Study Of Multi-period Dynamic Pricing Of Fresh Food

Fresh food has become an indispensable part of supermarket management as the residents’ daily consumption. What kind of pricing strategy retailers(supermarkets) taken to maximize profits is the primary problem in the sales process. However, the existing fresh food prices tend to ignore the influence of freshness on consumers purchase. Many literature models do not consider freshness. Even though some consider, the models do not reflect the influence of fresh food freshness. So the freshness function does not really portray the product freshness. The paper constructs the function of freshness, sets up a multi-period dynamic pricing model considering freshness for maximizing the retailer’s total profit and proves that the profit of the dynamic pricing is higher than the profit of the single pricing. Then we consider the consumers pay the most attention to the comparison between the current price and previous price in the purchase process. It is established by using the inverse method that the fresh food multiperiod dynamic pricing model based on the freshness and the reference effect, and we prove the model is the optimal solution. And an example is cited to concretely illustrate the application and analysis of multi-period dynamic model of fresh food. Finally, we release the demand function from the consumer choice and add fresh factor in the demand function. It is established that the fresh food multi-period dynamic pricing model considering freshness. And we prove the model is the optimal solution. On the other hand, examples are used to illustrate the rationality and superiority of the model.