Cause-related Marketing Promotion Research Articles

Cause-Related Marketing as Sales Promotion

This study presents the first field investigation of the sales impact of cause-related marketing promotions (CMPs) in retail settings. Whereas prior work primarily studies CMPs in simplified experimental settings, actual fast-moving consumer goods markets are considerably more complex; ergo, consumers are unlikely to consider and evaluate all brands and CMPs in detail. In this analysis based on 63 CMPs across 20 categories, the authors therefore investigate the short-term sales impact of CMPs as a function of the brand and category context in which they are executed. On average, CMPs run 11 weeks and donate 3.2% of product price, resulting in an average sales lift of 4.9% per week. The findings suggest that a necessary precondition for CMP success is that consumers notice it at the point of sale and hence have considered the CMP brand for reasons other than the CMP itself. Accordingly, the sales impact of CMP can more than double when the category assortment is smaller, the category has less price dispersion, the brand is a category leader, or the brand is priced below the category average. Brands operating in less favorable market conditions can still achieve above-average CMP impact by combining CMPs with price promotions to ensure consumer consideration.

Exploring the effects of for‐profit and nonprofit size congruency: An exchange perspective on cause‐related marketing

AbstractPrior research on cause‐related marketing (CM) shows that congruencies between for‐profit and nonprofit organizational missions and target markets affect consumers' perceptions of the partnership fit, and their subsequent response to CM promotions. The current work explores how congruencies between for‐profit and nonprofit sizes influence consumers' perceptions of the partnership fit, and subsequently, their attitudes toward CM efforts. Study 1 shows that consumers perceive a low degree of organizational partnership fit between a small for‐profit and large nonprofit (relative to other partnership configurations). Study 2 shows the nature of donated resources can affect organizational partnership fit perceptions, such that donations of needed goods (vs. money) can improve consumers' perceptions of partnership fit between a small for‐profit and large nonprofit. Study 3 shows that organizational cause congruency and organizational size both independently contribute to perceptions of organizational partnership fit.

The moderating role of donation quantifiers on price fairness judgments

In the cause-related marketing (CM) literature, transparent communication of donation amounts (e.g., monetary donation quantifiers) has been shown to positively impact the effectiveness of CM campaigns. In practice, however, many firms communicate their donation contributions in more ambiguous terms (e.g., descriptive quantifiers). Across three studies, the authors demonstrate when using monetary quantifiers is less beneficial, due to consumers’ skepticism of firm motives. Study 1 shows that the presence of a CM promotion positively affects perceptions of price fairness. Study 2 provides evidence that donation quantifier formats operate uniquely and impact price fairness through skepticism. Finally, Study 3 demonstrates ways in which practitioners can manage consumer skepticism, which affect perceptions of price fairness and ultimately purchase intent.

Familiarity and format: cause-related marketing promotions in international markets

PurposeThe purpose of this paper is to demonstrate cause-related marketing (CRM) promotions as a brand-oriented international market entry strategy that can leverage an unfamiliar brand in a new international market. One of the challenges CRM promotions face is skepticism toward the campaign and for that reason, many brands form alliances with well-known charities familiar to the consumer, hoping that the trust and goodwill generated by the charity will be transferred to the brand. The authors manipulate price and donation presentation formats to show an alternative means for overcoming skepticism.Design/methodology/approachThe research is undertaken in two studies. Study 1 uses a sample collected on Amazon’s MTurk, whereas study 2 is undertaken in the real world with participants from Norway. Analysis of variance and partial least square are, respectively, used to test the hypotheses.FindingsThe first study shows that presenting the donation explicitly vis-à-vis the price makes a less familiar charity produce the same trustworthy effects as that a well-known one does. Moreover, the second study shows that it strengthens utility from the transaction and weakens skepticism of CRM promotions to impact brand evaluations.Research limitations/implicationsThe primary focus of the research was consumers’ familiarity with the charity but other variables could have a significant impact in judgments. For instance, the importance consumers attach to the cause that the charity supports, spatial distance of the brand and charity, brand familiarity. Manipulating these in future studies would not only contribute to the CRM literature but also to that of international marketing.Practical implicationsFirms in international markets can derive competitive advantages with the help of CRM campaigns. Moreover, alliances with familiar charities that are local can help combat nationalistic feelings prevalent in many markets. The separated presentation format can also help overcome some of the additional skepticism found in international markets.Social implicationsThe findings support the Better Business Bureau’s Standards for Charity Accountability that seek transparency in communicating CRM promotions. The explicit presentation of price and donation, in addition to providing this transparency, also gives consumers a clear understanding of the CRM promotions’ details, which will increase their self-efficacy in making more informed decisions.Originality/valueThis research contributes to strengthening knowledge on donation-price formats, offers brands entering international markets a singular way of gaining credibility and competitive advantage, and empirically confirms the proposed outcomes of a theoretical model for promotions.

