The Research On The Formation Mechanism Of Quality-price Associated Of Chinese Herbal Pieces

Chinese herbal pieces is traditional Chinese medicine, which constitutes one of the three pillars of traditional Chinese medicine industry. It has incomparable advantages and characteristics in "preventive treatment of disease" comparing to western medicine. The quality of Chinese medicinal decoction pieces is the basis of clinical curative effect, which is also directly related to the people’s safety. Nowadays, the Chinese herbal pieces market is disorganized, the qualities are uneven, the government regulation is inefficiency, and the price cannot represent the quality under the situation of unfair competition, which has restricted the development of Chinese herbal pieces. Exploring Chinese herbal pieces formation mechanism between price and quality has not only filled the research blank in this area, but also is the key nodes to solve the current disorganized market problem and to promote a healthy market of good quality with good price. It plays an important role in restoring benign competition of Chinese herbal pieces market and helping the government to develop price policy and improve the regulation efficiency.This paper mainly studies the price-quality formation mechanism in Chinese medicinal herbal pieces market, which will provide theoretical reference for promoting high quality with high price and forming an orderly-competition market. The research content mainly includes:(1) Through literature review, systematically summarize the domestic and foreign current situation and problems of Chinese medicinal decoction pieces, quality improvement measures, price movements, drug pricing policy and quality, the factors influencing the price, ect. (2) Explain the distorted market price mechanism and the cause of quality and price disjointing using the new institutional economics theory, the price theory, the price-mass effect theory, the resource value theory and the intellectual property rights theory. (3) On the basis of analyzing the special properties of Chinese medicine and Chinese herbal pieces, make a further analysis of its characteristics and trends in production, circulation and consumption market. (4) Build a system dynamics model to find the formation mechanism of price and quality for Chinese herbal pieces through the causal feedback figure. (5) Take the nine Chinese herbal pieces enterprises in the Southern area of Jiangsu province as research objects, to get relevant data such as cost and price through empirical investigation,have a descriptive analysis of the data using excel, then have a regression analysis of the data using stata19.0 statistical software.Through theoretical and empirical analysis, this paper draw the following conclusions:(1) The defective pricing system of the Chinese herbal pieces lead to enterprises’"adverse selection", which has distorted the market price mechanism and result in the price discrepancy problem. (2) The particularity of Chinese herbal pieces has decided the particularity of its market which is difficult to regulate. (3) Through system designing, the problem of price discrepancy will be solved and an orderly price-quality market will be set up.Based on research results, this paper puts forward the strategies for promoting the price-quality mechanism. (1)To give play to the role of price lever to optimize the price-quality mechanism using transaction cost theory. (2) To ensure the quality of Chinese herbal pieces, implement supply chain management and information management on the price and quality. (3) The quality-price traceability system must be established and the quality standards and processing technology have to be unified.