Cause-Related Marketing: Do Managers Understand and Use This Tool?

Abstract

Design - We relied on data obtained from in-depth interviews with managers. Data categorization allowed the application of the main constructs of the UTAUT model and the unveiling of the level of acceptance of Cause-Related Marketing (CrM) campaigns by managers and its use as a marketing strategy. Purpose – Most of the research on CrM emphasizes the benefits of these campaigns for charities and donors. The purpose of this study is to decode what managers think about CrM campaigns and try to discern and understand the principal motivations, benefits, and inherent risks to implement these campaigns. Findings - Managers recognize CrM benefits mainly relating them with an increase in reputation and image of the company, making it possible to differentiate and increase its notoriety. However, the social nature of this tool is what weights in the most on the decision of managers, since they recognize that being socially responsible is a competitive factor. The greatest constraints identified have to do with the effort on the implementation of the campaign and with the consumer’s scepticism, especially in transactional campaigns. Originality - With this research we were able to realize that there is a misunderstanding between the CrM concept and purely philanthropic marketing, which can somehow inhibit managers from recognizing the potential of this tool. Regarding CrM use, the position of managers shows a clear concern about the importance of harmonizing values between the company and the cause, betting on long-term campaigns with transparent communication and investing in the process of planning, implementing, and monitoring campaigns to improve their performance. This needs to be taken into account in future assessments of CrM campaigns.

Cause-related marketing in Aotearoa New Zealand: Authentic or opportunistic?

“…Perceptions of the Jed's Coffee and the Spirit of Adventure Trust CRM example suggest that brand-cause fit does play a role in the perceived effectiveness of a campaign. This is consistent with findings from previous research studies (Basil & Herr, 2006;Hong et al, 2019;Miranda et al, 2020). Also similar to these studies were the different interpretations of what 'brand' means.…”

“…CRM campaigns are more likely to be effective and seen as authentic, when the motives of organisations are philanthropic, there is a positive CSR image already established, consumers have favourable attitudes towards both the organisation and cause, and organisations support a social cause consistent with their core business or brand image (Basil & Herr, 2006;Hong et al, 2019;Miranda et al, 2020). Hassan et al (2018) found that company-cause congruence was important, and the selected cause needed to match the company's core business.…”

“…CRM is likely to be more effective when the brand is familiar, the product is utilitarian (as opposed to hedonic), the donation size is large, the message is vivid, and the cause is locally based (Fan et al, 2020). To alleviate consumer scepticism, CRM campaigns require cohesive and transparent communication (Miranda et al, 2020). Feedback, such as keeping consumers informed about campaign progress or how donations are being used, has a positive impact on attitudes towards a brand and intention to purchase (Shazly & Mahrous, 2020).…”

“…When purchasing CRM products consumers wanted to know how the money they were contributing was going to be spent. The desire for this type of transparency was highlighted in previous research studies (Miranda et al, 2020;Shazly & Mahrous, 2020), where feedback regarding the progress of the campaign and how donations were being used were shown to have a positive impact on attitudes towards a brand and intent to purchase. Surprisingly, in a marketplace where there is legislation controlling the truthfulness of advertising messaging (i.e., Fair Trading Act 1986), only a relatively small number of people believed that the claims made about CRM on product labels and advertising were true.…”