Optimal Advertising Strategy for a Stackelberg Framework Under an Advertising-Driven Demand

Advertising-driven demand is very common in practice. This paper considers pricing and advertising strategies issues a two-echelon supply chain involving manufacturer retailer. According to who undertakes the expenditure, both retailer-advertising case manufacturer-advertising are analyzed under Stackelberg framework. The crucial factor that affects strategy optimal profit for each participant revealed. Furthermore, we compare profits of two participants different situations. It demonstrated retailer gain more than those case. In other words, has incentive advertise product sake maximizing its profit. Finally, numerical illustration presented examine change marginal demands promotion degrees.