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.
Highlights
Closed-loop supply chain (CLSC), as a branch of the supply chain (SC), integrates forward selling process in classical SC, backward activities as well as re-marketing and re-selling into a unique system [1,2,3]
Consider a three-stage closed-loop supply chain system consisting of one manufacturer M, one retailer R, and one Internet service platform I, in which M is responsible for recycling used products and remanufacturing activities, and determines the wholesale price w(t) of the product
The analysis shows that regardless of the business model, the profit of the enterprise and the supply chain are positively related to the residual value of the used products, and it is prominent in the collaborative marketing model
Summary
Closed-loop supply chain (CLSC), as a branch of the supply chain (SC), integrates forward selling process in classical SC, backward activities (e.g., product acquisition, reverse logistics, points of use and disposal, testing, sorting, refurbishing, recovery, recycling) as well as re-marketing and re-selling into a unique system [1,2,3]. Based on the related research in the above three fields, this paper considers the external reference price effect of consumers in the context of big-data marketing, and compares the optimal marketing strategies under the different synergistic differential game mode among manufacturer, retailer and Internet service platform. The main contributions of this paper are: 1) further enrich the research results of the dynamic CLSC and expand existing research in the influence of ERP in consumers’ shopping process; 2) incorporate Internet service platform as an independent game subject into the CLSC and use its big-data marketing as a new marketing method; 3) and further explore the optimal vertical cooperation between enterprises to achieve economic, environmental and social benefits of CLSC.
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