Increased word‐of‐mouth via strategic cause‐related marketing

Abstract

This research examines word-of-mouth (WOM) promotions as an additional consequence of a successful cause-related marketing (CRM) partnership. Firms properly aligned in CRM partnerships should increase positive feelings that can translate into positive WOM from the public. WOM efforts should be considered in marketing campaigns to develop successful long-term CRM strategies. Additionally, carefully planned CRM campaigns with positive WOM give firms a competitive advantage without the backlash of consumer skepticism often reported when firms attempt to manipulate WOM campaigns. This study is grounded in associative learning theory which provides support for the strengthened associative links between firm and charity when the relationship is properly aligned. This empirical study suggests that strategically aligned CRM relationships can improve positive WOM recommendations. Results of ANOVA and factor analysis indicate that consumers are more receptive to CRM partnerships that consist of compatibility between firm and charity that persist over time. Results suggest that consumers are more likely to recommend the more properly aligned partnerships to others.

Impact of Consumers’ Self-Construal, Empathy, and Moral Identity on Purchase Intention toward Cause-Related Marketing Goods: A Perspective of the Moderated Mediation Model

“…CRM has been defined as "the linking of charity fundraising through purchasing corporate goods or services," or in other words, corporate contributions to charities originate from CRM product sales rather than the operational budgets of corporations (Varadarajan & Menon, 1988). Studies have verified that CRM improves product sales (Andrew et al, 2014), strengthens consumer attitudes toward companies that sponsor causes (Ross et al, 1992), increases product sales prices (Leszczyc & Rothkopf, 2010), and enhances the positive image of other products under the same brand (Krishna (Bhattacharya et al, 2009) and enhances a firm's positive word of mouth (Thomas et al, 2011). However, CRM also has negative effects; for example, skepticism and distrust can cause consumers to develop a perception of "cause-exploitative marketing" toward poorly designed charitable strategies implemented by companies (Sasse & Trahan, 2007;Varadarajan & Menon, 1988).…”

Exploring the interactive effects of brand use and gender on cause-related marketing over time

“…In experimental settings, researchers have manipulated organization or message factors, cause proximity (e.g., Anuar & Mohamad, ), word‐of‐mouth (WOM) promotions (e.g., Thomas et al . , ), and donation magnitude (e.g., Human & Terblanche, ) to understand consumers' CRM response. For instance, with a sample of 110 Malaysian college students, Anuar and Mohamad () show that cause‐proximity “only” influences women, who prefer to support local rather than international causes in a CRM campaign.…”

“…However, neither donation magnitude nor brand familiarity influenced participation intentions of respondents. Research has shown that strategically aligned CRM relationships can result in positive Word of Mouth (WOM) (Thomas et al, ). With a sample of 100 students, Nan and Heo () showed that an advertisement with a CRM message elicited more favorable attitudes toward the company than those exposed to a message without CRM.…”

“…Previous research suggests that CRM partnerships that persist over time are more successful (Lafferty & Goldsmith, ; Thomas et al . , ). Therefore, this study fills the gaps in past research on CRM by examining how brand use or buying behavior of the sponsor brand influences gendered responses to a CRM campaign over time.…”

A Journey of Cause Related Marketing from 1988 to 2016

“…(Lee Thomas, Mullen, & Fraedrich, 2011) Organizations must invest time and money in partnering with a charity organization that supports a cause that is appealing to the customer base. (Svensson & Wood, 2011) The for-profit and non-profit organizations should evaluate their partnership and their CrM activities before presenting it to customers.…”