Research On Supply Chain Advertising And Pricing Model Under Risk Aversion

With the rapid development of science and technology,the heterogeneity between products is decreasing,and the competition among enterprises will no longer focus solely on price competition.In addition,facing the changeable and fierce market environment,enterprises have to invest in advertising to stimulate the growth of demand.Therefore,with the improvement of the role and status of advertising,the competitive focus of enterprises has gradually turned to advertising investment and product pricing.At the same time,due to the factors that affecting market demand is increasing,the complexity and volatility of the internal and external market environment of the enterprise have increased,which makes the risk of the investment market larger than before.Enterprises may hold a certain risk attitude when making decisions,that is,risk aversion.Therefore,how to price products and how much advertising can be put into the market to achieve higher profits has become a problem that enterprises need to solve.Based on the above background and considering the risk aversion attitude of supply chain members,this paper uses the mean-variance method to study the advertising and pricing problems of traditional two-echelon supply chain and closed-loop supply chain enterprises with the objective of maximizing utility function,and obtains relevant conclusions.Firstly,this paper sorted out and analyzed the existing domestic and foreign references about supply chain advertising and pricing joint decision-making,supply chain advertising investment considering risk aversion and pricing.On this basis,the advertising and pricing models of traditional two-echelon supply chain under centralized decision-making and decentralized decision-making mode are established,and the optimal advertising investment and pricing decisions of manufacturers and retailers under risk aversion are solved.After that,the impact of the risk aversion coefficient on the optimal decision of manufacturers and retailers is analyzed,and then the impact of risk aversion coefficient on the optimal decision and optimal utility of supply chain members is demonstrated and compared through numerical simulation.The results show that when the retailer is in a leadership position,the optimal retail price of the supply chain and the national advertising investment will be higher,but the retailer's local advertising investment is lower.When the manufacturer is in the leading position,its own optimal utility is better than the result when the retailer is in the leading position.Then,considering that third-party recyclers and manufacturers are responsible for the recycling of waste products,the advertising and pricing models of closed-loop supply chains are also established to solve the optimal decision under the three models based on the behavior of supply chain members with risk aversion,and the influence of risk aversion coefficient on optimal decision is analyzed.After that,the numerical examples are used to further explore the changes of enterprise decision-making under different models.The results show that whether the manufacturer-led or retailer-led Stackelberg model,the risk aversion coefficient for manufacturers and retailers has the same impact on optimal retail prices,wholesale prices,advertising investment,recycling rates,and the utility of retailers and third-party recyclers.In addition,it is found that when the manufacturer and retailer have the same risk aversion attitude,the risk aversion coefficient of third-party recyclers has little influence on the optimal decision-making and optimal utility of supply chain members,and will reduce the optimal utility of supply chain members.