How to present donations: the moderating role of numeracy in cause-related marketing

2016 ◽  
Vol 33 (3) ◽  
pp. 153-161 ◽  
Author(s):  
Janet Kleber ◽  
Arnd Florack ◽  
Anja Chladek
Keyword(s):  
Current Practice ◽  
Purchase Intentions ◽  
Content Type ◽  
Sales Strategy ◽  
Cause Related Marketing ◽  
Price Levels ◽  
Presentation Formats ◽  
Hedonic And Utilitarian Products ◽  
Moderating Role

Purpose Cause-related marketing (CRM) is a sales strategy that is used to improve the success of a product by including a donation to a charitable cause in its price. While marketers can present CRM donations to consumers as either absolute amounts or percentages, the predominant practice in marketing is to use the latter. As the influence of such presentation formats is not well understood, the purpose of this paper is to systematically examine their effects while taking into account the numerical ability (numeracy) of the consumers. Design/methodology/approach In two experiments, the presentation format of the donation amounts (absolute vs percentage) were manipulated and individual differences in numeracy were measured. The product type (hedonic vs utilitarian) and sales price were varied. We found this effect for high and low price levels and for hedonic and utilitarian products. Findings The results of both experiments consistently supported the hypothesis presented in this paper that for people with lower numeracy, their purchase intentions were higher when absolute donation amounts were presented. We found this effect for high and low price levels and for hedonic and utilitarian products. Originality/value The present paper shows that the current practice of presenting donations in percentages is inferior to presenting donations in absolute amounts because a large number of consumers have trouble interpreting percentages appropriately. Therefore, it indicates that the default option for marketing managers should be to present donations in absolute amounts for hedonic and utilitarian products with low and high prices.

Promote the price promotion

2014 ◽  
Vol 26 (7) ◽  
pp. 1065-1082 ◽  
Author(s):  
Hui-Chun Huang ◽  
Ya-Ting Chang ◽  
Che-Yi Yeh ◽  
Chung-Wei Liao
Keyword(s):  
Structural Equation Modeling ◽  
Structural Equation ◽  
Purchase Intentions ◽  
Equation Modeling ◽  
Moderating Effects ◽  
Price Promotions ◽  
Content Type ◽  
Chain Stores ◽  
Moderating Role

Purpose – The authors empirically evaluated the effect of price promotions on customer quality evaluations and repeat-purchase intentions in coffee chain stores. The moderating role of customer characteristics in this process was also investigated. Design/methodology/approach – Consumers in 12 coffee chain stores were surveyed and 488 usable questionnaires were obtained. Relationships in the test model were examined using structural equation modeling techniques. A multiple-group solution was used to test the moderating effects of consumer characteristics. Findings – The results of structural equation modeling analyses suggested that price-promotion activities at Starbucks in Taiwan had a favorable effect on customer quality evaluations and positively influenced repeat-purchase intentions. The moderating effects of consumer characteristics were partially supported. Whereas sex showed no significant moderating effect, consumption frequency did demonstrate a moderating effect. Practical implications – The results indicate that existing customers may see price promotions at Starbucks in Taiwan as a reward or incentive, and thus lead to an increase in favorable evaluations. The findings provide a new perspective that may encourage those involved in the marketing of coffee chain stores to manage price promotions in a more strategic manner by considering customer characteristics. Originality/value – The effects of price promotions on brand evaluation remain controversial and may vary among product categories. Additionally, most studies regarding price promotions have used an experimental approach, and few studies of price promotions in the coffee industry have been reported. The study is among the first to empirically examine the effects of price promotions and the moderating role of consumer characteristics in the process at coffee chain stores.

