Por favor, use este identificador para citar o enlazar este ítem:https://uvadoc.uva.es/handle/10324/51143
Título
The effects of decision timing for pricing and marketing efforts in a supply chain with competing manufacturers
Año del Documento
2021
Editorial
Wiley
Descripción
Producción Científica
Documento Fuente
International Transactions in Operational Research, 2021.
Abstract
This paper investigates the impact of decision timing for pricing and marketing efforts in a supply chain led by competing manufacturers. We develop and solve six games to consider the scenarios (games) where prices and marketing efforts (ME) are decided simultaneously, and when they are not (i.e., ME is set either before or after prices). We examine these three scenarios for the benchmark case of a bilateral monopolistic channel, then extend the analysis to a supply chain with competing manufacturers. We identify the optimal decision timing by comparing equilibrium profits and strategies across games in each supply chain setup. We find that a monopolistic manufacturer always prefers that prices and ME be decided simultaneously. However, this result does not hold when product competition is taken into account. The optimal decision timing for competing manufacturers depends on the retailer's and manufacturers' ME effectiveness levels as well as on competition intensity. Specifically, when ME are not very effective, a simultaneous decision scenario is preferred because it provides the advantage of higher profit margins or sales. However, for highly effective ME, manufacturers prefer to decouple ME and pricing decisions. The retailer's optimal scenario is either to make all decisions simultaneously or to choose prices prior to ME. This means that supply chain firms can face conflict due to the decision timing for prices and ME.
Materias Unesco
12 Matemáticas
Palabras Clave
OR in marketing
Marketing efforts and pricing
Decision timing
Game theory
Competition
ISSN
0969-6016
Revisión por pares
SI
Version del Editor
Propietario de los Derechos
© 2021 The Authors
Idioma
eng
Tipo de versión
info:eu-repo/semantics/publishedVersion
Derechos
openAccess
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