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Cooperative advertising in a dual channel supply chain

Author

Listed:
  • Ruiliang Yan
  • Sanjoy Ghose
  • Amit Bhatnagar

Abstract

The focus of this study is cooperative (co-op) advertising and the impact it has on the dual channel supply chain. We obtain equilibrium pricing and co-op advertising policies under two different competitive scenarios: Bertrand and Stackelberg equilibrium. We also compare the profit gains under these two marketing games. Based on our results, we propose the optimal strategies that system members should adopt in a dual channel competition. We also illustrate that by strategically implementing a cooperative advertising strategy under different market structures, both the system players can effectively improve their overall profits in a dual channel supply chain management.

Suggested Citation

  • Ruiliang Yan & Sanjoy Ghose & Amit Bhatnagar, 2006. "Cooperative advertising in a dual channel supply chain," International Journal of Electronic Marketing and Retailing, Inderscience Enterprises Ltd, vol. 1(2), pages 99-114.
    • Handle: RePEc:ids:ijemre:v:1:y:2006:i:2:p:99-114
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    Citations

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    Cited by:

    1. Xiaonan Han & Xiaochen Sun & Yancong Zhou, 2014. "The Equilibrium Decisions in a Two-Echelon Supply Chain under Price and Service Competition," Sustainability, MDPI, vol. 6(7), pages 1-16, July.
    2. Pei, Zhi & Wooldridge, Barbara Ross & Swimberghe, Krist R., 2021. "Manufacturer rebate and channel coordination in O2O retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    3. 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.
    4. Cao, Zixia & Yan, Ruiliang, 2021. "Product nutrition, innovation, advertising, and firm’s financial gains," Journal of Business Research, Elsevier, vol. 133(C), pages 13-22.
    5. Chen, Jingxian & Liang, Liang & Yao, Dong-qing, 2019. "Factory encroachment and channel selection in an outsourced supply chain," International Journal of Production Economics, Elsevier, vol. 215(C), pages 73-83.

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