Cooperative advertising in a dual channel supply chain

Ruiliang Yan, Sanjoy Ghose and Amit Bhatnagar

International Journal of Electronic Marketing and Retailing, 2006, vol. 1, issue 2, 99-114

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.

Keywords: direct marketing; retail marketing; cooperative advertising; distribution channels; Bertrand and Stackelberg competition; supply chain management; SCM; electronic marketing; electronic advertising; dual channel supply chains; internet advertising; online marketing; e-marketing; e-advertising; online advertising; internet marketing. (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (5)

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