Supply chain coordination through cooperative advertising with reference price effect

Omega ◽  
2013 ◽  
Vol 41 (2) ◽  
pp. 345-353 ◽  
Author(s):  
Juan Zhang ◽  
Qinglong Gou ◽  
Liang Liang ◽  
Zhimin Huang
Keyword(s):  
Supply Chain ◽  
Reference Price ◽  
Supply Chain Coordination ◽  
Cooperative Advertising ◽  
Price Effect

scholarly journals Myopic versus Far-Sighted Behaviors in Dynamic Supply Chain Coordination through Advertising with Reference Price Effect

2017 ◽  
Vol 2017 ◽  
pp. 1-15 ◽  
Author(s):  
Yafei Zu ◽  
Lianghua Chen
Keyword(s):  
Supply Chain ◽  
Reference Price ◽  
Stackelberg Game ◽  
Supply Chain Coordination ◽  
Wholesale Price ◽  
Pricing Strategies ◽  
Market Demand ◽  
Price Effect ◽  
Theoretical Support ◽  
Behavior Choice

To better understand the different effects of the myopic and far-sighted behaviors on the advertising coordination in dynamic supply chain, this paper takes the reference price effect into consideration and formulates four differential game models for the two-level supply chain composed of a manufacturer and a retailer in the situation of Stackelberg game. In our models, the market demand is assumed to be affected by the goodwill, reference price, and the advertising investment, in which the advertising investment can promote the construction of goodwill and such goodwill can further enhance the reference price. The results show that the participating members in the supply chain should invest more in advertisement to improve the goodwill and the relative reference price reflected in the minds of consumers. A far-sighted manufacturer will invest more in the advertisement and charge a higher wholesale price regardless of the behavior choice of the retailer. However, such kind of ignorance leads to different results on the retail pricing strategies of the retailer. The numerical analyses are given in the end to verify the effectiveness of the conclusions which provide the theoretical support to the dynamic supply chain coordination in practice.

scholarly journals Healthcare Supply Chain Network Coordination Through Medical Insurance Strategies with Reference Price Effect

2019 ◽  
Vol 16 (18) ◽  
pp. 3479
Author(s):  
Gao ◽  
Wang
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Healthcare System ◽  
Reference Price ◽  
Medical Insurance ◽  
Patient Choice ◽  
Insurance Fund ◽  
Supply Chain Network ◽  
Price Effect ◽  
The Social

China has established the universal medical insurance system and individual out of pocket costs have decreased, however, the average healthcare expenditure of the Chinese population and the expenses of the whole society have increased substantially. One major challenge which impedes the progress of attaining sustainable development of the social healthcare system in China is that the number of hospital admissions is disproportionate. Superior hospitals are overcrowded, whereas subordinate hospitals are experiencing low admissions. In this paper, we apply the game theory model to coordinate the healthcare supply chain network, which is composed of the government, medical insurance fund, superior hospitals, subordinate hospitals and patients. Especially by taking the reference price effect into account, this paper analyzes different medical insurance reimbursement strategies and their influence on patient choice and the healthcare supply chain network. The result shows that the reference price effect increases the leverage of medical insurance, guides patients’ choice, optimizes the allocation of medical resources and reduces the medical expends. In comparison to a decentralized decision- making strategy, a centralized decision- making strategy can stimulate both superior hospital and subordinate hospital’s cooperative intentions which benefits the social healthcare system.

Coordination through cooperative advertising in a two-period supply chain with retail competition

Kybernetes ◽  
2019 ◽  
Vol 48 (6) ◽  
pp. 1175-1194 ◽  
Author(s):  
Qingyun Xu ◽  
Bing Xu ◽  
Qiushi Bo ◽  
Yi He
Keyword(s):  
Supply Chain ◽  
Supply Chain Coordination ◽  
The Other ◽  
Decision Variable ◽  
Cooperative Advertising ◽  
Fashion Industry ◽  
Retail Competition ◽  
Product Price ◽  
Content Type ◽  
Advertising Strategy

