IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v324y2025i2p506-521.html
   My bibliography  Save this article

The interplay between charitable donation strategies and sales mode selection in the platform

Author

Listed:
  • Zhu, Chen
  • Zaccour, Georges

Abstract

Motivated by the emergence of offline and online donations, this paper explores the interplay between charitable donations and strategic choice of sales mode in a philanthropic supply chain consisting of a manufacturer and a platform. We consider two donation strategies, offline donations and both offline and online donations that are traceable by blockchain technology, and two business models, i.e., reselling sales mode and agency sales mode. Donations by the manufacturer are used to boost its charitable image, which in turn affects positively the demand. As such image can only be built over time, we adopt a differential game formalism that captures both the strategic interactions between the two players and the dynamic nature of the problem. We characterize and compare the equilibrium strategies and outcomes for different choices of selling mode and donation option. Our findings can be summarized as follows. First, we obtain that only under some conditions that online donations enhance the charitable image, members’ profits, consumer surplus, and social welfare. Second, regardless of the sales mode, the conditions for the platform to adopt online donations are the most stringent, and the conditions for the enhancement of the charitable image are the most lenient. Third, the implementation of online donations does not have much impact on the Pareto regions of the agency mode but has a much greater impact on the Pareto regions of the reselling mode, especially for medium and large online donation amounts. These changes hinge on the trade-offs for members between online and offline donations.

Suggested Citation

  • Zhu, Chen & Zaccour, Georges, 2025. "The interplay between charitable donation strategies and sales mode selection in the platform," European Journal of Operational Research, Elsevier, vol. 324(2), pages 506-521.
    • Handle: RePEc:eee:ejores:v:324:y:2025:i:2:p:506-521
    DOI: 10.1016/j.ejor.2025.01.031
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221725000748
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejor.2025.01.031?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

    for a different version of it.

