Competitive effects of informative advertising in distribution channels

Jianqiang Zhang (), Weijun Zhong () and Shue Mei ()

Marketing Letters, 2012, vol. 23, issue 3, 584 pages

Abstract: Informative advertising and persuasive advertising play quite different roles in the efficiency of distribution channels. A recent study observes that a direct channel structure outperforms an indirect one in the presence of advertising competition between manufacturers, assuming that advertising is persuasive. On the contrary, taking the informative view of advertising, this paper demonstrates an opposite result: Disintegration does make competing manufacturers better off for highly substitutable goods. We further discuss the optimum control of informative advertising under the indirect channel scenario, showing that retailers are more effective than manufacturers as advertisers. Copyright Springer Science+Business Media, LLC 2012

Keywords: Informative advertising; Channel competition; Distribution channel (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://hdl.handle.net/10.1007/s11002-011-9161-2 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:mktlet:v:23:y:2012:i:3:p:561-584

Ordering information: This journal article can be ordered from
http://www.springer. ... etailsPage=societies

DOI: 10.1007/s11002-011-9161-2

Access Statistics for this article

Marketing Letters is currently edited by Joel Steckel and Peter Golder

More articles in Marketing Letters from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().