Variations in the contractual terms of cooperative advertising contracts

An empirical investigation

Research output: Contribution to journalArticle

35 Citations (Scopus)

Abstract

Cooperative advertising arrangements between manufacturers and resellers contain two principal components in their payment schedules: a participation rate and an accrual rate. We analyze 2,156 cooperative advertising plans to see how they vary across consumer and industrial products, as well as between convenience and nonconvenience consumer products. We also study how participation and accrual rates vary by the level of manufacturer concentration across product categories. We find that both participation and accrual rates are higher for consumer products than for industrial products and within consumer products are higher for convenience products than for nonconvenience products. We find mixed results for the effect of manufacturer concentration on these rates. We discuss how these results are consistent with existing perspectives on cooperative advertising.

Original languageEnglish (US)
Pages (from-to)15-22
Number of pages8
JournalMarketing Letters
Volume6
Issue number1
DOIs
StatePublished - Jan 1 1995

Fingerprint

Empirical investigation
Cooperative advertising
Consumer products
Participation
Participation rate
Schedule
Principal components
Payment
Product category

Keywords

  • channel coordination
  • cooperative advertising
  • reseller externality

Cite this

Variations in the contractual terms of cooperative advertising contracts : An empirical investigation. / Dutta, Shantanu; Bergen, Mark; John, George; Rao, Akshay.

In: Marketing Letters, Vol. 6, No. 1, 01.01.1995, p. 15-22.

Research output: Contribution to journalArticle

@article{00f18cfb451e43198667e8fe471a4283,
title = "Variations in the contractual terms of cooperative advertising contracts: An empirical investigation",
abstract = "Cooperative advertising arrangements between manufacturers and resellers contain two principal components in their payment schedules: a participation rate and an accrual rate. We analyze 2,156 cooperative advertising plans to see how they vary across consumer and industrial products, as well as between convenience and nonconvenience consumer products. We also study how participation and accrual rates vary by the level of manufacturer concentration across product categories. We find that both participation and accrual rates are higher for consumer products than for industrial products and within consumer products are higher for convenience products than for nonconvenience products. We find mixed results for the effect of manufacturer concentration on these rates. We discuss how these results are consistent with existing perspectives on cooperative advertising.",
keywords = "channel coordination, cooperative advertising, reseller externality",
author = "Shantanu Dutta and Mark Bergen and George John and Akshay Rao",
year = "1995",
month = "1",
day = "1",
doi = "10.1007/BF00994036",
language = "English (US)",
volume = "6",
pages = "15--22",
journal = "Marketing Letters",
issn = "0923-0645",
publisher = "Springer New York",
number = "1",

}

TY - JOUR

T1 - Variations in the contractual terms of cooperative advertising contracts

T2 - An empirical investigation

AU - Dutta, Shantanu

AU - Bergen, Mark

AU - John, George

AU - Rao, Akshay

PY - 1995/1/1

Y1 - 1995/1/1

N2 - Cooperative advertising arrangements between manufacturers and resellers contain two principal components in their payment schedules: a participation rate and an accrual rate. We analyze 2,156 cooperative advertising plans to see how they vary across consumer and industrial products, as well as between convenience and nonconvenience consumer products. We also study how participation and accrual rates vary by the level of manufacturer concentration across product categories. We find that both participation and accrual rates are higher for consumer products than for industrial products and within consumer products are higher for convenience products than for nonconvenience products. We find mixed results for the effect of manufacturer concentration on these rates. We discuss how these results are consistent with existing perspectives on cooperative advertising.

AB - Cooperative advertising arrangements between manufacturers and resellers contain two principal components in their payment schedules: a participation rate and an accrual rate. We analyze 2,156 cooperative advertising plans to see how they vary across consumer and industrial products, as well as between convenience and nonconvenience consumer products. We also study how participation and accrual rates vary by the level of manufacturer concentration across product categories. We find that both participation and accrual rates are higher for consumer products than for industrial products and within consumer products are higher for convenience products than for nonconvenience products. We find mixed results for the effect of manufacturer concentration on these rates. We discuss how these results are consistent with existing perspectives on cooperative advertising.

KW - channel coordination

KW - cooperative advertising

KW - reseller externality

UR - http://www.scopus.com/inward/record.url?scp=0002990214&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0002990214&partnerID=8YFLogxK

U2 - 10.1007/BF00994036

DO - 10.1007/BF00994036

M3 - Article

VL - 6

SP - 15

EP - 22

JO - Marketing Letters

JF - Marketing Letters

SN - 0923-0645

IS - 1

ER -