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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Main Authors: Jin Sha, Aihu Wang, Ting Lv, Wenling Wu
Format: Article
Language:English
Published: Wiley 2016-01-01
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