Cause-related Marketing Strategies Research Articles

Impact of Cause-Related Marketing on Brand Attitude: Systematic Review and Future Research Directions

ABSTRACT Cause-related marketing (CRM) is an effective brand strategy involving partnering with charities or causes. A decade of research indicates CRM influences brand attitude, which is a consumer’s liking for a brand or an item they have purchased. However, the literature on this relationship is ambiguous without giving clear convulsive insights. Hence, this review targets to elucidate the way CRM influence brand attitude. The current study employed the “Preferred Reporting Items for Systematic Reviews and Meta – Analysis” (PRISMA) to identify and select the studies included in the review. Further, the review employed the principles of concept matrix and thematic analysis to synthesize knowledge from the identified articles. In this study, CRM strategies are comprehensively examined in terms of how they build the attitude strength of corporate brands and influence cognitive, affective, and conative dimensions of brand attitude. The study findings reveal how CRM (a) influences, (b) strengthens, and (c) alters the consumer’s attitude regarding the brand. Furthermore, it presents potential research directions and a sequence of research questions along with its implications and limitations.

Unlocking the power of feedback: Exploring customers' continued purchase intention of cause-related products in the hotel industry

This study addresses a gap in cause-related marketing (CRM) research in the hotel industry by highlighting the importance of feedback information in sustaining customer participation. Based on the information processing theory, this study investigates when and how hotels utilize feedback information as a strategic incentive to enhance customers' continued purchase intentions in CRM campaigns. Through a real-life experiment and two scenario-based experiments, the findings reveal the following: (1) Outcome value feedback (vs. action value feedback) more effectively enhances customers' continued purchase intention through self-efficacy; (2) Outcome value feedback enhances self-efficacy more when customers are engaged in an exchange relationship or when the CRM goal is ongoing; (3) No significant difference in self-efficacy is found between the two types of feedback when customers are in a communal relationship or when the CRM goal is completed. These findings can assist hotel managers in improving CRM strategies by effectively delivering feedback to customers.

Investigating the impact of brand vs cause interaction on cause related advertisements

Cause-related Marketing (CRM) strategies have been widely implemented by numerous brands in their communication with customers through advertisements. This research employs four quasi-experimental studies to understand how brands and cause related variables interact to impact attitude towards advertisements and brands. Study I (n = 623) seek to understand the influence of brand related variables, namely, brand familiarity, brand importance, and brand association on the attitude towards advertisements and brands. Study II (n = 722) shows the moderating effect of advertisement type (CRM vs non-CRM) on the relationships connecting branding variables to advertisement and brand attitude. In Study III (n = 637), the effect of cause related dimension, namely, cause familiarity, cause importance, and cause brand fit on the attitude towards advertisement and brands is studied. Finally, study IV (n = 549) shows the interaction effect of brand and cause related dimensions on the attitude towards advertisements and brands. Results indicate cause brand fit to be the most significant variable affecting attitudes followed by brand association, brand importance, and cause importance. Cause importance also interacted with brand importance and brand association to cause a positive and negative magnifying effect on the advertisement attitudes respectively.

Cause-related marketing strategy in a supply chain: A theoretical analysis and a case study

With the development of commodity market, corporate social responsibility (CSR) has become a topic of widespread concern for both enterprises and society. Cause-related marketing (CRM), as an effective marketing tool for enterprises to fulfill their social responsibility, is rapidly being applied to all stages of the supply chain. However, there is no conclusive evidence on the implementation strategy of CRM for supply chain members. In this paper, we study the decision and pricing strategies of CRM for the manufacturer and the retailer by constructing models for two scenarios: the manufacturer implements CRM, and the retailer implements CRM. We conclude that the donation percentage and the pro-sociality of consumers have a significant impact on the strategic and pricing decisions for supply chain members. The wholesale and selling prices will be higher when the manufacturer implements CRM. Our result also shows that the manufacturer and retailer are profitable in CRM only when the donation amount exceeds a certain percentage. In addition, to maximize profits, the manufacturer is more likely to allow a retailer to implement CRM, and the retailer is only optimally positioned to implement CRM when the pro-sociality of consumers is high or when the donation percentage is high.

