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.     

The Impact of Cause-Related Marketing on Millennials’ Product Attitudes and Purchase Intentions

This study, using scenarios, examined the impact of two kinds of cause-related marketing (CRM) efforts (a traditional donation of a portion of sales to a related cause and a more strategic one-for-one donation of donating a product to a related cause when that product was purchased) on millennials’ (those born between 1982 and 2000) attitudes and purchase intentions for four different consumer product categories. The four different consumer product categories selected included a specialty good (laptop), a shopping good (hat), a convenience good (bottled water), and a service (food restaurant). Given the importance of social media to millennials, this research also examined the role of social media on CRM awareness. While millennials had relatively low awareness of CRM campaigns, there was a positive correlation between social media use and CRM awareness. Additionally, CRM efforts may not work for all products as there was no impact on attitude or purchase intention for the product category of laptops. Additionally, the positive attitudes created by marketers’ CRM efforts will not always translate to increased purchase intentions. The use of a strategic one-for-one CRM effort though had a greater impact, specifically for products that deal with needed fundamentals, such as food and water.     

How product–cause fit and donation quantifier interact in cause-related marketing (CRM) settings: evidence of the cue congruency effect

We are the first to examine the joint impact of product–cause fit and donation quantifier in the cause-related marketing (CRM) domain. We show that these two CRM cues interact in a unique manner, reflecting the cue congruency effect. Specifically, congruent combinations of these two cues result in high purchase intentions when the cues individually have positive effects. In all other cases, however, purchase intentions are low. Furthermore, we identify moderators of the above cue congruency effect. In Study 1, we show that the cue congruency effect is moderated by product-type, evidencing only in more hedonic product contexts. In Study 2, we show that the above cue congruency effect is moderated by purchase-type, evidencing in planned purchase contexts, but reversing in impulse purchase contexts. We discuss the process mechanism driving these effects, specify the contribution of this research for CRM, cue congruency and impulse purchases, and outline implications for practice.     

How much to give? — The effect of donation size on tactical and strategic success in cause-related marketing

In cause-related marketing (CM), companies promise a donation to a cause every time a consumer makes a purchase. We analyze the impact of the size of this donation on brand choice (tactical success) and brand image (strategic success). Our results reveal different effects of donation size on these success measures. For brand choice, the effect of donation size is moderated by a financial trade-off for consumers, whereas the effect on brand image is moderated by donation framing. Specifically, we show that donation size has a positive effect on brand choice if consumers face no financial trade-off; i.e., if they do not have to choose between triggering a donation or saving money. The effect is negative if a trade-off exists such that higher donations come at higher costs. Brand image is enhanced by larger donations if the framing is nonmonetary (e.g., the campaign promises the provision of vaccinations), whereas donation size has a negative effect if donation framing is monetary (e.g., the campaign states the Euro amount). If campaigns use a combination of both frames, the effect of donation size on brand image has an inverted U shape. Our results suggest that CM enhances tactical and strategic success only if firms select the right donation size, taking into account donation framing and financial trade-offs.     

CONSUMER PERCEPTION OF CORPORATE DONATIONS Effects of Company Reputation for Social Responsibility and Type of Donation

In cause-related marketing (CRM), a company agrees to donate money to a charity each time a consumer engages in a revenue-producing transaction with the firm. Since the company benefits first before any obligation to donate is accrued, consumers might perceive this practice to be less altruistic than an unconditional donation to a cause. If so, CRM could backfire, injuring corporate image. This study investigated the effects of type of donation (conditional or not conditional upon corporate revenue) and reputation of the firm making the donation (firms described as scrupulous, average, or irresponsible in the discharge of their social responsibility) on consumer regard for the firm; perceived mercenary intent of the firm; and whether the social performance of the company is consistent with "good" management. Consumer responses were predicted based on the contrast effect and attribution theory. Results suggest that irresponsible firms increased their favor with consumers by pursuing either type of donation. The average firm enhanced its image by pursuing an unconditional donation, but a conditional donation did not damage firm image. Perception of the scrupulous firm was little changed after unconditional donation, but a scrupulous firm suffered a loss of favor by pursuing CRM. It is concluded that the average firm does not risk a loss of public goodwill when using CRM.     

Consumer response to retailer use of cause-related marketing: Is more fit better?

