In this work, we investigated pricing and cooperative advertising as the two problems in a dual channel supply chain to verify the adjustment of supply chain. It has been known that coordinate of decisions in supply chain results in increased efficiency of the system as a whole. Therefore, other organizations increasingly benefit from various innovations and strategies to survive and succeed in the competitive market. To this end, one of the most influential parameters is to coordinate these strategies, two of which are pricing and cooperative advertising to attract the customers to the brand and encourage them to purchase. These strategies are currently being applied in a variety of companies, including electronic businesses. Establishment of the internet channel and services is a successful example of new innovations in marketing, thanks to the fast internet growth. The necessity of coordinating becomes more essential in this context to avoid the conflicts between supply chain members. On the other hand, demand and supply is often uncertain, which should be taken into account to approach the real world. The Stackelberg-manufacturer game was selected in this work to thoroughly study the cooperative advertising. We also used Nash and cooperative games to verify the results. Finally, the effect of parameters on demand functions, profit functions, internet channel price, and retail price was investigated.
