2009/09/23 by Chi-Cheng Wu, Chi‐Cheng Wu, Ying-Ju Chen +2
Business, Management and Accounting · #Consumer Market Behavior and Pricing #Digital Platforms and Economics #Supply Chain and Inventory Management
paper · doi:10.1287/mksc.1090.0528
openalex publication_date 2009/09/23 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
The existing marketing literature suggests that persuasive advertising elicits counteractions from competing manufacturers and consequently leads to wasteful cancellation of the advertising effects. Thus, persuasive advertising is widely perceived to be combative in nature. A series of previously published papers demonstrates that appropriate targeting may partially mitigate the combative nature of persuasive advertising in that either the rival manufacturer or the retailer may benefit. In this paper, we complement their results by demonstrating the possibility that every channel member may benefit from persuasive advertising, i.e., a Pareto improvement along the distribution channel, thereby leading to the conclusion that persuasive advertising need not result in channel conflict.