 An integrative framework of cooperative advertising with reference price effectsMartÃn-Herrán, Guiomar and Sigué, Simon Pierre Journal of Retailing and Consumer Services, 2023, vol. 70, issue C Abstract: The importance of reference price effects in consumer behavior and marketing decisions is now well established in the literature. However, research on the impact of these effects on cooperative advertising decisions in marketing channels remains very limited. A two-period model is developed to analyze how members of a bilateral monopoly channel should set pricing and advertising decisions in a context where first-period price serves as the reference price of second period. By solving a Stackelberg game where the manufacturer is the leader, nine feasible equilibria are endogenously obtained. These equilibria correspond to different combinations (scenarios) of the respective decisions of the retailer and manufacturer to undertake or not and to support or not local advertising in each period. The profitability of each of these scenarios for the players and their pricing and advertising strategies over time depend, among others, on how sensitive consumers are to price changes over time. Keywords: Advertising; Cooperative advertising; Marketing channel; Pricing; Reference price (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:joreco:v:70:y:2023:i:c:s0969698922002594 DOI: 10.1016/j.jretconser.2022.103166 Access Statistics for this article Journal of Retailing and Consumer Services is currently edited by Harry Timmermans More articles in Journal of Retailing and Consumer Services from Elsevier |
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