IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v136y2020ics1366554519310233.html
   My bibliography  Save this article

Co-op supply chains with a local media company: Models and analysis

Author

Listed:
  • Gou, Qinglong
  • Shao, Jing
  • Wang, Xin
  • Yu, Lili

Abstract

A cooperative (co-op) advertising program is an incentive scheme in which a manufacturer shares its retailers’ local advertising costs. Such programs have received increasing academic attention in the past two decades. However, the local media company, as the agent of local advertising, has been ignored by previous literature. Another practical aspect being ignored is that the manufacturer only shares the retailer’s local media advertising cost – the retailer’s in-store advertising cost is not subsidized.

Suggested Citation

  • Gou, Qinglong & Shao, Jing & Wang, Xin & Yu, Lili, 2020. "Co-op supply chains with a local media company: Models and analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).
    • Handle: RePEc:eee:transe:v:136:y:2020:i:c:s1366554519310233
    DOI: 10.1016/j.tre.2020.101893
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554519310233
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2020.101893?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yue, Jinfeng & Austin, Jill & Wang, Min-Chiang & Huang, Zhimin, 2006. "Coordination of cooperative advertising in a two-level supply chain when manufacturer offers discount," European Journal of Operational Research, Elsevier, vol. 168(1), pages 65-85, January.
    2. Pradeep K. Chintagunta & Dipak Jain, 1992. "A Dynamic Model of Channel Member Strategies for Marketing Expenditures," Marketing Science, INFORMS, vol. 11(2), pages 168-188.
    3. Karray, Salma & Martín-Herrán, Guiomar & Sigué, Simon-Pierre, 2017. "Cooperative advertising for competing manufacturers: The impact of long-term promotional effects," International Journal of Production Economics, Elsevier, vol. 184(C), pages 21-32.
    4. Anshuman Chutani & Suresh Sethi, 2012. "Cooperative Advertising in a Dynamic Retail Market Oligopoly," Dynamic Games and Applications, Springer, vol. 2(4), pages 347-375, December.
    5. Du, Shaofu & Wang, Lei & Hu, Li & Zhu, Yangguang, 2019. "Platform-led green advertising: Promote the best or promote by performance," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 128(C), pages 115-131.
    6. Aust, Gerhard & Buscher, Udo, 2014. "Cooperative advertising models in supply chain management: A review," European Journal of Operational Research, Elsevier, vol. 234(1), pages 1-14.
    7. Zhang, Juan & Gou, Qinglong & Liang, Liang & Huang, Zhimin, 2013. "Supply chain coordination through cooperative advertising with reference price effect," Omega, Elsevier, vol. 41(2), pages 345-353.
    8. Yan, Ruiliang & Cao, Zixia & Pei, Zhi, 2016. "Manufacturer's cooperative advertising, demand uncertainty, and information sharing," Journal of Business Research, Elsevier, vol. 69(2), pages 709-717.
    9. Matthew Nagler, 2006. "An exploratory analysis of the determinants of cooperative advertising participation rates," Marketing Letters, Springer, vol. 17(2), pages 91-102, April.
    10. Jorgensen, Steffen & Taboubi, Sihem & Zaccour, Georges, 2003. "Retail promotions with negative brand image effects: Is cooperation possible?," European Journal of Operational Research, Elsevier, vol. 150(2), pages 395-405, October.
    11. De Giovanni, Pietro & Karray, Salma & Martín-Herrán, Guiomar, 2019. "Vendor Management Inventory with consignment contracts and the benefits of cooperative advertising," European Journal of Operational Research, Elsevier, vol. 272(2), pages 465-480.
    12. Salma Karray & Chirag Surti, 2016. "Channel coordination with quantity discounts and/or cooperative advertising," International Journal of Production Research, Taylor & Francis Journals, vol. 54(17), pages 5317-5335, September.
    13. Qinglong Gou & Juzhi Zhang & Juan Zhang & Liang Liang, 2017. "Nash Equilibria of Co-Operative Advertising Programs with Advertising Threshold Effects," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 16(04), pages 981-1004, July.
    14. Bin Liu & Gangshu (George) Cai & Andy A. Tsay, 2014. "Advertising in Asymmetric Competing Supply Chains," Production and Operations Management, Production and Operations Management Society, vol. 23(11), pages 1845-1858, November.
    15. Ingene, Charles A. & Taboubi, Sihem & Zaccour, Georges, 2012. "Game-Theoretic Coordination Mechanisms in Distribution Channels: Integration and Extensions for Models Without Competition," Journal of Retailing, Elsevier, vol. 88(4), pages 476-496.
