Firms in various markets such as health care, financial services, software, consumer goods etc. spend significant amount of money on corporate social responsibility (CSR) activities. The literature suggests ns and this either increases their purchase intention products and services. Unfortunately, notwithstanding its strategic benefits, the empirical findings regarding the impact of CSR n doing so we model two types of CSR (i.e., company ability relevant CSR (CSR-CA) and company ability irrelevant CSR (CSR-NCA)) and allow firms to choose which one to pursue if they decide to invest in CSR, and incorporate the indirect effect of CSR through expectancy disconfirmation literature. Our analysis reveals the conditions under which it is optimal to invest in CSR and of what type. Then, we extend our analysis by investigating how the incr

Sponsored content advertising, also known as native advertising, is a new ad format in which a brand’s content takes the same form and qualities of the publisher’s original content. Although many advertisers have largely embraced this new advertising format, consumers seem to react negatively toward sponsored content ads. In this paper, we present an analytical model that studies the strategic role of sponsored content advertising in a two-sided media market. We identify conditions under which competing platforms would choose sponsored content advertising over traditional advertising. Despite consumers’ negative sentiment toward sponsored content ads, they can be better off together with the advertisers when both platforms choose this ad format. In fact, we show that a certain degree of consumer disliking is necessary to make both advertisers and consumers better off with sponsored content ads. However, both competing platforms offering sponsored content ads may also result in a Prisoner’s Dilemma equilibrium outcome generating suboptimal profits. We further show that two symmetric media platforms can choose different advertising strategies, leading to an asymmetric equilibrium outcome. Lastly, we analyze how the presence of multihoming advertisers as well as an incomplete ad market coverage would affect the sponsored content ad equilibrium. This paper was accepted by Juanjuan Zhang, marketing.

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