies for Fresh Food Based on Quality Grading

Fresh food quality grading is the basis of fresh food marketization. On the one hand, it can effectively improve the market efficiency of fresh food and improve the earnings of retailers. On the other hand, it can alleviate the incompleteness of market information and help consumers better identify...

Full description

Saved in:
Bibliographic Details
Main Authors: Yong He, Yongmei Xie, Xiaoli Zhou, Henry Xu, Yanan Yu
Format: Article
Language:English
Published: Wiley 2021-01-01
Series:Journal of Food Quality
Online Access:http://dx.doi.org/10.1155/2021/5525691
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1849305983889702912
author Yong He
Yongmei Xie
Xiaoli Zhou
Henry Xu
Yanan Yu
author_facet Yong He
Yongmei Xie
Xiaoli Zhou
Henry Xu
Yanan Yu
author_sort Yong He
collection DOAJ
description Fresh food quality grading is the basis of fresh food marketization. On the one hand, it can effectively improve the market efficiency of fresh food and improve the earnings of retailers. On the other hand, it can alleviate the incompleteness of market information and help consumers better identify the quality characteristics of fresh food. To address the issue of quality grading for fresh food, this study constructs a retailer profit model for selling fresh food with two quality grades. Considering the quality level distribution of fresh food and based on the quality selection model, the retailer’s optimal grading, pricing, and ordering of fresh food are studied. Through numerical simulation and sensitivity analysis, some conclusions with managerial implications are drawn. We find that the retailer has the optimal quality grading strategy for fresh food, which is influenced by the minimum quality level and the unit cost of fresh food. Raising the quality standard at the lowest level or reducing the unit cost can help the retailer increase the profits.
format Article
id doaj-art-34055ccfb2eb4c21891d8ace5840249c
institution Kabale University
issn 0146-9428
1745-4557
language English
publishDate 2021-01-01
publisher Wiley
record_format Article
series Journal of Food Quality
spelling doaj-art-34055ccfb2eb4c21891d8ace5840249c2025-08-20T03:55:15ZengWileyJournal of Food Quality0146-94281745-45572021-01-01202110.1155/2021/55256915525691Pricing and Ordering Strategies for Fresh Food Based on Quality GradingYong He0Yongmei Xie1Xiaoli Zhou2Henry Xu3Yanan Yu4School of Economics and Management, Southeast University, Sipailou 2, Nanjing 210096, ChinaSchool of Economics and Management, Southeast University, Sipailou 2, Nanjing 210096, ChinaSchool of Economics and Management, Southeast University, Sipailou 2, Nanjing 210096, ChinaUQ Business School, The University of Queensland, Brisbane, Queensland (QLD) 4072, AustraliaSchool of Economics and Management, Southeast University, Sipailou 2, Nanjing 210096, ChinaFresh food quality grading is the basis of fresh food marketization. On the one hand, it can effectively improve the market efficiency of fresh food and improve the earnings of retailers. On the other hand, it can alleviate the incompleteness of market information and help consumers better identify the quality characteristics of fresh food. To address the issue of quality grading for fresh food, this study constructs a retailer profit model for selling fresh food with two quality grades. Considering the quality level distribution of fresh food and based on the quality selection model, the retailer’s optimal grading, pricing, and ordering of fresh food are studied. Through numerical simulation and sensitivity analysis, some conclusions with managerial implications are drawn. We find that the retailer has the optimal quality grading strategy for fresh food, which is influenced by the minimum quality level and the unit cost of fresh food. Raising the quality standard at the lowest level or reducing the unit cost can help the retailer increase the profits.http://dx.doi.org/10.1155/2021/5525691
spellingShingle Yong He
Yongmei Xie
Xiaoli Zhou
Henry Xu
Yanan Yu
Pricing and Ordering Strategies for Fresh Food Based on Quality Grading
Journal of Food Quality
title Pricing and Ordering Strategies for Fresh Food Based on Quality Grading
title_full Pricing and Ordering Strategies for Fresh Food Based on Quality Grading
title_fullStr Pricing and Ordering Strategies for Fresh Food Based on Quality Grading
title_full_unstemmed Pricing and Ordering Strategies for Fresh Food Based on Quality Grading
title_short Pricing and Ordering Strategies for Fresh Food Based on Quality Grading
title_sort pricing and ordering strategies for fresh food based on quality grading
url http://dx.doi.org/10.1155/2021/5525691
work_keys_str_mv AT yonghe pricingandorderingstrategiesforfreshfoodbasedonqualitygrading
AT yongmeixie pricingandorderingstrategiesforfreshfoodbasedonqualitygrading
AT xiaolizhou pricingandorderingstrategiesforfreshfoodbasedonqualitygrading
AT henryxu pricingandorderingstrategiesforfreshfoodbasedonqualitygrading
AT yananyu pricingandorderingstrategiesforfreshfoodbasedonqualitygrading