Cause-related marketing and the effect of 99-ending pricing

2020 ◽  
Vol 37 (3) ◽  
pp. 237-246
Author(s):  
Mazen Jaber ◽  
Kylie Jaber

Purpose Cause-related marketing (CRM) campaigns have become common features of the marketplace. CRM often involves a for-profit business agreeing to contribute a specified amount to a cause when the business’s customers engage in revenue-generating exchanges. Despite the central role that price is likely to play in a consumer’s decision to purchase or not to purchase an offer associated with a CRM campaign, to the best of the authors’ knowledge, very few have examined price framing effects in a CRM context. This paper aims to explore the effect of rightmost digits manipulation in prices on participation intentions for CRM campaigns. Design/methodology/approach In Study 1, 241 college students participated in an online experiment for class credit. The experiment used a 3 (price level: low, medium and high) × 2 (price ending: 99 ending and no ending) between-subjects design. The dependent variable was participation intention, and several moderators and mediators were considered. PROCESS was used to test the moderated mediation. In Study 2, 351 subjects participated in an online experiment with a design similar to the earlier study. In Study 2, however, new mediators were added and the moderated mediation was tested using SPSS PROCESS macro. Findings This research shows that price ending impacts the effectiveness of CRM as a tactic on consumers’ purchase intentions. Consistent with the authors’ prediction, this study shows that consumers exposed to a 99-ending CRM offer are more likely to participate in the offer compared to consumers exposed to a no-ending priced offer. Offer attractiveness, elaboration and corporate social responsibility were also shown to have a strong effect on participation intentions. Practical implications This research indicates that for moderately priced products, 99-ending prices led to an increased influence on consumer purchase intentions; on the other hand, no-ending/even-ending prices were more effective for high-priced products. Thus, the use of the right digit effect by managers in a CRM context as way of increasing consumers’ participation likelihood is likely to be more successful for moderately priced offers. Originality/value This research extends previous work on CRM and right digit effect in pricing. This study’s findings, in both Studies 1 and 2, demonstrate that the effectiveness of CRM campaigns on consumer choice is dependent on the offer price ending. Consumers exposed to the no-ending priced CRM offers tend to be affected less by CRM campaigns compared to consumers exposed to 99-ending offers, who perceive the offer as more attractive.

2018 ◽  
Vol 27 (6) ◽  
pp. 716-731 ◽  
Author(s):  
Ilaria Baghi ◽  
Veronica Gabrielli

Purpose Past research on cause-related marketing (CRM) suggests that these socially beneficial initiatives can be implemented as co-branding strategies. Little is known, however, about the role of brand prominence, in terms of visual conspicuousness of the two brands that are partner-involved (for-profit and non-profit brands). This study aims to advance a model of moderated mediation that explains how and under what circumstances brand prominence disparity enhances consumers’ attitudes toward CRM co-branded products and increases purchase intention Design/methodology/approach The authors test a model of moderated mediation in two studies. Study 1 shows that the effectiveness of brand prominence disparity is explained by the mediating role of attitude toward a CRM co-branded product. Study 2 demonstrates that this mediation is moderated by the positioning of the for-profit brand partner (luxury vs non-luxury positioning). Findings Results show that brand prominence disparity has a role in defining consumers’ purchase intention toward a CRM co-branded product through mediation of attitude. Moreover, positioning of the for-profit brand partner moderates the cognitive processes activated by the visual brand prominence. In luxury positioning, a loud visual prominence of the for-profit brand significantly improves consumers’ attitudes and intentions to buy the CRM co-branded product. Originality/value The study extends our understanding of how visual brand presence can promote the effectiveness of co-branded CRM initiatives, and it offers practical guidelines for marketers wishing to partner with social causes, while promoting products with luxury or non-luxury features.


