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A Pricing Model of Chinese Medicinal Materials Logistics Distribution Service Based on Consumer Environmental Preference

  • Chao-dong LuEmail author
  • Xiao-Jian Hu
  • Yan-Li Zhang
Conference paper

Abstract

It assumes that two Chinese medicinal materials logistics distribution enterprises provide green logistics distribution service and general logistics distribution service with mutual substitution. Considering consumer purchase behavior, it divides consumers into the green consumer and general consumers. It further supposes that two types of consumer’s valuations for two kinds of distribution are heterogeneous, and are uniformly distribution. We use a utility function to get the consumers’ consumer behavior. Under the condition of concentration and decentralize respectively, we get optimal pricing of green logistics distribution service and general logistics distribution service by maximizing profit of the whole supply chains and the two enterprises. We identify the two Chinese medicinal materials logistics distribution enterprises’ pricing is positively related to the price sensitivity of consumers in both integrated supply chain and decentralized supply chain. Under some conditions, the pricing of the two enterprises are positively related to consumer environmental awareness.

Keywords

Chinese medicinal materials Environmental preference Logistics distribution service Pricing Price sensitivity 

Notes

Acknowledgements

This work is supported by Anhui higher school natural fund key project No. KJ2015A415.

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Copyright information

© Springer Nature Singapore Pte Ltd. 2019

Authors and Affiliations

  1. 1.Department of Economy and ManagementBozhou UniversityBozhouPeople’s Republic of China
  2. 2.School of ManagementHefei University of TechnologyHefeiPeople’s Republic of China

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