Does extended warranty depict competitive advantage to a retailer in a retail-e-tail channel supply chain
COMPUTERS & INDUSTRIAL ENGINEERING
Authors: Panda, Shibaji; Modak, Nikunja Mohan; Cardenas-Barron, Leopoldo Eduardo
Abstract
For a strong presence of online channel with superior policy traditional brick and mortar channel is losing its footprint rapidly. Under this situation does retail channel survive? To analyze this paper considers a retail-e-tail channel supply chain, where the retailer sells an extended warranty policy purely for its existence given the fierce price competition with the e-tail channel. It is realized that by selling a properly designed extended warranty policy the retailer generates a higher rate of profit margin than the manufacturer. Longer duration of extended warranty at a lower price attracts more customers to buy through the retail channel and hence enhances the retailer's profit margin. Two different coordination contract mechanisms, namely, all unit quantity discount along with franchise fee, and revenue sharing contracts are proposed to resolve channel conflict and asymmetric Nash bargaining product is used for a particular profit split. It revels under any circumstance the retailer denies manufacturer's warranty cost-sharing proposal for a better pay off.
Forecasting week-to-week television ratings using reduced-form and structural dynamic models
INTERNATIONAL JOURNAL OF FORECASTING
Authors: Song, Lianlian; Shi, Yang; Tso, Geoffrey Kwok Fai; Lo, Hing Po
Abstract
Rather than being sold several months before a program is aired, more than 20% of TV advertising slots are retained for sale weekly near the program's broadcast time. Distinct from the literature that mainly focuses on the forecasting of program ratings for advanced sales of advertising slots, we explore approaches that can provide more accurate forecasts for near real-time ratings. We propose two dynamic models that mainly employ individual viewing records for past episodes to forecast viewers' decisions on episodes in the coming week, and therefore the ratings for these episodes. One is a reduced-form dynamic model that measures the influence of past watching experience by the weighted average of the viewers' choices of past episodes. The other is a structural dynamic model that goes deeper in its use of previous viewing information by modeling the underlying process of this influence based on the Bayesian updating theory. Using data from the Hong Kong TV industry, we test and compare the two models. Results show that the reduced-form model generally performs better when the variance of ratings across episodes is small, while the structural model generates more accurate forecasts in other cases. (C) 2020 International Institute of Forecasters. Published by Elsevier B.V. All rights reserved.