Cooperative Advertising Between O2O Catering Channels: In Perspective of Different Integration Modes

Authors

  • Yan-Kwang Chen Department of Distribution Management, National Taichung University of Science and Technology, Taichung, Taiwan
  • Yu-Ting Huang Department of Distribution Management, National Taichung University of Science and Technology, Taichung, Taiwan
  • Fei-Rung Chiu Department of Hotel and M.I.C.E, Management Overseas Chinese University, Taichung, Taiwan
  • Wei-Hung Hsiao Department of Distribution Management, National Taichung University of Science and Technology, Taichung, Taiwan

DOI:

https://doi.org/10.23055/ijietap.2025.32.3.10629

Abstract

More catering companies are trying to increase their capacity utilization during off-peak hours through O2O (online-to-offline) platforms. In order to increase the opportunities for potential customers to spend online, platforms often require catering companies to participate in cooperative advertising, but this may harm the catering companies’ profits from offline customers. This research builds different game-theoretic models based on different O2O channel integration modes and obtains the optimal cooperative advertising decisions and profits. In addition, the influence of model parameters (i.e., product attractiveness, advertising interaction, price discounts, and platform listing fees) on optimized advertising decisions and profits is also discussed. The findings indicate that the fully integrated mode yields the highest profits and demand, followed by the partially integrated mode, with the separate mode being the least effective. Factors like product attractiveness and advertising interaction significantly boost consumer demand. This study contributes originality by extending cooperative advertising theories to the O2O catering industry, incorporating a modified demand function that accounts for price discounts and advertising interactions, and comparing different integration strategies through a game-theoretic approach.

Downloads

Published

2025-06-02

How to Cite

Chen, Y.-K., Huang, Y.-T., Chiu, F.-R., & Hsiao, W.-H. (2025). Cooperative Advertising Between O2O Catering Channels: In Perspective of Different Integration Modes. International Journal of Industrial Engineering: Theory, Applications and Practice, 32(3). https://doi.org/10.23055/ijietap.2025.32.3.10629

Issue

Vol. 32 No. 3 (2025)

Section

Supply Chain Management

License

The Author(s) must formally transfer each article's copyright before publication in the INTERNATIONAL JOURNAL OF INDUSTRIAL ENGINEERING. Such transfer enables the Journal to defend itself against plagiarism and other forms of copyright infringement. Your cooperation is appreciated.

You agree that the copyright of your article to be published in the INTERNATIONAL JOURNAL OF INDUSTRIAL ENGINEERING - THEORY, APPLICATIONS, AND PRACTICE is hereby transferred, throughout the World and for the full term and all extensions and renewals thereof, to INTERNATIONAL JOURNAL OF INDUSTRIAL ENGINEERING - THEORY, APPLICATIONS, AND PRACTICE.

The Author(s) reserve(s): (a) the trademark rights and patent rights, if any, and (b) the right to use all or part of the information contained in this article in future, non-commercial works of the Author's own, or, if the article is a "work-for-hire" and made within the scope of the Author's employment, the employer may use all or part of the information contained in this article for intra-company use, provided the usual acknowledgments are given regarding copyright notice and reference to the original publication.

The Author(s) warrant(s) that the article is Author's original work and has not been published before. If excerpts from copyrighted works are included, the Author will obtain written permission from the copyright owners and credit the article's sources.

The author also warrants that the article contains no libelous or unlawful statements and does not infringe on the rights of others. If the article was prepared jointly with other Author(s), the Author agrees to inform the co-Author(s) of the terms of the copyright transfer and to sign on their behalf; or in the case of a "work-for-hire," the employer or an authorized representative of the employer.

The journal does not provide the author copy of the final paper when it is published. The author(s) can make(s) a subscription to INTERNATIONAL JOURNAL OF INDUSTRIAL ENGINEERING - THEORY, APPLICATIONS, AND PRACTICE if they want to get the final paper that has already been published.

The journal is registered with the Library of Congress (ISSN # 1943-670X). All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the journal.

The author reserves patent and trademark rights and the right to use all or part of the information contained in the article in future non-commercial works.