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Many retailers and manufacturers issue “free” gift cards to consumers who purchase qualifying products. These gift cards are paid for by the retailer or manufacturer and redeemed on certain products at the retailer. We develop a decentralized two‐product supply chain in which the retailer is a Stackelberg leader. We analyze three models: no gift cards, manufacturer‐sponsored gift cards, and retailer‐sponsored...
Due to fierce market competition, businesses take a variety ways of promotions. Among them, gift card is widely used in major businesses. In this paper, we studied the pricing strategy of retailer-sponsored gift card. We develop a model depending on the wholesale price is fixed and the gift card redemption is increasing in gift card value. We explore the optimal retail price and the optimal gift card...
This paper researched the game between the supplier and the retailer when the retailer invests to the supplier with analysis frame work of principal-agent theory under asymmetric information, and compared the decision result under asymmetric information with symmetric information. At the same time, this paper analyzed different parameter, such as the ability level coefficient of the supplier, the...
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