Pricing Strategies About Green Products Based On The Consumers’ Psychological Distance

With the rapid development of China’s economy and the constraints of resources and environment,sustainable development and environmental problems are revealed gradually.Consumption is considered as the key point of environmental degradation.Green market cultivation and green product sales decision-making of enterprises have begun to attract attention.Compared with the general product sales,the green products will be affected by the high premium paid.The traditional pricing theory research is based on the assumption that the pure rational interests of consumers are supreme,which is lack of consideration of consumer behavior factors.However,the psychological distance theory and its effective prediction research on individual environmental behavior show that psychological distance is an important influencing variable of environmental behavior.It is the great theoretical and practical significance to study the measurement of sales pricing considering the psychological distance of consumers.First of all,this paper tests the impact of consumers’ environmental risk psychological distance on green product purchase behavior under the current situation in China.The research conclusion is helpful to further understand the consumer behavior and the current situation of green market in China,so as to provide theoretical basis and reference for enterprises to construct the sales path of green products and formulate pricing strategies Business sales decision analysis provides theoretical support.Secondly,for the operation mode of green product sales channel,the Stackelberg game model of pricing,sales volume and channel of duopoly enterprises under the coordination of consumer psychological distance and enterprise dual channel are constructed,and analyzed the effect of psychological distance on channel selection.Combined with the evaluation of sales volume and sales price of enterprises,according to the psychological distance,enterprises choose different channels.The channel strategy can reduce the sales price,and it will increase the sales price after the psychological distance of consumers reaches a certain level.When the substitutability of traditional sales channels and online sales channels is higher,the profit of sales enterprises is lower,and the psychological distance level is smaller,the impact of channel competition on the profits of sales enterprises is more adverse.Thirdly,through the signal quality of consumers’ psychological distance,this paper constructs the pricing dynamic signal game model of information incentive for enterprise green product sales,obtains the equilibrium solution by incentive compatibility and backward induction,and analyzes the influence of consumer psychological distance on the quantity of green product sales and promotion,product price and equilibrium profit function.And it design the price and sales volume of different sales,and analyze the effect of green product sales in different situations.The enterprises can reduce the initial sales and maintain a low initial price,but the initial price and sales volume will also strengthen or weaken the psychological distance,but once consumers have psychological distance,the sales situation of enterprises may be severely deteriorated.In addition,enterprises can also benefit from the psychological distance of consumers through a small number of signals,but the psychological distance of consumers will also reduce the consumer surplus.Finally,according to the influence of psychological distance and policy incentives,the cost of green product sales which provides the basis for pricing.According to the government’s reward and punishment coefficient,the pricing strategies of enterprises in different situations are discussed to realize the balanced income of enterprises,consumers and government.This paper discusses the characteristics of consumers’ green product purchasing behavior from the theoretical level,studies the importance of psychological distance variable for modern enterprise management decision-making.It combined with modern channel economy,information intensity,policy influence and other business operation scenarios,and this paper discusses the behavior characteristics caused by consumers’ psychological distance,and analyzes the impact of psychological distance on enterprises with game theory.The influence of pricing strategies in different situations.This paper is useful to the study of consumer psychological distance and pricing strategy of environmental products.