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MIS Professor Publishes Article in Decision Support Systems
For release: December 14, 2012
Dr. Ling Xue, Assistant Professor in Management Information Systems, co-authored an
article in the December 2012 issue of Decision Support Systems journal that presented the impact of consumer learning on the firms' marketing efforts
and revenue sharing strategies in a supply chain that sold an innovative product to
consumers over multiple periods. Both the supplier and the retailer exerted marketing
efforts to influence consumers' beliefs about the product and improved the product
demand. Because the supplier and the retailer were independent entities with self-interested
objectives, double moral hazard existed in the supply chain. Dr. Xue found that the
supplier and retailer exerted more marketing efforts in the presence of consumer learning
but the marketing efforts decreased as consumers learned more about the product. He
also examined the revenue-sharing strategies and found that suppliers shared more
revenue with the retailer when they cooperated for a longer time horizon. The total
profit of the supply chain was higher when there was information asymmetry between
the supplier and retailer. This finding suggests that information sharing will be
beneficial in order to improve supply chain coordination.
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