Study On The Price Of Salmon In Shanghai Supermarket Based On Hedonic Model

In 2017,the exports of global aquatic products were US$122.102 billion,down6.18% during the same period compared with 2016.The supply of seafood in the world is called upon to decrease gradually,and the competition for seafood sales is becoming increasingly fierce.Seafood is increasingly popular with consumers.In the current seafood consumption environment,producers of wild and domestic seafood begin to distinguish products by origin,brand,freshness,nutritional value or environmental label.They believe that product attributes have the large influence on its price determination.On the other hand,most customers increasingly want to know more about the products they purchase.In China’s first-tier cities,like Shanghai,the demand for high-quality seafood has increased.In the protracted battle of the market share and profits,food producers and retailers continue to add new quality attributes to packaged food.Supermarkets are the best choice to analyze the relationship between these attributes and price determination.Product sales channels include traditional sales channels and innovative sales channels.As the traditional sales channel,the status of the concentrated trade market has been dropping.The performance of supermarkets in modern sales channels is particularly bright.Under the mainstream consumption trend of health,convenience,pursuit of quality of life and please oneself,the supermarket itself has a direct grasp of the market,and its own good reputation is a guarantee of the quality of the products sold.For example,the high-quality aquatic products sold in supermarkets-salmon,the price of retail salmon in supermarkets is increasingly considering the needs and preferences of consumers,and the marked attributes of salmon products are clear,the indicators are complete,it is the best choice to study the relationship between the price determination and its attributes.The price theory has gone through the process from the traditional pricing method to one new pricing method.Whether the price determines the supply and demand or thesupply and demand determines the price,it still can’t get away the strange circle that the product price interacts with its supply and demand.The pricing method in traditional supermarkets is that on the basis of the purchasing price,pluses the budgeted gross profit and loss,and forms the expected selling price of products,actually,the products,especially the aquatic products,in the process of handling,transporting,packing and placing,will be damaged.Therefore,the final sale price will be lower than the expected sale price.This article mainly includes six parts: The first part is the introduction,including the research background of the paper,the significance of the research,research purposes and contents,the research method and technical route,the innovation,etc.The second part is the domestic and foreign research progress and related theories,this chapter firstly introduces the domestic and foreign research on salmon and related research using the hedonic model;secondly introduces the factor value theory and consumer choosing theory.The third part is the construction of hedonic model of salmon,first of all,introduce the development and application of hedonic model,based on the previous scholars’ study,determine the selected variables of this model;secondly,analyze the function form of hedonic model,estimate,test,and identify potential problems of the model.The fourth part is to acquire,organize,process the model data,first of all,this article describes the scope of data collection;second,quantify the variables in the model.The fifth part empirically analyzes the model about Shanghai supermarket salmon price,This chapter firstly uses three functional forms of hedonic model to do empirical research,the linear form,semi-logarithmic form and logarithmic form;secondly,compare the correlation of variables among the three functional forms,the symbol of the coefficient of the expected explanatory variable,select the best-fit function form,this paper finally decides the logarithmic form as the model for the empirical research.The sixth part is the research conclusions and prospects,by summarizing the entire essay,finding out the problems,and looking forward to the future.In this article,we regarded head and tail which belongs to part,fresh which belongs to process form,Norway which belongs to origin,pale orange which belongs to color and year 2017 which belongs to time as the references when set the dummy variables.Overall,the estimated equation is highly significant with a P-value <0.0001 and each coefficient is significant at a minimum of 1%,5%,10% level.These results show the heterogeneity of the seafood market.The individual coefficients indicate that,onaverage,middle is 97% more expensive than head and tail.These results are also rational and consistent with the expected results in advance.Whereas fur and bone is25% cheaper than head and tail.Black is 42% cheaper than pale orange,whereas white is 50% cheaper than pale orange,statistically significant both individually and as an attribute group.There is a significant relationship between price and color.First,we have found that the price of the salmon did not have a significant relationship with the depth of orange color of salmon.This result is inconsistent with previous researches which had found that western consumers preferred deeper red color in choosing salmon products.Our finding suggests the possibility that Chinese consumers have different preferences from western consumers.According to a previous research,the color of salmon is different from each producing country and moreover the color of salmon can be changed by the difference of feed in aquaculture.Second,smoked products had a positive relationship with price in the linear model,and this is also consistent with an existing study which showed positive premium of smoked products in UK in a study of cod and haddock.This suggests that consumers’ preferences for process form are much of a muchness for each country and for each fish species.Third,in China’s salmon market,it is of particular interest to note that the salmon that from Chile,Faroe Islands,UK,and other origins are all relatively lower valued than that from Norway.