Cause-related Marketing Programs Research Articles

Enhancing Customer Purchase Intention Using Cause-Related Marketing: A Study of the Indian Pharmaceutical Sector

ABSTRACT Cause-related marketing (CaRM) has developed over the past three decades to become a flexible and successful technique for many organizations to fulfill their social and financial obligations. However, there is little evidence available to address the effectiveness of CaRM in the Indian pharmaceutical sector. To fill this void, this study aims to extend this research area by investigating CaRM based on nine key dimensions- donation, cause type, cause-brand fit, product type, cause proximity, attributed company motives, trust, corporate reputation, and CaRM message appeal and their resultant impact on purchase intention of customers in the Indian pharmaceutical sector. A theoretical model is empirically estimated to achieve the objectives based on data taken from 1683 respondents from North India. The results show that CaRM positively impacts customers’ purchase intention in the Indian pharmaceutical sector. Further, the authors also explore the moderating effect of cause involvement and found that the effectiveness of CaRM increases in the presence of cause involvement. Furthermore, results also reveals that the attitude toward cause-related marketing programs partially mediates the CaRM and purchase intention relationship. Marketers and the pharmaceutical industry could benefit from the findings of this study, which could help them develop better CaRM promotional methods. This research expands on the study’s future scope and management implications.

Investigating The Impact of Cause Related Marketing on Consumer Attitude and Purchase Intention

Cause-related marketing (CRM) is a marketing program that closely relates to corporate social responsibility. The increasing popularity of CRM has led many researchers to investigate effective CRM campaign strategies. This study employs an experimental design with a factorial design to assess the impact of time duration, proximity, and congruence on brand attitudes and intentions. The study was conducted with college students from two cities in Indonesia, and statistical analyses, including t-tests and regression, were utilized. The results indicate that respondents' attitudes vary with respect to time duration and congruence, and attitudes towards brands related to CRM programs positively affect intentions. Therefore, marketers should consider the attributes of CRM, such as duration and congruence, to ensure that the program is accepted by consumers.

Impact of Gamification on Consumers’ Favorability in Cause-Related Marketing Programs: Between-Subjects Experiments

Successful cause-related marketing (CRM) campaigns can help companies stand out from their competitors; however, CRM may not have pleasant outcomes, even if it receives substantial investment. This research aimed to investigate how gamified CRM projects influence consumers' favorability. We introduced 3 different CRM projects in 3 different studies. Every project had 2 versions according to the level of gamification, and participants were randomly assigned into these 2 groups. Additionally, we used a 2 (gamification: lower, higher) 2 (rules presentation: without visual cues, with visual cues) between-subjects design to test the moderation role of rules presentation in gamified CRM projects. In Study 1, we identified that the highly gamified CRM program induces more enjoyment (F1,139=21.11, P<.001) and higher favorability (F1,139=14.57, P<.001). Moreover, we found that enjoyment played a mediation role between gamification and favorability (P<.001) in Study 2. In addition, the results of Study 3 indicated rules presentation in a gamified CRM program can moderate the indirect effect of gamification on favorability via enjoyment (index of the moderated mediation: 95% CI -1.12 to -0.10; for rules presentation with visual cues: 95% CI 0.69 to 1.40; for rules presentation without visual cues: 95% CI 0.08 to 0.83). Overall, this research contributes to the CRM literature and suggests gamification is an effective way of managing CRM campaigns.

The Influence of Cause-Related Marketing on Millennials’ Purchase Intentions: Evidence of CSR from an Emerging Economy

Corporate social responsibility (CSR) has been implemented through sponsorships, philanthropy, and cause-related marketing (CRM), amongst which CRM has aroused the interest of many academicians and stakeholders. The study aims to examine the antecedents of cause-related marketing while considering attitude as a mediator to test its relationship with the purchase intention. The snowball sampling technique for data collection was administered to Indian millennial consumers from the regions of Karnataka and Kerala. A total of 313 valid cases were selected for the analysis, which employed partial least squares (PLS) based on structural equation modeling (SEM). The findings have shown that a positive relationship exists between cause participation and purchase intention. Further, product/cause congruence &amp; consumer/cause identification had a positive impact on attitude, while attitude, in turn, showed a favorable association with the purchase intention. This study disclosed the relative importance of the compatibility between the social causes supported by the company with its engaged business while adopting CRM campaigns, and highlighted the need for the involvement of consumers in the CRM programs for their effectiveness.

