Study of Customer Behavior Sensitive Marketing Strategy for Retailer

Abstract

Previous studies about supply chain decision mechanism are based on the fixed parameters demand distribution function. But in practice the demand function is affected by the decision variables of marketing strategy. So we focus on this practical problem and build the demand distribution function including pricing, advertising and consumer characters. We add this demand distribution function into supply chain and design the joint decision model based on this demand distribution function. We calculate the equilibrium solution through maximizing the expected profit. Finally we verify our model using practical data and numerical study.