Cooperative advertising is a cost-sharing mechanism in which a part of retailers' advertising investments are financed by the manufacturers. In recent years, investment among advertising options has become a difficult marketing issue. In this paper, the cooperative advertising problem with advertising options is investigated in a two-period horizon in which the market share in the second period...

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...

Pricing and advertising are two important marketing strategies in the supply chain management which lead to customer demand’s increase and therefore higher profit for members of supply chains. This paper considers advertising, and pricing decisions simultaneously for a three-level supply chain with one supplier, one manufacturer and one retailer. The amount of market demand is influenced ...

Cooperative advertising is an agreement between a manufacturer and a retailer to share advertising cost at the local level. Previous studies have not investigated cooperative advertising for complementary products and their main focus was only on one good. In this paper, we study a two-echelon supply chain consisting of one manufacturer and one retailer with two complementary goods. The demand ...

This paper proposes a new motivation for information sharing in a decentralized channel consisting of a single manufacturer and two competing retailers. The manufacturer provides a common product to the retailers at the same wholesale price. Both retailers add their own values to the product and distribute it to consumers. Factors such as retail prices, values added to the product, and local ad...

Cooperative advertising is a practice that a manufacturer pays retailers a portion of the local advertising cost in order to induce sales. Cooperative advertising plays a significant role in marketing programs of channel members. Nevertheless, most studies to date on cooperative advertising have assumed that the market demand is only influenced by advertising expenditures but not by retail pric...

This work considers cooperative advertising in a manufacturer–retailer supply chain. While the manufacturer is the Stackelberg leader, the retailer is the follower. Using Sethi model it models the dynamic effect of the manufacturer and retailer’s advertising efforts on sale. It uses optimal control technique and stochastic differential game theory to obtain the players’ advertising strategies a...

Nowadays, coordination between members in a supply chain has become very important and beneficial to channel members. Through cooperative advertising, manufacturers and retailers can jointly participate in promotional programs. This action not only reduces the cost of advertising, but also is important to create a link with local retailers in order to increase immediate sales at the retail leve...

pricing and advertising are two important marketing strategies in the supply chain management which lead to customer demand’s increase and therefore higher profit for members of supply chains. this paper considers advertising, and pricing decisions simultaneously for a three-level supply chain with one supplier, one manufacturer and one retailer. the amount of market demand is influenced by pri...

This paper investigates advertising level, pricing and production quantity decision problems in a supply chain when demand and production cost disruptions occur simultaneously. The supply chain consists of one manufacturer and one retailer where customer demand depends on the retail price and advertisement expenditure. The authors examine this problem in two game-theoretic models: a cooperative...