Lowering the Minimum Donation Amount Increases Consumer Purchase Likelihood of Products Associated with Cause-Related Marketing Campaigns

Abstract

Both the total amount to be donated and the way it is communicated can influence consumer reactions to cause-related marketing (CM) campaigns. While companies often choose not to explicate any donation limit, this study argues that donation frames (e.g., minimum or maximum total donation) can enhance the likelihood of consumer purchases associated with CM campaigns. In a series of four studies, the authors find that consumers often respond more favorably to minimum-frame CM campaigns with a relatively low donation amount (e.g., at least $100,000 will be donated) than those with a high donation amount (e.g., at least $10 million will be donated) despite the superiority of the latter for the recipient cause. This effect is inverted for maximum donation frames, such that a high donation amount leads to greater consumer participation. This research also demonstrates that this effect is driven by the consumer desire to make a personal contribution to a cause, which is more likely to be observed when consumers endow it with high importance. These effects are obtained with attitudes, behavioral intentions, and actual expenditures.