Discovering research trends and opportunities of green finance and energy policy: A data-driven scientometric analysis

Green product design considering functional-product reference

Cost-sharing mechanism for product quality improvement in a supply chain under competition

Channel coordination under Nash bargaining fairness concerns in differential games of goodwill accumulation

This paper presents a model for designing two-stage dynamic pricing strategies when the seller faces strategic consumers in the presence of a reference price effect. The consumers form the utilitie...

Dynamic pricing in the presence of reference price effect and consumer strategic behaviour

With increasing public attention on product quality, supply chain quality management has been the focus of considerable research attention in recent years. However, only a few published articles ha...

Supply chain coordination in quality improvement with reference effects

https://onlinelibrary.wiley.com/doi/pdf/10.1111/itor.12606

Optimal carbon reduction level and ordering quantity under financial constraints

Purpose




This paper aims to address the following problems: What are the firms’ optimal pricing and quality policies under three scenarios (no bundling, pure bundling and mixed bundling)? In what condition will one bundling strategy dominate the others? How does the degree of complementarity affect the firms’ decision?




Design/methodology/approach




Using the game theory, this study first establishes three models of bundling strategies: no bundling, pure bundling and mixed bundling and then obtains the optimal prices and quality decisions. This study uses numerical analysis to explore the relationships between the prices (demands and profits) and some key parameters and to obtain some valuable management complications.




Findings




Some interesting and valuable management implications are established: regardless of the degree of complementarity, adopting a pure bundling or mixed bundling strategy is better than separately selling an individual product; a high degree of complementarity leads to reduced profit in the no bundling and mixed bundling scenarios, whereas the condition in the pure bundling strategy is the opposite; and when the degree of complementarity is adequately large, choosing pure bundling strategy is more profitable.




Research limitations/implications




On the one hand, this study does not calculate the profit sharing ratio, and hence, the equilibrium profit sharing ratio can be explored in future work. On the other hand, marketing efforts (e.g. advertising and promotion) can be included in the study.




Practical implications




This study derives the necessary conditions for the most effective bundling strategy that maximizes firm’s profits, and these conclusions can provide a decision reference to the bundling decisions of firms.




Originality/value




First, the optimal bundling strategies in a horizontal supply chain consisting of two firms is considered. Under the pure and mixed bundling strategies, the two firms sell the bundled product by building a cooperative program. Second, both the pricing policies and quality decisions of supply chain members under the different bundling strategies are studied.

Bundling strategies for complementary products in a horizontal supply chain

An integrated water strategy based on the current circumstances in China

Most firms in the fashion industry frequently design and promote new products, which leads to a two-period phenomenon in product sales This study aims to examine the optimal advertising efforts of each channel member and the subsidy strategies of the manufacturer with retail competition in a two-period supply chain,By utilizing the game theory, this study developed a cooperative advertising model that considers the element of retailer competition in a two-period supply chain,The main results of this study are as follows An increase in the subsidy rate of one retailer’s advertising cost will lead to a decrease in the share of the other When a manufacturer’s marginal profit from one retailer is considerably larger than that from the other, the manufacturer will share more advertising cost with the former This study demonstrates that a bilateral participation contract can achieve supply chain coordination and increases the likelihood of retailers to participate in this contract when competition effect is small,First, product price is not a decision variable in this model This concern can be studied in future work Second, the one-manufacturer and two-retailer supply chain can be expanded to competitive manufacturers,This study provides some decision references for the manufacturer and retailer on advertising strategies The manufacturer can also gain insights into cooperative advertising strategy when facing a competitive retail environment,Most previous studies related to cooperative advertising focused on a single-period supply chain This study investigates cooperative advertising strategy with retail competition in two-period sales and explores the potential coordinating power of a bilateral participation contract

Coordination through cooperative advertising in a two-period supply chain with retail competition

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