Examining Sales Promotion Theory in a Cause-Related Marketing Setting: An Abstract

Abstract

Academic literature, as well as countless companies, have found cause-related marketing (CRM) to be a powerful sales promotion tool. CRM campaigns are complex promotional tools that present managers with a myriad of decisions to make, and they have been termed “profit-motivated giving” because of the link created between company sales and charitable donations. Campaign duration is an important consideration for any sales promotion, and it has been well studied in traditional settings. However, little research addresses how consumers respond to different campaign durations in a CRM setting. This research seeks to address how firms can maximize the goodwill benefits and the short-term sales gain associated with CRM promotions. A key element needed for CRM success is for the company to be perceived as altruistic and avoid consumer skepticism. Considering this, traditional sales promotion research may not be applicable to this style of sales promotion. Short sales promotion windows are often favored because they create a sense of urgency. However, in a CRM setting, a short window may signal to consumers a tokenistic approach in the company’s support of a social cause. Thus, this approach may undermine the company’s ability to generate goodwill or increase short-term sales. This research is built on the Persuasion Knowledge Model (PKM). This model provides valuable insight into how consumers view and experience marketing tactics. Consumers are frequently prompted with persuasion attempts from marketers and over time acquire knowledge regarding these tactics. If consumers assess a marketers’ persuasion attempt as inappropriate, they will likely refrain from purchasing from company. We propose that short campaign durations may activate consumers’ persuasion knowledge, ultimately decreasing the effectiveness of the CRM promotion.