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How much to give? — The effect of donation size on tactical and strategic success in cause-related marketing

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  • Müller, Sarah S.
  • Fries, Anne J.
  • Gedenk, Karen

Abstract

In cause-related marketing (CM), companies promise a donation to a cause every time a consumer makes a purchase. We analyze the impact of the size of this donation on brand choice (tactical success) and brand image (strategic success). Our results reveal different effects of donation size on these success measures. For brand choice, the effect of donation size is moderated by a financial trade-off for consumers, whereas the effect on brand image is moderated by donation framing. Specifically, we show that donation size has a positive effect on brand choice if consumers face no financial trade-off; i.e., if they do not have to choose between triggering a donation or saving money. The effect is negative if a trade-off exists such that higher donations come at higher costs. Brand image is enhanced by larger donations if the framing is nonmonetary (e.g., the campaign promises the provision of vaccinations), whereas donation size has a negative effect if donation framing is monetary (e.g., the campaign states the Euro amount). If campaigns use a combination of both frames, the effect of donation size on brand image has an inverted U shape. Our results suggest that CM enhances tactical and strategic success only if firms select the right donation size, taking into account donation framing and financial trade-offs.

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  • Müller, Sarah S. & Fries, Anne J. & Gedenk, Karen, 2014. "How much to give? — The effect of donation size on tactical and strategic success in cause-related marketing," International Journal of Research in Marketing, Elsevier, vol. 31(2), pages 178-191.
    • Handle: RePEc:eee:ijrema:v:31:y:2014:i:2:p:178-191
    DOI: 10.1016/j.ijresmar.2013.09.005
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    2. Kim, Claire Heeryung & Han, Eunjoo, 2020. "Premiums Paid for What You Believe In: The Interactive Roles of Price Promotion and Cause Involvement on Consumer Response," Journal of Retailing, Elsevier, vol. 96(2), pages 235-250.
    3. Heidarian, Elham, 2017. "An empirical research of consumers' trust propensity in CRM successes," Wirtschaftswissenschaftliche Diskussionspapiere 06/2017, University of Greifswald, Faculty of Law and Economics.
    4. Pechtl, Hans & Heidarian, Elham, 2016. "Can a cause-related brand be perceived different from other brands?," Wirtschaftswissenschaftliche Diskussionspapiere 02/2016, University of Greifswald, Faculty of Law and Economics.
    5. Dongho Yoo & Jung-Ae Kim & Sun-Jae Doh, 2018. "The Dual Processing of Donation Size in Cause-Related Marketing (CRM): The Moderating Roles of Construal Level and Emoticons," Sustainability, MDPI, vol. 10(11), pages 1-21, November.
    6. Hajer Bachouche, 2016. "L'empowerment to select dans les campagnes de RSE : Une étude qualitative exploratoire," Post-Print hal-01619957, HAL.
    7. Jinsoo Hwang & Jung Kyu Choi, 2017. "An Investigation of Passengers’ Psychological Benefits from Green Brands in an Environmentally Friendly Airline Context: The Moderating Role of Gender," Sustainability, MDPI, vol. 10(1), pages 1-17, December.
    8. Xiaojun Fan & Nianqi Deng & Yi Qian & Xuebing Dong, 2022. "Factors Affecting the Effectiveness of Cause-Related Marketing: A Meta-Analysis," Journal of Business Ethics, Springer, vol. 175(2), pages 339-360, January.
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    10. Anja Plumeyer & Pascal Kottemann & Daniel Böger & Reinhold Decker, 2019. "Measuring brand image: a systematic review, practical guidance, and future research directions," Review of Managerial Science, Springer, vol. 13(2), pages 227-265, April.
    11. Sara Osama Hassan & Ehab Mohamed AbouAish, 2018. "The impact of strategic vs. tactical cause-related marketing on switching intention," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 15(3), pages 253-314, September.
    12. Fennell, Patrick B. & Coleman, Joshua T. & Kuo, Andrew, 2020. "The moderating role of donation quantifiers on price fairness judgments," Journal of Business Research, Elsevier, vol. 110(C), pages 464-473.
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    14. Thamaraiselvan Natarajan & Daniel Inbaraj Jublee & Dharun Lingam Kasilingam & Gladys Stephen, 2018. "The moderating role of social themes in cause-related marketing advertisements," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 15(4), pages 433-454, December.
    15. Chun-Tuan Chang & Xing-Yu (Marcos) Chu, 2020. "The give and take of cause-related marketing: purchasing cause-related products licenses consumer indulgence," Journal of the Academy of Marketing Science, Springer, vol. 48(2), pages 203-221, March.
    16. Amel Chaabouni & Kaouther Jridi & Fatma Bakini, 2021. "Cause-related marketing: scepticism and warm glow as impacts of donation size on purchase intention," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 18(1), pages 129-150, March.
    17. Nic S Terblanche & Christo Boshoff & Debbie Human-Van Eck, 2023. "The influence of cause-related marketing campaign structural elements on consumers’ cognitive and affective attitudes and purchase intention," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 20(1), pages 193-223, March.
    18. Eric Kolhede & J. Tomas Gomez-Arias, 2022. "Segmentation of individual donors to charitable organizations," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 19(2), pages 333-365, June.
    19. Tejaswi Patil & Zillur Rahman, 2023. "Mapping the Cause-Related Marketing (CRM) field: document co-citation and bibliographic coupling approach," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 20(2), pages 491-520, June.
    20. Liyin Jin & Yanqun He, 2018. "How the frequency and amount of corporate donations affect consumer perception and behavioral responses," Journal of the Academy of Marketing Science, Springer, vol. 46(6), pages 1072-1088, November.
    21. Arslanagic-Kalajdzic, Maja & Kadic-Maglajlic, Selma & Dlacic, Jasmina & Zabkar, Vesna, 2022. "“We Go Together”: Understanding social cause-related purchase intentions of young adults," Journal of Business Research, Elsevier, vol. 140(C), pages 130-142.
    22. Farzana Riva & Mohammad Rajib Uddin & Mohammad Rabiul Basher Rubel, 2020. "Effect of Customers’ Attitude, Involvement on Purchase Intention: Moderating Effect of Cause Related Marketing Campaigns," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 11(2), pages 1-75, March.
    23. Kull, Alexander J. & Heath, Timothy B., 2016. "You decide, we donate: Strengthening consumer–brand relationships through digitally co-created social responsibility," International Journal of Research in Marketing, Elsevier, vol. 33(1), pages 78-92.
    24. Wen, Xiaohan (Hannah) & Kim, Shinhye & Bowen, Melanie, 2023. "Doing good by sharing messages: An investigation of “You Share, We Donate” campaigns and how they can attain viral success," Journal of Business Research, Elsevier, vol. 156(C).

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