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Market targeting and information sharing with social influences in a luxury supply chain

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  • Zhang, Qiao
  • Chen, Jing
  • Zaccour, Georges
Abstract
We consider a luxury supply chain in which one Stackelberg manufacturer sells products to consumers through a retailer. Driven by exclusivity or conformity, consumers are classified as either snobs or conformists, with uncertain preferences about the product. The manufacturer can obtain a private signal on this preference, while the retailer cannot. Results show that the manufacturer makes different market-targeting schedules in response to different signals. Interestingly, the manufacturer may benefit from either a no-information, a private-information, or an information-sharing policy, depending on its market-targeting strategy. Not sharing the manufacturer’s information, however, is preferred by the retailer.

Suggested Citation

  • Zhang, Qiao & Chen, Jing & Zaccour, Georges, 2020. "Market targeting and information sharing with social influences in a luxury supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 133(C).
    • Handle: RePEc:eee:transe:v:133:y:2020:i:c:s1366554519311457
    DOI: 10.1016/j.tre.2019.101822
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    Cited by:

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