Cause Marketing Decisions With Consumer Prosocial Preference and Asymmetric Competition
Chuanliang Wu et al.
What the paper says
ABSTRACT Firms commonly implement cause marketing (CM) to attract customers to purchase their products. This study introduces a two‐stage simultaneous game model to examine the CM decisions of two firms offering substitute products of varying quality, while taking into account the prosocial preference of consumers. The research demonstrates that implementing CM can trigger a warm glow effect among prosocial consumers. Firms have the ability to adjust the intensity of this effect through their pricing and donation strategies. However, the costs associated with CM implementation play a significant role in shaping firms' decisions and may give rise to a prisoner's dilemma situation. Nevertheless, an evaluation of CM practices in e‐commerce firms indicates that the adoption of CM can be mutually beneficial for both firms, ultimately enhancing social welfare in specific scenarios.
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.50 × 0.4 = 0.20 |
| M · momentum | 0.50 × 0.15 = 0.07 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.