Cooperative Public Service Advertising Strategies for a Supply Chain System

Yi He; Qinglong Gou; Liang Liang; Zhimin Huang; Rakesh Gupta

doi:10.1108/S0276-8976(2012)0000015008

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Applications of Management Science

ISSN: 0276-8976
Series editor(s): Professor Kenneth D. Lawrence

Subject Area: Management Science/Management Studies

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Cooperative Public Service Advertising Strategies for a Supply Chain System

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Title:	Cooperative Public Service Advertising Strategies for a Supply Chain System
Author(s):	Yi He, Qinglong Gou, Liang Liang, Zhimin Huang, Rakesh Gupta
Volume:	15 Editor(s): Kenneth D. Lawrence, Gary Kleinman ISBN: 978-1-78052-100-8 eISBN: 978-1-78052-101-5
Citation:	Yi He, Qinglong Gou, Liang Liang, Zhimin Huang, Rakesh Gupta (2012), Cooperative Public Service Advertising Strategies for a Supply Chain System, in Kenneth D. Lawrence, Gary Kleinman (ed.) Applications of Management Science (Applications of Management Science, Volume 15), Emerald Group Publishing Limited, pp.89-107
DOI:	10.1108/S0276-8976(2012)0000015008 (Permanent URL)
Publisher:	Emerald Group Publishing Limited
Article type:	Chapter Item
Abstract:	In today's world, all firms’ corporate social responsibility (CSR) actions are coming under increasing public scrutiny. This is especially true for large companies whose decisions can and do have impact on society. Public service advertisements (PSAs), a mass-media approach, are advertisements which inform audiences of a firm's CSR actions and enhance its public image. In this chapter, we focus on a supply chain system consisting of two firms and their coordination strategy for public service advertising. To describe the synergistic effect between a PSA and a normal commercial advertisement, a modified Nerlove–Arrow model is employed in this chapter. Using differential game theory, we calculate and compare the optimal advertising levels for each stage of the supply chain system under two different decision scenarios, i.e., (i) the two firms make decisions independently and (ii) the two firms make decisions as an integral system. A coordination mechanism on the public service advertising between the two firms has also been proposed for the supply chain system and has been proved effective.