Advertising Strategy Research In Supply Chain Under Asymmetric Cost Information

In recent years,the rapid development of information network technology and third party logistics have changed people's consumption pattern and promoted the transformation of enterprise product sale pattern.More and more manufacturers use sale pattern that coexist direct sale channel and traditional retail channel.This sale pattern can achieve market penetration which followed by channel conflict.Scholars pay a lot of attention to cooperative advertising that can alleviate the conflict of channels.In reality,supply chain members may conceal their cost information for their own benefit which make the supply chain advertising decisions more complex,and asymmetric information will put forward a new challenge to supply chain management.This paper establishes a stackelberg game model for a supply chain composed of one manufacturer and one retailer,and discusses the optimal decision problem of the supply chain members under asymmetry and sharing of retailer advertising cost information.And the paper analyzes how the supply chain members'earnings changes in these two cases.The study draws the following conclusions:Firstly,the paper considers the advertising cost sharing strategy for the supply chain model in the single-channel supply chain model.The pricing and advertising strategies of the players under centralized decision and decentralized decision under different information structures are respectively characterized.The model and conclusion are further studied to discuss the effects of advertising effect and advertising cost coefficient on the pricing,advertising input and revenue of manufacturer and retailer based on the numerical analysis.It is shown that by comparing and analyzing information asymmetry and information sharing:Information sharing can always improve the profitability of manufacturers,and it can also improve the profitability of retailers to achieve Pareto improvement under certain conditions.Secondly,the paper also considers the advertising cost sharing strategy for the supply chain model in the single-channel supply chain model under the dual channel supply chain model.The pricing and advertising strategies of the players under centralized decision and decentralized decision under different information structures are respectively characterized.And the paper also discusses the change of the profit of the supply chain under different structure.The research draws the following conclusions:Information sharing can always improve the profitability of manufacturers,and it can also improve the profitability of retailers to achieve Pareto improvement under certain conditions.