Modelling Subsidy as a Cooperative Advertising Channel Coordination Mechanism

P. E. Ezimadu

doi:10.4314/njbas.v27i2.17

E-ISSN 2756-4843 | ISSN 0794-5698

2021, Vol: 29, Issue: 2

29 / 2Current Issue Online First Archive Aims and Scope Abstracting & Indexing Most Accessed Articles Most Downloaded Articles Most Cited Articles

« Previous Article

Original Research

Nig. J. Basic Appl. Sci.. 2019; 27(2): 127-135

doi: 10.4314/njbas.v27i2.17

Modelling Subsidy as a Cooperative Advertising Channel Coordination Mechanism

P. E. Ezimadu.

Abstract
This work considers the use of subsidy as channel coordination strategy in vertical cooperative advertising in which the manufacturer is the Stackelberg game leader and the retailer is the follower. While the retailer is directly involved in advertising, the manufacturer is indirectly involved through the provision of subsidy to aid the retailer in advertising the product. The work models the demand function using a multiplicative advertising-price-demand function, and obtains the players prices, the retail advertising effort, the manufacturers subsidy rate and the payoffs. The work observes that with increasing subsidy, the manufacturers price margin increases while that of the retailer reduces and eventual becomes zero with total subsidy. However, the manufacturer should not totally subsidise retail advertising since it would be counterproductive for him, while at the same time would lead to very large retail payoff. Thus with appropriate subsidy strategy the prices and payoffs, and eventually the entire channel can be coordinated.

Key words: Channel coordination, Vertical cooperative advertising, Stackelberg game, Advertising-price-demand function, Subsidy rate

	ARTICLE TOOLS
	Abstract
	PDF Fulltext
	How to cite this article
	Citation Tools
	Related Records
	Articles by P. E. Ezimadu
	on Google
	on Google Scholar

How to Cite this Article

Pubmed Style

P. E. Ezimadu. Modelling Subsidy as a Cooperative Advertising Channel Coordination Mechanism. Nig. J. Basic Appl. Sci.. 2019; 27(2): 127-135. doi:10.4314/njbas.v27i2.17

Web Style

P. E. Ezimadu. Modelling Subsidy as a Cooperative Advertising Channel Coordination Mechanism. https://www.njbas-udus.com/?mno=49480 [Access: June 08, 2022]. doi:10.4314/njbas.v27i2.17

AMA (American Medical Association) Style

P. E. Ezimadu. Modelling Subsidy as a Cooperative Advertising Channel Coordination Mechanism. Nig. J. Basic Appl. Sci.. 2019; 27(2): 127-135. doi:10.4314/njbas.v27i2.17

Vancouver/ICMJE Style

P. E. Ezimadu. Modelling Subsidy as a Cooperative Advertising Channel Coordination Mechanism. Nig. J. Basic Appl. Sci.. (2019), [cited June 08, 2022]; 27(2): 127-135. doi:10.4314/njbas.v27i2.17

Harvard Style

P. E. Ezimadu (2019) Modelling Subsidy as a Cooperative Advertising Channel Coordination Mechanism. Nig. J. Basic Appl. Sci., 27 (2), 127-135. doi:10.4314/njbas.v27i2.17

Turabian Style

P. E. Ezimadu. 2019. Modelling Subsidy as a Cooperative Advertising Channel Coordination Mechanism. Nigerian Journal of Basic and Applied Sciences, 27 (2), 127-135. doi:10.4314/njbas.v27i2.17

Chicago Style

P. E. Ezimadu. "Modelling Subsidy as a Cooperative Advertising Channel Coordination Mechanism." Nigerian Journal of Basic and Applied Sciences 27 (2019), 127-135. doi:10.4314/njbas.v27i2.17

MLA (The Modern Language Association) Style

P. E. Ezimadu. "Modelling Subsidy as a Cooperative Advertising Channel Coordination Mechanism." Nigerian Journal of Basic and Applied Sciences 27.2 (2019), 127-135. Print. doi:10.4314/njbas.v27i2.17

APA (American Psychological Association) Style

P. E. Ezimadu (2019) Modelling Subsidy as a Cooperative Advertising Channel Coordination Mechanism. Nigerian Journal of Basic and Applied Sciences, 27 (2), 127-135. doi:10.4314/njbas.v27i2.17

