Profit Coordination and Optimization of Agricultural Product Brand Promotion Lead by Farmer Cooperative Organizations

In the e-commerce supply chain of agricultural products, there are three parties: farmer cooperative organizations, e-commerce platforms, and consumers. This study aims to investigate how to coordinate farmer cooperative organizations and e-commerce platforms to maximize the overall profits of the s...

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Main Authors: Fangfang Guo, Ivan Ka Wai Lai, Tao Zhang, Yaoguang Zhong
Format: Article
Language:English
Published: Wiley 2023-01-01
Series:Complexity
Online Access:http://dx.doi.org/10.1155/2023/1536341
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author Fangfang Guo
Ivan Ka Wai Lai
Tao Zhang
Yaoguang Zhong
author_facet Fangfang Guo
Ivan Ka Wai Lai
Tao Zhang
Yaoguang Zhong
author_sort Fangfang Guo
collection DOAJ
description In the e-commerce supply chain of agricultural products, there are three parties: farmer cooperative organizations, e-commerce platforms, and consumers. This study aims to investigate how to coordinate farmer cooperative organizations and e-commerce platforms to maximize the overall profits of the supply chains of agricultural products. Based on the Stackelberg game theory, this paper constructs a two-level supply chain decision-making model led by farmers’ cooperatives and followed by e-commerce platforms. It discusses two supply chain decision-making models (decentralized and centralized) with decision variables (selling price and promotion effort). The results show that the overall profit of the supply chain under centralized decision making is higher than the overall profit under decentralized decision making. In order to achieve the coordination of agricultural product sales price and brand promotion efforts and achieve win-win cooperation, this paper puts forward two coordination schemes: (1) coordinating revenue sharing, cost sharing, and wholesale price discounts and (2) coordinating the wholesale price. These two contract coordination schemes are verified by example analysis. Finally, the following strategies are recommended, including strengthening the investment in brand promotion and contract management.
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institution Kabale University
issn 1099-0526
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publishDate 2023-01-01
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spelling doaj-art-d9cd57b0ccd04a2395cd25795037b1172025-08-20T03:25:08ZengWileyComplexity1099-05262023-01-01202310.1155/2023/1536341Profit Coordination and Optimization of Agricultural Product Brand Promotion Lead by Farmer Cooperative OrganizationsFangfang Guo0Ivan Ka Wai Lai1Tao Zhang2Yaoguang Zhong3School of Economics and ManagementCentre for Gaming and Tourism StudiesFaculty of Humanities and Social SciencesSchool of BusinessIn the e-commerce supply chain of agricultural products, there are three parties: farmer cooperative organizations, e-commerce platforms, and consumers. This study aims to investigate how to coordinate farmer cooperative organizations and e-commerce platforms to maximize the overall profits of the supply chains of agricultural products. Based on the Stackelberg game theory, this paper constructs a two-level supply chain decision-making model led by farmers’ cooperatives and followed by e-commerce platforms. It discusses two supply chain decision-making models (decentralized and centralized) with decision variables (selling price and promotion effort). The results show that the overall profit of the supply chain under centralized decision making is higher than the overall profit under decentralized decision making. In order to achieve the coordination of agricultural product sales price and brand promotion efforts and achieve win-win cooperation, this paper puts forward two coordination schemes: (1) coordinating revenue sharing, cost sharing, and wholesale price discounts and (2) coordinating the wholesale price. These two contract coordination schemes are verified by example analysis. Finally, the following strategies are recommended, including strengthening the investment in brand promotion and contract management.http://dx.doi.org/10.1155/2023/1536341
spellingShingle Fangfang Guo
Ivan Ka Wai Lai
Tao Zhang
Yaoguang Zhong
Profit Coordination and Optimization of Agricultural Product Brand Promotion Lead by Farmer Cooperative Organizations
Complexity
title Profit Coordination and Optimization of Agricultural Product Brand Promotion Lead by Farmer Cooperative Organizations
title_full Profit Coordination and Optimization of Agricultural Product Brand Promotion Lead by Farmer Cooperative Organizations
title_fullStr Profit Coordination and Optimization of Agricultural Product Brand Promotion Lead by Farmer Cooperative Organizations
title_full_unstemmed Profit Coordination and Optimization of Agricultural Product Brand Promotion Lead by Farmer Cooperative Organizations
title_short Profit Coordination and Optimization of Agricultural Product Brand Promotion Lead by Farmer Cooperative Organizations
title_sort profit coordination and optimization of agricultural product brand promotion lead by farmer cooperative organizations
url http://dx.doi.org/10.1155/2023/1536341
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AT ivankawailai profitcoordinationandoptimizationofagriculturalproductbrandpromotionleadbyfarmercooperativeorganizations
AT taozhang profitcoordinationandoptimizationofagriculturalproductbrandpromotionleadbyfarmercooperativeorganizations
AT yaoguangzhong profitcoordinationandoptimizationofagriculturalproductbrandpromotionleadbyfarmercooperativeorganizations