The Advertising Strategies Research Of Dual Channels Supply Chain With Reference Price Effects

With the rapid development of the third party logistics and the popularity of the network,more and more manufactures set up online direct channel in the foundation of traditional retail channels,as well as more and more customers shuttling between brick stores and online stores.The added online direct channel can be a good complementary to retail channel,but the competition between each other lead to channel conflict,too.How to alleviate the channel conflict,making the two channels to achieve balanced,so we can get more powerful market penetration than single retail channel,and maximize the profit of the whole supply chain,then to realize a win-win situation.Due to the cooperative advertising can effectively alleviate the channel conflict,so this paper under the background of dual-channel supply chain of having reference price effects,using the method of game theory and numerical analysis are combined,respectively discusses the pricing and advertising strategies of supply chain members in different decision models under the wholesale price is exogenous and endogenous conditions,besides design the corresponding coordination contracts,analysis influences of the parameters on the decision variables of the channel members.This article first embarks from the factors influencing demand function of the dual-channel,and outlines the home and aboard with regard to price factors and non-price factors impacting demand function(advertising,service,and channel power structure)literature review,mainly on the analysis of the advertising affect demand model of supply chain.Then,with the premise of having reference price effects,establish the model of dual channel supply chain retailer inputting local advertising,respectively discusses the pricing and advertising strategies of channel members under centralized decision-making mode and decentralized decision-making mode under the condition of wholesale price as exogenous variable;afterwards design coordination contract and obtained the analytical condition of retailer is willing to adopt the coordination contract.Then through the MATLAB for example simulation,further test and verify the model and conclusion,to explore the influences of reference price effects on pricing,advertising investment and profit of channel members,and analysis the impacts of the wholesale price on channel members' profit functions,besides find out the numerical solution of manufacturer is willing to employ the contract.Subsequently build the model of dual-channel supply chain under the premise of the wholesale price as endogenous variable,to explore the pricing and advertising policies of channel members under decentralized decision-making mode.Analysis the impacts of reference price effects on channel members' decision variables and profit functions,afterwards explore the role of wholesale 'price in the design of contract,and contract of supply chain coordination is given including the wholesale price.The research results show that when channel members are under decentralized decision-making,coordination contracts can achieve the coordination of dual-channel supply chain;compared to centralized decision-making,retailer's advertising investment and direct channel's price are lower and retail channel price is higher under decentralized decision-making.Under the coordination contracts,when parameters satisfy certain conditions,channel members' benefits are improved compared to the non coordination situation,so the coordination contracts are Pareto improvement than decentralized decision-making.