In a marketing channel governed by goodwill dynamics, players adjust their pricing and advertising strategies when shifting from a wholesale price contract (WPC) to a revenue sharing contract (RSC). We demonstrate that this shift is not payoff-Pareto-improving when the retailer, who is the player transferring the share of revenues, is myopic. Further, we identify the conditions under which the negative effects an RSC creates may be alleviated when the manufacturer offers a support program. Finally, contrarily to operational coordination instruments such as an RSC, a support program always leads to a payoff-Pareto-improving situation and thus should be preferred by firms to reach coordination.
Overcoming the drawbacks of a revenue sharing contract in a marketing channel through a coop program / De Giovanni, P; Roselli, M. - In: ANNALS OF OPERATIONS RESEARCH. - ISSN 1572-9338. - 196:1(2012), pp. 201-222. [10.1007/s10479-012-1113-6]
Titolo: | Overcoming the drawbacks of a revenue sharing contract in a marketing channel through a coop program | |
Autori: | ||
Data di pubblicazione: | 2012 | |
Rivista: | ||
Citazione: | Overcoming the drawbacks of a revenue sharing contract in a marketing channel through a coop program / De Giovanni, P; Roselli, M. - In: ANNALS OF OPERATIONS RESEARCH. - ISSN 1572-9338. - 196:1(2012), pp. 201-222. [10.1007/s10479-012-1113-6] | |
Handle: | http://hdl.handle.net/11385/190292 | |
Appare nelle tipologie: | 01.1 - Articolo su rivista (Article) |
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Overcoming the drawback of a RSC with a support program.pdf | Documento in Post-print | DRM non definito | Administrator | |
De Giovanni_Overcoming the drawbacks_2012.pdf | Versione dell'editore | DRM non definito | Administrator |