Agricultural Production Mode Selection With Heterogeneous Customer

Abstract

This paper constructs agribusiness model of coping strategies in the face of heterogeneous consumer groups with different green agricultural preferences. We assume that agribusiness will make a choice in the three modes of production: green production mode, non-green production mode and hybrid production mode; and consumers get their utility through their own preferences and retail price of the two agricultural products, and then determine to purchase a higher utility agricultural products. We make quantitative analyze on production modes selection, pricing strategy and yield of the two products of green supply chain, and get that the existence of hybrid production mode needs to meet certain conditions, and its presence can lead to higher profits. At the same time, we find that the distribution of heterogeneous customer, ratio of real green agricultural products, the unit cost of green products and the value of the discount factor will have an impact on the production modes selection, and the use of numerical analysis further validate the conclusions.