When helping is risky: The influence of ethical attributes on consumers' willingness to buy farmer-assisting agricultural products online.

Chinese e-commerce platforms have long helped to sell agricultural products through farmer-assisting marketing activities, effectively alleviating the problem of stagnant agricultural products in some areas, and have become a valuable cause-related marketing strategy. The ethical attributes of farmer-assisting agricultural products have unique value compared with other agricultural products. However, the existing research rarely pays attention to the influence of the ethical attributes of farmer-assisting agricultural products on consumers' willingness to buy farmer-assisting agricultural products online. Based on collective efficacy theory and risk perception theory, this study systematically explores the influence mechanism of ethical attributes (symbolic ethical attribute and functional ethical attribute) on consumers' willingness to buy farmer-assisting agricultural products online through three situational experiments. The results show that compared with functional ethical attributes, symbolic ethical attributes have a more positive impact on consumers' willingness to buy farmer-assisting agricultural products online. In addition, it further reveals two mediating pathways of ethical effects (collective efficacy and risk perception) and boundaries (emergency of farmer-assisting events). This study helps to understand the ethical attributes of farmer-assisting agricultural products, and provides some practical suggestions for e-commerce enterprises implementing farmer-assisting marketing communication activities or marketers developing and promoting farmer-assisting agricultural products.

Cause-Related Marketing and Attitude Toward Corporate Image: An Experimental Study

In a world of attention scarcity, cause-related marketing strategies generate a substantially greater impact. The neurophysiological mechanisms that support favorable consumer attitudes toward cause-related marketing messages are, however, rather little understood. This study attempts to comprehend how a marketer may employ cause-related marketing initiatives to improve the company’s reputation as well as how program, company, and product identities affect consumers’ attitude toward the corporate image. Following the classical experimental design, this study uses four stimuli to investigate the effects of cause type and cause category on attitude toward corporate image. The four different stimuli used in this study are exposure to a negative corporate image of a fictitious brand, exposure to a negative corporate image with exposure to cause-related marketing message on Save Amazon Rainforest, exposure to a negative corporate image, and exposure to cause-related marketing message on Educate Homeless Children project, and exposure to a negative corporate image and exposure to cause-related marketing message on feeding the hungry homeless children with a description about the gravity of hunger among the poor homeless children of India. For this study, 1,171 urban Indian consumers were used as the sample. The study suggests that empathy-embedded cause-related marketing communications are characterized by primary need-based humanitarian causes. This study thus validates the mirror neuron hypothesis, which confirms that customer-centricity increases with the degree to which the communication content is similar to that of the respondent. A higher degree of customer-centricity results in a better advertisement attitude, which improves consumer attitude toward the corporate image.

You’re getting warmer: examining a “warmth effect” as antecedent to cause-related purchase intentions for sport-themed CRM

PurposeThe purpose of this paper is to examine how exposure to a cause-related marketing (CRM) initiative involving sport teams affects attitude formation for the team and its amplification of purchase intention for team-branded merchandise. Specifically, this paper assessed the role of distinct measures (warmth, brand attitude, admiration and success) on purchase intention.Design/methodology/approachThe hypothesized model was tested using a 2 (promotion: CRM vs non-CRM) × 2 (team: successful vs unsuccessful) between-subjects design. Following MANCOVA analysis, the moderating effect of success was explored within the sequential moderated mediation model where perceived warmth and brand attitude explicated the effect of CRM exposure on purchase intention.FindingsThe results of this paper suggest that a “Warmth Effect” played a prominent role in shaping consumer perception for sports teams when partnered with a non-profit brand in a CRM appeal. Perceived team success was revealed as moderator, while warmth, brand attitude served as serial mediators on purchase intention.Research limitations/implicationsThis paper provides evidence-based insights to sport marketers to leverage CRM strategy in strengthening brand-related outcomes. Sport marketers may find the CRM strategy useful for engaging “casual” fans. Further analysis is needed to determine the generalizability of this consumer response to CRM in other product domains.Practical implicationsPractical implications include leveraging CRM strategy to strengthen brand-related outcomes (i.e. perceived warmth, brand attitude and purchase intention), while also being mindful of the timing of CRM initiatives to optimize engagement. Sport marketers may find the CRM strategy useful for engaging “casual” fans.Originality/valueThis paper lends clarity to brand attitude formation in the context of CRM. The findings of this paper demonstrate the influence of perceived warmth, brand attitude and success on purchase intention.