Purpose Most firms in the fashion industry frequently design and promote new products, which leads to a two-period phenomenon in product sales. This study aims to examine the optimal advertising efforts of each channel member and the subsidy strategies of the manufacturer with retail competition in a two-period supply chain. Design/methodology/approach By utilizing the game theory, this study developed a cooperative advertising model that considers the element of retailer competition in a two-period supply chain. Findings The main results of this study are as follows. An increase in the subsidy rate of one retailer’s advertising cost will lead to a decrease in the share of the other. When a manufacturer’s marginal profit from one retailer is considerably larger than that from the other, the manufacturer will share more advertising cost with the former. This study demonstrates that a bilateral participation contract can achieve supply chain coordination and increases the likelihood of retailers to participate in this contract when competition effect is small. Research limitations/implications First, product price is not a decision variable in this model. This concern can be studied in future work. Second, the one-manufacturer and two-retailer supply chain can be expanded to competitive manufacturers. Practical implications This study provides some decision references for the manufacturer and retailer on advertising strategies. The manufacturer can also gain insights into cooperative advertising strategy when facing a competitive retail environment. Originality/value Most previous studies related to cooperative advertising focused on a single-period supply chain. This study investigates cooperative advertising strategy with retail competition in two-period sales and explores the potential coordinating power of a bilateral participation contract.

Impact of pricing structure on supply chain coordination with cooperative advertising

2020 ◽  
Vol 54 (6) ◽  
pp. 1613-1629
Author(s):  
Seyed Jafar Sadjadi ◽  
Amin Alirezaee
Keyword(s):  
Supply Chain ◽  
Supply Chain Coordination ◽  
Optimal Decision ◽  
Theoretic Model ◽  
Cooperative Advertising ◽  
Decision Variables ◽  
Retail Prices ◽  
Potential Demand ◽  
Game Theoretic ◽  
The Impact

This paper develops a game-theoretic model in a two-echelon supply chain composed of one manufacturer and two retailers to study the effect of pricing structure and cooperative-advertising decisions on the supply chain coordination performance. In the proposed model, different pricing structures are analyzed and then, two types of pricing structure in supply chain coordination mechanisms are presented, in addition to considering four possible scenarios for pricing structure. For the first two scenarios, retailers determine the retail prices, while in the other two ones, the sales price is set by the manufacturer. Therefore, the retailers are obliged to comply with this rule. The manufacturer-Stackelberg and the cooperative games are formulated for each scenario by considering key assumptions associated with advertising expenditures to maintain the potential demand size. This paper also presents some analytical results and determines the equilibrium of the models for each scenario. Finally, a numerical analysis is conducted to illustrate the impact of pricing structure on the optimal decision variables and the profit of the supply chain members.

scholarly journals Research on Collaborative Management Strategies of Closed-Loop Supply Chain under the Influence of Big-Data Marketing and Reference Price Effect

2020 ◽  
Vol 12 (4) ◽  
pp. 1685
Author(s):  
Deqing Ma ◽  
Jinsong Hu
Keyword(s):  
Big Data ◽  
Supply Chain ◽  
Reference Price ◽  
Business Models ◽  
Closed Loop ◽  
Price Effect ◽  
Bottom Line ◽  
Service Platform ◽  
Closed Loop Supply Chain ◽  
Internet Service

This paper integrates the Internet service platform with big-data marketing into the dynamic closed-loop supply chain system as an independent game subject. Considering the reference price effect of consumers, this work constructs differential games among manufacturer, retailer and Internet service platform under three business models of independent, collaborative production and collaborative marketing. Using Bellman’s continuous dynamic programming theory, this work obtains the optimal feedback strategies of price and big-data marketing effort, brand goodwill, return rate of used products and corporate profits under the three business models. Comparing the three scenarios and analyzing the sensitivity of key exogenous parameters, it can be found that the involvement of Internet service platform has a crucial impact on the sustainable profitability of supply chain enterprises. Considering the reference price effect of consumers, enterprises should adopt different strategic alliances in different periods, which can also gain new development momentum in the context of data-driven marketing, achieve the improvement of the triple-bottom line of closed-loop supply chain and even reach a win-win situation for supply chain enterprises.

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