When a stigmatized brand is doing good

PurposeThis study aims to investigate consumer responses to cause-related marketing (CRM) implemented by socially stigmatized industries, especially in fast food restaurants.Design/methodology/approachThis experimental study uses a 2 (degree of perceived fit) × 2 (complementary fit) × 2 (brand equity) between-subjects design.FindingsResults show significant interaction effects between the degree of fit and brand equity and complementary fit and brand equity on consumers’ brand evaluation. When a company with high brand equity chooses a high fit (vs low fit) or complementary fit (vs non-complimentary fit) for CRM promotion, this leads to consumers’ more positive attitude and higher intent to participate in CRM promotion.Practical implicationsThis study provides practical implications for designing effective CRM promotion in the stigmatized industry such as fast food restaurants and casino.Originality/valueGiven the increased demand on CRM in the hospitality industry, the paper contributes to extend the realm of CRM literatures by investigating antecedents affecting consumers’ responses toward the CRM in the stigmatized companies or brands.

Cause‐Related Marketing Persuasion Knowledge: Measuring Consumers' Knowledge and Ability to Interpret CrM Promotions

Cause‐related marketing (CrM), a partnership between a for‐profit and not‐for‐profit company, is an increasingly common promotional approach. Consumers range in awareness of and knowledge about CrM, and vary in their ability to identify and evaluate critical elements of a CrM promotion. The authors describe this knowledge and ability as “CrM persuasion knowledge (CrM‐pk),” which guides consumer response, and can inform how firms use CrM promotions to communicate with consumers. In the current work, the authors define, develop, and evaluate an instrument to measure CrM‐pk, and examine how it moderates the influence of promotional features on consumer attitudes.

Goodwill intended for whom? Examining factors influencing conspicuous prosocial behavior on social media

Despite the popularity of cause-related marketing (CRM), the socially-oriented drivers that influence the success of CRM have yet to be investigated empirically in the hospitality context. This study investigated the effects of three factors (status motive, guilt, and recognition) on customers’ attitudes and intent to participate in CRM promotions through social media. A scenario-based 2×2×2 between-subjects experimental design was used. Results revealed that status-seeking individuals exhibited the high level of prosocial behavior when their behavior was recognized by others publicly compared to non status-seeking individuals. In addition, individuals who felt guilt with regards to a CRM promotional appeal were more likely to respond to the promotion positively than those who did not, when their goodwill was observable by others. Considering this desire of some customers to have their goodwill displayed to others (known as conspicuous prosocial behavior), this study provides important evidence for companies wishing to develop CRM strategies via social media.

Cause Related Marketing: An Ethical Quandary or an Altruistic Charity

Much consideration has been given in academic world to the concept of cause-related marketing and its success. Also, the number of companies that undertake cause-related marketing initiatives has been increasing gradually. Literature stated various benefits to these companies, acting socially responsible, such as increased customers preferences towards the brand/products marketed with some social causes, employees commitments, increased sales and profits, brand image, product recognition, and company reputation. However, most of these studies centred on one aspect of the consequences of behaving in a socially responsible manner and only few studies focus on the transparency and ethics in cause-related marketing practices. The present study aims to fill the gap with the help of quantitative analysis of hundred responses to identify consumers trust over the companies doing cause-related marketing. More purposely, the intent is to investigate cause-related marketing promotion as a tool to raise money for social cause, faith of consumers for contribution of the charitable amount for intending purpose and need for more transparency in cause-related activities of business.