Although marketers increasingly rely upon cause-related marketing strategies to increase sales, controversy exists regarding whether a retailer should partner with causes offering high or low fit levels with its core business practices. The present investigation extends prior research by examining how retailer–cause fit affects consumer evaluations of retailers’ cause-related marketing strategies. The results indicate that the effects of retailer–cause fit are moderated by consumer perceptions of the retailer's motive for engaging in cause-related marketing (Study 1), by the affinity that consumers hold for the social cause component of the campaign (Study 2), as well as by the interactive effects associated with the two moderators (Study 3).     

A Framework for Understanding Corporate Social Responsibility Programs as a Continuum: An Exploratory Study

Corporate Social Responsibility (CSR) programs are increasingly popular corporate marketing strategies. This paper argues that CSR programs can fall along a continuum between two endpoints: Institutionalized programs and Promotional programs. This classification is based on an exploratory study examining the variance of four responses from the consumer stakeholder group toward these two categories of CSR. Institutionalized CSR programs are argued to be most effective at increasing customer loyalty, enhancing attitude toward the company, and decreasing consumer skepticism. Promotional CSR programs are argued to be more effective at generating purchase intent. Ethical and managerial implications of these preliminary findings are discussed. Julie Pirsch, Ph.D., is an Assistant Professor of Marketing at Villanova University. She researches in the areas of cause-related marketing, corporate social responsibility, and new product development. Shruti Gupta, Ph.D., is an Assistant Professor of Management at The Pennsylvania State University at Abington, in Abington, Pennsylvania. Dr. Gupta’s research interests lie in the area of corporate social responsibility, cause-related marketing, environmental consumerism, and social marketing issues. Stacy Landreth, Ph.D., is an Assistant Professor of Marketing at the University of North Texas. She researches in the areas of cause-related marketing and social marketing alliances, as well as advertising source effects.     

The effects of framing messages and cause-related marketing on backing intentions in reward-based crowdfunding

This study explores the main and interaction effects of framing messages and cause-related marketing on backing intentions by manipulating frame types, frame valences, and cause-related marketing in the message narratives of crowdfunding projects. We conduct an online experiment for a crowdfunding campaign and analyze data using independent-samples t-test and ANOVA. This study's findings show that negative messages lead to higher backing intentions than positive ones regarding attribute and goal framing messages. Narratives with cause-related marketing in crowdfunding projects had a more significant effect on increasing backing intentions than those without cause-related marketing. Positive attribute framing messages combined with cause-related marketing had significantly higher backing intentions than messages without cause-related marketing; for negative attribute framing, there was no significant difference between with and without cause-related marketing. This study theoretically advances the literature on reward-based crowdfunding, which provides scholars with insight into the effects of the written narrative design of crowdfunding projects on backing intentions and extends to the applications of framing effect theory and cause-related marketing. Practically, this study provides project initiators and crowdfunding platform operators with new perspectives on proposal copywriting content design and project operation.     

Effects of Expiration Date-Based Pricing on Brand Image Perceptions

Expiration date-based pricing (EDBP) occurs when a grocery retailer reduces the price of a perishable product according to its remaining shelf life. While, conventional wisdom suggests that this practice leads to negative consumer evaluations of brand quality, a series of field experiments reveal negative effects on brand quality perceptions only among loyal consumers and those who perceive low risk associated with perishables. The effect is also mediated by consumer distrust (Study 1). In addition, EDBP has no effect on brand quality image if consumers are already familiar with this pricing practice (Study 2), and it may even generate positive consumer evaluations when framed as a cause-related marketing activity to reduce waste (Study 3). Additional evidence indicates that psychological contract violation perceptions provide the underlying mechanism for explaining consumer responses to EDBP (Study 4). This article ends with an agenda for further research and implications for retail practice.     

The influence of gender,social cause,charitable support,and message appeal on Gen Y's responses to cause-related marketing

Abstract

This study examined the influence of gender, type of social cause, amount of charitable support, and message appeal on Gen Y consumers' attitudes and purchase intentions towards an apparel brand within the context of cause-related marketing. A questionnaire, with an experimental design component, was administered to a sample of 562 Gen Y college students. Results suggest that Gen Y consumers are more likely to form positive attitudes towards an apparel brand when the amount of the charitable support is clearly communicated. Gender did not influence attitude towards brand, but did predict purchase intentions. Attitude towards brand, subjective norm, evaluation of the advertisement, and involvement in social causes were strong predictors of purchase intentions. When developing CRM initiatives, marketers should consider Gen Y's involvement in a social cause (e.g. volunteerism) rather than their stated interest in the given cause, and they would be well advised to state precisely (in advertisements) the amount of monetary contribution made to charitable causes.     

