Dynamic marketing model: optimization of retailer’s role

Dynamic marketing model: optimization of retailer’s role Full article

Conference

9th International Conference on Optimization and Applications
01-05 Oct 2018 , Petrovac

Journal

Communications in Computer and Information Science
ISSN: 1865-0929

Output data

Year: 2019, Volume: 974, Pages: 399-414 Pages count : 16 DOI: 10.1007/978-3-030-10934-9_28

Tags

Pass-through; Pricing; Retailer; Sale motivation

Authors

Bykadorov I. ^1,2,3

Affiliations

1	Sobolev Institute of Mathematics, 4 Koptyug Avenue, Novosibirsk, 630090, Russian Federation
2	Novosibirsk State University, 2 Pirogova St., Novosibirsk, 630090, Russian Federation
3	Novosibirsk State University of Economics and Management, Kamenskaja street 56, Novosibirsk, 630099, Russian Federation

We study a vertical control distribution channel in which a manufacturer sells a single kind of good to a retailer. The state variables are the cumulative sales and the retailer’s motivation. The manufacturer chooses wholesale price discount while retailer chooses pass-through. We assume that the wholesale price discount increases the retailer’s sale motivation thus improving sales. In contrast to previous settings, we focus on the maximization of retailer’s profit with respect to pass-through. The arising problem is linear with respect to both cumulative sales and the retailer’s motivation, while it is quadratic with respect to wholesale price discount and pass-through. We obtain a complete description of optimal strategies and optimal trajectories. In particular, we demonstrate that the number of switches for change in the type of optimal policy is no more than one. © Springer Nature Switzerland AG 2019.

Bykadorov I.
Dynamic marketing model: optimization of retailer’s role
Communications in Computer and Information Science. 2019. V.974. P.399-414. DOI: 10.1007/978-3-030-10934-9_28 Scopus OpenAlex

Scopus:	2-s2.0-85061211487
OpenAlex:	W2910984422

DB	Citing
Scopus	3
OpenAlex	3