Vertical Cooperative Advertising with Substitute Brands
Joint Authors
Source
Journal of Applied Mathematics
Issue
Vol. 2013, Issue 2013 (31 Dec. 2013), pp.1-8, 8 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2013-10-01
Country of Publication
Egypt
No. of Pages
8
Main Subjects
Abstract EN
Cooperative (co-op) advertising is attracting more and more attention.
This paper analyzes co-op advertising behavior based on a dual-brand model with a single manufacturer and a single retailer, and some interesting conclusions are achieved.
Firstly, the firm in the supply chain advertises both brands, and the difference of advertising expenditure is not very large in equilibrium.
Secondly, the retailer's advertising and the manufacturer's participation ratios depend on both the retailer's and the manufacturer's marginal profits.
Thirdly, the stimulating effect increases the advertising investment while the competition effect decreases it, but they have no effect on the manufacturer's participation ratio.
Fourthly, co-op advertising is more sensitive to the manufacturer's marginal profits than those of the retailer.
Lastly, total advertising investment and profit are greater under cooperative decision than under Stackelberg decision.
American Psychological Association (APA)
Chen, You-Hua& Wen, Xiao-Wei. 2013. Vertical Cooperative Advertising with Substitute Brands. Journal of Applied Mathematics،Vol. 2013, no. 2013, pp.1-8.
https://search.emarefa.net/detail/BIM-474887
Modern Language Association (MLA)
Chen, You-Hua& Wen, Xiao-Wei. Vertical Cooperative Advertising with Substitute Brands. Journal of Applied Mathematics No. 2013 (2013), pp.1-8.
https://search.emarefa.net/detail/BIM-474887
American Medical Association (AMA)
Chen, You-Hua& Wen, Xiao-Wei. Vertical Cooperative Advertising with Substitute Brands. Journal of Applied Mathematics. 2013. Vol. 2013, no. 2013, pp.1-8.
https://search.emarefa.net/detail/BIM-474887
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-474887