Abstract
Nowadays, corporate philanthropy has gradually transformed into a corporate marketing strategy, which is an act that not only benefits commercial interests but also serves social organizations or individuals. When customers purchase related products, the company donates a portion of the sales proceeds to charity. Based on the method of game theory, this paper studies the pricing decision and product quality decision of a CM company, analyzes two different supply chain product pricing models, and conducts quantitative research on issues related to product quality, product price and donation amount. Comprehensive consideration is given to consumer differences, product utility value differences, and supply chain structure differences. We found that the company’s choice of product price and quality is closely related to the scale of public welfare consumers. When the scale is large enough, the enterprise will implement CM, and after implementing CM, it may be the best to improve product quality; At the same time of donation, it may be the best decision for enterprises to reduce the price of products; thirdly, manufacturers can influence retailers’ donation amount and pricing by controlling the quality of products, and high-quality products may make the donation amount smaller. All in all, the current findings help companies develop optimal sales strategies for different consumer groups.
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Yan, Z., Xing, W. (2023). Research on Pricing and Design Optimization of Cause Marketing Products. In: Li, X., Xu, X. (eds) Proceedings of the Tenth International Forum of Decision Sciences. ITLBD&DS 2022. Uncertainty and Operations Research. Springer, Singapore. https://doi.org/10.1007/978-981-19-9741-9_11
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DOI: https://doi.org/10.1007/978-981-19-9741-9_11
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