Building consumer communal relationships through cause‐related marketing: From the perspective of persuasion knowledge

AbstractThis study investigates the value of cause‐related marketing (CRM) campaigns in consumer relationship management. Specifically, following the tenets of persuasion knowledge model and equity theory, this study proposes that the effect of consumers' inferences of companies' manipulative intent (IMI) in CRM campaigns on consumer–brand communal relationships is contingent on consumers' knowledge about the degree to which the companies and the social cause benefit from the campaigns. A panel of 506 U.S. consumers was recruited to complete an online survey. Results reveal that when consumers believe that nonprofit partners benefit more from a CRM campaign than the company does, IMI positively affects consumer–brand communal relationships. However, when consumers perceive greater corporate benefits than social benefits, IMI negatively affects consumer–brand communal relationships. These results present a convincing case that in order to cultivate a long‐term communal relationship with consumers, companies should promote their CRM programs by highlighting these programs' social benefits and impact. If such programs are considered to yield more corporate benefits, companies should make efforts to mitigate the negative impact that IMI may bring to consumer–brand communal relationships. This study also advances our existing understanding of communal relationships and CRM by unveiling how CRM‐related factors collectively influence corporate building of a long‐term communal relationship with consumers. We hope to inspire future researchers who are interested in bridging CRM and communal relationship literature to inform effective CRM practice.

What Do Consumers Like to See in a Cause-Related Marketing Campaign Board?

The purpose of this study is to discover elements or contents of a Cause-Related Marketing (CRM) campaign’s communication board that may attract consumers to participate in the CRM program. This study focuses on the design of a CRM campaign communication board exclusively based on the perceptions of Malaysian consumers in the hypermarket context. Besides that, this study also identifies social causes applicable for hypermarkets in Malaysia. Employing a qualitative approach, the data in this study were obtained through focus group interviews and were analysed using a content analysis method. The study has identified seven themes that Malaysian consumers would like to see in a communication board, which were hypermarket initiative, communication, tagline and logos, timeframe, types of support (funds handled by NGOs), company-cause fit, and CRM products that are not limited to local products. These elements, if incorporated into a CRM communication board, will appeal to Malaysian consumers. The findings provide insights into the study of CRM communication board content that appeals to hypermarket consumers in Malaysia. This study also contributed to the CRM literature by exploring the applicability of a fairly new social cause (e.g. supporting underprivileged individuals) that can be championed and supported by the hypermarket. This research also offers practical implications for hypermarket managers. Hypermarkets can incorporate the seven elements (hypermarket initiative, communication, tagline and logos, timeframe, types of support, company-cause fit, and CRM products that are not limited to local products) while designing a CRM communication board.

A Systematic Review of Experimental Studies Investigating the Effect of Cause-Related Marketing on Consumer Purchase Intention

Cause-related marketing (CRM) is a globally popular marketing technique due to its value to multiple stakeholders such as the companies, the consumers, the non-profit organizations, and the society. The key to successful CRM is the consumer purchasing the cause-related product, and experimental methodology was adopted mostly during this process. Therefore, this paper systematically reviewed the CRM literature that measured consumers’ purchase intentions using the experimental methodology. A systematic literature research was undertaken examining five databases and 68 qualified articles were identified. The results showed that CRM in most qualified studies is manipulated as a tactical marketing program and the products are mainly low-cost and low involvement. Moreover, the CRM is more effective than the ordinary marketing or sales promotion strategy, such as discount and coupons. Furthermore, the specific characteristics of the CRM program (e.g., donation amount, cause type, message framing) have shown positive outcomes but mixed effects are persistent. Recommendations for implementing CRM programs and for future research were discussed.