Gaining legitimacy and host market acceptance: a CRM analysis for foreign subsidiaries in China

PurposeBuilding on the scant literature on how foreign subsidiaries strategize Cause-Related-Marketing (CRM) to gain legitimacy and acceptance in host markets, this paper investigated the impact of two CRM components (post-crisis recovery, CSR activities) on subsidiary performance and future opportunities in China, a country whose institutional development lags behind its economic achievements. The study also investigated the moderating effects of strategic mindset and subsidiary empowerment on CRM effects, issues highly relevant to MNCs and their subsidiaries.Design/methodology/approachTo minimize common method variance, the study adopted a multi-informant firm executive survey design that included responses from a director and a manager from 230 foreign subsidiaries operating in China. The director-level respondents assessed Firm Competences, Organizational Ties, Subsidiary Performance and Future Opportunities. The manager-level respondents assessed CSR activities (Legal, Ethical and Philanthropic CSR) and other operational measures.FindingsThe two CRM components affected Subsidiary Performance (sales, shares and profit) and Future Opportunities in different ways as postulated by legitimacy theory. While Post-crisis Recovery enhanced Subsidiary Performance (sales), it could not enhance Future Opportunities by itself unless the subsidiary received headquarters empowerment. Interestingly, only Ethical and Philanthropic CSR activities with enhancement from Strategic Mindset mattered to Future Opportunities.Originality/valueThe research unfolded key elements in how foreign subsidiaries planned CRM strategies to gain legitimacy and acceptance in a host market with less-developed institutions, thereby addressing a gap in the literature. It also showed how firms internalize CRM and became receptive to social sentiments of a significant host market.

Dark souveniring: just a souvenir or something more complex

ABSTRACT Dark tourism shops have faced considerable moral criticism. This study draws on site observation and worksheets associated with a field trip to the War Remnants Museum in Ho Chi Minh City, Vietnam, to examine children’s souvenir purchasing experiences. Employing thematic analysis of children’s narratives, the findings reveal that dark souvenirs can facilitate contextualisation of the site, emotional engagement, and symbolic meanings for the purchase of such souvenirs. Souvenirs and souveniring are discussed in reference to cause-related marketing strategies to balance the commemorative, educational, and economic objectives. The cause-related marketing partnership between the museum and charitable organisation enhances the acceptance of the souvenir shop and its products. The concept of cause-related marketing is valuable for explaining museum and charity shop dynamics, to inform effective management.

Using personalization for cause-related marketing beyond compassion fade on social media

PurposeIn light of the increasing occurrences of social issues and natural disasters, the number of people who need financial assistance is also growing. Using the compassion fade framework, marketing scholars have focused on the impact of the number of victims in need of monetary donations. Situated in the cause-related marketing context, the purpose of this study is to test whether personalization and perceived social visibility moderate the influence of compassion on social engagement intention to participate in a company’s charity.Design/methodology/approachThis study conducted an online experiment with a 2 (number of children in need: single vs group) x 2 (personalization: personalized vs general) between subjects’ design and measured perceived social visibility as a numeric variable divided into three groups. Two-way analysis of covariance (ANCOVA), a simple moderation analysis, and a moderated mediation analysis using the PROCESS macro were conducted to test the hypotheses.FindingsCompassion fade occurred in general advertisements whereas the opposite tendency occurred in personalized advertisements. The positive effect of compassion on social engagement intention was stronger at a high level of perceived social visibility; the effect was significant but weak in the low perceived social visibility condition. The indirect effects from the number of children to social engagement intention via compassion were significant in the personalized ads with medium/high social visibility conditions and general ads with medium/high social visibility conditions; the indirect effects were insignificant in the personalized ads with low social visibility and general ads with low social visibility conditions.Practical implicationsThe findings of this study should help companies develop and implement effective cause-related marketing strategies via social media, providing consumers with an opportunity to show others how they support social and environmental issues.Originality/valueThis study increases the understanding of the influence of the number of children in need on social media posts incorporating cause-related marketing and emphasizes the interaction effects of compassion, personalization and perceived social visibility.