    16. Karray, Salma & Martín-Herrán, Guiomar & Zaccour, Georges, 2017. "Assessing the profitability of cooperative advertising programs in competing channels," International Journal of Production Economics, Elsevier, vol. 187(C), pages 142-158.
    17. Prasad A. Naik & Kalyan Raman & Russell S. Winer, 2005. "Planning Marketing-Mix Strategies in the Presence of Interaction Effects," Marketing Science, INFORMS, vol. 24(1), pages 25-34, June.
    18. Zhou, Yong-Wu & Li, Jicai & Zhong, Yuanguang, 2018. "Cooperative advertising and ordering policies in a two-echelon supply chain with risk-averse agents," Omega, Elsevier, vol. 75(C), pages 97-117.
    19. Lei Zhao & Jihua Zhang & Jinxing Xie, 2016. "Impact of demand price elasticity on advantages of cooperative advertising in a two-tier supply chain," International Journal of Production Research, Taylor & Francis Journals, vol. 54(9), pages 2541-2551, May.
    20. Lu, Fuxiao & Tang, Wansheng & Liu, Guowei & Zhang, Jianxiong, 2019. "Cooperative advertising: A way escaping from the prisoner’s dilemma in a supply chain with sticky price," Omega, Elsevier, vol. 86(C), pages 87-106.
    21. Xie, Jinxing & Wei, Jerry C., 2009. "Coordinating advertising and pricing in a manufacturer-retailer channel," European Journal of Operational Research, Elsevier, vol. 197(2), pages 785-791, September.
    22. Yonghua Ji & Ruibing Wang & Qinglong Gou, 2019. "Monetization on Mobile Platforms: Balancing in‐App Advertising and User Base Growth," Production and Operations Management, Production and Operations Management Society, vol. 28(9), pages 2202-2220, September.
    23. Juan Zhang & Qinglong Gou & Susan Li & Zhimin Huang, 2017. "Cooperative Advertising with Accrual Rate in a Dynamic Supply Chain," Dynamic Games and Applications, Springer, vol. 7(1), pages 112-130, March.
    24. Krishnamoorthy, Anand & Prasad, Ashutosh & Sethi, Suresh P., 2010. "Optimal pricing and advertising in a durable-good duopoly," European Journal of Operational Research, Elsevier, vol. 200(2), pages 486-497, January.
    25. Wang, Xin & Tao, Zhiying & Liang, Liang & Gou, Qinglong, 2019. "An analysis of salary mechanisms in the sharing economy: The interaction between streamers and unions," International Journal of Production Economics, Elsevier, vol. 214(C), pages 106-124.
    26. Chutani, Anshuman & Sethi, Suresh P., 2018. "Dynamic cooperative advertising under manufacturer and retailer level competition," European Journal of Operational Research, Elsevier, vol. 268(2), pages 635-652.
    27. Salma Karray & Saman Hassanzadeh Amin, 2015. "Cooperative advertising in a supply chain with retail competition," International Journal of Production Research, Taylor & Francis Journals, vol. 53(1), pages 88-105, January.
    28. Jørgensen, Steffen & Zaccour, Georges, 2014. "A survey of game-theoretic models of cooperative advertising," European Journal of Operational Research, Elsevier, vol. 237(1), pages 1-14.
    29. Li, Susan X. & Huang, Zhimin & Zhu, Joe & Chau, Patrick Y. K., 2002. "Cooperative advertising, game theory and manufacturer-retailer supply chains," Omega, Elsevier, vol. 30(5), pages 347-357, October.
    30. Huang, Zhimin & Li, Susan X., 2001. "Co-op advertising models in manufacturer-retailer supply chains: A game theory approach," European Journal of Operational Research, Elsevier, vol. 135(3), pages 527-544, December.
    31. Lihao Lu & Qinglong Gou & Wansheng Tang & Jianxiong Zhang, 2016. "Joint pricing and advertising strategy with reference price effect," International Journal of Production Research, Taylor & Francis Journals, vol. 54(17), pages 5250-5270, September.
    32. Li, Xiang & Li, Yongjian & Cao, Wenjing, 2019. "Cooperative advertising models in O2O supply chains," International Journal of Production Economics, Elsevier, vol. 215(C), pages 144-152.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yang, Wenjuan & Zhang, Jiantong & Yan, Hong, 2022. "Promotions of online reviews from a channel perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 161(C).
    2. Huang, Song & Zhang, Xianmei & Chen, Shuting, 2021. "Information acquisition with advertising threshold effect under manufacturer encroachment in a supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 153(C).
