Analysis Of Cooperative Advertising Strategy In A Dual-channel Supply Chain With The Fairness Concern

Cooperative advertising is an important way for supply chain to participate in enterprise product marketing.This means that retailers provide local advertising in the supply chain to stimulate the potential demand of the local market,while manufacturers provide retailers with certain advertising compensation to stimulate retail sales and improve the market share of products together.In particular,with the rapid development of China's network economy,a huge market space has attracted many manufacturers to establish their own online direct sales channels through self-built online shopping malls on the basis of retaining traditional retail channels.Therefore,research on cooperative advertising under the dual-channel supply chain is more practically meaningful for the retailer cooperation model under the new era.Simultaneously there is fair concern because people always pay more attention the fairness of their own gains.Therefore,the fairness concern of the retailer in the supply chain or the fairness concern of the manufacturer will also affect the the cooperative advertising strategy of the manufacturers and retailers.The above problems are analyzed by considering the fairness concern in dual-channel supply chain cooperative advertising strategy,in order to theoretically enrich existing cooperative advertising research content,and provide better suggestions for manufacturers and retailers to implement cooperative advertising decisions in practice.This paper combines cooperative advertising,dual-channel supply chain,and equity concerns to establish a fair and neutral dual-channel cooperative advertising model and two dual-channel supply chain cooperative advertising models that considers the concerns of retailer and manufacturer separately.Then,this paper analyzed the cooperative advertising strategies of the two-channel supply chain in these three different situations,and further discussed the impact of fairness concern of retailer and fairness concern of manufacturer on the cooperative advertising decisions of them in the dual-channel supply chain.At the same time,this paper further analyzed the level of fairness concerns for retailers,the level of advertising investment,the share of manufacturers' advertising costs,the profits of manufacturer and retailer and the total profits of supply chain systems.The main conclusions of this paper are as followed:(1)For retailers,the retailer's advertising investment level of fairness concern is higher than the retailer's advertising investment level of fairness neutrality;therefore,the retailer's fair concern level promotes retailer advertising investment level.But the manufacturer's fair concern level will make retailer's advertising investment levels continue to decrease.(2)For the manufacturer,the fairness concern of the retailer has a nonlinear relationship with the manufacturer on the share of advertising costs,while the advertising cost sharing ratio under the manufacturer's equity concerns is always lower than it's under the fair-neutral advertising,therefore,the manufacturer's own fairness concern will make it reduce its own advertising cost sharing rate.(3)For the supply chain system,when the ratio of advertising investment to the demand of manufacturers' online direct sales channels is less than a certain level,the supply chain system profits of the retailer's fairness concern is higher than that of the fair of neutral supply chain system;However,under the fairness concern of manufacturer,manufacturer who is the dominant force in the supply chain will not only reduce its own profit but also lead to the loss of the entire supply chain system.The article analyzed the cooperative advertising strategy based on the combination of fairness concern factors,cooperative advertising,and dual-channel supply chain,which not only enriched the research content of cooperative advertising,but also had positive guidance significance for cooperative advertising management practices between upstream and downstream members of the supply chain.First of all,for the retailer,retailer should learn to express rationally their own fair preference,and strengthen its own initiative in the cooperation negotiations.Secondly,for the manufacturer,manufacturer should correctly treat retailer's reasonable fair-will preference and take the initiative to shoulder some of the advertising cost of the retailer and strengthen the closeness of their cooperation.