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

Abstract

Covid-19 has put immense pressure on small businesses within Aotearoa New Zealand. This study explores the use of cause-related marketing (CRM), as a partial solution to the financial struggles resulting from Covid-19 restrictions and inflationary pressures. After consistent messaging throughout the pandemic from Government agencies to 'be kind' it was unknown how New Zealanders would react to CRM initiatives, which traditionally have been viewed with scepticism. An explanatory mixed-method approach was used, with data collected from 98 responses to an online questionnaire, and six semi-structured interviews. Findings suggest that even though most consumers view CRM positively this does not necessarily lead to increased purchasing, patronage, or brand loyalty. While some consumers felt CRM provided a convenient way for them to help charities, and did not mind if organisations also benefited, other consumers were sceptical about the intent of organisations involved in CRM. Based on findings from this study, it is recommended that small business owners capitalise on their ability to connect with local communities and align with a charity which has personal meaning to them. If this relationship is communicated through actions and a long-term commitment, then consumers are more likely to perceive this as authentic, rather than opportunistic.