    References listed on IDEAS

    as
    1. Sol Kim & Geul Lee & Hyoung‐Goo Kang, 2021. "Risk management and corporate social responsibility," Strategic Management Journal, Wiley Blackwell, vol. 42(1), pages 202-230, January.
    2. Modak, Nikunja Mohan & Kazemi, Nima & Cárdenas-Barrón, Leopoldo Eduardo, 2019. "Investigating structure of a two-echelon closed-loop supply chain using social work donation as a Corporate Social Responsibility practice," International Journal of Production Economics, Elsevier, vol. 207(C), pages 19-33.
    3. 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.
    4. Won-Moo Hur & Hanna Kim & Jeong Woo, 2014. "How CSR Leads to Corporate Brand Equity: Mediating Mechanisms of Corporate Brand Credibility and Reputation," Journal of Business Ethics, Springer, vol. 125(1), pages 75-86, November.
    5. Min Zhang & Lijun Ma & Jun Su & Wen Zhang, 2014. "Do Suppliers Applaud Corporate Social Performance?," Journal of Business Ethics, Springer, vol. 121(4), pages 543-557, June.
    6. Kunpeng Li & Jun-Yeon Lee & Amir Gharehgozli, 2023. "Blockchain in food supply chains: a literature review and synthesis analysis of platforms, benefits and challenges," International Journal of Production Research, Taylor & Francis Journals, vol. 61(11), pages 3527-3546, June.
    7. Lin Tian & Asoo J. Vakharia & Yinliang (Ricky) Tan & Yifan Xu, 2018. "Marketplace, Reseller, or Hybrid: Strategic Analysis of an Emerging E‐Commerce Model," Production and Operations Management, Production and Operations Management Society, vol. 27(8), pages 1595-1610, August.
    8. Yao, Fanjun & Parilina, Elena & Zaccour, Georges & Gao, Hongwei, 2022. "Accounting for consumers’ environmental concern in supply chain contracts," European Journal of Operational Research, Elsevier, vol. 301(3), pages 987-1006.
    9. Bertrand Crettez & Naila Hayek & Georges Zaccour, 2021. "Optimal dynamic management of a charity under imperfect altruism," Post-Print hal-04120432, HAL.
    10. Xianjun Geng & Yinliang (Ricky) Tan & Lai Wei, 2018. "How Add†on Pricing Interacts with Distribution Contracts," Production and Operations Management, Production and Operations Management Society, vol. 27(4), pages 605-623, April.
    11. Pietro Giovanni, 2017. "Closed-loop supply chain coordination through incentives with asymmetric information," Annals of Operations Research, Springer, vol. 253(1), pages 133-167, June.
    12. Anil Arya & Brian Mittendorf, 2015. "Supply Chain Consequences of Subsidies for Corporate Social Responsibility," Production and Operations Management, Production and Operations Management Society, vol. 24(8), pages 1346-1357, August.
    13. He, Chao & Tan, Chunqiao & Ip, W.H. & Wu, C.H., 2023. "Combating counterfeits with the Blockchain-technology-supported platform under government enforcement," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 175(C).
    14. Minghui Xu & Xin Li, 2022. "The interplay between e-tailer information sharing and supplier cause marketing," International Journal of Production Research, Taylor & Francis Journals, vol. 60(12), pages 3863-3878, June.
    15. Zhang, Zhichao & Xu, Haiyan & Chen, Kebing & Zhao, Yingxue & Liu, Zhi, 2023. "Channel mode selection for an e-platform supply chain in the presence of a secondary marketplace," European Journal of Operational Research, Elsevier, vol. 305(3), pages 1215-1235.
    16. Alain Haurie & Jacek B Krawczyk & Georges Zaccour, 2012. "Games and Dynamic Games," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number 8442, February.
    17. Xu, Xiaoping & He, Ping & Zhou, Li & Cheng, T.C.E., 2023. "Coordination of a platform-based supply chain in the marketplace or reselling mode considering cross-channel effect and blockchain technology," European Journal of Operational Research, Elsevier, vol. 309(1), pages 170-187.
    18. Guan, Zhimin & Ye, Tong & Yin, Rui, 2020. "Channel coordination under Nash bargaining fairness concerns in differential games of goodwill accumulation," European Journal of Operational Research, Elsevier, vol. 285(3), pages 916-930.
    19. Zhen, Xueping & Xu, Shuangshuang, 2022. "Who should introduce the third-party platform channel under different pricing strategies?," European Journal of Operational Research, Elsevier, vol. 299(1), pages 168-182.
