The Game Model With Cooperative Advertising And Shelf-space Under Different Forms Of Demand

Because the supply chain cooperative advertising has advantages of manufacturer and retailer with cost sharing, risk sharing and benefit sharing, thus cooperative advertising has become the focus of many enterprises. With the diversification of products and consumer demand for personalized, retailers rationally allocate the Shelf-space of goods and shelf display quantity which can stimulate demand and increase sales. Therefore, this paper researches the model of cooperative advertising and Shelf-space not only has important theoretical significance and has actual application value.Firstly, the introduction part of the article mainly describes the research background and significance of the supply chain, points out the existing problems in the supply chain and the corresponding coordinate methods. But with the increasingly fierce market competition, manufacturer and retailer advertising cooperation and retailers’shelf display quantity has certain positive effect on the commodity market demand. This paper considers the model with cooperative advertising and shelf-space under different forms of demand.Second, considers the demand influenced by cooperative advertising and shelf-space under stochastic demand, this paper builds up the Nash cooperative game, manufacturer-Stackelberg game, retailer-Stackelberg game models, and then compares and analyzes equilibrium results of three models. It is concluded that the manufacturer of manufacturer-Stackelberg game need to meet the certain condition to share the retail’s local advertising expense. Manufacturers expend more in national advertising investment then the less in shelf-space. The retailer of retailer-Stackelberg game expends the more in local advertising then the less in shelf-space. Nash cooperative game has more Pareto advantage. And numerical examples are given to simulation calculation and analysis of the model.Finally, considers the demand influenced by cooperative advertising and shelf-space under the manufacturers directly selling to customers, this paper builds up the Nash static game, Stackelberg game and Nash cooperative game. It respectively gets the manufacturer’s optimal national advertising investment and optimal price discount, the retailer’s optimal local advertising investment and optimal amount of shelf-space and the profit of supply chain members. It compares and analyzes equilibrium results of three models. It is concluded that optimal local advertising investment and the optimal amount of shelf-space in the Stackelberg game are more than the Nash static game, but the optimal National advertising investment is less than the Nash static game; Nash static game is superior to the Stackelberg game; Nash cooperative game has Pareto advantage. Numerical examples are given to simulation calculation and analysis of the model. It is shown that the retailer’s shelf-space investment and profits of supply chain members are increased when the price discount is higher within a certain price discount.