Does the global vs. local scope matter? Contingencies of cause-related marketing in a developed market

Abstract

Many multinational corporations (MNCs) have adopted cause-related marketing (CRM) to improve their market positions, but CRM effectiveness in the international business context is less understood. Particularly, the findings on how the cause scope (global vs. local) impacts consumer responses to CRM have been mixed. Informed by social impact theory, this research examines how the cause scope interacts with the MNC’s origin (emerging vs. developed markets) and the host market consumers’ cultural orientation (individualism vs. collectivism) to influence perceived consumer effectiveness (consumers’ perceptions of their purchase impact), and consequentially purchase intention. Across two studies using U.S. consumers, this research found that a local-scoped CRM strategy works more favorably than does a global-scoped CRM strategy for MNCs originated from emerging economies. Further, collectivistic consumers tend to favor a local-scoped cause than a global-scoped cause, suggesting that a nuanced understanding of subgroup cultural differences is needed in devising an effective international CRM strategy.