    20. Crettez, Bertrand & Hayek, Naila & Zaccour, Georges, 2021. "Optimal dynamic management of a charity under imperfect altruism," Omega, Elsevier, vol. 100(C).
    21. Albert Y. Ha & Huajiang Luo & Weixin Shang, 2022. "Supplier Encroachment, Information Sharing, and Channel Structure in Online Retail Platforms," Production and Operations Management, Production and Operations Management Society, vol. 31(3), pages 1235-1251, March.
    22. Xu, Xiaoping & Yan, Luling & Choi, Tsan-Ming & Cheng, T.C.E., 2023. "When Is It Wise to Use Blockchain for Platform Operations with Remanufacturing?," European Journal of Operational Research, Elsevier, vol. 309(3), pages 1073-1090.
    23. Liu, He & Xu, Tianting & Jing, Shuai & Liu, Zhidong & Wang, Shouyang, 2023. "The interplay between logistics strategy and platform’s channel structure design in B2C platform market," European Journal of Operational Research, Elsevier, vol. 310(2), pages 812-833.
    24. Vibhanshu Abhishek & Kinshuk Jerath & Z. John Zhang, 2016. "Agency Selling or Reselling? Channel Structures in Electronic Retailing," Management Science, INFORMS, vol. 62(8), pages 2259-2280, August.
    25. Volodymyr Babich & Gilles Hilary, 2020. "OM Forum—Distributed Ledgers and Operations: What Operations Management Researchers Should Know About Blockchain Technology," Manufacturing & Service Operations Management, INFORMS, vol. 22(2), pages 223-245, March.
    26. Gabriella M. Hastig & ManMohan S. Sodhi, 2020. "Blockchain for Supply Chain Traceability: Business Requirements and Critical Success Factors," Production and Operations Management, Production and Operations Management Society, vol. 29(4), pages 935-954, April.
    27. Yue Wu & Kaifu Zhang & Jinhong Xie, 2020. "Bad Greenwashing, Good Greenwashing: Corporate Social Responsibility and Information Transparency," Management Science, INFORMS, vol. 66(7), pages 3095-3112, July.
    28. Anupama Prashar & Parul Gupta, 2024. "How to build trust in Gen Y in online donation crowdfunding: an experimental study," Behaviour and Information Technology, Taylor & Francis Journals, vol. 43(4), pages 677-694, March.
    29. Wentao Yu & Yanrui Wu & Xiaolan Tan & Xiumei Guo, 2024. "The nexus between electronic commerce and environmental pollution: The roles of energy efficiency and resource consumption," Business Strategy and the Environment, Wiley Blackwell, vol. 33(3), pages 2287-2300, March.
    30. Ying Wu & Haiyan Li & Qinglong Gou & Jibao Gu, 2017. "Supply chain models with corporate social responsibility," International Journal of Production Research, Taylor & Francis Journals, vol. 55(22), pages 6732-6759, November.
    31. Li, Jin & Wang, Haoyu & Shi, Victor & Sun, Qi, 2024. "Manufacturer's choice of online selling format in a dual-channel supply chain with green products," European Journal of Operational Research, Elsevier, vol. 318(1), pages 131-142.
    32. Buratto, Alessandra & Cesaretto, Rudy & De Giovanni, Pietro, 2019. "Consignment contracts with cooperative programs and price discount mechanisms in a dynamic supply chain," International Journal of Production Economics, Elsevier, vol. 218(C), pages 72-82.
    33. Qin, Xuelian & Liu, Zhixue & Tian, Lin, 2021. "The optimal combination between selling mode and logistics service strategy in an e-commerce market," European Journal of Operational Research, Elsevier, vol. 289(2), pages 639-651.
    34. Zhiyuan Wang & Zhiqiang (Eric) Zheng & Wei Jiang & Shaojie Tang, 2021. "Blockchain‐Enabled Data Sharing in Supply Chains: Model, Operationalization, and Tutorial," Production and Operations Management, Production and Operations Management Society, vol. 30(7), pages 1965-1985, July.
    35. Henri Servaes & Ane Tamayo, 2013. "The Impact of Corporate Social Responsibility on Firm Value: The Role of Customer Awareness," Management Science, INFORMS, vol. 59(5), pages 1045-1061, May.
    36. Pengwen Hou & Chi Zhang & Yating Li, 2024. "The interplay of manufacturer encroachment and blockchain adoption to combat counterfeits in a platform supply chain," International Journal of Production Research, Taylor & Francis Journals, vol. 62(4), pages 1382-1398, February.
    37. Shen, Bin & Xu, Xiaoyan & Yuan, Quan, 2020. "Selling secondhand products through an online platform with blockchain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 142(C).
