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The Retail Price Formation Problem Research of Vegetables in the Farm Produce Market

Author: WangShanShan
Tutor: ZhangShengYong
School: Huazhong Agricultural University
Course: Business management
Keywords: Retail prices of vegetables Formation Influencing factor The farmproduce market VAR model
CLC: F323.7
Type: Master's thesis
Year: 2013
Downloads: 4
Quote: 0
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Abstract


In recent years, vegetables’ supply and demand are all prosperous, but Low acquisition price damaging the interests of farmers and high retail prices damaging the interests of consumers phenomenon is happened at the same time and escalating, the research the formation of vegetables’prices under the background has important practical significance, conducive to stabilize vegetable prices, balance the interests of all parties related to vegetables industry.This article is based on large related reading of formation of price, and using case studies, field research, interview method, econometric analysis and any other methods, from the perspective of retailer creatively to study on the vegetables’ price in the farmers’ market, the numerical characteristics of the retail price of vegetables, for example, the fluctuation characteristics, the pricing regular pattern, the price structure and cost, customers, environment and the properties for four types of price formation influence factors’ regression analysis and the VAR model analysis based on the perspective of retailers. Get the following conclusions:(1) Vegetable retailers use a psychological pricing strategy. Almost all varieties of vegetables’ retail prices are end in0,5, and8.(2) Expensive vegetables are priced higher. The ratios of retail price and wholesale price of different vegetables change from1.71to3.27, the mean is about2.16, the resistance to storage of vegetables is higher than the others.(3) On average, the structure of the vegetables retail price is52.86%of the wholesale price,12.47%of the retail cost and34.67%of the profits in the farmers’ market. Bank fee, wear and tear and packing are the largest proportion in the retail cost, cumulative reached to49.35%.(4) The vegetables retailers internalized part of wholesale price fluctuations in order to increase consumers’ fair price awareness.(5) Consumers’ fair price awareness and the wholesale price is all vegetables retail price formation’s main influence factors; Oil price and storage days are retail price formation’s influence factors of vegetables that are resistant to storage; The cost of living has a two-way effect on vegetable retail price formation; Weather is the influencing factors on formation of the retail price of vegetables that have higher transport demand; Cost factor accounts for a larger proportion of vegetable retail price, but the change of the cost is not big influence factor on retail prices. The research results dynamic VAR model show that the retail price and wholesale price has the largest impact on retail prices, the influence of the weather, oil price, cost of living and storage days’ contribution to the retail price compared to the retail price and wholesale price is relatively small.Finally in this paper, the results are summarized and put forward the policy proposal to stabilize the retail price of vegetables in the farmers’ market.

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CLC: > Economic > Agricultural economy > China 's agricultural economy > Construction and development of agricultural economy > Prices of agricultural products and markets
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