Product Line Pricing Effect Modeling for Shipment Timing Support System for Stored Apple

The purpose of the study aims to develop comprehensive modeling alternatives for intraproduct line pricing effect and compare the explanation power among them. The researchers want to include the highest explanation power model for Shipment Timing Support System for stored apple. Five intra-apple pricing models were developed and applied to the wholesale price data with four graded Fuji apple announced by SAMPC in Korea. Five intra-apple pricing model divided into three dichotomies: the first model for price level effect with proportional response, the second and third models for price gap effect with proportional response, and the fourth and fifth models for price gap effect with non-proportional response. The result showed that the modeling of the price gap between excellent grade and three lower grade apples with proportional response showed the highest adjusted R2 among five models. This result implies that the interdependency among apple grades has the proportional response to price difference instead of non-proportional response to price difference among apple grade.