Advertising and Price Competition in a Manufacturer-Retailer Channel PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Advertising and Price Competition in a Manufacturer-Retailer Channel PDF full book. Access full book title Advertising and Price Competition in a Manufacturer-Retailer Channel by Tat Chan. Download full books in PDF and EPUB format.
Author: Tat Chan
Publisher:
ISBN:
Category :
Languages : en
Pages : 57
Get Book Here
Book Description
We investigate how manufacturers' advertising competition, when advertising has a dynamic impact on the goodwill that affects market demand, interacts with the price competition in a manufacturer-retailer channel. Specifically, we examine the strategic choices made by manufacturers, the role of the retailer in exacerbating or mitigating competition among manufacturers, the total channel profit and how that is split among the different players. Using prices, sales, and advertising data in the laundry detergent category we find that advertising and pricing are strategic complements as manufacturer advertising increases the price elasticity of demand; advertising competition intensifies price competition but it also improves the profitability of manufacturers; the presence of retailers in the channel leads to increased advertising spending while mitigating the extent of price competition. Manufacturers can enjoy a higher profit from using retailers when they compete in both price and advertising. Finally, we show that the emergence of ecommerce, which enables manufacturers directly selling to end consumers, has asymmetric profit impacts on manufacturers, as brands with lower cost and lower brand goodwill are more benefited from ecommerce.
Author: Tat Chan
Publisher:
ISBN:
Category :
Languages : en
Pages : 57
Get Book Here
Book Description
We investigate how manufacturers' advertising competition, when advertising has a dynamic impact on the goodwill that affects market demand, interacts with the price competition in a manufacturer-retailer channel. Specifically, we examine the strategic choices made by manufacturers, the role of the retailer in exacerbating or mitigating competition among manufacturers, the total channel profit and how that is split among the different players. Using prices, sales, and advertising data in the laundry detergent category we find that advertising and pricing are strategic complements as manufacturer advertising increases the price elasticity of demand; advertising competition intensifies price competition but it also improves the profitability of manufacturers; the presence of retailers in the channel leads to increased advertising spending while mitigating the extent of price competition. Manufacturers can enjoy a higher profit from using retailers when they compete in both price and advertising. Finally, we show that the emergence of ecommerce, which enables manufacturers directly selling to end consumers, has asymmetric profit impacts on manufacturers, as brands with lower cost and lower brand goodwill are more benefited from ecommerce.
Author: Srinivas K. Reddy
Publisher: Routledge
ISBN: 1136245723
Category : Business & Economics
Languages : en
Pages : 345
Get Book Here
Book Description
Retailer’s buying power has significantly increased in recent years as a result of a process of market concentration. As vertical relationships in marketing channels have strengthened their influence over the shape of the industry, the producer-distributor relationship has become more central to an understanding of both marketing practice and the conduct and performance of consumer goods industries. This comprehensive and detailed book covers the theory and practice of national and international retail and marketing channels. It provides a structural overview of the producer-distributor relationship as well as analyses of specific aspects of channel control and management. Finally, the book assesses the implications of new developments in the evolution of marketing channels. First published 1989.
Author: Yeujun Yoon
Publisher:
ISBN:
Category : Electronic dissertations
Languages : en
Pages : 120
Get Book Here
Book Description
The dissertation studies the unique impact of two marketing activities on consumer demand and the implications for the firms' behaviors: advertising and star power. In the first essay, I investigate how manufacturers' advertising competition, when advertising has a dynamic impact on the goodwill of brands, interacts with price competition in a manufacturer-retailer channel structure in the laundry detergent category. I find that advertising and price promotion are strategic complements as manufacturer advertising increases the price elasticity of demand. Advertising competition intensifies price competition although it improves the profitability of manufacturers. The presence of retailers in the channel leads to increased advertising spending but also mitigates the extent of price competition. Compared to the case of price competition only, the profitability of using retailers is much higher for manufacturers when they compete in both price and advertising. This implies that previous channel studies (e.g. McGuire and Staelin 1983) may have underestimated the benefits of manufacturers employing retailers to avoid direct competition. I also find that the benefits are asymmetric across manufacturers as brands with a high goodwill level and advertising effectiveness but no cost advantage appear to be most benefited. The second essay examines the effect of star power on consumer demand in professional sports, the largest industry in entertainment business. In particular, I focus on the role of "stars" in driving attendance in major league baseball (MLB) by using rich game level and player level data. In particular, this study goes beyond the typical treatment of stars as brands that drive demand by examining the relative impact of different types of stars on different performance metrics. I found significant positive star power effect on game attendance. Interestingly, I found that star power of competitors can also increase home fans' attendance. Also, I found evidence that star power can help decrease the price sensitivity of consumers. Furthermore, I found that a star player increases game attendance differently across his position: e.g star pitchers are more effective to increase winning probability while star hitters are more effective to generate strong star power. In sum, the findings provide important insights that may help guide team's investment strategies and may inform leagues efforts to design effective revenue sharing mechanisms.