Cause-related marketing for successful cross-border post-acquisition performance

2019 ◽  
Vol 37 (4) ◽  
pp. 695-712 ◽  
Author(s):  
Michela Matarazzo ◽  
Riccardo Resciniti ◽  
Biagio Simonetti
Keyword(s):  
Negative Influence ◽  
Positive Influence ◽  
Target Firm ◽  
Content Type ◽  
Repurchase Intentions ◽  
Cross Border ◽  
Cause Related Marketing ◽  
The Impact ◽  
Moderating Role

Purpose Building on the scant literature on cross-border acquisitions (CBAs) in the consumer perspective, the purpose of this paper is to investigate the impact of the acquirer’s cause-related marketing (CRM) on consumers’ repurchase intentions of the products of the post-acquisition target. In addition, the study aims at analyzing the moderating role of acquirer’s CRM on the relationship between corporate ability (CA) and country image (CI) on consumers’ repurchase intentions of the products of the post-acquisition target. Design/methodology/approach Drawing on a sample of Italian consumers (n=351), the authors examined the roles played by the acquirer’s CRM on consumer behaviour by considering an Italian target firm with a high reputation and comparing eight foreign acquiring firms with different combinations of CRM (poor/good), CA (poor/good) and CI (high/low). Findings The authors found that CRM, CA as well as CI have a significant impact on Italian consumers’ intention to repurchase the products of the post-acquisition target. Furthermore, it is shown that good CRM reduces the negative influence of a poor CA and a low CI on post-acquisition repurchase intentions and strengthen the positive influence, thus confirming the moderating role of CRM. Originality/value The research investigates, in the context of CBAs, the impact of the acquirer’s CRM on the host country consumers’ repurchase intentions after the CBA, which has not previously been examined. It can help managers to understand the conditions under which CBAs will be favourably evaluated.

Cause-related marketing and start-ups: moderating role of cause involvement

2019 ◽  
Vol 10 (1) ◽  
pp. 16-30 ◽  
Author(s):  
Vivek Aggarwal ◽  
Vinod Kumar Singh
Keyword(s):  
Small Businesses ◽  
Purchase Intention ◽  
Social Issues ◽  
Content Type ◽  
Cause Related Marketing ◽  
Cause Involvement ◽  
Start Ups ◽  
Moderating Role ◽  
Society Today

PurposeCause-related marketing (CrM) through social campaigns is becoming one of the main strategic marketing tools for large businesses. The purpose of this study is to find out the significance of CrM for start-ups and to evaluate the moderating role of cause involvement of consumer on the impact of CrM campaigns on purchase intention of consumers.Design/methodology/approachBoth structural equation modelling and hierarchical analysis were used to evaluate the responses of 1,425 male and female consumers in India towards CrM campaign.FindingsThe results revealed that the effect of CrM campaigns on purchase intention of consumers is significantly moderated by consumers’ cause involvement. Thus, companies must extend support to causes having high consumer involvement.Research limitations/implicationsBased on their findings, the authors suggest finding out the effects of CrM on the long-term sustainability of the start-ups in more detail, especially in developing countries like India. The scope of this study is one country-based; thus, research findings may not be generalised.Practical implicationsSmall businesses that are able to understand the needs of their own communities and recognise that through their efforts they can bring large impact on social issues and will see success through their socially responsible mindset. Society today needs businesses to support good causes. The best model of CrM, especially for start-ups, is the one in which while making a payment for a service or purchasing a product, the consumer is asked to make an additional payment for the social cause.Social implicationsSociety today needs businesses to support good causes. CrM campaigns provide consumers a chance to help the less fortunate and do so in regular and convenient ways. The study indicates the importance of both corporate citizenship and social responsibility among small businesses.Originality/valueWhile the current results show that the majority of studies were based on large business, this paper shows that the CrM can be useful for start-ups, medium and small businesses also. The suggested model can be an innovative way to implement CrM without incurring any additional cost. The conclusions confirm within a wider context the role of cause involvement as a moderator of the purchase intention and can further assist start-ups and small-scale companies in designing better targeted CrM campaigns benefiting the society at large.

Consumer response to state-of-origin labels: the moderating role of residency

2020 ◽  
Vol 37 (7) ◽  
pp. 761-773
Author(s):  
Jae Min Jung ◽  
Joseph Jones ◽  
Curtis P. Haugtvedt ◽  
Somnath Banerjee
Keyword(s):  
Country Of Origin ◽  
Consumer Attitudes ◽  
Purchase Intentions ◽  
The State ◽  
Product State ◽  
Content Type ◽  
Strong Product ◽  
Moderating Role ◽  
Made In