1988 ◽  
Vol 52 (3) ◽  
pp. 58-74 ◽  
Author(s):  
P. Rajan Varadarajan ◽  
Anil Menon

Cause-related marketing represents the confluence of perspectives from several specialized areas of inquiry such as marketing for nonprofit organizations, the promotion mix, corporate philanthropy, corporate social responsibility, fund-raising management, and public relations. The authors outline the concept of cause-related marketing, its characteristics, and how organizations, both for-profit and not-for-profit, can benefit from effective use of this promising marketing tool.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yufan Li ◽  
Weichen Teng ◽  
Tien-Tien Liao ◽  
Tom M.Y. Lin

PurposeThe recent rise of economic nationalism intensifies consumers' patriotic attitudes toward goods or services and thus encourages enterprises to build patriotic brand images. Nevertheless, few studies have discussed how a patriotic brand image is developed. The purpose of this study aims to fill the gap by examining whether and how a positive corporate image helps a domestic brand establish a patriotic brand image and in turn enhances consumers' purchase intentions in relation to domestic brand products.Design/methodology/approachA research model identifying the antecedents of patriotic brand image (the components of corporate image) is proposed and empirically tested using structural equations with a questionnaire investigating Taiwanese college students' attitudes toward Taiwanese smartphone brands. Three competing models are also proposed and tested to confirm the appropriateness of the research model.FindingsIn addition to the widely recognized impact of perceived quality on purchase intentions, patriotic brand image is found to be effective in enhancing local consumers' intentions to purchase domestic brand products. To shape a patriotic brand image, perceived quality, perceived corporate ability and perceived corporate integrity are the direct approaches, while perceived corporate social responsibility works through perceived corporate integrity, and perceived employer brand enhances only perceived corporate social responsibility.Research limitations/implicationsPotential sampling (college students) and subject (smartphones) biases may limit the generalizability of the presented findingsPractical implicationsWhile patriotic appeals have long been used in marketing communication, they are also likely to precipitate negative brand associations (e.g. nationalism), offending consumers in other countries. By contrast, the development of a positive corporate image serves as an implicit and neutral approach to building a patriotic brand image and can help domestic brands attract local consumers with less harm to foreign markets.Originality/valueThis study is one of notably few studies discussing patriotic brand image and its impacts on purchase intentions. This study also identifies the antecedents of patriotic brand image and how each of them affects patriotic brand image. The findings can help guide domestic brands in building a patriotic brand image.


2017 ◽  
Vol 13 (1) ◽  
pp. 2-22 ◽  
Author(s):  
Heidi Herlin ◽  
Nikodemus Solitander

Purpose The purpose of this paper is to get a deeper understanding how not-for-profit organizations (NPOs) discursively legitimize their corporate engagement through cross-sector partnerships (CSPs) in general, and particularly how they construct legitimacy for partnering with firms involved in the commodification of water. The paper seeks to shed light on the values embedded in these discursive accounts and the kind of societal effects and power relations they generate, and the authors are particularly interested in understanding the role of modernity in shaping their responsibilities (or lack of them) via various technologies and practices Design/methodology/approach Drawing on critical discourse analysis (Fairclough 1995), the authors analyze the discursive accounts of three water-related CSPs involving the three biggest bottled water producers in the world (Nestlé, Coca-Cola and Danone) and three major non-profits (The International Federation of Red Cross and Red Crescent Societies, the World Wildlife Foundation and the United Nations Educational, Scientific and Cultural Organization). Findings The NPO’s legitimate their corporate engagement in the water CSPs through the use of two global discourses: global governance discourse and the global climate crisis discourse. Relief from responsibility is achieved through three processes: replacement of moral with technical responsibility, denial of proximity and the usage of intermediaries to whom responsibility is outsourced. Originality/value This paper explores the processes of legitimizing accounts for CSPs, particularly focusing on NPO discourse and their use of CSR elements and the consequences of such discursive constructs, and this has received little to no attention in previous research.


2012 ◽  
Vol 2 (8) ◽  
pp. 1-13
Author(s):  
Jyoti Kainth

Subject area Strategic management. Study level/applicability The case is suitable for undergraduates, MBA, and executive MBA courses. Case overview This case on Satya Bharti School Program, an initiative of the Bharti Foundation, highlights the journey, achievements and challenges faced during the implementation of a noble vision. The case maps the strategy implemented from multiple vantage points and aims to show how the compelling need of providing quality education in rural India transformed the way people look at corporate social responsibility (CSR) activities. Expected learning outcomes The case analysis aims to help students comprehend and understand: the concept of corporate social responsibility; the strategic decision-making process amidst constraints in the context of not-for-profit organizations; how organizational excellence models are embedded to improvise practices and processes; the concept of the multi-stakeholder framework; and how external and internal issues can affect the success of a CSR program. Supplementary materials Teaching notes are available; links to videos are provided.


