Analysis on Pricing of Vegetables in Supermarkets Based on Consumer Surplus

The transactions between supermarkets or agricultural trade markets and consumers are in the downstream of agricultural supply chain. China has seen a surge in the popularity of many supermarkets running fresh agricultural products such as vegetables. Some consumers buy vegetables in supermarkets instead of in agricultural trade markets. Consumers enjoy better shopping experience for the comfortable environment, credible quality and perfect service. Whereas, we also observe that pricing of vegetables in supermarkets is higher than in agricultural trade markets. Then, the target of this paper is to discuss how to fix the price in supermarkets so as to guarantee consumer volume and not go into the red. In this paper, we use the conception consumer surplus to explain the pricing strategic in supermarkets.