An Analysis of Cause-Related and Social Marketing Strategies in the South African Sport Management Industry

There is a dearth of sport marketing research investigating the strategic potential of socially responsible sport marketing practices for organizations in the sport management industry. Despite the more recent focus on this the emergent topic within marketing literature, there is a lack of application of cause-related marketing (CRM) and social marketing (SM) strategies in the sport marketing context. Furthermore, these strategies are often confused with corporate social responsibility (CSR). The main purpose of this study was therefore to investigate the adoption of CRM and SM marketing strategies by professional sport organizations (PSOs) in South Africa. An interpretivist philosophy and qualitative approach was adopted for the study, which centered on in-depth interviews conducted with key individuals from six South African PSOs. The findings revealed encouraging evidence of South African PSOs engagement in CRM and SM activities. However, it also revealed that the strategic potential of these elements were not leveraged, mainly due to a lack of understanding of these concepts. The differences and similarities between CRM and SM are identified, according to practitioner understandings. The study contributes to sport marketing literature and practice by proposing a conceptual framework to guide the effective planning and execution of strategic CRM and SM campaigns by PSOs. This framework can assist PSOs to engage in social responsible marketing approaches to improve their marketing performance while maintaining socially responsible business practices.

Impact of cause‐related marketing on consumer advocacy and cause participation: A causal model based on self‐reports and eye‐tracking measures

Cause-related marketing improves corporate image and consumer attitudes toward brands. An important research gap is how the visual attention paid to cause-related cues in social media affect consumer attitudes and behaviors. In the present study, we analyze the moderating role of the visual attention paid to Instagram-based, cause-related posts on the impact of consumer perceptions (i.e., corporate image), beliefs (trust), and attitudes (i.e., corporate social responsibility [CSR] support) on behavioral intentions (i.e., cause participation, consumer advocacy, and intention to share posts) for fast-food restaurants. Data for the study were collected in a between-subjects experiment with 123 participants. Visual attention was measured using eye-tracking technology, and consumer attitudes and behavioral intentions through an online survey. The results show that the greater the attention paid to images (amount and duration of fixations) and the more revisits made lead to more positive attitudes and behaviors toward the cause and the company. On the other hand, the more time spent looking at the company's responses to negative user-generated content weakens the relationship between trust and consumer advocacy toward the company. These results can help practitioners design appropriate cause-related marketing strategies in social media.

A network perspective on cause-related marketing collaborations in professional sport

ABSTRACT Although professional sport teams increasingly engage in cause-related marketing (CRM), implementation often remains ad-hoc and superficial. CRM managers fall short of establishing the needed inter-organizational collaborations to attain mutually beneficial outcomes for the organization and society at large. Little is known about the structures and underlying mechanisms behind these CRM collaborations. Network theory and the associated social network analysis was utilized to unravel and compare network structures and governance of two Belgian professional soccer teams with different CRM strategies (i.e., altruistic and integrative). Findings showed a smaller, more fragmented, and centralized network in the altruistic compared to the integrative CRM type. The community department dominated the flow in the altruistic network (i.e., lead organization-governed), while coordination was shared amongst stakeholders in the integrative network (i.e., shared participant-governed). Findings also indicated that both networks could be optimized to better resonate with the CRM strategy envisioned. This study goes beyond a dyadic view on partnerships and contributes to the CRM literature by revealing stakeholder structures surrounding the focal organization. Practically, it helps managers to develop, manage, and sustain partnerships that are supportive of their respective CRM strategies, resulting in more effective CRM approaches and lasting economic and societal impact.

