Article
Management
Krista J. Li
Summary: This research explores the unique effects of behavior-based quality discrimination compared to behavior-based price discrimination, showing how they impact competition in different stages and the strategies firms should adopt to reward new and repeat customers. The study emphasizes the importance of offering discounts to new customers and higher quality product features or services to repeat customers, as well as the increase in customer retention rates with quality discrimination.
M&SOM-MANUFACTURING & SERVICE OPERATIONS MANAGEMENT
(2021)
Article
Business
Salma Karray, Guiomar Martin-Herran, Simon Pierre Sigue
Summary: This paper investigates the optimal allocation of resources to retailer-initiated and manufacturer advertising in a bilateral monopoly market. The findings suggest that manufacturers should avoid exclusively offering cooperative advertising programs to retailers and should consider undertaking their own advertising in addition to supporting retailer advertising. Both manufacturers and retailers prefer scenarios where both parties advertise simultaneously.
JOURNAL OF RETAILING AND CONSUMER SERVICES
(2022)
Article
Management
Rabih Salhab, Jerome Le Ny, Roland P. Malhame, Georges Zaccour
Summary: In this study, we analyze a large group of consumers who rely on past purchasers' ratings to evaluate the product and make purchasing decisions. We model the problem as a Stackelberg mean-field game and provide a numerical scheme to compute optimal pricing, marketing activities, aggregate rating, and market share. Our findings demonstrate the usefulness of comparing fairness among different rating aggregators and the predictability of herd behavior triggered by biased raters.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2022)
Article
Management
Scott Fay, Shahryar Gheibi
Summary: This study examines the effects of probabilistic selling (PS) on retailer-manufacturer interactions and how upstream competition impacts channel members' incentives to facilitate PS. The results show that PS can mitigate the inefficiencies caused by the double-marginalization problem. However, the market conditions for PS are relatively narrow, and PS shifts channel power toward the manufacturer. Nevertheless, a win-win-win outcome is possible, benefiting all parties involved.
M&SOM-MANUFACTURING & SERVICE OPERATIONS MANAGEMENT
(2023)
Article
Computer Science, Artificial Intelligence
Atiye Yousefi, Mir Saman Pishvaee, Babak Amiri
Summary: Designing a system that links pricing and advertising to improve supply chain performance can bring significant benefits. This study validates the importance of accurately selecting influencers for social media advertisements and suggests that choosing influencers based solely on their influence network may not yield the expected results.
EXPERT SYSTEMS WITH APPLICATIONS
(2024)
Article
Management
Moutaz Khoujaa, Yuefeng Li, Jing Zhou
Summary: Many retailers use nonlinear pricing, such as Buy one, get one for 50% off (BOGO), to increase sales and counter strategic consumer behavior. This study analyzes the application of BOGO in the newsvendor model and determines its optimal discount and impact on the retailer's profit. The results show that BOGO reduces strategic consumers' chances of obtaining a discount and their incentive to wait, leading the retailer to order a larger quantity compared to a price reduction strategy. The study also highlights the optimal timing of offering BOGO and the robustness of the findings to different factors.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2023)
Article
Operations Research & Management Science
Ting Zhang, Tsan-Ming Choi
Summary: The study examines the impact of sales tax on multichannel strategies and social welfare. It suggests that retailers prefer the online-and-offline channel and that offline channels may function solely as showrooms if the offline sales tax rate is high. It advises governments to consider channel type, product category, and channel-product fit when developing sales tax policies for different value products.
NAVAL RESEARCH LOGISTICS
(2021)
Article
Economics
Long Ding, Peng Liu, Sen Hu
Summary: Location-based technology allows firms to offer personalized coupons to consumers based on their real-time locations, making location-based coupons an innovative marketing tool. This paper investigates the choice between defensive geo-fencing and offensive geo-conquesting strategies in the context of location-based coupons. Using a spatial model, the study examines the impact of these strategies on company profits, consumer surplus, and social welfare. The findings suggest that the defensive strategy can decrease revenue in a monopoly market but increase it in a duopoly market, where both firms adopting the defensive strategy is the Nash equilibrium with the highest profits but lowest consumer surplus. The misalignment of interests highlights the need for policy intervention to regulate firms' location-based coupon strategies for the benefit of consumers.
TRANSPORTATION RESEARCH PART E-LOGISTICS AND TRANSPORTATION REVIEW
(2023)
Article
Management
Mehmet Sekip Altug, Tolga Aydinliyim, Aditya Jain
Summary: Retailers use lenient return policies to stimulate demand and increase revenues, but may face unintended consequences such as opportunistic returns. Two alternative proposals are considered: targeted refunds and menu of refunds, aimed at addressing issues with different customer types.
MANAGEMENT SCIENCE
(2021)
Article
Economics
Kazuhiro Negoro, Nobuo Matsubayashi
Summary: This study investigates the factors that a new entrant needs to consider when selecting a partner for entering a market with a new product, providing a game-theoretic analysis. The results suggest that partnering with the major firm with the largest market share is not always the optimal choice, and for high-value entrants, allying with the major firm may be more beneficial.
TRANSPORTATION RESEARCH PART E-LOGISTICS AND TRANSPORTATION REVIEW
(2021)
Article
Management
Lili Yu, Xiuli He, Juan Zhang, Chuanyong Xu
Summary: This study investigates the advertising threshold effect and the value of Horizontal Cooperative Advertising (HCA) programs. Findings show that the presence of an advertising threshold may lead to sub-optimal advertising decisions, and firms can benefit from HCA programs when the advertising threshold is moderate and the synergy effect of cooperative advertising is not too low.
OMEGA-INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE
(2021)
Article
Engineering, Manufacturing
Xiang Fang, Jun Ru, Yunzeng Wang
Summary: The study investigates the impact of contract parameters between retailers and suppliers in a supply chain, particularly the product list price chosen by suppliers. It shows that by committing to not exceeding the supplier's list price, the retailer can improve its own performance and channel performance without negatively affecting suppliers.
PRODUCTION AND OPERATIONS MANAGEMENT
(2021)
Article
Management
Salma Karray, Guiomar Martin-Herran
Summary: This paper investigates the impact of decision timing for pricing and marketing efforts in a supply chain led by competing manufacturers, finding that the optimal decision timing for manufacturers and retailers depends on the effectiveness of marketing efforts and the intensity of competition.
INTERNATIONAL TRANSACTIONS IN OPERATIONAL RESEARCH
(2021)
Article
Management
Laurens Debo, Cuihong Li
Summary: The study delves into the optimal design and pricing of services with different durations, taking into account customer sensitivity to quality and waiting time. Service variety reduction and time reduction can alleviate congestion, with processing-time-based sequencing rules improving operational efficiency.
MANAGEMENT SCIENCE
(2021)
Article
Management
Rikuo Yoshihara, Nobuo Matsubayashi
Summary: This study provides a game-theoretic analysis for channel coordination in a two-tier supply chain with fairness concerns among retailers. The research shows that a fair channel can be successfully achieved in equilibrium, maximizing total channel profit and ensuring retailers do not suffer disutility due to disadvantages. Retailers necessarily benefit from their fairness concerns in a fair channel setting.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2021)