publication . Article . 2009

Is Persuasive Advertising Always Combative in a Distribution Channel?

Chi-Cheng Wu; Ying-Ju Chen; Chih-Jen Wang;
Open Access
  • Published: 23 Sep 2009 Journal: Marketing Science, volume 28, pages 1,157-1,163 (issn: 0732-2399, eissn: 1526-548X, Copyright policy)
  • Publisher: Institute for Operations Research and the Management Sciences (INFORMS)
Abstract
The existing marketing literature suggests that persuasive advertising elicits counteractions from competing manufacturers and consequently leads to wasteful cancellation of the advertising effects. Thus, persuasive advertising is widely perceived to be combative in nature. A series of previously published papers demonstrates that appropriate targeting may partially mitigate the combative nature of persuasive advertising in that either the rival manufacturer or the retailer may benefit. In this paper, we complement their results by demonstrating the possibility that every channel member may benefit from persuasive advertising, i.e., a Pareto improvement along th...
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ACM Computing Classification System: InformationSystems_MISCELLANEOUS
free text keywords: Marketing, Business and International Management, persuasive advertising, product substitutability, channel conflict, game theory, Pareto principle, Native advertising, Marketing, Game theory, Persuasive advertising, Communication channel, Business, Channel conflict, Advertising
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