Product bundling and advertising strategy for a duopoly supply chain: A power-balance perspective

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dc.contributor.authorJena, Sarat Kumar
dc.contributor.authorGhadge, Abhijeet
dc.date.accessioned2020-12-17T16:35:39Z
dc.date.available2020-12-17T16:35:39Z
dc.date.issued2020-12-09
dc.description.abstractThe paper studies product bundling in a duopoly supply chain network under the influence of different power-balance structures, bundling decisions and advertising efforts on total supply chain profit. Mathematical models comprising two manufacturers and a single retailer are developed to capture the impact of bundling policy and advertisement strategy under three power-balance structures, namely Manufacturer Stackelberg, Retailer Stackelberg and Vertical Nash. Following game theory models and numerical examples, the study found that the total profit of the supply chain is undifferentiated under the manufacturer Stackelberg and Vertical Nash case in the manufacturer bundling and retailer bundling strategies. However, total supply chain profit under manufacturer bundling strongly dominates under retailer bundling in Retailer Stackelberg and Vertical Nash, and remains valid under multiple settings of market size, price elasticity and advertising elasticity. It is also found that manufacturer bundling is significantly affected by advertising effort compared to retailer bundling. The study contributes to the literature interfacing supply chain and marketing by studying bundling policy and advertising strategy simultaneously for homogenous products, under various power-balance structures and price competitionen_UK
dc.identifier.citationJena SK, Ghadge A. (2020) Product bundling and advertising strategy for a duopoly supply chain: A power-balance perspective. Annals of Operations Research, 2020en_UK
dc.identifier.issn0254-5330
dc.identifier.urihttps://doi.org/10.1007/s10479-020-03861-9
dc.identifier.urihttp://dspace.lib.cranfield.ac.uk/handle/1826/16096
dc.language.isoenen_UK
dc.publisherSpringer Verlagen_UK
dc.rightsAttribution 4.0 International*
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/*
dc.subjectGame theoryen_UK
dc.subjectPricingen_UK
dc.subjectSupply chainen_UK
dc.subjectAdvertisingen_UK
dc.subjectCompetitionen_UK
dc.subjectBundlingen_UK
dc.titleProduct bundling and advertising strategy for a duopoly supply chain: A power-balance perspectiveen_UK
dc.typeArticleen_UK

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