The impact of a store brand introduction in a supply chain with competing manufacturers: The strategic role of pricing and advertising decision timing

This research studies the impact of a store brand’s introduction in a supply chain where a retailer offers the national brands of competing manufacturers. The focus in this paper is to study such impact given different manufacturers’ decision timing choices with regards to how they set pricing and a...

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Autores: Karray, Salma, Martín Herrán, Guiomar
Tipo de recurso: artículo
Estado:Versión borrador
Fecha de publicación:2022
País:España
Institución:Universidad de Valladolid
Repositorio:UVaDOC. Repositorio Documental de la Universidad de Valladolid
OAI Identifier:oai:uvadoc.uva.es:10324/51367
Acceso en línea:https://doi.org/10.1016/j.ijpe.2021.108378
https://uvadoc.uva.es/handle/10324/51367
Access Level:acceso abierto
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spelling The impact of a store brand introduction in a supply chain with competing manufacturers: The strategic role of pricing and advertising decision timingKarray, SalmaMartín Herrán, GuiomarThis research studies the impact of a store brand’s introduction in a supply chain where a retailer offers the national brands of competing manufacturers. The focus in this paper is to study such impact given different manufacturers’ decision timing choices with regards to how they set pricing and advertising decisions. We develop a game-theoretic model that is based on consumer utility functions to represent competition between the national and store brands. We then solve six games to take into account different decision timing choices. In particular, we consider whether manufacturers decide of advertising before, after, or at the same time than pricing. Comparisons of equilibrium profits for each supply chain member before and after store brand entry under each decision timing scenario show that national brand manufacturers incur losses as a result of the retailer’s store brand when they keep their decision timing unchanged. Interestingly, however, the retailer may restrain from introducing the store brand especially if the national brand manufacturers set pricing decisions before advertising, as is the case with fixed pricing contracts, and if the level of competition between the national brands is sufficiently high. Further, manufacturers can strategically change their decision timing to either benefit from, prevent or restrict losses from the retailer’s store brand. These results provide new insights on how competitive interactions and contractual agreements in manufacturer-led supply chains can impact the success of store brands for retailers and mitigate or intensify their threat for national brands.Junta de Castilla y León (project VA169P20)Ministerio de Ciencia, innovación y Universidades (projects ECO2017-82227-P and PID2020-112509GB-10)Elsevier2022info:eu-repo/semantics/articleinfo:eu-repo/semantics/draftapplication/pdfhttps://doi.org/10.1016/j.ijpe.2021.108378https://uvadoc.uva.es/handle/10324/51367reponame:UVaDOC. Repositorio Documental de la Universidad de Valladolidinstname:Universidad de ValladolidEspañolhttps://www.sciencedirect.com/science/article/pii/S0925527321003546info:eu-repo/semantics/openAccessoai:uvadoc.uva.es:10324/513672026-06-13T12:44:47Z
dc.title.none.fl_str_mv The impact of a store brand introduction in a supply chain with competing manufacturers: The strategic role of pricing and advertising decision timing
title The impact of a store brand introduction in a supply chain with competing manufacturers: The strategic role of pricing and advertising decision timing
spellingShingle The impact of a store brand introduction in a supply chain with competing manufacturers: The strategic role of pricing and advertising decision timing
Karray, Salma
title_short The impact of a store brand introduction in a supply chain with competing manufacturers: The strategic role of pricing and advertising decision timing
title_full The impact of a store brand introduction in a supply chain with competing manufacturers: The strategic role of pricing and advertising decision timing
title_fullStr The impact of a store brand introduction in a supply chain with competing manufacturers: The strategic role of pricing and advertising decision timing
title_full_unstemmed The impact of a store brand introduction in a supply chain with competing manufacturers: The strategic role of pricing and advertising decision timing
title_sort The impact of a store brand introduction in a supply chain with competing manufacturers: The strategic role of pricing and advertising decision timing
dc.creator.none.fl_str_mv Karray, Salma
Martín Herrán, Guiomar
author Karray, Salma
author_facet Karray, Salma
Martín Herrán, Guiomar
author_role author
author2 Martín Herrán, Guiomar
author2_role author
description This research studies the impact of a store brand’s introduction in a supply chain where a retailer offers the national brands of competing manufacturers. The focus in this paper is to study such impact given different manufacturers’ decision timing choices with regards to how they set pricing and advertising decisions. We develop a game-theoretic model that is based on consumer utility functions to represent competition between the national and store brands. We then solve six games to take into account different decision timing choices. In particular, we consider whether manufacturers decide of advertising before, after, or at the same time than pricing. Comparisons of equilibrium profits for each supply chain member before and after store brand entry under each decision timing scenario show that national brand manufacturers incur losses as a result of the retailer’s store brand when they keep their decision timing unchanged. Interestingly, however, the retailer may restrain from introducing the store brand especially if the national brand manufacturers set pricing decisions before advertising, as is the case with fixed pricing contracts, and if the level of competition between the national brands is sufficiently high. Further, manufacturers can strategically change their decision timing to either benefit from, prevent or restrict losses from the retailer’s store brand. These results provide new insights on how competitive interactions and contractual agreements in manufacturer-led supply chains can impact the success of store brands for retailers and mitigate or intensify their threat for national brands.
publishDate 2022
dc.date.none.fl_str_mv 2022
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/draft
format article
status_str draft
dc.identifier.none.fl_str_mv https://doi.org/10.1016/j.ijpe.2021.108378
https://uvadoc.uva.es/handle/10324/51367
url https://doi.org/10.1016/j.ijpe.2021.108378
https://uvadoc.uva.es/handle/10324/51367
dc.language.none.fl_str_mv Español
language_invalid_str_mv Español
dc.relation.none.fl_str_mv https://www.sciencedirect.com/science/article/pii/S0925527321003546
dc.rights.none.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Elsevier
publisher.none.fl_str_mv Elsevier
dc.source.none.fl_str_mv reponame:UVaDOC. Repositorio Documental de la Universidad de Valladolid
instname:Universidad de Valladolid
instname_str Universidad de Valladolid
reponame_str UVaDOC. Repositorio Documental de la Universidad de Valladolid
collection UVaDOC. Repositorio Documental de la Universidad de Valladolid
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repository.mail.fl_str_mv
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