Variations in the contractual terms of cooperative advertising contracts: An empirical investigation

Research output: Contribution to journalArticlepeer-review

38 Scopus citations

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

Keywords

  • channel coordination
  • cooperative advertising
  • reseller externality

Fingerprint Dive into the research topics of 'Variations in the contractual terms of cooperative advertising contracts: An empirical investigation'. Together they form a unique fingerprint.

Cite this