    38. Laura Marie Schons & John Cadogan & Roumpini Tsakona, 2017. "Should Charity Begin at Home? An Empirical Investigation of Consumers’ Responses to Companies’ Varying Geographic Allocations of Donation Budgets," Journal of Business Ethics, Springer, vol. 144(3), pages 559-576, September.
    39. Jiri Chod & Nikolaos Trichakis & Gerry Tsoukalas & Henry Aspegren & Mark Weber, 2020. "On the Financing Benefits of Supply Chain Transparency and Blockchain Adoption," Management Science, INFORMS, vol. 66(10), pages 4378-4396, October.
    40. Shigui Ma & Yong He & Ran Gu, 2023. "Low-carbon tourism supply chain network optimisation with vertical and horizontal cooperations," International Journal of Production Research, Taylor & Francis Journals, vol. 61(18), pages 6251-6270, September.
    41. Ma, Deqing & Hu, Jinsong, 2022. "The optimal combination between blockchain and sales format in an internet platform-based closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 254(C).
    42. Liyin Jin & Yanqun He, 2018. "How the frequency and amount of corporate donations affect consumer perception and behavioral responses," Journal of the Academy of Marketing Science, Springer, vol. 46(6), pages 1072-1088, November.
    43. Xu, Xiaoping & Choi, Tsan-Ming, 2021. "Supply chain operations with online platforms under the cap-and-trade regulation: Impacts of using blockchain technology," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    44. Dutta, Pankaj & Choi, Tsan-Ming & Somani, Surabhi & Butala, Richa, 2020. "Blockchain technology in supply chain operations: Applications, challenges and research opportunities," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 142(C).
    45. Zhang, Zhichao & Xu, Haiyan & Ke, Ginger Y. & Chen, Kebing, 2022. "Selecting online distribution modes for differentiated products in a platform supply chain," International Journal of Production Economics, Elsevier, vol. 244(C).
    46. Yanli Tang & Suresh P. Sethi & Yulan Wang, 2023. "Games of supplier encroachment channel selection and e‐tailer's information sharing," Production and Operations Management, Production and Operations Management Society, vol. 32(11), pages 3650-3664, November.
    47. Xiaolong Guo & Shengming Zheng & Yugang Yu & Fuqiang Zhang, 2021. "Optimal Bundling Strategy for a Retail Platform Under Agency Selling," Production and Operations Management, Production and Operations Management Society, vol. 30(7), pages 2273-2284, July.
    48. Andrei Hagiu & Julian Wright, 2015. "Marketplace or Reseller?," Management Science, INFORMS, vol. 61(1), pages 184-203, January.
    49. Huang, Guoxuan & Zheng, Benrong & Zou, Bipan & Cheng, T.C.E., 2022. "Strategic role of charitable donation in supply chain coordination with consumer prosocial preference," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    50. Liu, Guowei & Zhang, Jianxiong & Tang, Wansheng, 2015. "Strategic transfer pricing in a marketing–operations interface with quality level and advertising dependent goodwill," Omega, Elsevier, vol. 56(C), pages 1-15.
    51. Ma, Shigui & He, Yong & Gu, Ran, 2021. "Joint service, pricing and advertising strategies with tourists’ green tourism experience in a tourism supply chain," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    52. Hubert Pun & Jayashankar M. Swaminathan & Pengwen Hou, 2021. "Blockchain Adoption for Combating Deceptive Counterfeits," Production and Operations Management, Production and Operations Management Society, vol. 30(4), pages 864-882, April.
    53. Albert Y. Ha & Shilu Tong & Yunjie Wang, 2022. "Channel Structures of Online Retail Platforms," Manufacturing & Service Operations Management, INFORMS, vol. 24(3), pages 1547-1561, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Ma, Deqing & Hu, Jinsong, 2022. "The optimal combination between blockchain and sales format in an internet platform-based closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 254(C).
    3. De-Qing Ma & Xiao-Qing Wang & Xue Wang & Jin-Song Hu, 2023. "Achieving Triple Benefits in a Platform-Based Closed-Loop Supply Chain: The Optimal Combination between Recycling Channel and Blockchain," Sustainability, MDPI, vol. 15(5), pages 1-40, February.
