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dc.contributor.authorKarray, Salma
dc.contributor.authorMartin-Herran, Guiomar
dc.contributor.authorSigue, Simon-Pierre
dc.identifier.citationSalma Karray, Guiomar Martín-Herrán, Simon-Pierre Sigué, Cooperative advertising for competing manufacturers: The impact of long-term promotional effects, International Journal of Production Economics, Volume 184, February 2017, Pages 21-32.en
dc.description.abstractThe effectiveness of cooperative advertising programs is studied in a market where two competing manufacturers deal with an exclusive retailer and two products. Two two-stage game theoretic models are developed to analyze the long-term effects of retailer's promotions, which can be positive or negative, on the effectiveness of cooperative advertising. Closed-form equilibrium solutions are obtained and compared. We find that the level of product substitutability and the sign and magnitude of the long-term effects of retailer's promotions on sales determine whether cooperative advertising should be offered and accepted by the manufacturers and retailer. In particular, depending on the level of product substitutability, cooperative advertising can benefit both the manufacturers and retailer even when retailer's promotions negatively affect future sales. Conversely, it may not be in the interest of the manufacturers to offer cooperative advertising when the products are fairly undifferentiated regardless of the nature of the long-term effects of promotions. Finally, the manufacturers and retailer may refuse to respectively offer or participate in cooperative advertising programs that enhance total channel profits.en
dc.description.sponsorshipResearch of the first author is supported by the National Sciences and Engineering Research Council of Canada (NSERC). Grant # 1509. The second author's research is partially supported by MEC under project ECO2014-52343-P, co-financed by FEDER funds and the COST Action IS1104 “The EU in the new economic complex geography: models, tools and policy evaluation”.en
dc.subjectCooperative Advertising; Supply Chain Management; Game Theory; Marketing-OR Interfaceen
dc.titleCooperative advertising for competing manufacturers: The impact of long-term promotional effectsen
dc.typeArticle, Researchen

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