How channel promotions and brand promotions work on dual markets competition together based on a weakest online manufacturer: From a three-dimensional simulation analysis perspective

Abstract

Channel promotions contest against brand promotions in the Internet, which affects all of supply chain partners' decisions. The paper focuses on three partners' dynamic game in dual markets and finds out their optimal promotion competition decisions. By three-dimensional simulation analysis it concludes some clear laws of management decisions, such as the traditional retailer's living space in dual markets competition, and the strong manufacturer 1 could control its Internet brand promotion level to keep the weakest online manufacturer 2's revenue within bounds, etc. © 2012 Springer-Verlag.