    4. Benedict Jun Ma & Samuel Shuai Liu & George Q. Huang & Chi-To Ng, 2025. "How does consumer quality preference impact blockchain adoption in supply chains?," Electronic Markets, Springer;IIM University of St. Gallen, vol. 35(1), pages 1-16, December.
    5. Li, Ling & Yan, Shiyi & Peng, Shuxia & Hou, Pengwen, 2025. "The interplay of blockchain and channel structure with consideration of cyber-security in a platform supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 197(C).
    6. Xu, Xiaoping & Chen, Xinru & Cheng, T.C.E. & Choi, Tsan-Ming & Yang, Yuanyuan, 2025. "Should blockchain be used to eliminate greenwashing for green and live-streaming platform operations under carbon trading systems?," European Journal of Operational Research, Elsevier, vol. 324(3), pages 1017-1034.
    7. Matsui, Kenji, 2024. "Should competing suppliers with dual-channel supply chains adopt agency selling in an e-commerce platform?," European Journal of Operational Research, Elsevier, vol. 312(2), pages 587-604.
    8. Xue Wang & Deqing Ma & Jinsong Hu, 2022. "Recycling Model Selection for Electronic Products Considering Platform Power and Blockchain Empowerment," Sustainability, MDPI, vol. 14(10), pages 1-44, May.
    9. Tan, Yinliang (Ricky) & Yu, Chuanbin & Liu, Yang & Zheng, Quan, 2024. "Agency models in online platforms: A review of recent developments and future prospects," European Journal of Operational Research, Elsevier, vol. 319(3), pages 679-695.
    10. Wang, Chenyu & Sun, Jingchun & Shi, Siyu & Cheng, T.C. Edwin, 2025. "Third-party sellers’ selling formats and advertising competition on e-commerce platforms," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 194(C).
    11. Zhao, Qingli & Fan, Zhi-Ping & Sun, Minghe, 2024. "Sales mode selection and blockchain technology adoption decisions in a platform supply chain," International Journal of Production Economics, Elsevier, vol. 272(C).
    12. Fang, Chang & Chi, Mingxiang & Fan, Shuyi & Choi, Tsan-Ming, 2024. "Who should invest in blockchain technology under different pricing models in supply chains?," European Journal of Operational Research, Elsevier, vol. 319(3), pages 777-792.
    13. Niu, Baozhuang & Ruan, Yiyuan & Xu, Haotao, 2023. "Turn a blind eye? E-tailer's blockchain participation considering upstream competition between copycats and brands," International Journal of Production Economics, Elsevier, vol. 265(C).
    14. Zhang, Xinxin & Zhang, Xiuyi & Huang, Junran, 2025. "Socially responsible e-commerce supply chains: Sales mode preference and store brand introduction," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 193(C).
    15. Zhang, Zhichao & Xu, Haiyan & Zhao, Yingxue & Liu, Zhi & Chen, Kebing, 2023. "Extended warranty service provision: A strategic analysis for the E-commerce platform supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 177(C).
    16. Chen, Shuting & Yang, Lei & Kou, Qi, 2025. "Platform's blockchain introduction strategy with considering competition between new and refurbished products," International Journal of Production Economics, Elsevier, vol. 280(C).
    17. Ma, Deqing & Li, Kaifu & Hu, Jinsong & Wang, Xue, 2024. "How to leverage blockchain to react to consumer reference effects and develop a distribution strategy in online retailing?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 187(C).
    18. Zhang, Zhichao & Xu, Haiyan & Chen, Kebing & Zhao, Yingxue & Liu, Zhi, 2023. "Channel mode selection for an e-platform supply chain in the presence of a secondary marketplace," European Journal of Operational Research, Elsevier, vol. 305(3), pages 1215-1235.
    19. Cao, Kaiying & Xu, Yuqiu & Hua, Ye & Choi, Tsan-Ming, 2023. "Supplier or co-optor: Optimal channel and logistics selection problems on retail platforms," European Journal of Operational Research, Elsevier, vol. 311(3), pages 971-988.
    20. Suyuan Luo & Tsan‐Ming Choi, 2022. "E‐commerce supply chains with considerations of cyber‐security: Should governments play a role?," Production and Operations Management, Production and Operations Management Society, vol. 31(5), pages 2107-2126, May.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:324:y:2025:i:2:p:506-521. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.