An Application of the Win-Win-Win Papakonstantinidis Model as an Innovative Bargaining Solution Analysis in Cooperative Sales Promotion Campaigns

Abstract:     
Cooperative promotion is an important instrument for aligning manufacturer and retailer decisions in marketing channels. On the other hand, bargaining seems to be critical for marketing channel coordination, e.g., for vertical cooperative promotion. Based on our previous study (Spais, Papakonstantinidis and Papakonstantinidis, 2009), we propose an extension of the win-win-win papakonstantinidis conceptualization, which may lead us to a more valuable “win-win-win spais-papakonstantinidis-papakonstantinidis model”, as an innovative bargaining solution analysis for cases of optimal allocation of a promotion budget in a cooperative sales promotion campaign in vertical marketing channels. The proposition includes three (3) adjusted utility functions. In accordance to the research question of the study, the literature review findings allow us to extend the three adjusted utility functions considering the parameters of sales response budgeting method, the break-even sales analysis and the independent variable of the trade promotion goals for the existed level of sales of the marketing channel member. Based on the assumptions of the win-win-win papkonstantinidis model, we present the referee solution in order to be accepted by all three cooperating players; and the constraints. The basic initial assumption of this study is that specific contexts of marketing and promotion planning and decisionmaking in a cooperative level need adjusted bargaining solution analyses.

Keywords: cooperative promotion campaign, bargaining solution analysis, win-win-win spais-papakonstantinidis-papakonstantinidis model, utility functions and vertical marketing channels

JEL Classification: M31, M37, M39

Accepted Paper Series