623 / 2024-04-28 14:28:50

Supply chain decisions with bad press and risk aversion

bad press；risk aversion；consumer tolerance；supply chain decisions

Although the use of celebrity endorsements or the establishment of live broadcast rooms can achieve a drainage effect and better expand the market scale, the bad press that may erupt in the drainage process will have a heavy blow to manufacturers and retailers. To this end, this paper constructs a supply chain composed of a risk-averse manufacturer and a risk-averse retailer, and the supply chain is being affected by bad press and consumers with different tolerant attitudes. The results show that: The risk aversion characteristics of supply chain members will significantly affect the optimal decision-making of each firm, and the correlation between the risk aversion coefficient of the manufacturer and retailer and the optimal decision to repair consumer relationship depends on the difference of consumer tolerance.