Attribution and Effectiveness of Cause-Related Marketing: The Interplay between Cause–Brand Fit and Corporate Reputation

In cause-related marketing (CRM) programs, the fit between the cause and brand is an important factor influencing consumer perceptions and behavior. However, the literature demonstrates that there is disagreement regarding the effect of cause–brand fit on consumer responses with varying corporate reputation. This study aims to examine the influence of cause–brand fit on consumer attitudes, attributed company motives, and the moderating role of corporate reputation. With a two (fit: high/low) by three (reputation: low/medium/high) experimental study, we reveal that consumers hold positive attitudes toward companies that engage in CRM campaigns. The effect of cause–brand fit on consumer-attributed company motives is moderated by corporate reputation. For low-reputation companies, a high cause–brand fit CRM campaign resulted in consumers attributing more negative motives to companies than low-fit campaigns. The opposite was true for medium-reputation companies. Meanwhile, high-reputation companies with a high cause–brand fit elicit greater value-driven attributed motives from consumers than other motives. Recommendations for implementing CRM programs and for future research are discussed.

When partners divorce: understanding consumers’ reactions to partnership termination in cause-related marketing programs

Cause-related marketing (CRM) is a pervasive, global marketing tactic used to aid consumer persuasion. While considerable academic research has been directed to understanding this practice and its impact on consumers, virtually nothing is known about the effect on consumers’ attitudes and purchase intentions when a sponsoring firm terminates a CRM partnership. To address this knowledge gap, two experiments with samples of adult North American consumers were conducted. Study 1’s findings suggest that the termination of a CRM partnership has a negative, direct effect on both brand perceptions and purchase intentions. Results also suggest that the impact is lessened (but not overcome) if the sponsoring firm switches its support to a new cause, regardless of the levels of fit between the brand and cause. In Study 2, when an altruistic reason was used to motivate the termination, consumers responded more positively when the decision was made solely by the sponsoring firm than when it was made mutually by the sponsoring firm and the cause. However, when the decision to terminate the partnership was motivated by an operational reason, consumers responded better when the decision was made mutually.

The effect of cause-related marketing on firm value: a look at Fortune’s most admired all-stars

Companies are increasing their use of cause-related marketing as a means of communicating their commitment to corporate social responsibility while accomplishing their strategic goals. Although prior studies suggest that consumers react positively to cause-related marketing programs, understanding of their impact on financial performance remains limited. To address this gap, the authors employ an event study to examine the effects of cause-related marketing announcements on shareholder value using a sample of firms that appeared on Fortune’s Most Admired All-Star list between 2005 and 2017. Study results show that announcement of these initiatives results in a significant loss of shareholder value. These losses are most pronounced for firms making monetary-only contributions, in comparison to those that make in-kind donations. In addition, the negative effects are mitigated for firms that have stronger reputations, have greater resource slack, and operate in more dynamic industries. Moreover, low-reputation and low-slack firms benefit most from in-kind contributions.

The Impact of Consumer Evaluation on the Cause-Related Marketing

Cause-related Marketing (CrM) has become an increasingly popular marketing approach over the past two decades. However, neither researchers nor organizations fully understand the determinants of a successful CrM partnership. This research fills this gap. Specifically, we employ the schema theory to explore circumstances in which the CrM alliance cannot achieve a success. We use a theoretical modeling approach to report that, when consumers’ typicality-based cognitive process is assumed, the CrM activity with the partners’ more-discrepant attribute profile cannot be evaluated favorably, but the attribute-level uncertainty about the CrM alliance is less likely to feedback to the two partners. Furthermore, we argue that, under the schema-plus-tag model, consumers may not like the CrM program with a similar attribute profile. Therefore, this CrM approach may fail. To our knowledge, we are the first to apply the schema theory to explain how a CrM alliance can achieve a success.

