Benefits of bilateral participation in cooperative advertising
Benefits of bilateral participation in cooperative advertising
复制标题
DOI：
10.1080/01605682.2019.1678405
复制
发表时间：
--
影响因子：
3.6
通讯作者：
Jinxing Xie （谢金星）
中科院分区：
文献类型：
--
作者：
Jihua Zhang （张吉华）;Bintong Chen （陈滨桐）;Jinxing Xie （谢金星）
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.
