Abstract
1- Introduction
2- Related literature
3- Method
4- Results
5- Discussion and implications
References
Abstract
Purpose - The purpose of this paper is to investigate the effect of four types of cause-related marketing (CRM) strategies on consumer responses to a fashion brand and to assess the relative effectiveness of each.
Design/methodology/approach - An experiment was conducted with young adult consumers (n ¼ 344) and undergraduates (n ¼ 415). Using a between-subject design, each participant was randomly assigned to one of four CRM scenarios and completed a questionnaire.
Findings - Across all CRM conditions, the effect of CRM strategy on consumer responses (e.g. perceived brand distinctiveness/credibility/attractiveness, customer–brand identification, brand attitude, customer loyalty) was significant. The effect of corporate social responsibility image on perceived brand distinctiveness was strongest for cause-related event marketing, followed by cause-related experiential marketing, transaction-based CRM and sponsorship-linked marketing. Practical implications - By providing information about the relative effectiveness of four types of CRM strategies, this research aids fashion marketers in their selection of the CRM strategy that generates the best performance. Adding an event component to their CRM activity would increase the effect of CRM strategies on consumer responses.
Originality/value - This research contributes to the extant literature on CRM by identifying types of CRM strategies, their relative effectiveness, and key variables (e.g., C–B identification) that explain the impact of CRM strategies on consumer responses.
Introduction
Over the past decade, corporate social responsibility (CSR) has evolved from a “nice-to-have silo” to a “fundamental strategic priority” for businesses (McPherson, 2017). CSR as a concept refers to the idea that corporations should take responsibility not only for the economic consequences of operating a business but also for any impacts that the business has on social and environmental issues (Australian Human Rights Commission, 2008). One strategy that falls under the umbrella term of CSR is cause-related marketing. Cause-related marketing (CRM) involves mutually beneficial cooperative efforts between a company and a non-profit organization (NPO) designed to promote the company’s sales and the NPO’s cause (Grantspace.org). CRM impacts consumer’s behavior as the 2017 Cone Communication CSR report noted 87 percent of US consumers are likely to purchase a product from a business that advocated for issues they cared about. Then, can companies “do well by doing good” through strategically practiced CRM? Companies engage in CRM for several reasons such as improving their image (Vanhamme et al., 2012), enhancing consumer’s attitudes (Melero and Montaner, 2016) and increasing customer loyalty (Park et al., 2017). Consumers also directly benefit from companies that engage in CRM initiatives. Participating in a brand’s CRM can result in consumers’ experiencing positive emotions as well as enhancing self-perceptions.