Vertical Cooperative Advertising in Supply Chain Management

A Game-Theoretic Analysis

  • Gerhard Aust

Part of the Contributions to Management Science book series (MANAGEMENT SC.)

About this book

Introduction

In this book methods from Operations Research and Game Theory are used to determine companies’ profit-maximizing strategies related to pricing and (cooperative) advertising. It considers different supply chain structures as well as various distributions of power, making it possible to analyze both inter-echelon and intra-echelon dependencies between the companies’ decisions. Additionally, an approach based on fuzzy set theory is presented in order to compensate for incomplete or missing data on market characteristics. Vertical cooperative advertising is an essential element of partnerships between manufacturers and retailers, allowing manufacturers to financially support their retailers’ advertising efforts so as to increase sales for the entire supply chain. Given that such programs not only make up a considerable part of many companies’ advertising budgets, but are also a controversial subject in many business relations, their correct design is of particular importance.

Keywords

Cooperative advertising Fuzzy set theory Game theory Pricing SCM Supply chain management

Authors and affiliations

  • Gerhard Aust
    • 1
  1. 1.Chair for Industrial ManagementTU DresdenDresdenGermany

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-319-11626-6
  • Copyright Information Springer International Publishing Switzerland 2015
  • Publisher Name Springer, Cham
  • eBook Packages Business and Economics
  • Print ISBN 978-3-319-11625-9
  • Online ISBN 978-3-319-11626-6
  • Series Print ISSN 1431-1941
  • Series Online ISSN 2197-716X
  • About this book
Industry Sectors
Pharma
Automotive
Chemical Manufacturing
Biotechnology
Electronics
Consumer Packaged Goods
Aerospace
Oil, Gas & Geosciences
Engineering