Joint decision on pricing and advertising for competing retailers under emergency purchasing

Bin Liu, Xindi Ma and Rong Zhang

Economic Modelling, 2014, vol. 39, issue C, 257-264

Abstract: This paper investigates an inventory decision problem under the pricing and advertising dependent stochastic demand, and considers a joint decision on pricing and advertising for competing retailers who operate short-life-cycle products under emergency purchasing. The results indicate that the retailer always prefers to advertise whether under a single or dual channel system. However, both the optimal prices and stocks increase, whereas customer welfare decreases.

Keywords: Competing retailers; Emergency purchasing; Joint decision; Advertising decision; Pricing decision (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:39:y:2014:i:c:p:257-264

DOI: 10.1016/j.econmod.2014.03.006

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