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| Research on Game Model of Firm Competition Based on Cause-Related Marketing Strategy |
| LIU Jian，WU Xin，TANG Yanqun，ZOU Zihan |
| Jiangxi University of Finance and Economics, Nanchang, China |
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Abstract Cause-related marketing (CM) has the dual attributes of public welfare and profitability, which is a crucial business strategy for firms. This study establishes a two-firm competition model based on CM strategy, and analyzes the impact of CM strategy on firms’ profits in different cases. Also, we explore the impact of consumer social responsibility (CSR) on the cause behavior of firms, and obtain the range of charitable donations that benefit firms. Our main results are as follows. ①The stronger CSR is, the greater the motivation for firms to adopt CM strategy is. ② Compared with the case where both firms adopt CM strategy, a single firm implementing CM strategy can grab more profits. ③Both firms benefit from CM strategy when the gap in charitable donations remains within a certain range. ④Weak firms are also motivated to provide more charitable donations for social cause compared with strong firms in the market.
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Received: 16 May 2022
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