Determinants of Consumers’ Purchase Intentions of Organic Vegetables: Some Insights from Malaysia

This study tests the mediating effects of corporate social responsibility (CSR), product image, and corporate reputation on the relationships between green marketing awareness and consumers’ purchase intentions of organic vegetables. Data from 200 valid questionnaires was analyzed utilizing a partial least squares approach. Results show that product image was confirmed as the leading factor that partially mediated the influence of consumer green marketing awareness on consumers’ purchase intentions of organic vegetables, and this was followed by CSR, but that corporate reputation was not established as a mediator. Marketing managers should, therefore, develop various effective strategies to communicate their companies’ product image, embracing green marketing practices in order to increase market awareness, and providing positive recommendations to friends and relatives via various marketing communication channel including the short message service (SMS), emails, and social networking sites (SNS).     

Who Receives What? The Influence of the Donation Magnitude and Donation Recipient in Cause-Related Marketing

Cause-related marketing campaign structural elements (CSEs) are individual message components that are selected for campaigns and have the ability to influence consumer intentions and behavior. In this study, the impact of donation magnitude (small; large) and donation recipient (branded and well-known; branded and fictitious; unbranded and well-known) on the dependent variables of consumer attitude toward the offer, attitude toward the alliance, and participation intention is explored by means of a 2?×?3 between-subjects experiment. Despite significant differences in familiarity with and attitude toward the donation recipient, significant differences between groups in terms of the dependent variables were not found. The nature of the sample (Generation Y), their attitude toward helping others and charitable organizations, social exchange theory, and equity theory are explored in an attempt to clarify the lack of significant differences pertaining to the dependent variables.     

Impacts of Instrumental Versus Relational Centered Logic on Cause-Related Marketing Decision Making

The purpose of cause-related marketing is to capitalise on a firm’s social engagement initiatives to achieve a positive return on a firm’s social investment. This article discusses two strategic perspectives of cause-related marketing and their impact on a firm’s decision-making regarding campaign development. The instrumental dominant logic of cause-related marketing focuses on attracting customers’ attention in order to generate sales. The relational dominant logic of cause-related marketing focuses on building relationships with the target stakeholders through the enhancement of a firm’s legitimacy. The combination of these two types of logic gives rise to four types of cause-related marketing: altruistic, commercial, social and integrative. This paper uses the qualitative method to explore a firm’s marketing decision choices regarding campaign-related decision dimensions—campaign duration, geographical scope, cause selection, and implementation strategy—for each type of cause-related marketing. The finding provides theoretical, managerial and public policy implications.     

Consumer participation in using online recommendation agents: effects on satisfaction,trust, and purchase intentions

Online product recommendation agents (RAs) are gaining greater strategic importance as a critical touch-point between marketers and consumers. Yet, the role of consumer participation in using RAs has not been examined. This study shows that greater consumer participation in using an RA leads to more satisfaction, greater trust, and higher purchase intentions, related to the RA and its recommendations. In contrast, the financial risk (associated with the product under consideration) reduces satisfaction, trust, and purchase intentions, and it also moderates the effect of consumer participation on these same variables. The findings extend the literature and suggest actionable implications for marketing strategy.     

Psychological antecedents of consumer trust in CRM campaigns and donation intentions: The moderating role of creativity

Cause-related marketing (CRM) refers to charitable donation contingent on consumer purchase of a product by supporting a specific cause that is linked to a non-profit organization (NPO). The present research examines the influence of consumer psychographic traits on trust in CRM campaign and its resulting impact on intention to donate money to NPO. The results indicate that collectivism and hedonism have positive effect on trust in CRM campaign, but individualism and utilitarianism have negative effect on trust in CRM campaign. Moreover, the result shows that trust in the CRM campaign had significant positive effect on donation intentions. We further have investigated the role of cognitive process and demonstrated the moderating effect of creativity on the impact of trust in CRM campaign and donation intentions, such that the higher level of creativity led to higher level of donation intentions, if consumers have trust in CRM campaign. This research offers marketers and advertising professionals’ practical insights to design effective CRM campaigns. Additionally, it assists NPO managers to understand the crucial role of trust and creativity in CRM campaigns and its positive impact on donation intentions. Academic and managerial implications of this research study along with future directions are discussed.     

