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Business & Management - Production & Logistics | Vertical Cooperative Advertising in Supply Chain Management - A Game-Theoretic Analysis

Vertical Cooperative Advertising in Supply Chain Management

A Game-Theoretic Analysis

Aust, Gerhard

2015, XXII, 149 p. 34 illus.

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  • ​Considers different supply chain structures and distributions of power in order to suit the characteristics of various industries
  • Offers decision support for managers in manufacturing and retailing firms through numerical and graphical analyses of the derived solutions
  • Presents an extensive literature review to familiarize the reader with the current state of mathematical modeling of vertical cooperative marketing

In this book methods from Operations Research and Game Theory are used to determine companies’ profit-maximizing strategies related to pricing and (cooperative) advertising. It considers different supply chain structures as well as various distributions of power, making it possible to analyze both inter-echelon and intra-echelon dependencies between the companies’ decisions. Additionally, an approach based on fuzzy set theory is presented in order to compensate for incomplete or missing data on market characteristics. Vertical cooperative advertising is an essential element of partnerships between manufacturers and retailers, allowing manufacturers to financially support their retailers’ advertising efforts so as to increase sales for the entire supply chain. Given that such programs not only make up a considerable part of many companies’ advertising budgets, but are also a controversial subject in many business relations, their correct design is of particular importance.

Content Level » Research

Keywords » Cooperative advertising - Fuzzy set theory - Game theory - Pricing - SCM - Supply chain management

Related subjects » Applications - Game Theory / Mathematical Methods - Marketing - Operations Research & Decision Theory - Production & Logistics

Table of contents 

​Introduction.- Fundamentals.- Cooperative advertising models in supply chain management.- Vertical cooperative advertising and pricing decisions in a manufacturer-retailer supply chain.- Game theoretic analysis of pricing and vertical cooperative advertising of a retailer-duopoly with a common manufacturer.- A manufacturer-retailer supply chain with fuzzy customer demand.- Resumé.

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