Market targeting and information sharing with social influences in a luxury supply chain

Qiao Zhang, Jing Chen and Georges Zaccour

Transportation Research Part E: Logistics and Transportation Review, 2020, vol. 133, issue C

Abstract: We consider a luxury supply chain in which one Stackelberg manufacturer sells products to consumers through a retailer. Driven by exclusivity or conformity, consumers are classified as either snobs or conformists, with uncertain preferences about the product. The manufacturer can obtain a private signal on this preference, while the retailer cannot. Results show that the manufacturer makes different market-targeting schedules in response to different signals. Interestingly, the manufacturer may benefit from either a no-information, a private-information, or an information-sharing policy, depending on its market-targeting strategy. Not sharing the manufacturer’s information, however, is preferred by the retailer.

Keywords: Social influences; Market-targeting strategy; Luxury supply chain; Information sharing (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (16)

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DOI: 10.1016/j.tre.2019.101822

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