2018 ◽  
Vol 35 (5) ◽  
pp. 522-532 ◽  
Author(s):  
Xiao Tong ◽  
Jin Su

Purpose The purpose of this study is to examine the effects of corporate social responsibility (CSR) reputation, product price and organic label on consumers’ perceptions of quality, trust and purchase intentions of organic apparel products by surveying American young consumers. Design/methodology/approach An intercept survey approach was used to administer a written questionnaire to a sample of college students. The experiment is a 2 (CSR reputation: poor vs good) × 2 (price: low vs high) × 2 (organic label: absent vs present) factorial design. Findings The results of our study suggest that retailers’ CSR reputation had a significant positive effect on perceived quality, consumer trust and purchase intentions, and price had a negative impact on consumers’ purchase intentions. Results also revealed a significant three-way interaction among the three independent variables on perceived quality and consumer trust. Originality/value This research is the first empirical effort to investigate the key factors that may influence young consumers’ perceptions of quality, trust and purchase intentions of organic products by considering joint use of CSR reputation, product price and an organic label, which represents a realistic buying condition. Consequently, the findings of this study represent an important step forward in better understanding consumers’ buying behavior toward green products.


2019 ◽  
Vol 13 (3) ◽  
pp. 603-615
Author(s):  
Chih-Jen Lee ◽  
Stanley Y.B. Huang

Purpose This study aims to propose a multilevel moderated mediation model of transformational leadership, corporate social responsible, organization-based self-esteem and job engagement to detect Kahn’s theory and predict new product development performance. Design/methodology/approach This study used a longitudinal study over a six-month period to test the multilevel moderated mediation model. Empirical testing used a survey of 1,655 employees from 165 different R&D work group in Great China. Findings Transformational leadership, corporate social responsible and organization-based self-esteem well predict employees’ job engagement and new product development performance and are moderated by open discussion of conflict. Originality/value This study is the first to propose a multilevel moderated mediation model to detect Kahn’s job engagement theory and predict new product development performance.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thanh Tiep Le ◽  
Aviral Kumar Tiwari ◽  
Abhishek Behl ◽  
Vijay Pereira

PurposeThis study aims to evaluate the impact of perceived cause- related marketing (perceived-CRM) on the repurchase intention (CRIN). Besides, brand image (BIMA) and customer satisfaction (CSAT) connect this relationship as mediating variables. Especially, the role of perceived corporate social responsibility (perceived-CSR) contributed to this nexus between perceived-CRM and BIMA, perceived-CRM and CSAT in emerging economies.Design/methodology/approachThe paper follows a quantitative approach. Based on a comprehensive literature review on perceived-CSR, perceived-CRM , BIMA, CSAT and repurchase intention, the authors evaluate the impact of those constructs on repurchase intention in an emerging market. The study sample was composed of 395 responses covering customers of consumer goods. The study uses the Smart PLS-SEM version 3.3.2 to analyze the data.FindingsThe findings revealed significant contributions to the extant CRM literature in some ways. This study's outcomes contribute to extending the existing literature on CRM and CSR. Specifically, the extension focuses on the mediating and moderating effects of BIMA, CSAT and perceived-CSR, respectively, in the relationship between perceived-CRM and CRIN. Moreover, the novelty of this study lies in providing a new approach to the influence of perceived-CRM on CRIN, with the mediating of BIMA, CSAT and moderating effects perceived-CSR integrated into a conceptual model.Practical implicationsFrom a management perspective, the contribution of this study plays a very important role in strategic planning to enhance competitive advantage and improve business performance on a sustainable basis. This sustainability is founded on an insight into how changes in contextual factors affect the perception and consumer behavior of millennials in fast-moving consumer goods (FMCG) market, especially in a context of Covid-19 global crisis. It is important to emphasize that genuineness and transparency in all activities and communications are a prerequisite in today's sensitive context. The application of acquired insight into practice will help businesses operating in the consumer sector improve brand reputation and CSAT. As a result, this leads to enhanced competitive advantage of the business in the market, improved market performance and ultimately to an improvement in the overall performance of the enterprise.Originality/valueThis is the first study that explores the moderating role of perceived CSR on the nexus between perceived-CRM with brand image (BIMA) and CSAT to the best of our knowledge. Besides, the study also discovers the mediating role of BIMA and CSAT between perceived-CRM and repurchase-intention in an emerging economy. Findings in this study provided additional evidence to the increasingly important roles of perceived-CRM and perceived-CSR in creating win-win relationships with customers, aiming to solve specific social causes jointly. Further, the perceived-CRM and perceived-CSR mechanisms help businesses enhance their intangible assets and competitive advantages through enhanced BIMA and stronger CRIN. In the current context, the business environment is changing rapidly due to many factors that lead to increased competition at a global level. Therefore, improving competitive advantage is a mandatory condition for businesses to survive and develop sustainably.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Meier Zhuang ◽  
Wenzhong Zhu ◽  
Lihui Huang ◽  
Wen-Tsao Pan

