Game theory modelling of retail marketing discount strategies

Taylor, Mark; Kwasnica, Vince; Reilly, Denis; Ravindran, Somasundaram

doi:10.1108/mip-11-2018-0489

Cited by 6 publications

(7 citation statements)

References 46 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In game theory terms of Nash equilibrium, the concept of a saddle point is the most appropriate combination of strategies for players so as not to benefit the general well-being of players (Taylor et al, 2019). This simplification, however, does not take branding or other marketing issues into consideration in game theory terms, and this is when the A company wins over a set of consumers, or wins over competitors of company B.…”

Section: Research Resultsmentioning

confidence: 99%

“…Adoption of a strategy as an optimal strategy does not imply the mere application of that specific strategy; it is about focusing on that proposed strategy to maximize the payoff, gain more profits and find optimal solutions or stable outcomes. The proposed model of the present study can provide a more formalized mechanism for examining how competitors and consumers may respond to the different marketing-mix strategies in a practical manner that can be applied in professional practice (Taylor et al, 2019). Game theory has been used to analyze the actions and outcomes of consumers in terms of the likelihood of being willing to pay for a given product when different temporary options are available.…”

Section: Discussionmentioning

confidence: 99%

“…The long-term market competition evolution of two-channel retail pharmacies under the network external environment is studied to obtain higher profits; two-channel retail pharmacies prefer to choose profit maximization marketing strategy or market share maximization marketing strategy (Li and Huang, 2019). The game theory combined with Monte Carlo simulation modeling is used to analyze different retail marketing strategies, in particular, using payoff matrices for modeling the likely outcomes from different retail marketing strategies (Taylor et al, 2019). The relative impact of asset disposal and share buyback (ADSB) strategies on the performance and stability of international hotel chains was studied during a period of economic recovery (Bourke et al, 2020).…”

Section: Game Theory and Marketingmentioning

confidence: 99%

“…A game theory approach to analyzing marketing-mix strategies and objectives in a competitive setting is a reasonable supplement to the traditional methods of managing marketing. It may be applied to handle the problem of competition in a more satisfactory manner and improve the quality of conscious and goal-oriented decision processes (Shubik, 1972;Di Benedetto, 1986;Myerson, 1992;Farris et al, 2010;Taylor et al, 2019) for scholars, top executives and managers who have difficulty in deciding which strategies to employ for a particular decision among all the possible ones (Lehmann and Reibstein, 2006). Di Benedetto (1986) pointed out that the choices about marketing mix taken by middle management coincide with the ways of player's action in a game; player's preferences correspond to the product's objective decided by top management; relations and results depend on competitors' choices in the market; and the best information optimizes the decision process.…”

Section: Managerial Implicationsmentioning

confidence: 99%

See 3 more Smart Citations

A game theory approach to selecting marketing-mix strategies

Abedian

Amindoust

Maddahi

et al. 2021

JAMR

View full text Add to dashboard Cite

PurposeAdopting efficient marketing strategies is a challenging task in a competitive market place involving complex marketing planning, techniques and mechanisms to identify the best course of action under these circumstances and finding optimal solutions or stable outcomes. Decisions and strategies of competitors in the market influence the selection of the appropriate marketing strategy. The main purpose of this paper is to develop a mathematical methodology based on the game theory approach for planning optimal marketing-mix strategies in dynamic competitive markets, taking into account strategic foresight and interaction effects.Design/methodology/approachThe game theory approach, as a decision-making tool in conflict situations, is suggested for planning and adopting optimal marketing strategy. The main intellectual attraction of the game theory is essentially a question of how to act in gaming situations against highly rational opponents A kind of static, finite and non-cooperative game analytics approach has been developed for this issue, and the proposed model has been implemented to design optimal marketing strategies for two top brands of the automotive parts market in Iran.FindingsThe findings of this study show that the optimal marketing-mix strategy for brand A is pricing and for brand B is the product strategy.Practical implicationsGame theory and the Nash equilibrium model can provide a practical approach to find and adopt the right strategy, know competitors' movements and strategies and get more profit.Originality/valueThe integration of the game theory approach into the marketing mix framework has been adopted as a generalized model for marketing strategy planning and analysis as well as to resolve some shortcomings of the marketing mix framework. The Nash equilibrium model has been used to analyze the results. The incorporation of game theory into marketing models has the potential to enrich the scope of marketing modeling.

show abstract

Section: Research Resultsmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Section: Game Theory and Marketingmentioning

confidence: 99%

Section: Managerial Implicationsmentioning

confidence: 99%

See 2 more Smart Citations

A game theory approach to selecting marketing-mix strategies

Abedian

Amindoust

Maddahi

et al. 2021

JAMR

View full text Add to dashboard Cite

show abstract

“…Game theory is a mathematical study of the decision-making process. It simulates the behavior of individuals in specific situations to test the relationship between decisions and outcomes [34]. Furthermore, game theory is widely used to study economic, social, political, and biological phenomena [35].…”

Section: Literature Reviewmentioning

confidence: 99%

Tripartite Dynamic Game among Government, Bike-Sharing Enterprises, and Consumers under the Influence of Seasons and Quota

Cui

Xiao

2021

Sustainability

View full text Add to dashboard Cite

After the cast ban on bike-sharing was lifted, bike-sharing entered the quota period. This notion means that the management of bike-sharing began to change from the unified to the diversified government governance, including all sectors of society. This work creates a dynamic game model based on the tripartite interest relationship among the government, bike-sharing enterprises, and consumers, and introduces the government quota policy and seasonal characteristics of bike-sharing into the game model. This model explores the multi-stage dynamic game process among the government, bike-sharing enterprises, and consumers. We draw the following conclusions. The government’s quota policy was effective during peak demand for bike-sharing, but not before the off-peak season. Through the case studies, we verify the feasibility of the government to relax the regulation appropriately in the peak season. We also changed the punishment and reward intensity of bike-sharing enterprises to consumers in the case studies and analyzed the influence of regulation intensity of bike-sharing enterprises on consumer behaviors. The final suggestion is that the government should appropriately relax regulation during peak demand season to reduce costs and strengthen regulation before the off-season of bike-sharing demand. Bike-sharing enterprises should maintain a high level of regulation on consumers, and a low level of regulation has no constraint on consumer behaviors.

show abstract