Store brands play an increasingly important role in retailing business, leading more and more retailers to introduce store brands. Abundant research focuses on competition between store brands and national brands and counterstrategies that national-brand manufacturers can take to counter store-brand introduction. A little research studies the store-brand production issue, however, all under single-retailer scenarios. To approach the real world, we employ game theory to model interaction between a national-brand manufacturer and multiple locally monopolist retailers, one of whom has capability and motivation to introduce a store brand. Five Stackelberg games are build and solved to investigate: how the presence of the non-store-brand retailers affects the store-brand retailer’s decision on and profitability in the store-brand introduction; how the store-brand retailer should arrange store-brand production; whether there is a win–win situation where both the store-brand retailer and the national-brand manufacturerare better off with the latter producing the store brand. Accordingly, our study offers a novel rationale for why so many, especially leading, national-brand manufacturers are involved in the store-brand production. Some useful managerial suggestions are proposed on the store-brand introduction and production arrangement.
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DOI : 10.1051/ro/2019035
Mots-clés : Game theory, private label, production outsourcing, supply chain management
@article{RO_2020__54_3_827_0,
author = {Cheng, Rong and Ma, Weimin and Ke, Hua},
title = {Store-brand introduction and production arrangement in the presence of multiple retailers},
journal = {RAIRO - Operations Research - Recherche Op\'erationnelle},
pages = {827--843},
publisher = {EDP-Sciences},
volume = {54},
number = {3},
year = {2020},
doi = {10.1051/ro/2019035},
mrnumber = {4078187},
zbl = {1439.90043},
language = {en},
url = {http://www.numdam.org/articles/10.1051/ro/2019035/}
}
TY - JOUR AU - Cheng, Rong AU - Ma, Weimin AU - Ke, Hua TI - Store-brand introduction and production arrangement in the presence of multiple retailers JO - RAIRO - Operations Research - Recherche Opérationnelle PY - 2020 SP - 827 EP - 843 VL - 54 IS - 3 PB - EDP-Sciences UR - http://www.numdam.org/articles/10.1051/ro/2019035/ DO - 10.1051/ro/2019035 LA - en ID - RO_2020__54_3_827_0 ER -
%0 Journal Article %A Cheng, Rong %A Ma, Weimin %A Ke, Hua %T Store-brand introduction and production arrangement in the presence of multiple retailers %J RAIRO - Operations Research - Recherche Opérationnelle %D 2020 %P 827-843 %V 54 %N 3 %I EDP-Sciences %U http://www.numdam.org/articles/10.1051/ro/2019035/ %R 10.1051/ro/2019035 %G en %F RO_2020__54_3_827_0
Cheng, Rong; Ma, Weimin; Ke, Hua. Store-brand introduction and production arrangement in the presence of multiple retailers. RAIRO - Operations Research - Recherche Opérationnelle, Tome 54 (2020) no. 3, pp. 827-843. doi : 10.1051/ro/2019035. http://www.numdam.org/articles/10.1051/ro/2019035/
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