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Cause-Related Marketing and Ethnocentrism: The Moderating Effects of Geographic Scope and Perceived Economic Threat

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  • Ioanna Boulouta

    (Department of Management, Birkbeck, University of London, London WC1E 7HX, UK)

  • Danae Manika

    (Brunel Business School, Brunel University London, London UB8 3PH, UK)

Abstract

Amongst the various factors that managers need to consider when designing a CRM campaign is the cause’s geographic scope, i.e., should the CRM campaign benefit local, national, or international communities? Although previous research has examined the importance of geographic scope in the effectiveness of the CRM campaigns, it has largely ignored consumer reactions to CRM campaigns from a local cultural identity perspective, such as ethnocentric identity. This study brings together these two important factors to examine (through the lens of Social Identity Theory) how consumer ethnocentrism affects CRM effectiveness in campaigns varying in geographic scope. We test our hypotheses through an experimental study of 322 British consumers and three different geographic scopes (UK, Greece, and Ethiopia). Our results show that ethnocentric consumers show a positive bias towards products advertised through national CRM campaigns; however, there is a diversity of reactions towards different international geographic scopes, based on the levels of ‘perceived economic threat’. Ethnocentric consumers prefer international CRM campaigns that benefit people located in a country posing a lower vs. a higher economic threat to the domestic economy and the self. