55 / 2024-04-17 21:50:28

Optimal pricing strategies and channel modes selection for a fresh agricultural product supply chain with blockchain traceability

pricing,fresh agricultural product,dual-channel,buy-online-pickup-in-store,blockchain traceability

Food safety concerns have made consumers more vigilant about the authenticity of fresh product information. A traceability system supported by blockchain technology (BCT) monitors the transportation process in real-time to reduce losses and also provides authentic information to consumers, triggering a premium effect in the fresh agricultural product supply chain (FASC). This paper explores two sales modes: the dual-channel (DC) mode, where the retailer wholesales products from the manufacturer and sells them in offline stores, while the manufacturer also sells directly through online platforms; and the buy-online-pickup-in-store (BOPS) mode, where consumers can order online from the manufacturer and pick up at the retailer's offline store. This paper applies a manufacturer-led Stackelberg game model to capture the optimal pricing strategies of supply chain members under various scenarios, and discusses the sales mode choices that arise with the adoption of BCT. The results demonstrate that the proportion of consumers choosing the BOPS channel critically influences the supply chain members' mode selection. The higher this proportion, the more motivated the manufacturer and retailer are to collaborate in implementing the BOPS mode. However, the range of the manufacturer opting for the BOPS mode is narrower than that of the retailer favoring this mode. The timing of adopting BCT is linked to its premium effect and unit cost. Furthermore, by comparing the profits of the manufacturer and retailer before and after the adoption of BCT in the BOPS mode, the results show that the manufacturer has a stronger motivation to initiate BCT.