Research on Brand Competition and Decisions in Supply Chains Under Manufacturer Information Referral

To study the impact of manufacturer information referral on the decision-making of supply chain members, a Stackelberg model is constructed based on a manufacturer, a professional retailer and a store brand retailer. The optimal price and profit of the manufacturer and both retailers when manufactur...

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Main Authors: Feiyan Han, Ling Li, Hongyu Lv, Herui Wang
Format: Article
Language:English
Published: IEEE 2021-01-01
Series:IEEE Access
Subjects:
Online Access:https://ieeexplore.ieee.org/document/9524917/
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author Feiyan Han
Ling Li
Hongyu Lv
Herui Wang
author_facet Feiyan Han
Ling Li
Hongyu Lv
Herui Wang
author_sort Feiyan Han
collection DOAJ
description To study the impact of manufacturer information referral on the decision-making of supply chain members, a Stackelberg model is constructed based on a manufacturer, a professional retailer and a store brand retailer. The optimal price and profit of the manufacturer and both retailers when manufacturer refers consumers to the professional retailer or not are solved and compared. Besides, the effect of the manufacturer’s information referral on the members of the supply chain is analyzed. The results show that the referral of manufacturer benefits both manufacturer and the referred retailer if the referral level meets certain conditions, otherwise it may reduce the profit of both parties, and the referral level is affected by the market size of the professional retailer. Meanwhile, under the influence of the professional retailer’s market size and the intensity of market competition, the store brand retailer will continue to operate only when the referral level stays in a certain range, but the profit of its store brand is damaged. However, if the referral level exceeds a certain threshold, the store brand product’s profit will increase with free riding.
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spelling doaj.art-20be8d52eda54776a2a087b41a7ebb712022-12-22T04:24:45ZengIEEEIEEE Access2169-35362021-01-01912141412143010.1109/ACCESS.2021.31089149524917Research on Brand Competition and Decisions in Supply Chains Under Manufacturer Information ReferralFeiyan Han0https://orcid.org/0000-0002-5377-3686Ling Li1https://orcid.org/0000-0002-6879-2791Hongyu Lv2Herui Wang3Economics and Management Department, Xinzhou Teachers University, Xinzhou, ChinaBusiness School, Tianjin University of Finance and Economics, Tianjin, ChinaCollege of Management and Economic, Tianjin University, Tianjin, ChinaCollege of Management and Economic, Tianjin University, Tianjin, ChinaTo study the impact of manufacturer information referral on the decision-making of supply chain members, a Stackelberg model is constructed based on a manufacturer, a professional retailer and a store brand retailer. The optimal price and profit of the manufacturer and both retailers when manufacturer refers consumers to the professional retailer or not are solved and compared. Besides, the effect of the manufacturer’s information referral on the members of the supply chain is analyzed. The results show that the referral of manufacturer benefits both manufacturer and the referred retailer if the referral level meets certain conditions, otherwise it may reduce the profit of both parties, and the referral level is affected by the market size of the professional retailer. Meanwhile, under the influence of the professional retailer’s market size and the intensity of market competition, the store brand retailer will continue to operate only when the referral level stays in a certain range, but the profit of its store brand is damaged. However, if the referral level exceeds a certain threshold, the store brand product’s profit will increase with free riding.https://ieeexplore.ieee.org/document/9524917/Supply chaininformation referral levelbrand competitionStackelberg game
spellingShingle Feiyan Han
Ling Li
Hongyu Lv
Herui Wang
Research on Brand Competition and Decisions in Supply Chains Under Manufacturer Information Referral
IEEE Access
Supply chain
information referral level
brand competition
Stackelberg game
title Research on Brand Competition and Decisions in Supply Chains Under Manufacturer Information Referral
title_full Research on Brand Competition and Decisions in Supply Chains Under Manufacturer Information Referral
title_fullStr Research on Brand Competition and Decisions in Supply Chains Under Manufacturer Information Referral
title_full_unstemmed Research on Brand Competition and Decisions in Supply Chains Under Manufacturer Information Referral
title_short Research on Brand Competition and Decisions in Supply Chains Under Manufacturer Information Referral
title_sort research on brand competition and decisions in supply chains under manufacturer information referral
topic Supply chain
information referral level
brand competition
Stackelberg game
url https://ieeexplore.ieee.org/document/9524917/
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AT heruiwang researchonbrandcompetitionanddecisionsinsupplychainsundermanufacturerinformationreferral