Most Viewed Articles

Isolation and Identification of Fungi Associated with the Spoilage of Sweet Orange (Citrus Sinensis) Fruits In Sokoto State
I.Y. Tafinta, K.Shehu, H. Abdulganiyyu, A.M. Rabe and A. Usman
Nig. J. Basic Appl. Sci.. 2013; 21(3): 193-196
» Abstract & References

Heavy Metals and Physicochemical Properties of Soils in Kano Urban Agricultural Lands
U.M. Dawaki, A.U. Dikko, S.S. Noma and U. Aliyu
Nig. J. Basic Appl. Sci.. 2013; 21(3): 239-246
» Abstract & References

Study on Biochemical Indices of Liver Function Tests of Albino Rats Supplemented with Three Sources of Vegetable Oils [English]
K.E. Imafidon and L.O. Okunrobo
Nig. J. Basic Appl. Sci.. 2012; 20(2): 105-110
» Abstract

Effect of Sources of Organic Manure on Growth and Yields of Okra (Abelmoschus esculentus L.) in Sokoto, Nigeria [English]
R.A. Tiamiyu, H.G. Ahmed and A.S. Muhammad
Nig. J. Basic Appl. Sci.. 2012; 20(3): 213-216
» Abstract

Optimum Temperature and Thermal Stability of Crude Polyphenol Oxidase from some Common Fruits
AB Bello, MS Sule
Nig. J. Basic Appl. Sci.. 2012; 20(1): 27-31
» Abstract

Most Downloaded

The Swelling Behaviour of Polystyrene (PS)/ Polyvinylacetate (Pvac) Blends in Different Solvents and the Effects of -Cellulose used as Filler on the Electrical Conductivity. [English]
P. A. P. Mamza and B.T. Nwufo
Nig. J. Basic Appl. Sci.. 2008; 16(2): 165 -
» Abstract

Optimization of Steam Distillation of Essential Oil of Eucalyptus tereticornis by Response Surface Methodology [English]
M.S. Galadima, A.S. Ahmed, A.S. Olawale and I. M. Bugaje
Nig. J. Basic Appl. Sci.. 2012; 20(4): 368-372
» Abstract

Characterization and Classification of Soils on an Agricultural landscape in Dingyadi District, Sokoto State, Nigeria
M.B. Sharu, M. Yakubu, S.S. Noma and A.I.Tsafe
Nig. J. Basic Appl. Sci.. 2013; 21(2): 137 -147
» Abstract

Biogas production through Co-digestion of palm oil mill effluent with cow manure
Umar Hayatu Sidik, Firdausi Bin Razali, Sharifah Rafidah Wan Alwi, Fadimtu Maigari
Nig. J. Basic Appl. Sci.. 2013; 21(1): 79-84
» Abstract

Most Cited Articles

Copyright of Published Articles

Published articles in the Nigerian Journal of Basic and Applied Sciences (NJBAS) are subject to the copyright laws of the Usmanu Danfodiyo University governing intellectual property rights. Authors retain the copyright to their articles published by NJBAS provided the original source of the publication is properly acknowledged. The University reserves the right however, to retract any work published by NJBAS provided there is sufficient evidence to inform such decision. These rights are subject to change without notice from or liability to Nigerian Journal of Basic and Applied Sciences.

Copyright � 2022 Nigerian Journal of Basic and Applied Sciences All Rights Reserved. Subject to change without notice from or liability to Nigerian Journal of Basic and Applied Sciences.
For best results, please use Internet Explorer or Google Chrome

Contact Information

Nigerian Journal of Basic and Applied Sciences (NJBAS)

Usmanu Danfodiyo University, Sokoto

P.M.B. 2346, Sokoto, Nigeria

email: njbas@udusok.edu.ng; publicationeditor.njbas@udusok.edu.ng

Prof. A. A. Aliero

Editor-in-Chief

+2348034635146

Dr. M. L. Mohammed

Publication Editor

+2348032303517

Dr. M. E. Sadiq

Managing Editor

+2349091113143; ;

POLICIES & JOURNAL LINKS

Contact Information

How to cite this article