Channel competition in omni‐channel supply chain considering social media advertising

Abstract As a germane marketing tool, advertising has shrift to social media platform. What role of social media advertising plays in the omni‐channel supply chain needs to conduct a thorough examination. Therefore, this paper investigates a model in which a manufacturer supplies product to two competitive retailers to compare channel payoffs when considering social media advertising in four different scenarios. Specifically, the demand function fully considers the impact of exponential propagation of social media advertising. The conclusions could provide decision basis for enterprises and platform managers on social media channel selection, social media advertising pricing and cooperation form selection.