The Impact of Consumer Evaluation on the Cause-Related Marketing

Cause-related Marketing (CrM) has become an increasingly popular marketing approach over the past two decades. However, neither researchers nor organizations fully understand the determinants of a successful CrM partnership. This research fills this gap. Specifically, we employ the schema theory to explore circumstances in which the CrM alliance cannot achieve a success. We use a theoretical modeling approach to report that, when consumers’ typicality-based cognitive process is assumed, the CrM activity with the partners’ more-discrepant attribute profile cannot be evaluated favorably, but the attribute-level uncertainty about the CrM alliance is less likely to feedback to the two partners. Furthermore, we argue that, under the schema-plus-tag model, consumers may not like the CrM program with a similar attribute profile. Therefore, this CrM approach may fail. To our knowledge, we are the first to apply the schema theory to explain how a CrM alliance can achieve a success.

Prosumption Use in Creation of Cause Related Marketing Programs through Crowdsourcing

Abstract The main aim of this article is to develop a new approach to Cause Related Marketing (CRM) that shows the use of the innovative potential of prosumption through crowdsourcing practices to contribute to CRM campaigns. The article focuses on consumers’ attitudes towards CRM and aspects of their involvement in the CRM creation. Research results show that young consumers in the Polish market connote CRM positively, but they are bored with existing CRM programs and assess them as uninteresting. The test results showed the desire of consumers to share knowledge with companies but, as it comes about the involvement, young people do not show much interest.

The Impact of Self-Service Technology and the Presence of Others on Cause-Related Marketing Programs in Restaurants

Self-service technology (SST) is rapidly gaining traction in the restaurant industry, yet the impact on consumer behavior remains to be seen. This study lends a theoretical perspective to the growing issue of SST and its effect on consumer donation behavior. From the lens of costly signaling theory, we examine how the use of SST impacts guest responses to cause-related marketing (CRM) initiatives. Employing an experimental design, we found that customers who were solicited in the presence of others were more likely to donate than those solicited via SST. These results suggest that when the participation decision is conspicuous, donating is a way to raise social status in front of others. To the best of the authors[#x02019] knowledge, no extant research has examined the joint impact of SST and matching donations on the customer[#x02019]s participation in CRM programs. Our findings suggest that SST adoption may have unintended consequences for corporations.

An Empirical Study of Attitude Toward Cause Related Marketing Programs Among Young Indian Consumers

Cause related marketing (CRM) has become an accepted marketing promotional tool and ,therefore, organizations from different parts of the world have started using it. The attitude of consumers toward CRM plays a significant role in the success and effectiveness of cause related marketing programs (CRMPs). Not enough research has been done in India to understand the attitude of consumers toward CRMPs and the implications they have for marketers, though some studies have been done in Western countries. This study is a pioneering empirical research to understand the attitude toward CRMPs among young Indian consumers and the implications for marketers. The study found that the overall attitude of young Indian consumers toward CRMPs was very positive and ,therefore, young Indian consumers can certainly be a good market segment to be targeted by the marketers. Another important finding showed that the attitude of young Indian consumers toward the products associated with CRM was very positive and ,therefore, products used by young consumers can be selected by marketers for CRMPs. However, the findings provided two important cautions for marketers. The marketers should not charge higher prices for the products associated with CRM as it was found that a majority of the young consumers were not willing to pay a higher price for products associated with CRM. It was also found that the young consumers were skeptical toward the advertisements related to CRMPs and ,therefore, marketers should understand that only genuine intent and commitment for a cause can make CRMPs successful and effective.

The effects of brand‐cause fit and campaign duration on consumer perception of cause‐related marketing in Japan

