Optimal Decisions Of Cooperative Advertising With Advertising Threshold Effects

The world of marketing and advertising has changed dramatically over the past two decades.With the development of the Internet and We Media,cooperative ad-vertising programs have been favored by many enterprises,especially some emerging enterprises or small and medium-sized enterprises,and the forms of cooperative adver-tising are also diverse.Cooperative advertising refers to an advertising form in which different enterprises jointly advertise and share advertising costs.These enterprises can be horizontally related or irrelevant,or they can be vertically related manufacturers,retailers,or distributors.Practice shows that there exists the advertising threshold effect when enterprises make advertising decisions,which implies advertising has little effect on sales if the level of advertising is below a certain level.In recent years,many scholars have done a lot of research on cooperative advertising decision-making and supply chain coordi-nation,but they have ignored the influence of the advertising threshold effect that has been confirmed by scholars on cooperative advertising decision-making.To fill this gap,this dissertation investigates the impact of the advertising threshold effect on the decisions of supply chain members from the perspective of cooperative ad-vertising.Chapter 3 studies the impacts of the advertising threshold effect on the adver-tising and price decisions of monopoly,duopoly enterprises,and horizontal cooperative programs.By establishing a two-stage sales function model to describe the advertising threshold effect on product sales,we obtain the optimal solution or equilibrium solution of enterprises under different advertising threshold.By comparing the profits of enter-prises,we discuss the value of horizontal cooperative advertising programs.Chapter 4 focuses on the influence of the advertising threshold effect on decision-making in ver-tical cooperative advertising.To facilitate comparative analysis,this chapter first an-alyzes the impact of advertising threshold effect on the decision-making of traditional supply chain members and then studies the impact of advertising threshold effect on wholesale price and advertising participation rate of manufacturers in the context of co-operative advertising.By comparing the decisions of supply chain members with and without advertising cooperation,the results show that a cooperative advertising program helps the retailer to overcome the threshold effect of advertising and improve the level of advertising.As an extension,this chapter incorporates the manufacturer's national advertising level into the model,and the results show that the national advertising level is affected by the advertising threshold and increases with the increase of the advertising threshold.Based on the vertical cooperative advertising in Chapter 4,Chapter 5 consid-ers the impact of the advertising threshold effect on the cooperative advertising decision based on the manufacturer's advertising accrual rate.Chapter 5 first studies the situation where the advertising threshold effect is absent and determines the equilibrium solution for the members of the supply chain.The results show that the advertising accrual rate affects the retailer's advertising decision.Then Chapter 5 explores the situation where the advertising threshold effect exists,and the results show that the presence of the ad-vertising accrual rate makes the retailer's advertising decisions more susceptible to the advertising threshold effect.Innovations and contributions of this dissertation are as follows:First,this dis-sertation derive the research problems from cooperative advertising practice and in-corporates the advertising threshold effect into the enterprise decision-making model,which fills the research gap on the advertising threshold effect in cooperative adver-tising and enriches the theory of cooperative advertising decision-making.Second,this dissertation comprehensively analyzes the impact of advertising threshold effect on the decision-making of horizontal cooperative advertising and vertical cooperative advertising programs respectively and gives the optimal decision of enterprises,which provides support for enterprise practice.Third,this dissertation incorporates the adver-tising accrual rate into the enterprise decision-making model and describes the change of enterprise decision-making.This research is more in line with the situation of ad-vertising decision-making in practice.Fourth,this dissertation proposes two horizontal cooperative advertising programs,which provide an effective solution for small and medium-sized enterprises to overcome the advertising threshold effect.