Joint Decision of Pricing and Cross-Ruff Coupon Value

The paper focuses on the optimal decisions of pricing and cross-ruff coupon face value for two linked brands products.We develop the profit maximization models for two kinds of coupons: in-pack cross-ruff coupon and on-pack cross-ruff coupon,and conclude the coupon values and prices under on-pack coupon mode are higher than in-pack coupon mode,and the profit of offering on-pack cross-ruff coupon is higher than offering in-pack cross-ruff coupon.Finally,through numerical experiment of MATLAB,we observe that the coupon values,target brand prices and carrier brand prices for on-pack cross-ruff coupon are more sensitive than in-pack cross-ruff coupon to reference price.