Coordination of Advertising Free Riding in Hybrid Channel Supply Chain
Advertising is a crucial tool for demand creation and market expansion; enterprises in supply chain use it widely to increase sales and improve profits. But the homogeneity of products sold in hybrid channel supply chain magnifies the positive externalities of advertising and leads to serious free-r...
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Format: | Article |
Language: | English |
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Wiley
2016-01-01
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Series: | Discrete Dynamics in Nature and Society |
Online Access: | http://dx.doi.org/10.1155/2016/7423043 |
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author | Jin Sha Aihu Wang Ting Lv Wenling Wu |
author_facet | Jin Sha Aihu Wang Ting Lv Wenling Wu |
author_sort | Jin Sha |
collection | DOAJ |
description | Advertising is a crucial tool for demand creation and market expansion; enterprises in supply chain use it widely to increase sales and improve profits. But the homogeneity of products sold in hybrid channel supply chain magnifies the positive externalities of advertising and leads to serious free-riding problem. To coordinate the supply chain effectively, firstly, this paper classifies hybrid channel supply chain based on the relationship between members and selects horizontally integrated, vertically integrated, and decentralized hybrid channel supply chains as research objects. Then, a demand function considering the common effect of price and advertising is proposed and coordination schemes for different types of supply chains are designed. Finally, a sensitivity analysis is performed to assess the impact of parameters on coordination using orthogonal experiment. |
format | Article |
id | doaj-art-79da497feb6b4ca8aa4e5deaab11d865 |
institution | Kabale University |
issn | 1026-0226 1607-887X |
language | English |
publishDate | 2016-01-01 |
publisher | Wiley |
record_format | Article |
series | Discrete Dynamics in Nature and Society |
spelling | doaj-art-79da497feb6b4ca8aa4e5deaab11d8652025-02-03T06:13:14ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2016-01-01201610.1155/2016/74230437423043Coordination of Advertising Free Riding in Hybrid Channel Supply ChainJin Sha0Aihu Wang1Ting Lv2Wenling Wu3School of Business Administration, South China University of Technology, Guangzhou, Guangdong 510640, ChinaSchool of Business Administration, South China University of Technology, Guangzhou, Guangdong 510640, ChinaSchool of Business Administration, South China University of Technology, Guangzhou, Guangdong 510640, ChinaSchool of Business Administration, South China University of Technology, Guangzhou, Guangdong 510640, ChinaAdvertising is a crucial tool for demand creation and market expansion; enterprises in supply chain use it widely to increase sales and improve profits. But the homogeneity of products sold in hybrid channel supply chain magnifies the positive externalities of advertising and leads to serious free-riding problem. To coordinate the supply chain effectively, firstly, this paper classifies hybrid channel supply chain based on the relationship between members and selects horizontally integrated, vertically integrated, and decentralized hybrid channel supply chains as research objects. Then, a demand function considering the common effect of price and advertising is proposed and coordination schemes for different types of supply chains are designed. Finally, a sensitivity analysis is performed to assess the impact of parameters on coordination using orthogonal experiment.http://dx.doi.org/10.1155/2016/7423043 |
spellingShingle | Jin Sha Aihu Wang Ting Lv Wenling Wu Coordination of Advertising Free Riding in Hybrid Channel Supply Chain Discrete Dynamics in Nature and Society |
title | Coordination of Advertising Free Riding in Hybrid Channel Supply Chain |
title_full | Coordination of Advertising Free Riding in Hybrid Channel Supply Chain |
title_fullStr | Coordination of Advertising Free Riding in Hybrid Channel Supply Chain |
title_full_unstemmed | Coordination of Advertising Free Riding in Hybrid Channel Supply Chain |
title_short | Coordination of Advertising Free Riding in Hybrid Channel Supply Chain |
title_sort | coordination of advertising free riding in hybrid channel supply chain |
url | http://dx.doi.org/10.1155/2016/7423043 |
work_keys_str_mv | AT jinsha coordinationofadvertisingfreeridinginhybridchannelsupplychain AT aihuwang coordinationofadvertisingfreeridinginhybridchannelsupplychain AT tinglv coordinationofadvertisingfreeridinginhybridchannelsupplychain AT wenlingwu coordinationofadvertisingfreeridinginhybridchannelsupplychain |