Article2007

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

Stacy Landreth Grau · Judith A. Garretson · Julie Pirsch

79 citations0/0 files storedJournal of Nonprofit & Public Sector Marketing

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Consumer Behavior in Brand Consumption and Identification Nonprofit Sector and Volunteering Corporate Social Responsibility and Sustainability

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.

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1990WHAT'S IN A NAME? REPUTATION BUILDING AND CORPORATE STRATEGY.2003Consumer–Company Identification: A Framework for Understanding Consumers’ Relationships with Companies 1988Cause-Related Marketing: A Coalignment of Marketing Strategy and Corporate Philanthropy 1989Organizational Culture and Marketing: Defining the Research Agenda 1998Donations to Charity as Purchase Incentives: How Well They Work May Depend on What You Are Trying to Sell 2000The Influence of Cause-Related Marketing on Consumer Choice: Does One Good Turn Deserve Another?1988Alternative Ways of Seeking Knowledge in Consumer Research 1998A Typology of Consumer Responses to Cause-Related Marketing: From Skeptics to Socially Concerned

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2014It's All Good: Corporate Social Responsibility Reduces Negative and Promotes Positive Responses to Service Failures among Value-Aligned Customers 2012Goodwill hunting? Influences of product‐cause fit, product type, and donation level in cause‐related marketing 2012Missing ingredients in cause-related advertising 2016Is Customer Retention Beneficial for Customers: A Conceptual Background

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