Overcoming Consumer Skepticism in Cause-Related Marketing: The Effects of Corporate Social Responsibility and Donation Size Claim Objectivity

Even though cause-related marketing has become an increasingly popular marketing tool, consumers have become skeptical about this strategy. Consumer skepticism is likely to lower the acceptance of advertising claims. The current study investigates how marketers might minimize consumer skepticism by varying the level of perceived corporate social responsibility and the level of claim objectivity regarding donation size. The results indicated that consumers were more likely to disbelieve the ad claim when the advertiser was perceived to be socially irresponsible than responsible. In addition, consumers were more likely to disbelieve the ad claim when the donation size was stated subjectively than objectively.     

To Do Well by Doing Good: Improving Corporate Image Through Cause-Related Marketing

As part of their corporate social responsibility, many organizations practice cause-related marketing, in which organizations donate to a chosen cause with every consumer purchase. The extant literature has identified the importance of the fit between the organization and the nature of the cause in influencing corporate image, as well as the influence of a connection between the cause and consumer preferences on brand attitudes and brand choice. However, prior research has not addressed which cause composition most appeals to consumers or the impact of cause choice on corporate image. A between-subjects field experiment in the Netherlands examines the influence of three core cause attributes??cause type, cause scope, and cause acuteness??on consumers?? perceptions of corporate image. Furthermore, this experiment examines the extent to which consumer identification with the cause mediates the influence of the cause attributes on corporate image. The findings indicate that identification with the cause leads to more positive evaluations of marketing campaigns for cause type and cause scope. Also, however, our results uncover a negative direct relationship between cause scope and corporate image. Cause acuteness is only marginally influential in corporate image perceptions. By proposing and testing a comprehensive model of the influence of cause attributes on corporate image in cause-related marketing, this article provides important implications and suggests avenues for further research.     

Factors influencing generation Y’s purchase intentions of prototypical versus me-too brands

The current study examines self-confidence, perceived quality, extrinsic attributes and perceived risk as drivers and inhibitors of Generation Y’s purchase intentions of prototypical and me-too brands. A survey of 348 respondents demonstrated that self-confidence and perceived quality produced significant positive effects on purchase intentions for the me-too brands. Extrinsic attributes produced a significant positive effect on purchase intentions for the prototypical brand. Perceived financial/performance risk produced a significant negative effect on purchase intentions for both the prototypical and me-too brands, while perceived psychological risk produced a significant negative effect on purchase intentions for the prototypical brand. Understanding the factors underlying Gen Y’s consumer behaviour is crucial, particularly due to their considerable consumption potential and the increasing sophistication of brand marketing in the marketplace.     

Effects of Various Types of Cause-Related Marketing (CRM) Ad Appeals on Consumers' Visual Attention,Perceptions, and Purchase Intentions

ABSTRACT

The study examined whether various types of cause-related marketing (CRM) appeals (informational, emotional, or a combination of the two) influenced visual attention, as captured by eye fixation, and perceptions of the company and the ad, thus, leading to purchase intentions. The results suggest that a combined appeal generates more favorable responses to the ad. An eye-tracking experiment showed that an informational ad led to longer visual attention, and that visual attention was affected by the level of consumers' cause involvement. Visual attention had a negative impact on company credibility. Company credibility mediated the relationship between visual attention and CRM ad attitudes.     

Cause-Related Marketing: An Exploratory Study of Campaign Donation Structures Issues

ABSTRACT

Over the past decade, cause-related marketing (CRM) has become a popular and unique promotional tool for brands. Academic research indicates outcomes of such campaigns are generally positive for all stakeholders. Consumers feel they are making a difference, firms benefit from improved public image and increased sales, and the cause or nonprofit organization receives increased publicity and funding. However, there are ethical issues involved when linking a firm with a nonprofit organization as well as potential negatives (Smith and Stodghill 1994; Andreasan 1996; Meyer 1999; Polonsky and Wood 2001). An exploratory research study was undertaken to understand the impact of the structural elements of cause-related marketing campaigns, including how the donation is quantified, the size of the donation relative to the price of the product, the presence of donation deadlines and caps, and the level of promotion used to publicize the campaign. Findings suggest that the structural elements of cause-related marketing campaigns do influence consumers' perceptions of the campaigns. Based on these results, implications for CRM campaign managers and future research ideas are provided. This information will help practitioners, including marketing managers, advertising managers and advertising creative professionals to design the most effective communication tactics for a cause-related marketing campaign.