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Red, white and pink: Linking public good contributions to private good sales

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  • Ghosh, Suman
  • Shankar, Kameshwari

Abstract

This paper explores a common form of Corporate Social Responsibility practiced by firms, where firms link the sales of private goods to charitable contributions. We build a model to explore the profitability of a market for such “linked” goods when the purchase of the private good allows the consumer to exhibit her altruism while direct contributions towards the public good do not. We also study the effect of linked goods on total contributions towards the public good and explore the role of advertising and publicity in this market.

Suggested Citation

  • Ghosh, Suman & Shankar, Kameshwari, 2013. "Red, white and pink: Linking public good contributions to private good sales," Journal of Economic Behavior & Organization, Elsevier, vol. 88(C), pages 96-108.
    • Handle: RePEc:eee:jeborg:v:88:y:2013:i:c:p:96-108
    DOI: 10.1016/j.jebo.2013.01.005
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    Cited by:

    1. Naeeni, Hannan Sadjady & Sahin, Funda & Powell Robinson, E., 2023. "Socially responsible product-positioning: Impact of halo/horns spillover on product image," European Journal of Operational Research, Elsevier, vol. 308(2), pages 852-863.
    2. Grolleau, Gilles & Ibanez, Lisette & Lavoie, Nathalie, 2016. "Cause-related marketing of products with a negative externality," Journal of Business Research, Elsevier, vol. 69(10), pages 4321-4330.
    3. Kameshwari Shankar & Suman Ghosh, 2022. "Price discrimination through cause‐related marketing," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 31(4), pages 787-817, November.
    4. Bhardwaj, Pradeep & Chatterjee, Prabirendra & Demir, Kivilcim Dogerlioglu & Turut, Ozge, 2018. "When and how is corporate social responsibility profitable?," Journal of Business Research, Elsevier, vol. 84(C), pages 206-219.
    5. Marieta Valente, 2015. "Ethical Differentiation and Consumption in an Incentivized Market Experiment," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 47(1), pages 51-69, August.
    6. Alistair Munro & Marieta Valente, 2016. "Green Goods: Are They Good or Bad News for the Environment? Evidence from a Laboratory Experiment on Impure Public Goods," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(2), pages 317-335, October.
    7. Chang, Chia-Chi & Chen, Po-Yu, 2019. "Which maximizes donations: Charitable giving as an incentive or incentives for charitable giving?," Journal of Business Research, Elsevier, vol. 97(C), pages 65-75.
    8. Paul Pecorino, 2016. "A Portion of Profits to Charity: Corporate Social Responsibility and Firm Profitability," Southern Economic Journal, John Wiley & Sons, vol. 83(2), pages 380-398, October.
    9. Mia Reinholt Fosgaard & Toke Reinholt Fosgaard & Nicolai Juul Foss, 2017. "Consumer or citizen? Prosocial behaviors in markets and non-markets," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 49(2), pages 231-253, August.
    10. Jeff Wiebe & Debra Z. Basil & Mary Runté, 2017. "Psychological distance and perceived consumer effectiveness in a cause-related marketing context," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 14(2), pages 197-215, June.

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    Keywords

    Charity; Public goods;

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