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Book cover Vertical Cooperative Advertising in Supply Chain Management

Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

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Abstract

Increasing competition as well as more and more multifaceted customer requirements make great demands to firms nowadays. The resulting concentration on core business however implicates further complexity, because coordination of activities has to be effected not only within one single company, but in fact across the entire supply chain.

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Notes

  1. 1.

    Cf. Zimmermann (2005): Supply Chain Koordination, p. 1. A supply chain can be defined as “…the network of organizations that are involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of the ultimate consumer” (Christopher (2006): Logistics and supply chain management, p. 17). For an overview on other definitions of that term, see also Mentzer et al. (2001): Defining supply chain management.

  2. 2.

    See, e.g., the reviews in Arshinder and Deshmukh (2008): Supply chain coordination, Leng and Parlar (2005): Game theoretic applications, Maloni and Benton (1997): Supply chain partnerships, and Nagarajan and Sošić (2008): Game-theoretic analysis.

  3. 3.

    See, e.g., the review in Sarmah et al. (2006): Buyer vendor coordination models.

  4. 4.

    See, e.g., the book of Ingene and Parry (2004): Mathematical models, which contains different approaches to ensure channel coordination.

  5. 5.

    Cf. Zentralverband der deutschen Werbewirtschaft (2013): Werbung in Deutschland 2013, p. 11, and Kantar Media (2013): U.S. advertising expenditures (Press release, 11.03.2013).

  6. 6.

    Cf.  Zentralverband der deutschen Werbewirtschaft (2013): Werbung in Deutschland 2013, p. 208.

  7. 7.

    Cf. Jauschowetz (1995): Marketing im Lebensmitteleinzelhandel, p. 236, Oehme (2001): Handels-Marketing, p. 444, and Pepels (1995): Handels-Marketing, p. 260.

  8. 8.

    Cf. Somers et al. (1990): Cooperative advertising expenditures, p. 36.

  9. 9.

    According to National Register Publishing, $50 billion cooperative advertising funds are available to retailers in the United States (cf. National Register Publishing (2013): Co-op advertising sourcebook). A survey of empirical data on cooperative advertising programs is given in Sect. 3.2.

  10. 10.

    See Dierig (2012): Krombacher and Dierig (2013): Schweppes.

  11. 11.

    Please note that we use the masculine forms “he” and “his” when referring to general notations like manufacturer, retailer, player, competitor, etc. throughout this work for the sake of convenience.

  12. 12.

    See, e.g., the introductory section of Jensen and Bard (2003): Operations research, pp. 2–12.

  13. 13.

    Please note that each of these chapters also represents one separate research article. These four research articles constitute this cumulative dissertation.

  14. 14.

    See Xie and Wei (2009): Coordinating advertising and SeyedEsfahani et al. (2011): Vertical co-op advertising.

  15. 15.

    SeyedEsfahani et al. (2011) use this restriction both in the Nash and in Retailer Stackelberg game (cf. SeyedEsfahani et al. (2011): Vertical co-op advertising, p. 266). The same restriction can be found in Xie and Neyret (2009), though this article bases on a different demand function (cf. Xie and Neyret (2009): Co-op advertising, p. 1377).

  16. 16.

    This comment refers to the so-called Competitive-Substitutability Hypothesis established by Ingene and Parry (2007): It describes the counterintuitive effect that stronger competition between the retailers leads to rising prices and profits when using the cross-price parameter within a linear price demand curve as a measure for competition (cf. Ingene and Parry (2007): Bilateral monopoly, pp. 599 et seq.). For instance, this effect can be observed in Yang and Zhou (2006), who consider a one-manufacturer two-retailer supply chain where only prices are decision variables (cf. Yang and Zhou (2006): Two-echelon supply chain models, p. 113). To overcome this issue, Ingene and Parry (2007) propose to derive the price demand function from the customers’ utility function.

  17. 17.

    See Ingene and Parry (2007): Bilateral monopoly.

  18. 18.

    See Zadeh (1965): Fuzzy sets.

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  1. Industrial Management, TU Dresden, Dresden, Germany

    Gerhard Aust (Chair)

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  1. Gerhard Aust
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Aust, G. (2015). Introduction. In: Vertical Cooperative Advertising in Supply Chain Management. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-319-11626-6_1

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