Located in the subtropics, Taiwan is one of the major epidemic areas for dengue fever, with severe epidemics occurring in recent years. Dengue fever has become a serious health threat to Taiwan’s residents and a potentially serious economic cost to society. This study recruited 730 random participants and adopted the contingent valuation method to understand the factors influencing the populace’s willingness to pay (WTP) to reduce the health risk of dengue fever. The results show that high-income women with children and people with higher preventive perceptions and behavior are more willing to invest in preventive measures against dengue fever. In the evaluation of WTP for preventive treatment for health risks, each person was willing to pay on average NT$751 annually to lower psychological health risks, NT$793 annually to lower the risk of illness, and NT$1086 annually to lower the risk of death.
This research develops two models to consider retailer sales promotion and manufacturer trade promotion under demand uncertainty. The objective of the first model is to determine the retailer’s optimal promotional effort and order quantity while maximizing the retailer’s profit under exogenous trade promotion. The second model extends the first to consider the manufacturer’s endogenous trade promotion decisions. For these models, three different trade promotion policies (off-invoice, scan-back, unsold-discount) have been compared to identify the policy that can increase the manufacturer’s and the retailer’s profits. For the model with exogenous trade promotion, the retailer’s promotional effort level, order quantity, and profit are highest under the off-invoice trade promotion policy. With respect to the manufacturer’s endogenous trade promotion decisions, the retailer’s promotional effort level, order quantity, and profit, and the manufacturer’s profit are higher under the off-invoice policy than under the scan-backs policy. When comparing the three different trade promotion policies, we also find that the wholesale price is a key factor that influences a manufacturer’s profit. Our research sheds light on the importance of trade promotion policy in supply chain management.
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