    3. Wu, Xiangxiang & Zha, Yong & Yu, Yugang, 2022. "Asymmetric retailers’ sales effort competition in the presence of a manufacturer’s help," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 159(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. He, Yi & Wang, Hang & Guo, Qiang & Xu, Qingyun, 2019. "Coordination through cooperative advertising in a two-period consumer electronics supply chain," Journal of Retailing and Consumer Services, Elsevier, vol. 50(C), pages 179-188.
    2. Guilan Yan & Yi He, 2020. "Coordinating pricing and advertising in a two-period fashion supply chain," 4OR, Springer, vol. 18(4), pages 419-438, December.
    3. Jørgensen, Steffen & Zaccour, Georges, 2014. "A survey of game-theoretic models of cooperative advertising," European Journal of Operational Research, Elsevier, vol. 237(1), pages 1-14.
    4. Karray, Salma & Martín-Herrán, Guiomar & Zaccour, Georges, 2017. "Assessing the profitability of cooperative advertising programs in competing channels," International Journal of Production Economics, Elsevier, vol. 187(C), pages 142-158.
    5. Zhou, Yong-Wu & Li, Jicai & Zhong, Yuanguang, 2018. "Cooperative advertising and ordering policies in a two-echelon supply chain with risk-averse agents," Omega, Elsevier, vol. 75(C), pages 97-117.
    6. De Giovanni, Pietro & Karray, Salma & Martín-Herrán, Guiomar, 2019. "Vendor Management Inventory with consignment contracts and the benefits of cooperative advertising," European Journal of Operational Research, Elsevier, vol. 272(2), pages 465-480.
    7. Martín-Herrán, Guiomar & Sigué, Simon P., 2017. "An integrative framework of cooperative advertising: Should manufacturers continuously support retailer advertising?," Journal of Business Research, Elsevier, vol. 70(C), pages 67-73.
    8. Aust, Gerhard & Buscher, Udo, 2014. "Cooperative advertising models in supply chain management: A review," European Journal of Operational Research, Elsevier, vol. 234(1), pages 1-14.
    9. Karray, Salma & Martín-Herrán, Guiomar & Sigué, Simon Pierre, 2022. "Managing advertising investments in marketing channels," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    10. Yu, Lili & He, Xiuli & Zhang, Juan & Xu, Chuanyong, 2021. "Horizontal cooperative advertising with advertising threshold effects," Omega, Elsevier, vol. 98(C).
    11. Lu, Fuxiao & Tang, Wansheng & Liu, Guowei & Zhang, Jianxiong, 2019. "Cooperative advertising: A way escaping from the prisoner’s dilemma in a supply chain with sticky price," Omega, Elsevier, vol. 86(C), pages 87-106.
    12. Wang, Charles X. & Qian, Zhuang & Zhao, Yabing, 2018. "Impact of manufacturer and retailer's market pricing power on customer satisfaction incentives in supply chains," International Journal of Production Economics, Elsevier, vol. 205(C), pages 98-112.
    13. Chutani, Anshuman & Sethi, Suresh P., 2018. "Dynamic cooperative advertising under manufacturer and retailer level competition," European Journal of Operational Research, Elsevier, vol. 268(2), pages 635-652.
    14. Qinglong Gou & Juzhi Zhang & Juan Zhang & Liang Liang, 2017. "Nash Equilibria of Co-Operative Advertising Programs with Advertising Threshold Effects," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 16(04), pages 981-1004, July.
    15. Dridi, Dhouha & Ben Youssef, Slim, 2015. "Local advertising externalities and cooperation in one manufacturer-two retailers channel," MPRA Paper 62705, University Library of Munich, Germany.
    16. Tinglong Zhang & Xiongfei Guo & Jin Hu & Ningning Wang, 2020. "Cooperative advertising models under different channel power structure," Annals of Operations Research, Springer, vol. 291(1), pages 1103-1125, August.
    17. Juan Zhang & Qinglong Gou & Susan Li & Zhimin Huang, 2017. "Cooperative Advertising with Accrual Rate in a Dynamic Supply Chain," Dynamic Games and Applications, Springer, vol. 7(1), pages 112-130, March.
    18. Jian Feng & Bin Liu, 2018. "Dynamic Impact of Online Word-of-Mouth and Advertising on Supply Chain Performance," IJERPH, MDPI, vol. 15(1), pages 1-16, January.
    19. Karray, Salma & Martín-Herrán, Guiomar & Sigué, Simon-Pierre, 2017. "Cooperative advertising for competing manufacturers: The impact of long-term promotional effects," International Journal of Production Economics, Elsevier, vol. 184(C), pages 21-32.
    20. Martín-Herrán, Guiomar & Sigué, Simon Pierre, 2023. "An integrative framework of cooperative advertising with reference price effects," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:136:y:2020:i:c:s1366554519310233. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.