Operational Decisions For Cross-market Supply Chains In Joint Promotion

The cooperation of cross-market firms that belong to different industries,markets and fields,conducting joint promotion and other means to promote their products and brands together is widespread.For instance,cooperation between the firms FOTILE and Power Dekor that sell fume exhausters and floor tiles conducting "National kitchen and National flooring day" activities,JD.com cooperates with i QIYI to launch the "JD plus i QIYI membership" etc.However,the operational decisions of cross-market firms have changed significantly,as well as the feasibility and profitability of different forms of joint promotion have not yet to be verified.It is no longer sufficient for the scientific decisionmaking of cross-market firms.This study mainly focuses on the cross-market retailers,manufacturers,online platforms and supply chains in joint promotion,considering the impact of the specific implementation forms of joint promotion,centralized or decentralized supply chain channel structures,mutual attraction of cross-market firms on the operational decisions of cross-market supply chains.By constructing the mathematical planning models that considering different characteristics and practical problems,this study explores the optimal decisions on pricing,promotional effort,service level,and green investment etc of crossmarket firms in joint promotion.This study compares and analyzes the optimal decisions and profits of joint promotion under the following different characteristics and realities:(1)The coupon rebate or non-coupon rebate strategies for cross-market retailers;(2)The individual promotion or joint promotion strategies for cross-market producers;(3)The joint membership or individual membership strategies for cross-market online platforms;(4)In addition to the joint promotion of cross-market online platforms,the strategies of online platform to collaborate or compete with the competitor;(5)The decentralized or centralized decision making of cross-market supply chains.This study concludes the management advice on the implementation of joint promotion for cross-market firms to promote the sustainable development of supply chain.The main research content and results of this study are as follows:(1)This study constructs a game theoretic model to optimize the operational decisions that the shopping mall may participate in the joint promotion of cross-market retailers by issuing coupons and achieve mutual traffic attraction.To explore the motivation of cross-market retailers to pursue joint promotion as well as the impact of joint promotion on the optimal decisions of the cross-market retailers and shopping mall.This study finds that the retailer in the source market has a higher price and will pay more for joint promotion,but has a smaller demand and a lower profit than the retailer in the target market when the shopping mall offers coupons to consumers.Furthermore,when the effect of the coupon is relatively large,both retailers prefer the coupon as they can have higher prices,demands and profits.Conversely,both retailers would reduce investments in joint promotion as the coupon may result in the lower profits.(2)This study establishes a decision-making model for cross-market producers in joint promotion considering the cost of 3D printing.This study explores how the factors such as the unit production cost of 3D printing product,consumer elicitation,the effort of individual promotion and joint promotion on the optimal strategies and performance of cross-market firms.This study finds that the firms' willingness to contribute more for joint promotion than for individual promotion primarily depends on the difference of the impact of promotional activities on demand.When the unit production cost of 3D printing is relatively low,the firms can earn higher profits as the increasing impact of joint promotion on demand.On the contrary,the production cost of product and the expense of promotional activities will reduce the profit of cross-market firms.(3)This study explores the pricing and membership management issues of crossmarket online platforms in joint promotion.By comparing the joint and individual membership strategies to demonstrate the price as the signal of service level.This study finds that when the impact of individual promotional activities on demand is relatively small,it is more beneficial for increasing the platforms' profits by conducting joint promotion.Consumers can obtain the service level of online platform through the retail price of products effectively.In addition,the higher the basic market demands for the online platforms are,the more advantage they will gain through cooperation and,consequently,they are less willing to invest more in joint promotion.(4)This study constructs a decision-making model for cross-market online platforms in joint promotion considering the competition of substitute.Then,this study investigates the impact of joint promotion on an online platform's optimal decision-making,and to determine the optimal form of cooperation for the online platform when it cooperates with a cross-market online platform alone,and when it cooperates with a competitor along with a cross-market online platform.When the online platform cooperates with a cross-market platform,if the effect of individual promotion on demand is relatively large,the online platform will increase the investment in joint promotion to attract more consumers.Conversely,it is possible for the online platform to decrease the investment in joint promotion to deal with the competition posed by substitutes.In addition,this study finds that whether the online platform chooses joint promotion mainly depends on the impacts of joint promotion,individual promotion,and price on demand.(5)This study constructs a decision-making model for cross-market online platforms in joint promotion considering the different channel structures,i.e.,decentralized and centralized.Then,this study compares the optimal decisions of manufacturers,retailers,and supply chains to analyze when it is more advantageous to implement joint promotion.This study finds that when the impact of joint promotion on demand is relatively large,the retailer can further attract more consumers by reducing price comparing with the centralized supply chain.On the contrary,raising the retail price to offset the cost is a better choice for the firm.Due to the double marginal effect,the centralized supply chain is willing to pay more for joint promotion and earn higher profit.This study mainly contributes to the literature in four ways.(1)This study reveals the mechanism of cross-market cooperation to promote sustainable development of supply chain in joint promotion.Different characteristics and real-world problems are considered for modeling and analysis,enriching the research related to joint promotion as well as cross-market cooperation.(2)This study constructs a decision-making model for cross-market retailers in joint promotion with the possible involvement of the shopping mall by issuing coupons.This study improves the limitations of existing studies for manufacturers and retailers through joint promotion for supply chain coordination.(3)This study establishes a decision-making model for cross-market online platforms in joint promotion considering the service level to demonstrate the role of price as the signal of service level.Then,considering the competitive threat of substitutes,this study provides a theoretical reference for the operational decisions of cross-market online platform in joint promotion.(4)This study establishes a decision-making model for cross-market producers in joint promotion considering the cost of 3D printing and consumer diversion.To analyze the impact of different channel structures,i.e.,decentralized and centralized on the operational decisions of cross-market supply chains.This study enriches the operational decisions theory of the cross-market supply chains in joint promotion from the sustainable perspective.