IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v320y2025i2p343-357.html
   My bibliography  Save this article

Agency selling or reselling: The role of cause marketing

Author

Listed:
  • Wei, Lin
  • Zheng, Shengming
  • Du, Shaofu
  • Zhang, Baofeng

Abstract

Cause marketing (CM) is commonly adopted to pursue profit growth or/and achieve corporate social responsibility (CSR). In online retailing, to facilitate CM for the products, e-retailers are increasingly implementing CM programs for the firms that sell products directly to consumers, i.e., suppliers under agency selling mode or themselves under reselling mode. Motivated by this, we examine how CM for the product influences the equilibrium outcomes under the two selling modes and the selling mode preferences of the supply chain members. Our results suggest that CM for the product is beneficial to both the supply chain members but can render the e-retailer to be hurt by a higher agency fee. Significantly, the supplier can prefer agency selling mode only when the agency fee is lower, whereas the e-retailer can prefer it even if the agency fee is lower. As a result of the changes in the selling mode preferences, the CM program can hurt the e-retailer when the selling mode is determined by the supplier. We further consider the cases where either of the supply chain members cares about CSR and fulfills it with CM. The results indicate that the concern for CSR of either of the supply chain members can coordinate their selling mode preferences. Specifically, the concern for CSR of the supplier (e-retailer) can induce them to prefer agency selling mode (reselling mode), thereby eliminating (further exacerbating) the adverse impact of the CM program on the supply chain members.

Suggested Citation

  • Wei, Lin & Zheng, Shengming & Du, Shaofu & Zhang, Baofeng, 2025. "Agency selling or reselling: The role of cause marketing," European Journal of Operational Research, Elsevier, vol. 320(2), pages 343-357.
  • Handle: RePEc:eee:ejores:v:320:y:2025:i:2:p:343-357
    DOI: 10.1016/j.ejor.2024.07.034
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221724005940
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ejor.2024.07.034?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:320:y:2025:i:2:p:343-357. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.