Cause-Related Marketing in the Telecom Sector: Understanding the Dynamics among Environmental Values, Cause-Brand Fit, and Product Type

Due to heightened ecological awareness and concern in recent years, many businesses have started to employ cause-related marketing (CRM) strategies aiming at communicating sustainability-based value to their potential targets. Building on the growing body of research on cause-brand fit and product types, the present study incorporates environmental values to explore the effectiveness of CRM messages in the telecom industry. A 4 × 2 online experiment was conducted in which a total of 1175 adults in Taiwan participated. The results demonstrated that CRM campaigns were effective for increasing perceived corporate image and purchase intentions. However, corporate image and purchase intentions did not vary with different levels of cause-brand fit. The results also showed that corporate image mediated the relationship between CRM campaigns and purchase intentions. Furthermore, this indirect relationship was moderated by environmental values, especially for necessary products. Theoretical and practical implications on corporate social responsibility to promote environmental sustainability are discussed.

The Impact of Cause-Related Marketing Strategies on Switching Intentions: An Applied Study on Private Education Service

This study investigated the relationship between the CRM strategies, brand equity, brand image, brand awareness, brand association, brand loyalty, perceived quality, and switching intentions. This research depended on the deductive approach to collecting data. The researcher used the method of survey questionnaires through simple random sampling technique to collect primary data that are used to achieve the purpose of the study, which is to study the relationship between the CRM strategies, brand equity, brand image, brand awareness, brand association, brand loyalty, perceived quality, and switching intentions of AASTMT undergraduates and postgraduate’s students. The study found there was a significant relationship between CRM Strategies and switching intentions.

Cause-related Marketing: A Trade-off between Marketers and Consumers

The current market scenario is capricious, which makes it difficult to predict the buying intention of the customers. Even marketing practitioners are also facing difficulty in differentiating their products and services from others in an increasingly challenging business environment. This dynamism of market place generates the need for new practices. To compete with this unpredictable environment, cause-related marketing has emerged as a booming planned promotional means to satisfy the societal and ethical urge of the community. Cause-related marketing is a promotional movement of an organization wherein the charitable and communal cause is certified for brand marketing, in association with its products and services as a package. This paper is an attempt to design effective cause-related marketing strategies to compete in an uncertain environment. The analysis using statistical procedures of SPSS version 20 is done based on data of 178 consumers. Prospecting factors are identified with the help of factor analysis, which is further signified with the help of a t-test. Among those significant factors, the most prominent factor impacting buying intention is identified through hierarchical regression. The findings of this study will provide a strong base to the marketers in making decisions while designing their cause-related marketing stratagems to make cause-related marketing campaigns more operative and successful. The study concludes that management should concentrate on social cause while being concerned with the company’s bottom line. The author also put forward the research directions intended to facilitate scholars to further progress the assimilation of premeditated promotion and cause related marketing.

ANTECEDENTS OF CAUSE RELATED MARKETING

Companies are undertaking philanthropic activities like Cause related marketing(CrM). It is a kind of strategy where a company contributes fixed sum of money towards social issue against each unit sold. This paper undertakes careful analysis of existing work for understanding and recording of the factors/antecedents impacting CrM strategy and its possible consequences. For better understanding and execution antecedants of CrM, have been categorized into Consumer specific and Company specific. This study proposes integrative framework of interrelationships of these having potential to mitigate the impending problems of organization. Finally, it suggests that relationship exists amid antecedents and outcomes of CrM.

Reinforcement of brands of faith with the paradox of cultural divergence in Indian perspective

