When the market demand is sensitive to sales price and the advertising efforts, both manufacturer and retailer in a supply chain must make decisions on their advertising effort levels and price discount. Based on the new demand function which is simultaneously affected by advertising efforts and direct price discount offered by the manufacturer to consumers, the optimal advertising efforts strategy of the supply chain and direct price discount of the manufacturer are mainly discussed by comparing four game models, which are Nash Equilibrium, Stackelberg game model in which the manufacturer is leader, Stackelberg game model in which the retailer is leader and cooperative game. The study finds that only when price elasticity meets a certain level, the manufacturer is willing to offer direct discount to consumers. Besides, the greater the price elasticity is, the more discount will be given and consumers can get the maximum discount in cooperative model. Once the manufacturer gives consumers the optimal price discount, the advertising efforts of both the manufacturer and the retailer are found to be positively correlated with the price elasticity. In addition, there is a certain proportion between their advertising costs. One player can estimate the other's cost of advertisement in accordance with its own advertising cost. In comparison of the optimal strategies in above four models, the results reveal that the advertising efforts by both manufacturer and retailer in cooperative model, as well as price discount the manufacturer providing to the consumers, are greater than those in the other models; thus, the maximal profit of a supply chain can be obtained using cooperative strategy. Finally, Pareto improvement is used to coordinate the cooperative game model to realize the multi-wins situation of both players of supply chain and consumers. All findings above can guide players to make optimal selection of cooperative models, advertising efforts strategy and price discount strategy.
HE Li-hong, LIAO Xi, LIU Meng-meng, YUAN Chun
. A Game Analysis of Optimal Advertising Efforts and Direct Price Discount Strategy for the Two-level Supply Chain[J]. Chinese Journal of Management Science, 2017
, 25(2)
: 130
-138
.
DOI: 10.16381/j.cnki.issn1003-207x.2017.02.014
[1] Huang Zhimin, Li S X. Co-op advertising models in manufacture-retailer supply chains:A game theory approach[J]. European Journal of Operational Research, 2001, 135(3):527-544.
[2] Somers T M, Gupta Y P, Herriott S R. Analysis of cooperative advertising expenditures:A transfer-function modeling approach[J]. Journal of Advertising Research, 1990, 30(5):35-45.
[3] Davis R A. Retailers open doors wide for co-op[J]. Advertising Age, 1994, 65(32):30.
[4] He Xiuli, Krishnamoorthy A, Prasad A, et al. Co-op advertising in dynamic retail oligopolies[J]. Decision Sciences, 2012, 43(1):73-106.
[5] Aydin G, Porteus E L. Manufacturer-to-retailer versus manufacturer-to-consumer rebates in a supply chain[M]//Agracoal N, Smith SA, Retailer supply chain management. US:Springer, 2009:237-270.
[6] Demirag O C, Keskinocak P, Swann J. Customer rebates and retailer incentives in the presence of competition and price discrimination[J]. European Journal of Operational Research, 2011, 215(1):268-280.
[7] Chen Xin, Li C L, Rhee B D, et al. The impact of manufacturer rebates on supply chain profits[J]. Naval Research Logistics, 2007, 54(6):667-680.
[8] Berger P D. Vertical cooperative advertising ventures[J]. Journal of Marketing Research, 1972,9(3):309-312.
[9] Huang Zhimin, Li S X, Mahajan V. An analysis of manufacture-retailer supply chains coordination in cooperative advertising[J]. Decision Sciences, 2002, 33(3):469-494.
[10] Li S X, Huang Zhimin, Zhu J, et al. Cooperative advertising, game theory and manufacturer-retailer supply chains[J]. Omega, 2002, 30(5):347-357.
[11] 林英晖, 屠梅曾. 供应链企业间合作广告的博弈分析[J]. 上海大学学报(自然科学版), 2005, 11(4):437-440.
[12] Xie Jinxing, Neyret A. Co-op advertising and pricing models in manufacturer-retailer supply chains[J]. Computers & Industrial Engineering, 2009, 56(4):1375-1385.
[13] Aust G, Buscher U. Vertical cooperative advertising and pricing decisions in a manufacturer-retailer supply chain:A game-theoretic approach[J]. European Journal of Operational Research, 2012, 223(2):473-482.
[14] Jorgensen S, Sigue S P, Zaccour G. Dynamic cooperative advertising in a channel[J]. Journal of Retailing, 2000, 76(1):71-92.
[15] 张庶英, 张世英. 供应链中合作广告策略的Stackelberg微分对策模型[J]. 西安交通大学学报, 2005, 40(4):513-518.
[16] 张庶英, 张世英. 基于微分对策的供应链合作广告决策研究[J]. 控制与决策, 2006, 21(2):153-157.
[17] Jorgensen S, Taboubi S, Zaccour G. Retail promotions with negative brand image effects:Is cooperation possible[J]. European Journal of Operational Research, 2003, 150(2):395-405.
[18] 吴文清, 赵黎明, 刘嘉焜. 需求不确定下供应链合作广告的博弈分析[J]. 软科学, 2006, 20(2):24-26.
[19] 傅强, 曾秋顺. 不确定需求下供应链合作广告与订货策略的博弈[J]. 系统工程理论与实践, 2008, 28(3):56-63.
[20] 熊中楷, 聂佳佳, 熊榆. 零售商竞争下纵向合作广告的微分对策模型[J]. 管理科学学报, 2010, 13(6):11-22.
[21] He Xiuli, Krishnamoorthy A, Prasad A, et al. Retail competition and cooperative advertising[J]. Operations Research Letters, 2011, 39(1):11-16.
[22] 王磊, 梁樑, 吴德胜, 等. 零售商竞争下的垂直合作广告模型[J]. 中国管理科学, 2005, 13(2):63-69.
[23] 吴江华, 翟昕. 信息共享对供应链合作广告影响的博弈分析[J]. 中国管理科学, 2012, 20(5):98-105.
[24] 杜军, 徐建, 刘凯. 基于演化博弈的供应链合作广告机制[J]. 系统工程, 2015, 33(1):108-115.
[25] 梁昌勇, 侯静怡, 傅为忠. 招聘服务供应链中合作广告博弈[J]. 中国管理科学, 2016, 24(4):94-101.
[26] Yue Jinfeng, Austin J, Wang M C, et al. Coordination of cooperative advertising in a two-level supply chain when manufacturer offers discount[J]. European Journal of Operational Research, 2006, 168(1):65-85.
[27] 刘蒙蒙. 基于广告努力水平与价格折扣的供应链合作广告研究[D]. 兰州:兰州大学, 2014.
