Deciding whether manufacturing firms share product links on owned social media considering fan effects

An optimization model is proposed to examine the choice of sharing or not sharing the product link for manufacturing firms with owned social media by considering the role of fan effects.The equilibrium marketing effort level and firm profit in both cases are compared.The results show that the firm chooses to share(not share)the product link when the social platform commission rate is low(high).Moreover,the likelihood of sharing the product link increases as the fan effect weakens and the perceived conversion cost strengthens.Interestingly,the marketing effort level increases with the product price,but firm profit does not always follow.Additionally,as the fan effect and fan count grow,so does the firm s profit.Furthermore,when the firm shares the product link,the level of marketing effort and firm profit decrease with the commission rate.Conversely,when the firm does not share the product link,those aforementioned factors increase as the perceived conversion cost declines.These results thus suggest that firms should enhance the influence of owned social media to attract more high-quality fans,and social platforms should optimize the product link functionality.

A RISK-AVERSE NEWSVENDOR MODEL WITH LIMITED CAPACITY AND OUTSOURCING UNDER THE CVAR CRITERION

For seasonal products, the retailers usually launch various marketing ettorts, llKe aaverusmg tmu promotion, to promote them in a selling season. While facing large demand from the customers, one should take the capacity constraint and outsotlrcing into consideration. Considering the shorten life cycles of most products, in this paper we adopt the traditional newsvendor model to investigate the optimal marketing effort along with optimal order quantity. We address the risk aversion issue and characterize the influence of the sellers＇ risk propensity with CVaR criterion, and we develop an effective algorithm to obtain the optimal strategy. The impact of sellers＇ risk propensity on the performance of the system is illustrated via numerical examples, The innovation of this paper is threefold. First, the optimal joint strategy of the marketing effort and order quantity is investigated and an efficient algorithm to find the optimal strategy is developed. Second, the capacity constraint option and an outsourcing strategy are studied jointly for excess products. Finally, the risk propensity of the seller and its influence are investigated by using the CVaR criterion, through which we obtain some new managerial insights.

MANUFACTURER'S UNIFORM PRICING AND CHANNEL CHOICE WITH A RETAIL PRICE MARKUP COMMITMENT STRATEGY

The paper studies channel choice decisions in a multi-channel supply chain under a strategy where there is an ex-ante commitment made on the retail price markup. The market demand is uncertain and dependent on the price and sales efforts. The results show that in any channel structure, when making order decisions the retailer only examines the price ratio and the fluctuation size of random demand, rather than the channel cost and the retailer＇s marketing efficiency. When the retail price rises, the manufacturer is willing to increase inventory quantity for direct sales, because the manufacturer＇s profit margin is higher in direct channel. The increase in demand fluctuation only affects the degree of channel preference but doesn＇t change the manufacturer＇s channel choice. No matter in which level the price ratio is, when the sales efficiency of retail channel is not high or the demand proportion of direct channel is low, the manufacturer and the retailer will be both apt to choose a dual-channel structure. Then adding a direct channel becomes a marketing strategy, rather than a competitor of the retail channel, and helps the supply chain win more market demand.