PurposeThis study's first objective is to experimentally examine the effect of brand‐cause fit and campaign duration on company and brand image, commercial objectives and buying intention as perceived by Japanese consumers. Second, the study aims to evaluate the moderating role of gender and participation in philanthropic activities on the impact of cause‐related marketing (CrM) programs in Japan.Design/methodology/approachAn experimental design was used with 196 Japanese subjects completing a survey online.FindingsA high brand‐cause fit was found to elicit more positive attitudes toward the CrM program than campaign duration. Japanese female respondents were showing more favorable attitudes than men, confirming results in previous research studies conducted in the West. Previous participation in philanthropic activities was also found to increase positive attitudes especially when brand‐cause fit and duration were high.Research limitations/implicationsThe experiment relied on fictitious advertising materials. Many respondents were students from the greater Tokyo area. This may make it difficult to generalize findings to a broader population.Practical implicationsResults show that CrM campaigns in Japan are viewed more positively when consumers perceive a good match between the brand and the cause. Japanese marketers targeting women and consumers with philanthropic experience are likely to benefit by supporting matching social causes.Originality/valueThis paper is the first to contribute to better understanding of the impact of CrM in Japan. It does confirm the gender effect previously observed in western countries.

Effect of cause-related marketing for green practices in the hotel industry

Reflecting heightened interest in environmental issues, this study examines the effect of cause-related marketing in the hotel industry regarding green practices. The study compares the effect of cause-related marketing specifically for green practices with a baseline condition, which includes no such strategy, on hotel consumers' attitudes and visit intentions. Findings support a positive effect of green practices cause-related marketing in the hotel industry on attitudes toward the hotel and intention to visit it. Application of cause-related management to the hotel industry, with a focus on green practices, is valuable for determining the general effect in general of cause-related marketing in the hotel industry. From operators' perspectives, the study offers a basis for decisions involving investment in cause-related marketing programs to promote green practices.

Mental accounting and cause related marketing strategies

The aim of the present study is to verify if people’s perception of cause related marketing (CRM) strategies is influenced by the mental accounting format used to present the price of the product and the amount of money donated to the social cause. However, such an effect is conditional on the type of product used for the campaign as the mental accounting is only expected to enhance the consumers’ perception of CRM programs supported by hedonic products and not their perception of programs supported by utilitarian products. In Experiment 1, results show that only for hedonic products an integrated mental accounting induces people to perceive the CRM program more positively than a separated one. In Experiment 2, the integrated mental accounting reduces people’s guilt about the purchase of hedonic products, therefore explaining why this manipulation has a different impact on hedonic and utilitarian products.

Testing a social-cognitive model of moral behavior: The interactive influence of situations and moral identity centrality.

This article proposes and tests a social-cognitive framework for examining the joint influence of situational factors and the centrality of moral identity on moral intentions and behaviors. The authors hypothesized that if a situational factor increases the current accessibility of moral identity within the working self-concept, then it strengthens the motivation to act morally. In contrast, if a situational factor decreases the current accessibility of moral identity, then it weakens the motivation to act morally. The authors also expected the influence of situational factors to vary depending on the extent to which moral identity was central to a person's overall self-conception. Hypotheses derived from the framework were tested in 4 studies. The studies used recalling and reading a list of the Ten Commandments (Study 1), writing a story using morally laden terms (Study 4), and the presence of performance-based financial incentives (Studies 2 and 3) as situational factors. Participants' willingness to initiate a cause-related marketing program (Study 1), lie to a job candidate during a salary negotiation (Studies 2 and 3), and contribute to a public good (Study 4) were examined. Results provide strong support for the proposed framework.

Exploring the consumption of charity-linked products

This paper explores the motivations to consume charity-linked products. We consider charity-linked products as all the consumer goods that may help a social cause or a nonprofit organization. The research was done in Portugal and used focus groups. We find three types of charity-linked product consumers: the proactive consumers which look and buy products that help nonprofit organizations, the reactive consumers which only buy charity-linked products when are asked or see those products when they are shopping, and finally, the nonbuyers that rarely buy charity-linked products. We conclude that the use of salespersons, the availability of the charity-linked product, the impulsive behavior, and the individual perception of the consumer compensation are important factors to be managed by for-profit and nonprofit organizations. The influence of family and other referents and the possibility to give the charity-linked product as a gift to someone else are important motives to buy those products. The research also shows that the credibility of the organizations involved in the cause-related marketing programs, the feedback information about the programs, and finally, the consumer expectations about his contribution to solve social problems also influence the charity-linked products buying decisions.