Research on Collaborative Management Strategies of Closed-Loop Supply Chain under the Influence of Big-Data Marketing and Reference Price Effect

Deqing Ma and Jinsong Hu
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Deqing Ma: School of Business, Qingdao University, Qingdao 266071, China
Jinsong Hu: School of Business, Qingdao University, Qingdao 266071, China

Sustainability, 2020, vol. 12, issue 4, 1-23

Abstract: This paper integrates the Internet service platform with big-data marketing into the dynamic closed-loop supply chain system as an independent game subject. Considering the reference price effect of consumers, this work constructs differential games among manufacturer, retailer and Internet service platform under three business models of independent, collaborative production and collaborative marketing. Using Bellman’s continuous dynamic programming theory, this work obtains the optimal feedback strategies of price and big-data marketing effort, brand goodwill, return rate of used products and corporate profits under the three business models. Comparing the three scenarios and analyzing the sensitivity of key exogenous parameters, it can be found that the involvement of Internet service platform has a crucial impact on the sustainable profitability of supply chain enterprises. Considering the reference price effect of consumers, enterprises should adopt different strategic alliances in different periods, which can also gain new development momentum in the context of data-driven marketing, achieve the improvement of the triple-bottom line of closed-loop supply chain and even reach a win-win situation for supply chain enterprises.

Keywords: big-data marketing; reference price effect; closed-loop supply chain; differential game (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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