TY - JOUR
T1 - Retailer and manufacturer advertising scheduling in a marketing channel
AU - Martín-Herrán, Guiomar
AU - Sigué, Simon P.
N1 - Funding Information:
We thank the three anonymous reviewers and the Editor for their helpful comments. The first author's research is partially supported by the Spanish 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”.
Publisher Copyright:
© 2017 Elsevier Inc.
PY - 2017/9/1
Y1 - 2017/9/1
N2 - This paper investigates, in a bilateral monopoly, the optimal scheduling of retailer and manufacturer advertising in a three-period planning horizon. Consistent with previous literature, the integrated channel adopts continuous advertising schedules when advertising effects are not very large and decay exponentially over time. Conversely, when pricing and advertising decisions are uncoordinated, vertical externalities also influence advertising scheduling. Consequently, channel members can optimally implement each of the following three advertising schedules depending on the effects of retailer and manufacturer advertising: The full continuous schedule, in which channel members advertise in the three periods; the full pulsing schedule, in which the two channel members advertise only in the first and third periods, and the mixed schedule where the retailer continuously advertises and the manufacturer advertises exclusively in the first and third periods. Surprisingly, the uncoordinated channel adopts lower retail prices than the integrated channel when the mixed schedule is adopted.
AB - This paper investigates, in a bilateral monopoly, the optimal scheduling of retailer and manufacturer advertising in a three-period planning horizon. Consistent with previous literature, the integrated channel adopts continuous advertising schedules when advertising effects are not very large and decay exponentially over time. Conversely, when pricing and advertising decisions are uncoordinated, vertical externalities also influence advertising scheduling. Consequently, channel members can optimally implement each of the following three advertising schedules depending on the effects of retailer and manufacturer advertising: The full continuous schedule, in which channel members advertise in the three periods; the full pulsing schedule, in which the two channel members advertise only in the first and third periods, and the mixed schedule where the retailer continuously advertises and the manufacturer advertises exclusively in the first and third periods. Surprisingly, the uncoordinated channel adopts lower retail prices than the integrated channel when the mixed schedule is adopted.
KW - Advertising scheduling
KW - Manufacturer advertising
KW - Marketing channel
KW - Pricing
KW - Pulsing
KW - Retailer advertising
UR - http://www.scopus.com/inward/record.url?scp=85020698510&partnerID=8YFLogxK
U2 - 10.1016/j.jbusres.2017.05.002
DO - 10.1016/j.jbusres.2017.05.002
M3 - Journal Article
AN - SCOPUS:85020698510
SN - 0148-2963
VL - 78
SP - 93
EP - 100
JO - Journal of Business Research
JF - Journal of Business Research
ER -