PurposeThe main purpose of this paper is to explore the influence mechanism of corporate social responsibility (CSR) for smart cities on consumers' purchase intention. The authors aim to identify the key components of CSR for smart cities based on the perspective of consumers, namely responsibility toward consumers, environment and community and validate their relationship.Design/methodology/approachThe authors exploit data collected by questionnaire surveys to estimate the effects of CSR for smart cities on consumers' purchase intentions and to investigate the statistical causality between them. The multilinear regression model is used to figure out the different impact levels of the three dimensions of CSR for smart cities on consumers' purchase intention.FindingsThe results illustrate that CSR for smart cities and its three dimensions all have significant positive impacts on consumers' purchase intentions. Besides, consumer–corporate identity (CCI) exerts a partial mediation effect on this influence mechanism.Research limitations/implicationsThis research is based on a rather small sample size. Besides, due to the time limitation and other factors, some other control variables are neglected in the regression model. Therefore, the impact level could be distorted.Practical implicationsThe authors put forward management implications according to research conclusions. Corporates should actively fulfill the CSR in the field of consumer responsibility to boost consumers' purchase intention. Corporate should strengthen the interaction with consumers to improve their corporate identity.Originality/valueThe main contribution of this paper is to provide convincing evidence of the impacts of CSR for smart cities on consumer purchase intention (CPI), thus proposing effective measures for corporates to win more consumers by taking on social responsibility for smart cities. This paper takes CCI as mediating variable to deepen the understanding of the impacts of CSR for smart cities on CPI, which is innovative and beneficial to enriching literature in related fields.


2012 ◽  
Vol 12 (3) ◽  
pp. 317-334 ◽  
Author(s):  
Suresh Renukappa ◽  
Charles Egbu ◽  
Akintola Akintoye ◽  
Jack Goulding

PurposeIn the early part of the twenty‐first century, the term sustainability has become a buzzword. Although featuring strongly in the popular media, trade, professional and academic journals, the very concept of sustainability is elusive for businesses. There is, however, a little empirical research on the perceptions of the UK industrial sectors on the concept of sustainability – which is the core raison d'être of this paper. The purpose of this paper is to capture the general perceptions of the UK industrial sectors on the concept of sustainability.Design/methodology/approachThe aim of this paper is to capture the general perceptions of the UK industrial sectors on the concept of sustainability using a qualitative approach. Four industry sectors: energy and utility, transportation, construction and not‐for‐profit organisations (NPOs) were considered based on the environmental, social and economic impact on the UK society. Semi‐structured interviews were used to collect industry perception which was then analysed using content analysis for inference and conclusion.FindingsThe data analysis revealed that the perceptions of the UK industrial sectors on the concept of sustainability vary significantly across the four industry sectors. Four core categories were identified: environmental, economic, corporate social responsibility and triple bottom line dimension.Practical implicationsThe paper concludes that the concept of sustainability is multifaceted and diverse. Although the importance of sustainability is broadly acknowledged across the four industry sectors, there is a significant lack of a common and operationalised understanding on the concept of sustainability. Therefore, it is recommended that there is an urgent need to develop and deploy an industry‐wide awareness‐raising programme on the concept of sustainability.Originality/valueThe paper provides a richer insight into the understanding and awareness of the meaning of sustainability at a conceptual level.


Sign in / Sign up

Export Citation Format

Share Document