Purpose Despite the large number of studies on country of origin, little is known about the effects of state-level product origin information on consumer attitudes and purchase intentions. Likewise, little is known about when the state-of-origin (SOO) information enhances, has no effect or has a negative effect on consumer attitudes and purchase intentions. Primarily drawing on the country-of-origin literature, this study aims to examine the influence of SOO label information and the moderating role of state residency. Design/methodology/approach To test five hypotheses, the authors conducted a survey (Study 1) and an experiment (Study 2). The analyses included content analysis, regression and ANOVA. Findings The findings show that for certain products, moderate-to-strong product–state associations exist. However, when the associations are weak, consumers show bias for products made in their (vs other) states. The findings also show that when consumers evaluate their state products, normative (vs cognitive) reasons drive their attitudes, but that when they assess products from states other than their state of residency, cognitive (vs normative) reasons drive attitudes. Additionally, economic sustainability seems a powerful motivator for buying products made in their state of residency. Practical implications Companies should take advantage of positive biases for their products in the states in which they produce products. However, when companies market their products outside their states of production, in some cases, they should consider deemphasizing SOO information unless there is a strong product–state association present among consumers outside of the state. Originality/value This paper adds value by providing new insights for designing product origin labeling programs. Suggestions for future research and marketing strategies for practitioners who want to use SOO as a branding strategy are offered.

scholarly journals Impact of brand equity on purchase intentions: empirical evidence from the health takāful industry of the United Arab Emirates

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shahid Rizwan ◽  
Husam-Aldin Al-Malkawi ◽  
Kamisan Gadar ◽  
Ilham Sentosa ◽  
Naziruddin Abdullah
Keyword(s):  
United Arab Emirates ◽  
Brand Equity ◽  
Structural Equation ◽  
Purchase Intentions ◽  
Three Dimensions ◽  
Equation Modeling ◽  
Content Type ◽  
The Impact ◽  
Moderating Role

Purpose Although 76% of the population of the United Arab Emirates (UAE) is Muslim, takāful (Islamic insurance) has a much smaller share of business in the UAE than conventional insurance does. The purpose of this study is to highlight the importance of brand equity (BE), which is known as the incremental value that provides reason to buy a brand. This study provides useful insights that can help the health takāful industry to gain a feasible market share in the UAE. Design/methodology/approach This is a quantitative study in which stratified random sampling was adopted for data collection from 300 respondents through a self-administered questionnaire from August to November 2018. Underpinning the study is the theory of planned behavior (TPB) and the structural equation modeling (SEM) technique has been used to examine the impact of BE on purchase intentions (PI) through the moderating role of demographic factors such as age, income, education and religion. Three dimensions of BE, i.e. brand awareness (BAW), brand association (BAS) and perceived quality (PQ), are evaluated in terms of their significance as dimensions of BE. Findings The major findings of this study confirm that BE has a strong positive influence on the PIs of health takāful customers in the UAE and that all three dimensions of BE make significant contributions to the overall BE. The results show that education does moderate the relationship between BE and PI while age, income and religion do not. A new finding of this study is the nonsignificant moderating role of religion, whereby it was found that takāful products in the UAE are not limited to Muslim customers but can include potential customers who are followers of other religions. Originality/value To the best of our knowledge, the present study is the first of its kind to examine the impact of BE on the PI of health takāful customers in the UAE. The findings of the study give academia, researchers and marketers a better understanding of the importance of BE and of its vital role in promoting takāful products in the Gulf Cooperation Council (GCC) countries such as the UAE.

“Standing out” and “fitting in”: understanding inspiration value of masstige in an emerging market context

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manish Das ◽  
Victor Saha ◽  
M.S. Balaji
Keyword(s):  
Emerging Markets ◽  
Structural Equation ◽  
Emerging Market ◽  
Purchase Intentions ◽  
Equation Modeling ◽  
Content Type ◽  
Differential Effects ◽  
Mediating Role ◽  
Moderating Role

