an:05074002
Zbl 1114.90423
Berger, P. D.; Lee, J.; Weinberg, B. D.
Optimal cooperative advertising integration strategy for organizations adding a direct online channel
EN
J. Oper. Res. Soc. 57, No. 8, 920-927 (2006).
00184743
2006
j
90B60
cooperative advertising; integration strategies; online selling; electronic retailing
Summary: Since the advent of the Web, retailers who served consumers offline (ie in stores or via catalogue) have grappled with how to effectively integrate the Internet into their marketing strategies and tactics. Clearly, how a firm elects to integrate the Internet into its retailing process, and how it coordinates offline and online strategic decisions, can impact its performance. In this paper, we examine integration decisions from a cooperative advertising perspective to determine the profitability of various integration strategies. We find that profit is greater when using a 'partial-integration' strategy rather than a 'separation' strategy; moreover, we find that profit is yet greater when using a 'full-integration' strategy rather than a 'partial-integration' strategy.