When should a retailer invest in brand advertising?
研究一个制造商和一个零售商组成的动态营销渠道，探讨零售商投资品牌广告对利润和消费者剩余的影响，发现零售商投资品牌广告能提高双方利润和消费者剩余，并具有部分渠道协调作用。
We consider a dynamic marketing channel comprising of one manufacturer and one retailer, where consumer demand depends on price and on brand reputation. We investigate two scenarios. In the first one, the retailer may also invest in brand advertising, while in the second, it does not. Comparing the results of the two scenarios yields interesting insights into the impact of the retailer’s brand advertising. Findings include that when the retailer invests in the brand’s reputation, both players achieve higher profits and the consumer obtains a higher surplus. This gives the retailer’s brand advertising a (partial) channel coordination flavor, a result that has never before been reported in the literature.