Advertising and quality improving strategies in a supply chain when facing potential crises

In this paper, we consider a supply chain that faces a potential brand crisis, with one manufacturer deciding quality improvement and global advertising levels, and one retailer determining local advertising effort. The goodwill model proposed by Nerlove and Arrow (1962) is adopted here under the as...

Descripción completa

Detalles Bibliográficos
Autores: Lu, Lijue, Navas, Jorge
Tipo de recurso: artículo
Estado:Versión aceptada para publicación
Fecha de publicación:2021
País:España
Institución:Universidad de Barcelona
Repositorio:Dipòsit Digital de la UB
OAI Identifier:oai:diposit.ub.edu:2445/182636
Acceso en línea:https://hdl.handle.net/2445/182636
Access Level:acceso abierto
Palabra clave:Publicitat
Logística industrial
Control de qualitat
Màrqueting
Càlcul diferencial
Advertising
Business logistics
Quality control
Marketing
Differential calculus
Descripción
Sumario:In this paper, we consider a supply chain that faces a potential brand crisis, with one manufacturer deciding quality improvement and global advertising levels, and one retailer determining local advertising effort. The goodwill model proposed by Nerlove and Arrow (1962) is adopted here under the assumption that when the crisis happens, the companies suffer a sharp decrease in the goodwill. We characterize the feedback Nash equilibrium, and then we compare the corresponding quality and advertising strategies and outcomes with those of the case where the potential crises are absent, and where the companies do not invest in quality.(...)