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Cause Marketing: Product Pricing, Design, and Distribution

机译:原因营销:产品定价,设计和分配

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Problem definition: In a cause marketing (CM) campaign, a firm donates part of its sales revenue to a charity for a social cause when customers purchase the cause-linked product. We study a firm's pricing decisions with CM and the implications for the participating charity. We also consider the design and distribution of cause-linked products. Academic/practical relevance: CM has become popular in recent years. However, there is little analytical work on how a firm's strategic actions (e.g., product pricing, design, and distribution) impact the effectiveness of a CM campaign. We address this gap. Methodology Game theory. Results: First, it may be optimal for the firm to decrease the price after the implementation of CM despite the donation cost. Second, a higher level of firm-cause fit may lead to a smaller total donation amount to the charity in a CM campaign. Third, the choice to design a special version of the product for a CM campaign depends on the size of the prosocial segment in the market. Fourth, a decentralized supply chain may generate more social value through CM compared with the centralized case. Managerial implications: For firms, we show that it may not be optimal to increase the price of cause-linked products and identify conditions where firms should introduce a special product in a CM campaign. For charities, we show that a high firm-cause fit level may have a negative effect on the total donation amount and further identify conditions under which charities should collaborate with a downstream retailer or an upstream manufacturer in a CM campaign. Our results indicate that the correlation between customer preferences for the product and the social cause has a significant impact in a CM campaign for both firms and charities.
机译:问题定义:在一个原因营销(CM)竞选中,一家公司在客户购买原因链接产品时,该公司将其部分销售收入捐赠给社会事业的慈善机构。我们研究了公司的定价决策以及参与慈善机构的影响。我们还考虑原因链接产品的设计和分配。学术/实际相关性:近年来厘米变得流行。但是,关于公司的战略行动(例如,产品定价,设计和分配)如何影响CM竞选的有效性,几乎没有分析工作。我们解决了这个差距。方法论博弈论。结果:首先,尽管捐赠成本,但该公司可能最佳地降低厘米后的价格。其次,较高水平的坚定率适合可能导致厘米在CM竞选中的慈善机构较小。第三,为CM活动设计专业版的选择取决于市场上的女性部门的大小。第四,与集中案例相比,分散的供应链可能通过CM产生更多的社会价值。管理意义:对于公司来说,我们表明,增加原因链接产品的价格并确定公司应在CM竞选中引入特殊产品的条件可能并不最佳。对于慈善机构,我们表明,高公司的合适水平可能对捐赠金额的负面影响以及进一步识别慈善机构应在CM竞选中与下游零售商或上游制造商合作的条件。我们的结果表明,产品与社会原因的客户偏好与社会原因之间的相关性对公司和慈善机构的CM竞选产生了重大影响。

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