Distribution of perishable goods: pricing strategies

Authors

DOI:

https://doi.org/10.31617/tr.knute.2020(33)03

Keywords:

pricing strategy, impact factors, distribution logistics, perishable goods, pricing model, delivery time

Abstract

Background. Pricing in the market of logistics services is a regulator by which influence on demand and supply, structure and capacity of the market, purchasing power, turnover of goods is exercised. Pricing for the delivery of perishable goods should be based on not only the major factors of pricing, but also on the study of the relationship between delivery time, quality of service rendered and customer satisfaction. Only economically justified cost of distribution logistics, which will be based on the overall strategy of the enterprise, will enable to attract more consumers of the service and increase the efficiency of the company.
The aim of the articleis to determine the optimal pricing model of a logistics transaction for the delivery of perishable goods, which takes into account the timing of the service, the costs associated with the delay and storage of products, which will allow the logistics operator to achieve the overall purpose of the activity and increase its efficiency.
Materials and methods. The research of pricing strategy in distributive logistics was conducted on the basis of generalization of theoretical developments of leading domestic and foreign scientists, own research, Internet resources. Methods of analysis and synthesis, grouping, systematic approach, modeling were used to write the article.
Results. The stages of formation of pricing strategy for the supply of perishable goods are determined, depending on the chosen general goals of the company in the logistics services market. Four pricing models are considered, which show the change in price depending on the delivery time, the ratio of the established price with the quality of product delivery and customer satisfaction, and also allow to determine changes in the rate of profit of the logistics operator.
Conclusion. It is proved that the definition of pricing strategy is related to the main goals of the logistics operator. Improving the delivery of perishable goods, which will lead to an increase in the number of customers of logistics services, is possible when applying a free pricing model that takes into account the main factors of pricing: demand, customer requirements, timing and quality of delivery.

Author Biography

Olga PRYIMUK, Kyiv National University of Trade and Economics

PhD in Economics Sciences, Associate Professor, Associate Professor of the Department of Trade Entrepreneurship and Logistics

References

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Published

2020-02-18

How to Cite

[1]
PRYIMUK О. 2020. Distribution of perishable goods: pricing strategies . INTERNATIONAL SCIENTIFIC-PRACTICAL JOURNAL COMMODITIES AND MARKETS. 33, 1 (Feb. 2020), 25–36. DOI:https://doi.org/10.31617/tr.knute.2020(33)03.

Issue

Section

LOGISTICS AND SUPPLY CHAIN MANAGEMENT