An integrative framework of cooperative advertising with reference price effects

Martín‐Herrán, Guiomar; Sigué, Simon Pierre

doi:10.1016/j.jretconser.2022.103166

Cited by 10 publications

(9 citation statements)

References 32 publications

(49 reference statements)

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“…In addition to the fairness concerns, some other managerial behaviors, such as reference price, risk, or inequality aversion, have been investigated with a cooperative advertising program. [62] and [46] analyzed the reference price impact on cooperative advertising strategies with differential equations and a two-period Stackelberg game, respectively. [66] examined the cooperative advertising and ordering policies when both supply chain members are risk-averse.…”

Section: Literature Reviewmentioning

confidence: 99%

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Cooperative advertising and coordination in a supply chain: the role of Nash bargaining fairness concerns

Du,

Jiang,

Tao

et al. 2024

RAIRO-Oper. Res.

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This study constructs a game-theoretic model of cooperative advertising in a supply chain with Nash bargaining solutions as the fairness reference point. We use a square root response function to describe the saturation effect of advertising. We find that the retailer's Nash bargaining fairness concerns (NBFC) improve the local advertising investment even more than the level of the centralized case. The effect of NBFC on the retailer's profit is inverted U-shaped, rising first and then falling, and vice versa for the manufacturer. As the fairness-concerned coefficient increases from small to large, the efficiency of the supply chain changes from improvement to decline. Moreover, we find that a two-way subsidy mechanism in cooperative advertising still works on coordination although the retailer possesses NBFC. The study offers practical management insights into the operational strategies of supply chain members.

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Section: Literature Reviewmentioning

confidence: 99%

“…Within the enterprise business operation, many products need to be advertised jointly by manufacturers and retailers to enhance the brand and achieve sales [21,46]. Many well-known companies, such as Apple, invest heavily in Internet and television (TV) advertising and gift-giving campaigns at retail terminals within the territory [58].…”

Section: Introductionmentioning

confidence: 99%

Cooperative advertising and coordination in a supply chain: the role of Nash bargaining fairness concerns

Du,

Jiang,

Tao

et al. 2024

RAIRO-Oper. Res.

View full text Add to dashboard Cite

show abstract

“…Except for the Sewall and Goldstein (1979) and Liefeld and Heslop (1985) studies [6,28], most studies found that advertised reference prices can substantially influence consumer price perceptions and behavioral intentions [1,3,4,23,26,29]. In their integrative review of the effects of advertised reference prices, Compeau and Grewal (1998) point out that an advertised price reference is a powerful advertising means, with a great opportunity for deceiving consumers, which requires careful monitoring [30].…”

Section: Advertised Reference Pricesmentioning

confidence: 99%

“…A considerable number of theoretical rationales and empirical research findings indicate that advertisements with reference price claims can influence consumer price perceptions, attitude toward the offer, and behavioral intentions [1][2][3][4]. These research findings suggest that reference price advertisements are capable of confusing and misleading consumers.…”

Section: Introductionmentioning

confidence: 99%

The Moderating Role of Point-of-Purchase Price Information in Consumer Price Perception and Purchase Intention

Lii

Ding

Kuo

2023

JEMT

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Aims: Advertised reference prices are one of the contextual prices that have attracted substantial interest. This research proposes the moderating effect of point-of-purchase price information related to product line and other brand prices on consumers’ price perception and purchase intention. Methods: Using the literature review of reference prices as a method, it was found that contextual moderators that influence consumer perceptions of point-of-purchase price information were limited. Consequently, integrating the literature of advertised reference prices and the literature gap in this field leads to the proposition. Conclusions: As a result, we propose that product-line prices and prices of other brands moderate the effect of an advertised reference price on the perceived value of consumers, the benefits of search, and the intention to purchase. Hence, the impact of advertised reference prices may be mitigated to a certain extent, which may reduce the deceptiveness of the advertised reference prices.

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“…Many researchers agree with the general proposition that reference prices are derived from experiences with the product and/or price information in the environment [5,7]. However, there is no consensus in the literature reviewed on which price or price-related information within consumer experiences and/or purchasing environment is most likely used as reference for the purpose of price evaluations [7][8][9][10][11][12][13]. One reason for this problem is the multidimensionality of reference prices [8,10].…”

Section: Introductionmentioning

confidence: 99%

How Do We Perceive Prices? A Three-category Taxonomy of Reference Price Effect on Consumers’ Price Judgments

Lii

Ding

Kuo

2023

AJEBA

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Aims: Price is one of the pivotal determinants when consumers make purchasing decisions. An unresolved issue in extant literature regarding factors that affect price referencing remains. The difficulty is in identifying types of price references that consumers will use in any given purchasing situation. This study hence proposed a new scheme of three-category taxonomy of reference price model and can be used as a conceptual framework for examining the effects of various reference prices on consumers’ price judgments. Methodology: A literature review and theoretical background lead to propositions. Conclusion: This research not only fills the literature gaps of referencing prices on consumer price judgments but also a three-category reference price model is developed. The present study goes beyond previous work in this field and a comprehensive set of reference price cues that influence consumers’ final reference price formation. This new model gives future research a direction to test and refine relationships proposed in the present study.

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An integrative framework of cooperative advertising with reference price effects

Cited by 10 publications

References 32 publications

Cooperative advertising and coordination in a supply chain: the role of Nash bargaining fairness concerns

Cooperative advertising and coordination in a supply chain: the role of Nash bargaining fairness concerns

The Moderating Role of Point-of-Purchase Price Information in Consumer Price Perception and Purchase Intention

How Do We Perceive Prices? A Three-category Taxonomy of Reference Price Effect on Consumers’ Price Judgments

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