Cooperative advertising for garment supply chain in dual channel system

Since garment enterprises often adopt dual channel marketing system,i.e.,joining a union and direct sale,a cooperative advertising game model is built of the dual channel system.A comparative study is made of the optimal cooperative advertising strategies between the centralized decision and the decentralized one,along with the optimal subsidiary proportion for advertising and the maximized benefit of the supply chain.The effect of relevant parameters on cooperative advertising decisions is also analyzed.The results show that,the cooperative advertising equilibrium solution exits and is unique under the two decisions,and in terms of cooperative advertising the centralized decision is superior to the decentralized one.Furthermore,a Pareto optimal solution is got to achieve supply chain coordination under the centralized decision with Nash bargaining model.Finally,the related conclusions are verified with numerical examples.