A Taxonomy of Cause-Related Marketing Research: Current Findings and Future Research Directions

ABSTRACT

Cause-related marketing is an increasingly popular method of improving marketing relationships with customers, both for the sponsoring company and for the participating cause. This paper outlines the rewards and risks for the company and the cause as they consider this type of partnership, as well as the benefits and drawbacks for the customers asked to participate in these programs through the purchase of the sponsored product or service. Future directions for research are recommended in order to (1) expand the findings within this domain, and (2) to maximize sales results from cause-related marketing initiatives for businesses and causes.     

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.     

Cause-related marketing: More buck than bang?

Starbucks, Target, and Nike are just a few of the businesses partnering today with not-for-profit organizations in cause-related marketing campaigns. These campaigns are implemented for a dual purpose: on one hand, to raise awareness, support, and donations for social causes such as global hunger relief, and on the other, to enhance corporate reputations, customer loyalty, and financial gains for companies. An example of cause-related marketing is an effort organized by Macy's, Pfizer, and other businesses on behalf of the American Heart Association. The program has raised over $32 million in donations for the charity, while generating over 1 billion media impressions for corporate sponsors. In this article, we discuss the concept and practice of cause-related marketing, as well as some of its social-ethical complexities. We end with suggestions for increasing the effectiveness of this popular marketing tool and form of corporate philanthropy.     

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.     

CRM:企业营销管理的新策略

在激烈的市场竞争中,越来越多的企业开始通过实施客户关系管理(CRM)来赢得更多的客户并且提高客户的忠诚度。本文认为,客户关系管理(CRM)作为企业营销管理的新策略,其目的在于建立一个系统,使企业在客户服务、市场竞争、销售和支持等各方面形成全新的关系实体,为企业带来长久的竞争优势,一方面通过优质服务吸引和保持更多的客户;另一方面通过对企业业务流程的全面管理降低企业成本。CRM与ERP(企业资源规划)、SCM(供应链管理)一起,已成为现代企业提高竞争力的三大法宝。     

Dangerous Donations? The Effects of Cause-Related Marketing on Charity Attitude

SUMMARY

How might cause-related marketing affect attitudes toward the charity involved? Could charity attitudes be harmed? These questions were addressed in a controlled laboratory study. Positive/negative fit between the organizations was manipulated, and company attitude was measured. The results suggest that charity attitude may be negatively impacted if consumers' attitudes toward the company are negative, or if the organizations have negative fit. Alternatively, CRM may improve charity attitude if company attitude is positive or the organizations share positive fit. The effect of fit is stronger than the effect of company attitude, so positive fit may compensate for pairing with a company toward which consumers' attitudes are negative.     

Use of the Customer Value/Mission (CV/M) Matrix in Strategic Nonprofit Marketing Analysis

ABSTRACT

Application of traditional portfolio methods to nonprofit marketing situations is difficult, to say the least. For the most part, they require detailed market share, market strength, market growth, market attractiveness, and cost and profit accounting information that many nonprofits do not have and may not be able to acquire given the nature of products typically offered by nonprofits, e.g., services and/or social behavior programs. We suggest use of a recently proposed product portfolio model, the customer value/mission (CV/M) matrix as a method that can help nonprofits in then-product planning endeavors. The CV/M matrix better serves the needs of marketing strategists not only in for-profit organizations but in nonprofit ones as well. This is because it reflects on customer value and differential advantage in the eyes of an organization's consumers. This paper directly compares the use of an older portfolio matrix that has been suggested for use in nonprofit organizations with use of the new matrix and discusses some advantages and disadvantages of each.     

非营利组织财务预警系统及其功能

非营利组织产生财务危机的原因是多方面的,既可能是组织经营者决策失误,也可能是管理失控,还可能是外部环境恶化等。应建立非营利组织财务预警系统,对组织的财务运营过程进行跟踪、监控,及早地发现财务危机信号,着手应变,以避免或减少对组织的破坏,促进非营利组织的健康发展。从而为我国实现全面建设小康社会、“和谐社会”的战略目标提供支持。     

Finding critical success factors for virtual community marketing

Previous studies have identified critical success factors related to using virtual communities as a marketing channel. These studies have followed two research trends that connect the virtual community to actual purchasing. One is finding relationships between the operational elements of a virtual community and members’ intent to purchase and the other is finding relationships between characteristics of virtual community members and their intent to purchase. The model for this study reflects both trends. In addition, the model reflects research related to factors of customer satisfaction and the measurement of marketing success in terms of sense of community and loyalty. Conclusions from this research have been verified empirically with survey data collected from 292 virtual community members representing nine profit-oriented virtual communities. This study confirms that operational elements of a virtual community and characteristics of virtual community members affect the success of virtual community marketing. It is also confirmed that perceptions of usefulness, trust, and commitment toward the virtual community are important intervening effects. However, not all factors studied in the model were found to be significant in relationship to successful virtual community marketing. The analysis of the results from this study should be helpful to practitioners who use virtual communities as a marketing channel.     

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.     

Cause-Related Marketing: Keys to Successful Relationships with Corporate Sponsors and Their Customers

SUMMARY

An increasingly popular method for nonprofits to raise awareness, educate the public, and receive financial support from corporations is through cause-related marketing. The distinctive feature of cause-related marketing is the corporate sponsor's contribution to a designated cause being tied to customers' participating in revenue-producing transactions with the sponsor. The sponsor benefits from favorable publicity and increased sales. This article discusses factors contributing to the potential success of a cause-related marketing campaign: the sponsor's product quality, fair pricing, and customer traits; the nonprofit's and the sponsor's reputation, shared values, good communication, and commitment; a well-planned and executed campaign, and specific terms that protect both party's assets and clearly outline each party's responsibilities.     

Member-organization connection impacts in affinity marketing

Affinity marketing collaboration is a growing practice in the marketplace, yet theories to explain its influence are scarce in the literature. This study suggests two complementary cause-related effects stemming from an organization's connection with its members to explain the underlying mechanism of affinity marketing. The convergent findings of a survey and an experiment reveal that the responses of consumers in affinity marketing are both empathetic and particularistic. These characteristics distinguish affinity marketing from general commercial co-branding and from cause-related strategies which call for sympathetic and altruistic responses. These effects are more pronounced among individuals with a high interdependent orientation in collectivistic cultures. The dual influence of these effects makes affinity marketing an ideal marketing strategy for improving customer loyalty in the more interdependent societies in Asia.     

论企业组织结构重整与CRM的成功实施

CRM的出现是提高客户满意度,保持客户并实现客户与企业价值共贏,是以客户为中心的现代管销理念的一种体现。但CRM实施结果并不令人满意。企业必须转变经营管理理念,要对企业的整体组织结构进行重整,消除各部门之间的沟通障碍,设立客户服务部,同时应把客户满意度作为一个重要指标纳入营销人员的考核体系,最终达到成功实施CRM的目的。