A model of cause-related marketing for profit-driven and non-profit organizations

Purpose – The purpose of this paper is to describe a model of cause-related marketing (CRM) for both profit-driven (PD) and non-profit (NP) organizations.
Design/methodology/approach – The model consists of two parallel internal and external organizational processes – one representing the process of a NP organization and the other a PD organization. They are interlinked as the outcome of a CRM-partnership is dependent upon their mutual efforts.
Findings – The authors argue that it is essential to remember that a CRM-partnership is a challenge and risk for both the PD and NP organizations that may harm their reputation and position in the marketplace and/or society. CRM has benefits as well as downsides that should not be underestimated nor neglected.
Research limitations/implications – Will the involvement of the PD or NP organizations in the resultant partnership be perceived as commercialism, altruism or a combination of both, in the marketplace and society? A focus on both processes opens up opportunities for further research.
Practical implications – A contribution is that the CRM-model may be used as a guide for both PD and NP organizations in order to reveal whether a CRM-partnership is appropriate for them with a potential partner or not. It may also indicate whether the motives are based upon commercial reasons or altruistic reasons or a combination of both.
Originality/value – The model enables these organizations to think through the process prior to engaging in CRM.

Corporate sponsorship of a cause: the role of identification in purchase intent

Nonprofit organizations (NPOs) have attracted significant levels of support from corporate sponsors over the past decade. Despite this significant and continuing interest, very little is known about how consumers perceive and respond to corporate sponsors of NPOs. Drawing on social identity theory, the authors propose that willingness to purchase sponsoring firms' products be related to consumers' identification with an NPO. Possible antecedents of identification with an NPO are also modeled, including the prestige of an NPO, consumers' affiliation with an NPO, and their motivation to support a cause. As predicted, the results find a positive relationship between consumers' identification with an NPO and their intentions to purchase sponsors' products. The results also suggest an important role for identification with an NPO in mediating the relationships between the antecedents studied here and consumers' purchase intentions. Finally, the moderating effects of biodata (life experiences) on several modeled relationships are examined. (C) 2003 Elsevier Inc. All rights reserved.

Effects of corporate support of a charity on public perceptions of the charity

A quasi-experimental design (N=517) was used to investigate the effect on audience response to a supported charity if corporate support is featured in an advertisement. The results indicate that corporate support of a charity appears not to influence audience attitudes and donation intentions for the charity. A small portion of the audience may be motivated to donate when learning of a large corporate donation to the charity. The level of individual's favourability for the charity was the strongest predictor of their attitudes and intentions. Gender was also a predictor of more positive charity attitudes, with females reporting more positive attitudes than males for three of four charities. Managerial implications and areas for future research are discussed.

Business-driven social change:a systematic review of the evidence

How can companies help change people's behaviour in order to benefit society? Organizations have the resources and market influence to effect positive change. Through product labeling, supply chain management, cause marketing, corporate philanthropy, employee volunteerism and NGO (non-government organization) partnerships, companies are helping society get active, eat healthy foods, dispose of products properly, use less energy and generally live more sustainable lives. This report reveals the three conditions necessary for changing people's behaviour that create benefits for society. The report also includes 19 mechanisms companies can use to motivate people to change and to create the capabilities and opportunities for change.

Cause related marketing: can the arts afford not to participate?

Cause related marketing is a new way for for-profit organizations to increase their sales while appearing to enhance their focus on social responsibility. The key for private-sector organizations is to build partnerships with a worthy, notable cause and for them to promote that cause in a carefully structured commercial venture designed to enhance both organizations' financial viability. Over the last 2 decades the focus has shifted from the worthy cause of the arts, to issues of health and social need. The answer proposed in this paper is to broaden the definition of worthy cause to include needy non-profit arts and thus, return cause related marketing to its roots. This paper identifies the direction of rapid change in attitudes to arts marketing in just over 2 decades and indicates the possibilities of participating in cause related marketing activities as a result of this change.

An exploratory investigation of attitudes toward cause-related marketing

This paper reports on a study concerning consumer perceptions of cause-related marketing in Australia, and seeks to identify a direct link between consumer attitudes toward donating to charity (pro-social behaviour) and corporate philanthropy, and attitudes toward cause-related marketing. After a discussion on the related literature, there follows discussion on the research
model employed, and the fmdings of he study. Among other fmdings, statistically significant relationships between attitudes toward charitable giving and attitudes toward cause-related marketing are in evidence. In this study, respondents express a preference for local causes, as opposed to national and international causes, and also demonstrate a preference for cause types similar to those that already receive the highest level of charitable donations. The paper concludes with a discussion of the limitations of the study and presents suggestions for future research.

Cause related marketing-commercialism or altruism: Finding the balance?

The objective of this paper is to describe a framework of questions that may provide guidance as to whether a company (i.e., a for-profit organisation) should engage in Cause Related Marketing (CRM) or not. CRM is an  intriguing concept in which one finds a cause and intertwines one’s  marketing push to sell both the cause and one’s products. The reality is that some companies do focus solely on the profit returns from socially responsible ventures and others do not, therefore, a framework of questions are provided that may guide companies as to whether to pursue a CRM-relationship with a non-profit organisation (i.e., the cause).

Cause related marketing: reflections on the first twenty years

Cause related marketing is an intriguing concept in which one finds a cause and intertwines one's marketing push to sell both the cause and one's products. During this first twenty years, developing a partnership had gone from charities seeking out companies to companies seeking out charities. The concept, in its pure form, appeared to be a rare approach, where both
shareholder and stakeholder value was increased in combination. All parties appeared to benefit in this relationship.

Can the overcommercialization of cause-related marketing harm society?

The role of social responsibility within business has been debated for decades. It appears that there is a growing understanding that doing the right thing for society can not only be good for business but is also a responsibility of the modern corporation. Causes, corporations, and society have benefited from corporate involvement with social issues. However, it also appears that in some cases, there may be potential pitfalls associated with merging social and corporate objectives. The "overcommercialization" of some activities designed to benefit society may in fact harm those that these activities are trying to help. This article examines potential pitfalls associated with cause-related marketing and provides recommendations for reducing the potential negative consequences

Cause-related marketing : an extension of the congruity concept

This paper considers the concept of congruity or 'fit' in a cause-related marketing (CRM) context. At present, there is a gap in the literature that explores how nonprofit-forprofit pairings affect a consumer's response to and evaluation of CRM campaigns. This paper develops the concept of 'fit' with particular attention being paid to three dimensions, namely, cognitive, emotional and behavioural congruity and the role these concepts play in determining consumers’ perception of the 'relatedness' of products and causes.

Outbound cause-related marketing at the West Coast Eagles : measuring awareness and impact

This paper examines sports sponsorship from the perspective of the sports organisation as the sponsor of charity and community events - an increasingly common practice. Most of these sponsorship activities fit within the framework of cause-related marketing, but their effectiveness and value to the clubs involved are not known. We examine the activities of one AFL club which is heavily involved in a range of outbound sponsorship activities. In order to assess the impact of theses activities, we surveyed season ticket holders of this club and examined issues such as their general awareness of these activities and the both the antecedents and outcomes of this awareness. We find that general awareness (recognition) levels were high, and that the correlated with loyalty, involvement and specific brand associations. The conclusion is that outbound sponsorship of charities and the community has a number of positive outcomes for sporting clubs, and should be encouraged.