Retail promotions with negative brand image effects: Is cooperation possible?

摘要: Abstract We consider a channel of distribution with single manufacturer M and retailer R. advertises in national media to build up the image for one his brands. R promotes locally brand increase sales revenue, but these efforts are harmful image. address question whether two firms can agree participate cooperative promotion program where pays part costs incurred by when promoting brand. The model is differential game an infinite time horizon. Two Nash equilibria serve as benchmarks assessing feasibility program: which myopic far-sighted. Our results show that implementable if level initial “small”, or “intermediate” not too damaging In remaining cases without promotional support played should behave myopically such cases.