Optimal advertising and pricing decisions for complementary products

Ata Allah Taleizadeh · Masoud Charmchi

15 citations0/0 files storedJournal of industrial engineering international

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Supply Chain and Inventory Management Consumer Market Behavior and Pricing Sustainable Supply Chain Management

Abstract

Cooperative advertising is an agreement between a manufacturer and a retailer to share advertising cost at the local level. Previous studies have not investigated cooperative advertising for complementary products and their main focus was only on one good. In this paper, we study a two-echelon supply chain consisting of one manufacturer and one retailer with two complementary goods. The demand of each good is influenced not only by its price but also by the price of the other product. We use two game theory approaches to model this problem; Stackelberg manufacturer and Stackelberg retailer.

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1984The Theory of Power and Conflict in Channels of Distribution 2001Co-op advertising models in manufacturer–retailer supply chains: A game theory approach 2008Coordinating advertising and pricing in a manufacturer–retailer channel 2004Coordination of cooperative advertising in a two-level supply chain when manufacturer offers discount 2001Coordinating a three-level supply chain with quantity discounts 2000Dynamic cooperative advertising in a channel 2002An Analysis of Manufacturer‐Retailer Supply Chain Coordination in Cooperative Advertising*2010A game theoretic approach to coordinate pricing and vertical co-op advertising in manufacturer–retailer supply chains

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2021Possibilistic cooperative advertising and pricing games for a two-echelon supply chain

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