Benefits of bilateral participation in cooperative advertising

Benefits of bilateral participation in cooperative advertising
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双边参与合作广告的好处

DOI:
10.1080/01605682.2019.1678405
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发表时间:
2020-02
影响因子:
3.6
通讯作者:
Jinxing Xie (谢金星)
Jinxing Xie (谢金星)
中科院分区:
管理学4区
文献类型:
--
作者:
Jihua Zhang (张吉华);Bintong Chen (陈滨桐);Jinxing Xie (谢金星)

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单边参与合作(co-op)广告在实践中很常见,并在文献中得到了广泛的研究。然而,在这篇文章中,我们表明这种方法通常不能协调分销渠道。相反,对于一个制造商,多个零售商的分销渠道,我们提出了一个双边参与合作广告系统,其中制造商的国家广告费用由零售商分担,并证明了双边参与系统能够在非常一般的渠道结构和销售响应函数下协调分销渠道,这可以导致帕累托改进。然后,在考虑了零售商数量的规模效应和零售商之间的窃取/溢出效应的情况下,在一个常用的累加销售反应函数下,量化了采用双边参与相对于单边参与合作广告的好处。最后,我们考察了渠道成员的参与率和定价是内生决定的情况。在这些情况下,双边参与不再协调渠道;然而,它导致的渠道利润显著高于单边参与。
Unilateral participation in cooperative (co-op) advertising is popular in practice, and has.been studied extensively in the literature. In this article, however, we show that this method.is generally not able to coordinate the distribution channel. Instead, we propose a bilateral.participation co-op advertisement system for a one-manufacturer, multi-retailer distribution.channel, where the manufacturer’s national advertising expense is shared by the retailers,.and show that the bilateral participation system is capable of coordinating the distribution.channel under a very general channel structure and sales response function that can lead to.a Pareto improvement over any unilateral participation system. The benefits of adopting.bilateral participation over unilateral participation in co-op advertising are then quantified.under a commonly used additive sales response function with considerations of the scaling.effects of the number of retailers and the stealing/spillover effects among retailers. Finally,.we examine cases in which channel members’ participation rates and pricing are endogenously.determined. In these cases, bilateral participation no longer coordinates the channel;.nonetheless, it leads to significantly higher channel profit than does unilateral participation.
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