search query: @author Lal, R. / total: 14
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| Author: | Lal, R. Narasimhan, C. |
| Title: | The inverse relationship between manufacturer and retailer margins: A theory |
| Journal: | Marketing Science
1996 : VOL. 15:2, p. 132-151 |
| Index terms: | ADVERTISING COMPETITION MARKETING CHANNELS THEORIES |
| Language: | eng |
| Abstract: | In the study, relationship btw. a manufacturer's brand advertising and its impact on wholesale and retail margins in consumer goods markets is examined. There is a model constructed of retailers and manufacturers, and using tools from game theory it is explained why (under some conditions), a manufacturer's advertising can squeeze the retail margin while simultaneously increasing the wholesale margin. The model explains why retail and wholesale margins can move in opposite directions and also suggests when in those retail markets where consumers shop for a basket of goods. In addition, this analysis reveals that retailers make higher margins on unadvertised products and less on advertised products. |
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