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Cooperative Advertising Research with Product Pricing

Z. Wang

2016 · DOI: 10.2991/ICEMCT-16.2016.38
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Abstract

On the supply chain channel of a single manufacturer and single retailer, we research the cooperative advertising expenditures and product pricing. We consider the price into the cooperative advertising decisions, and use the four different games to research the decision to choose the optimal advertising, the optimal pricing and the optimal profit between the manufacturer and retailer, respectively. Through comparative analysis, we know in cooperative game situation, we spend the most on advertising, the lowest price, but the profit is the highest. In the situations of Stackelberg retailer game, we have the manufacturer's maximum profit.