Research on advertising and pricing strategies in closed-loop supply chain for short life cycle products

In this paper, the advertising and pricing strategies are studied for short life cycle products in closed-loop supply chain. The marketing channel is formed of a single manufacturer and a retailer (recycler). The retailer makes retailing and recycling advertisement of the products with manufacturer offering a cooperative advertisement program. Based on the theory of product life cycle, the optimal advertising and pricing strategies are proposed for manufacturer and retailer in different stages of life cycle by using Stackelberg game method. The studies have shown that: In different stages, the optimal advertising strategies of the manufacturer and the retailer and the optimal recycle pricing strategies have large business with stage of life cycle. The enthusiasm of the retailer have positive correlation with the advertising subsidy of the manufacturer. To reach the win-win market model, the channel members should increase their advertisements´ influence for product demand.