Advertising-driven demand is very common in practice.This paper considers pricing and advertising strategies issues in a two-echelon supply chain involving a manufacturer and a retailer.According to who undertakes the...Advertising-driven demand is very common in practice.This paper considers pricing and advertising strategies issues in a two-echelon supply chain involving a manufacturer and a retailer.According to who undertakes the advertising expenditure,both the retailer-advertising case and the manufacturer-advertising case are analyzed under the Stackelberg framework.The crucial factor that affects the advertising strategy and the optimal profit for each participant is revealed.Furthermore,we compare profits of the two participants under different situations.It is demonstrated that both the manufacturer and the retailer gain more profits in the retailer-advertising case than those in the manufacturer-advertising case.In other words,the retailer has more incentive to advertise the product for the sake of maximizing its profit.Finally,a numerical illustration is presented to examine the change of the profit for each participant under different marginal demands and promotion degrees.展开更多
文摘Advertising-driven demand is very common in practice.This paper considers pricing and advertising strategies issues in a two-echelon supply chain involving a manufacturer and a retailer.According to who undertakes the advertising expenditure,both the retailer-advertising case and the manufacturer-advertising case are analyzed under the Stackelberg framework.The crucial factor that affects the advertising strategy and the optimal profit for each participant is revealed.Furthermore,we compare profits of the two participants under different situations.It is demonstrated that both the manufacturer and the retailer gain more profits in the retailer-advertising case than those in the manufacturer-advertising case.In other words,the retailer has more incentive to advertise the product for the sake of maximizing its profit.Finally,a numerical illustration is presented to examine the change of the profit for each participant under different marginal demands and promotion degrees.
