RT info:eu-repo/semantics/article
T1 Cooperative advertising in competing supply chains and the long-term effects of retail advertising
A1 Karray, Salma
A1 Martín Herrán, Guiomar
A1 Sigué, Simon-Pierre
K1 OR in Marketing
K1 Cooperative Advertising
K1 Competition
K1 Supply Chain Management
K1 Game theory
AB The profitability of cooperative advertising (CA) programs is analyzed in a supply chainwhere competing manufacturers sell their products through competing retailers. We study atwo-period game-theoretic model that accounts for positive and negative long-term effectsof retail advertising on consumer preferences. We obtain closed-form equilibria in two particularcases where either the stores or the products are perfectly differentiated. For the generalcase where both products and stores can be substitutable, we develop a numericalalgorithm to find the equilibrium. We compare the equilibria obtained in games where CA isoffered and where it is not. The results show that the second-period effects of first-periodretail advertising and the levels of substitutability between products and between retailersall play a key role in assessing the profitability of CA programs. CA only benefits manufacturerswhen store and product competition are both low, or when retailers are highly differentiated.However, in most cases, retailers do not find such programs profitable exceptwhen product substitutability levels are high while store competition is low. Finally, CA canonly be win-win arrangements for manufacturers and retailers when the level of store differentiationis very high, the products are moderately substitutable, and first-period retailadvertising has a substantial positive impact on second-period sales. The manufacturers’cooperative advertising support rates increase with the second-period effects of retailadvertising.
SN 0160-5682
YR 2021
FD 2021
LK https://uvadoc.uva.es/handle/10324/51712
UL https://uvadoc.uva.es/handle/10324/51712
LA spa
NO S. Karray, G. Martín-Herrán y S.P. Sigué:   Cooperative advertising in competing supply chains and the long-term effects of retail advertising. Journal of the Operational Research Society,  2021  10.1080/01605682.2021.1973350.
DS UVaDOC
RD 26-abr-2024