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This structure enables the manufacturers to reach multiple segments of consumers with different online and offline shopping preferences, but it may create channel conflicts due to the manufacturers\u2019 competitive position in the end market. Cooperative advertising programs can be implemented in response to the emerging competitive dynamics between the manufacturers and the retailers. We investigate the impact of the consumers\u2019 sales channel preference (<jats:italic>i.e<\/jats:italic>., \u201cconsumer loyalty\u201d) and the product compatibility with online shopping (<jats:italic>i.e<\/jats:italic>., \u201cproduct web compatibility or web fit\u201d) on the cooperative advertising and pricing decisions of a manufacturer and a retailer in a dual-channel supply chain. We use game-theoretical models and characterize the firms\u2019 equilibrium behaviors under different power structures in the channel. Our results indicate that the level of the retailer\u2019s advertising investment and the manufacturer\u2019s reimbursement in the cooperative advertising program depend critically on consumer loyalty, product web compatibility, and the power distribution among the channel members. For example, when the channel power is symmetrically distributed or held asymmetrically by the retailer, the retailer\u2019s local advertising level increases as the product web compatibility decreases or the proportion of store-loyal consumers increases; whereas this trend is reversed when the manufacturer is the channel leader. We examine how the introduction of the direct channel affects the profits, and we generate additional managerial insights from numerical experiments.<\/jats:p>","DOI":"10.1051\/ro\/2022120","type":"journal-article","created":{"date-parts":[[2022,7,19]],"date-time":"2022-07-19T07:57:54Z","timestamp":1658217474000},"page":"2557-2580","source":"Crossref","is-referenced-by-count":5,"title":["Effects of consumer loyalty and product web compatibility on cooperative advertising and pricing policies in a dual-channel supply chain"],"prefix":"10.1051","volume":"56","author":[{"given":"Jafar","family":"Chaab","sequence":"first","affiliation":[]},{"ORCID":"https:\/\/orcid.org\/0000-0001-7053-0179","authenticated-orcid":false,"given":"Ozgun","family":"Caliskan Demirag","sequence":"additional","affiliation":[]}],"member":"250","published-online":{"date-parts":[[2022,8,18]]},"reference":[{"key":"R1","doi-asserted-by":"crossref","first-page":"458","DOI":"10.1016\/j.ejor.2011.06.032","volume":"219","author":"Ahmadi-Javid","year":"2012","journal-title":"Eur. 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