Study on different strategies of sales promotion considering negative spillover effect in dual-channel

Abstract

The influence of the negative spillover effect on the different strategies of sales promotion was studied by game theory in dual-channel under Internet environment. The equilibrium results of uniform strategy and non-uniform strategy were analyzed and compared with the integrated decision mode according to the difference of strategies. Combined with the numerical example, the analytical results show that: The wholesale price of the manufacturer was increasing with the negative spillover effect coefficient under the uniform strategy; The proportion of the revenue sharing was decreasing under the inconsistent strategy; The profit and the sales promotion effort of both parties and the profit of the whole supply chain were decreasing under different strategies; The non-uniform strategy was superior to the consistent strategy for the manufacturer and the whole supply chain; The uniform strategy was superior to the non-uniform strategy for the retailer.