The Impact Of Information Sharing On Supply Chain Cooperating Advertising Strategy

Abstract

We consider a distribution network between a manufacturer and a retailer in which the manufacturer establishes an online channel and gives the retailer financial support so that the retailers may execute a regional advertising campaign. Additionally, each producer and distributors have their own data of the market's demand. We thus consider the importance of manufacturer collaborative advertising and its critical impact on the exchange of information between manufacturers and distributors. Our findings demonstrate that in a setting of demand fluctuation, manufacturer collaborate advertising significantly effect to dual-channel performance. Communication campaigns can help both manufacturers and retailers increase their expected profitability. The manufacturer's joint advertising, on the other hand, encourages the retailer to misstate its information, while the manufacturer has an incentive to diminish its predictio. In order to minimize misinformation and obtain optimized results, we inspire supply chain players should use an advertising company in order to check the information supplied and assist in optimizing the advertising spend.