Joint Promotion Based on Retailer-Led Supply Chain

In this paper, a demand function model based on price and promotion efforts is constructed for the situation where the retailer is dominant in the supply chain, and the problem of joint promotion when the manufacturer invests in promotion efforts is investigated. This paper analyzes the influence of the cost-sharing ratio coefficient of promotional efforts on the decision-making behavior and profits of the manufacturer and retailer. Through theoretical and simulation analysis, the authors find that if the manufacturer invests in the promotion efforts, the retailer’s share of the promotion efforts cost will lead to the decrease of the manufacturer’s profit relative to the manufacturer’s sole responsibility for the promotion efforts cost, while for the retailer, the retailer’s profit will increase if the retailer’s share of the promotion efforts cost is small, and vice versa, the retailer’s profit will decrease.

Language

  • English

Media Info

  • Media Type: Web
  • Pagination: pp 719-726
  • Monograph Title: ICTE 2019

Subject/Index Terms

Filing Info

  • Accession Number: 01731314
  • Record Type: Publication
  • ISBN: 9780784482742
  • Files: TRIS, ASCE
  • Created Date: Feb 20 2020 9:30AM