Purpose This study aims to investigate the role of middle-class consumers’ need for uniqueness (CNFU), consumer susceptibility to interpersonal influence (CSII), inspiration and behavioral intentions toward masstige products. Specifically, this study examines the differential effects of CNFU dimensions, the underlying mechanism of consumer inspiration and the moderating role of CSII in the purchase intentions toward masstige products. Design/methodology/approach Two studies were carried out to test the proposed relationships. Study 1 examines the differential effect of CNFU dimensions and the mediating role of consumer inspiration for data collected from Tier 1 cities in India. Study 2 replicated Study 1 findings for the jewelry masstige products and tested the moderating role of CSII for data collected from Tier 2 cities. Structural equation modeling was used to test the proposed hypotheses. Findings The study findings confirm the differential effects of CNFU dimensions on inspiration and its mediating role in masstige products’ purchase intentions. Furthermore, the study found that CSII moderates the effect of CNFU dimensions on inspiration toward masstige (jewelry) purchase intentions. Status does not determine masstige purchase intention. Research limitations/implications The present study was carried out in the emerging market of India. Future studies should replicate the study findings in other emerging markets. Practical implications The study findings have important implications for marketers of masstige brands in developing effective marketing strategies in the emerging markets. Originality/value The study is among the few studies to investigate the differential role of CNFU dimensions and inspiration for masstige brands in an emerging market context.

Marketing strategies for highly volatile emerging markets: an empirical study from Pakistani cellular industry

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ammar Javed ◽  
Zia Khan
Keyword(s):  
Emerging Markets ◽  
Structural Equation ◽  
Emerging Market ◽  
Purchase Intentions ◽  
Marketing Strategies ◽  
Equation Modeling ◽  
Brand Love ◽  
Content Type ◽  
Moderating Role

PurposeThis study aims to highlight important marketing strategies within the context of a highly competitive emerging market with few points of difference because of service homogeneity. Drawing upon the social identity and self-expansion theories, this research explores the role of corporate social responsibility (CSR) and discounts and packages offers (DPO) as determinants of purchase intentions. The understudied mediating role of brand love is investigated in the CSR–purchase intentions and DPO–purchase intentions relationships, with relationship age as a moderating variable for the two relationships.Design/methodology/approachData from 359 valid responses from customers of cellular service firms in Pakistan were analyzed using partial least squares-based structural equation modeling.FindingsThe findings show that brand love partially (albeit a weaker relationship) mediates the CSR–purchase intentions relationship. Brand love also partially (albeit a stronger relationship) mediates the DPO–purchase intentions relationship. The moderating role of relationship age is not established.Practical implicationsCellular firms in emerging markets experience high volatility. Therefore, understanding of the volatile behavior alongside devising strategies is of the utmost importance. This research shows that customers continue their business with the firms they love. Interestingly, the non-significance of relationship age as a moderator for both CSR–purchase intentions and DPO–purchase intentions indicates that garnering customers' purchase intentions with respect to relationship age will be very difficult for cellular firms under fierce competition. CSR and DPO should be strategically used to increase brand love to boost purchase intentions.Originality/valueThis study makes two important contributions to the literature of emerging markets. The first contribution of this research is the proposal and validation of brand love as a mediating variable in CSR–purchase intentions and DPO–purchase intentions relationships. Evaluation of the moderating role of relationship age in CSR–purchase intentions and DPO–purchase intentions relationships is the second contribution.

The moderating role of donation-related predispositions on the effectiveness of price and product quality on cause-related marketing participation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Andrews Adugudaa Akolaa ◽  
John Paul Basewe Kosiba ◽  
Felix Appiah ◽  
Akua Akuffo Nyanteh
Keyword(s):  
Product Quality ◽  
Structural Equation ◽  
Price Fairness ◽  
Content Type ◽  
Cause Related Marketing ◽  
Equation Modelling ◽  
Moderating Role ◽  
Insight Into ◽  
Modelling Approach

PurposeThis study investigates the effect of product quality and price fairness on consumer cause-related marketing (CRM) participation and also the moderating role of donation-related customer predispositions (i.e. empathy and cause importance) on this relationship.Design/methodology/approachData for the study were obtained from 240 respondents. A structural equation modelling approach was used in analysing the data.FindingsResults from the analysis indicate that fair pricing and product quality affect CRM participation. The findings also provide insights into the moderation role of empathy and cause importance.Originality/valuePrior research studied the effect of promotion on CRM participation; however, this study examines the effect of product and price. The findings offer insight into issues of research and managerial interest, offering insightful implications to the academic and practitioner communities in developing countries, respectively.

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