National advertising, dual-channel coordination and firm performance
نویسندگان
چکیده
With the rapid development of e-commerce, many manufacturers nowadays opt to open an online channel to engage in direct online sales. The mix of retailing with an online channel adds a new dimension of competition and complementarity to a product’s distribution channels. Our model focuses on the strategic effect of the manufacturer’s national advertising on alleviating the channel competition. We use a game-theoretical model to show that opening an online channel with the added national advertising effectively alleviates the channel conflict and thus helps improve the whole channel and each channel member performance. Depending on the different product categories and the degree of channel substitutability, the manufacturer’s investment in the national advertising also will be different. The value of national advertising increases as product is more compatible with online sales and channel substitutability increases. & 2013 Elsevier Ltd. All rights reserved.
منابع مشابه
Dual-Channel Supply Chain Coordination Strategy with Dynamic Cooperative Advertising
With the rapid development of electronic commerce, many manufacturers choose to establish dualchannel supply chains. To promote sales, the manufacturer in a dual-channel supply chain usually invests in national advertising and provides support to the retailer who promotes the goodwill through local advertisement. In our research, we use a Stackelberg differential game theoretic model to show th...
متن کاملDesigning of Supply Chain Coordination Mechanism with Leadership Considering (RESEARCH NOTE)
Abstract Vertical cooperative (co-op) advertising is typically a cost sharing mechanism and coordinated effort by the channel’s members in order to increase demand and overall profits. In this marketing strategy, the manufacturer shares a fraction of the retailer’s advertising investment. This paper studies the advertising and pricing decisions in a retailer-manufacturer supply chain in which...
متن کاملCoordination of pricing and cooperative advertising for perishable products in a two-echelon supply chain: A bi-level programming approach
In this article the coordination of pricing and cooperative advertising decisions in one-manufacturer one-retailer decentralized supply chain with different market power for channel members is studied. The products are both perishable and substitutable. The problem is modeled as a nonlinear bi-level programming problem to consider both retailer and manufacturer decisions about prices and advert...
متن کاملChannel selection in e-commerce age: A strategic analysis of co-op advertising models
Purpose: The purpose of this paper is to develop and compare two co-op advertising models: advertising model under traditional channel and co-op advertising model under dual channel, to select optimal channel structure to sell products for manufacturer and to derive optimal co-op advertising strategies for the manufacturer and the retailer. Design/methodology/approach: Stackelberg game theoreti...
متن کاملModeling Multi-Channel Advertising Attribution Across Competitors
The bursts and multiplicity of Internet advertising have made multi-channel attribution an immediate challenge for marketing practitioners. Existing attribution models predominantly focus on analyzing consumers’ converting path with respect to one focal firm while largely overlooking the impact of their interactions with competing firms, leading to biased advertising effectiveness estimates. We...
متن کامل