Author: Yeujun Yoon
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Get Book Here
Book Description
Author: Saibal Ray
Publisher: Springer Nature
ISBN: 3030317331
Category : Business & Economics
Languages : en
Pages : 282
Get Book Here
Book Description
This book aims to revisit the “traditional” interaction between channel strategies and the marketing mix in a connected world. In particular, it focuses on the following four dimensions in this context: Consumers, Products, Value Proposition and Sustainability. Keeping in mind the growing digitalization of business processes in the retail world and the move towards omni-channel retailing, the book introduces the state-of-the-art academic and practitioner studies along these dimensions that could enhance the understanding of the potential impact that new technologies and strategies can have on practice in the near future. When launching a new product/service to market, firms usually consider various components of the marketing mix to influence consumers’ purchase behaviors, such as product design, convenience, value proposition, promotions, sustainability initiatives, etc. This mix varies depending on the specific channel and consumer niche that the firm is targeting. But this book shows how channel strategy also influences the effectiveness in utilizing the marketing mix to attract potential customers.
Author: Charles A. Ingene
Publisher: Edward Elgar Publishing
ISBN: 0857938606
Category : Business & Economics
Languages : en
Pages : 608
Get Book Here
Book Description
Distribution channels are the most complex element of the marketing mix to fully grasp and to profitably manage. In this Handbook the authors present cutting-edge research on channel management and design from analytical, conceptual, and empirical perspectives. The breadth of this Handbook makes it appropriate for use in a doctoral course on distribution channels, or as a knowledge-broadening resource for faculty and researchers who wish to understand types of channels research that are outside the scope of their own approach to distribution.
Author: Louis P. Bucklin
Publisher: JAI Press(NY)
ISBN:
Category : Business & Economics
Languages : en
Pages : 424
Get Book Here
Book Description
Author: Charles A. Ingene
Publisher: Springer Science & Business Media
ISBN: 0387227903
Category : Business & Economics
Languages : en
Pages : 590
Get Book Here
Book Description
Mathematical Models of Distribution Channels identifies eight "Channel Myths" that characterize almost all analytical research on distribution channels. The authors prove that models that incorporate one or more Channel Myths generate distorted conclusions; they also develop a methodology that will enable researchers to avoid falling under the influence of any Channel Myth.
Author: alan g. kalton, medini r. singh
Publisher:
ISBN:
Category :
Languages : en
Pages : 41
Get Book Here
Book Description
Author: Emek Basker
Publisher: Edward Elgar Publishing
ISBN: 1783477385
Category : Business & Economics
Languages : en
Pages : 513
Get Book Here
Book Description
This Handbook explores and critically examines current research in economics and marketing science on key issues in retailing and distribution. Providing a rich perspective for the discussion of public policy, contributions from several disciplines and continents range from the history of chains and the impact of multinational retailers on international trade patterns to US merger policy in the retail context, the rise of the Internet, and consumer-to-consumer sales. The chapters address methodological issues such as the structural estimation of entry games between retailers, productivity measurement when both inputs and output are not fully observable, and demand estimation with variable assortment. Policy issues explored include mergers, zoning, and the regulation of buyer power, while other chapters address some of the recent exciting developments in technology, retail formats, and data availability. The book goes on to study the changes in online retailing and ‘big data’, and to examine competition in specific retail sectors including gasoline stations, automobile dealerships, supermarkets, and ‘big box’ retail. This state-of-the-art Handbook is an essential reference for students and academics of economics and marketing science, and offers an outsider’s perspective to specialists in operations research, data analytics, geography, and sociology.
