Abstract
Advertisers have long been interested in the persuasiveness of cause-related marketing (CRM) campaigns, and the authors extend this stream of research using two separate experiments that considers the effectiveness of the company's product versus cash donations. Findings from Study 1 indicate consumers perceive sponsoring companies of CRM campaigns less favorably when these companies make product rather than cash donations to their nonprofit CRM partners, and the level of consumer participation effort required in these campaigns does not moderate this effect. However, Study 2 introduces congruency as a potential explanation for these adverse effects and extends Study 1 by demonstrating that more (as compared to less) congruent product donations can eliminate the negative effects of product donations. Further, it confirms prior findings concerning the importance of sponsoring company–cause congruency. Campaigns designed with higher levels of both types of congruency (product donation–cause and company–cause) promote favorable campaign outcomes. Further, both studies demonstrate that the effects of product donations on campaign outcomes are mediated by company motive. Implications for advertising theorists and practitioners are offered.
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