PurposeSelf-esteem values, with the new art of living, in the minds of Indians, lead to establish faith among the spiritual organization. Later on, the spiritual organizations brand their names and market the products in their branded name. These brands, which are inspired by faith and created by Indian spiritual gurus, have even disrupted the fast-moving consumer goods (FMCG) market by being customer-centric instead of being geared by lucrative returns. It is in this context that this paper aims to find the cultural divergence factors that lead to change the consumption pattern of FMCG and how such brands of faith have been segmented in the Indian perspective by spiritual gurus. The research concludes that cultural divergence variables such as power distance, collectivism, uncertainty avoidance and long-term orientation influence the brands that are inspired by faith. Spiritual gurus in India are using sociocultural marketing activities such as social endorsement and cause-related marketing strategies for segmenting the markets.Design/methodology/approachThe primary data were collected from the 1,678 customers of the Isha products. The respondents were selected based on the snowball sampling. The responses were collected from the followers who visited the foundation at least three times during the period of two years in Coimbatore and purchased Isha products worth more than Rs 500. The data were collected between the period August 2016 and April 2018. Of 1,678 responses, 1,465 responses were validated after coding. Of 1,465 responses that were validated, 1,126 responses were found reliable.Findings“Cause-related marketing” and “social group endorsement” activities of the firms tend to create a brand image. To find out which of the above activities highly influence the brands of faith, realistic-operating characteristic (ROC) analysis was carried out. ROC curves were drawn to assess the brands of faith centroid values with social group endorsement and cause-related marketing variables. ROC curves explored the precision of diagnostic tests and were used to find the best “cut-off” value for impressive and unimpressive cluster test results.Research limitations/implicationsCultural divergence variables such as power distance, collectivism, uncertainty avoidance and long-term orientation are influencing the brands of faith. The followers of the spiritual foundation have their own distinct culture, and their social affinity values increase the brands of faith. Social group endorsement and cause-related marketing are the marketing strategies suitable for spiritual foundation (to market their product/ service). Age, education and occupation are demographic values that influence the brands of faith. The spiritual foundations are segmenting their customers based on the occupational values, and they use the cause-related marketing strategies to increase the values of brands of faith.Practical implicationsAs the cultural values related to the art of living have been recognized by society as the measure of social well-being, the spiritual leaders can enhance their brands of faith. The social media communication about cause-related marketing can create trust in society. On the other hand, societal marketing activities cannot target the entire society. Hence, it is to be stratified. While stratifying, the players of diversity markets have to target a group based on the values generated by the stakeholders in the foundation. The diversified markets created by the Indian spiritual gurus are providing cultural diversity.Social implicationsThe business value created by spiritual foundations is increasing the social values which are essential to uplift society. The author concludes that if business values and societal values are integrated by any group of people, it improves economic value to that society and they can use the social currency in the form of “brands of faith”.Originality/valueThe cultural values of a society are measured and compared with national and global index. The enumerate method is an original one.

An Experimental Approach to Examine the Antecedents of Attitude, Intention, and Loyalty Towards Cause-related Marketing: The Case of India and the Philippines

Firms utilize cause-related marketing (CRM) strategy to differentiate themselves by demonstrating their corporate responsibility efforts. However, national differences in the level of prior CRM exposure, local–global consumer values and culture can result in heterogeneity in consumer perceptions of CRM across countries. The authors reflect and examine national differences in customer attitudes, intention to participate in CRM and loyalty towards the company organizing the CRM campaign through variables like scepticism, perceived novelty, global connectedness and long-term orientation. They discuss and examine the impact of these variables on national preferences for CRM campaign variations by (a) type of company (local versus multinational) and (b) the time duration of CRM campaign (short term/long term). This research uses data from two emerging Asian countries—India and the Philippines. By diving deep into the nuances that drive consumers to participate in CRM, the research provides relevant strategies to drive CRM communication strategies that enhance consumer loyalty to the marketers of CRM campaigns of national, international and non-profit organizations.

Influence of different cause-related marketing (CRM) strategies on consumer decision making

Abstract Cause-related marketing (CRM) is a strategic tool that can link selling products with supporting a social cause. However, not all CRM campaigns are effective in terms of influencing consumer decisions. In our research, we explore the role of beneficiary origin in reactions to CRM campaigns created by brands either of national or foreign origin. We explore also the role of consumer ethnocentrism, defined as a preference for national brands and products, as a factor influencing the relations between beneficiary and brand origin. The online experiment was conducted on a sample of 549 participants. Six versions of a CRM advertisement were created (2 brands x 3 types of beneficiary). Participants were asked to evaluate the advertisement, estimate their product and firm perception, as well as their purchase intention. Consumer ethnocentrism was also measured. Results generally showed that the beneficiary type influenced advertisement evaluation, whereas brand origin influenced product and firm perception as well as purchase intention. Similar results were observed among subjects with a low consumer ethnocentrism. However, in the case of subjects with a high consumer ethnocentrism, only product perception changed under the influence of the experimental conditions and a significant interaction effect was observed. The product of a national brand was perceived better when the company helped in-group beneficiaries rather than out-group ones. However, when the product was of national brand, it was perceived as better in the case of helping an out-group than an in-group beneficiary.