Studying the Effect of Noise on Pricing and Marketing Decisions of New Products under Co-op Advertising Strategy in Supply Chains: Game Theoretical Approaches

The success of launching new products is the main challenge companies since it one key factors competition. Thus, in today’s high rival markets depends on presentation with options, which must be compatible customers’ desires. This research aims to analyze psychological effect noise a product total profit chain and optimal pricing marketing decisions chain’s members. Additionally, cooperative (co-op) advertising strategy as coordination mechanism considered among partners such that helps them obtain their target markets. Commonly, under co-op advertising, manufacturer pays percentage retailer’s costs. In this chain, retailer agree share Afterwards, four different relations between are studied analyzed including three non-cooperative games symmetrical distribution market power asymmetrical it. So, game models closed-form solutions illustrated numerical example. It was found affects retailer, well supply by influencing partners’ policies. other word, increasing indicates globally locally advertise more, respectively. turn, profits increase, although also Finally, complete sensitivity analysis conducted reported.