Corporate social responsibility or cause‐related marketing? The role of cause specificity of CSR

Abstract

PurposeAs cause‐related marketing (CRM) is usually subsumed under corporate social responsibility (CSR), in practice CSR and CRM can serve as different public relations tools. This study aims to compare the effect of CRS and CRM on customer attitude.Design/methodology/approachIn order to overcome various measurement problems, an experiment is conducted in a country characterized by a significant diversity of attitudes towards a cause.FindingsThe result indicates that both CSR and CRM have similar positive effects on customers' attitudes. However, while CRM might be more cost‐efficient, its positive effect is limited to customers with high cause affinity. In contrast, CRM has a negative effect on customers with low cause affinity, or who oppose the cause. A major finding is that CRM can compensate for negative CSR to a high degree in the cause affinity segment of the market. Therefore, a high degree of cause specificity of CSR might only be preferable if the market is characterized by broad cause affinity, or if a firm is facing negative public sentiment caused, for instance, by a product harm crisis.Originality/valueThe paper conceptualizes the difference between the cause‐unspecific and cause‐specific dimension of CSR and highlights the importance of cause affinity in cause‐specific CSR.