RT info:eu-repo/semantics/article
T1 Manufacturer defensive and offensive advertising in competing distribution channels
A1 Martín Herrán, Guiomar
A1 Sigué, Simon-Pierre
AB This paper investigates how two competing manufacturers should invest indefensive and offensive advertising in a two-segment market and whether theyshould each adopt a decentralized or an integrated channel if \ their goalis to maximize total channel profits. We find \ that, manufacturers indecentralized channels can exclusively undertake either of the two types ofadvertising or combine the two at the equilibrium. In integrated channels,they can either combine the two or exclusively undertake defensiveadvertising. When multiple equilibria exist, strategies that combine bothtypes of advertising should be preferred to exclusive defensive advertisingstrategies, which are better than exclusive offensive advertisingstrategies. Also, total channel profits are higher in decentralized channelsthan in integrated channels when the brands are moderately or highlysubstitutable. Conversely, total channel profits of integrated channels arehigher than those of decentralized channels in areas where the brands arerelatively differentiated and the offensive advertising retaliatory capacityof the rival is stronger. Theoretical and managerial implications of thesefindings are discussed.
SN 0969-6016
YR 2019
FD 2019
LK http://uvadoc.uva.es/handle/10324/39096
UL http://uvadoc.uva.es/handle/10324/39096
LA spa
NO International Transactions in Operational Research 27, 958-983, 2020
NO Producción Científica
DS UVaDOC
RD 23-nov-2024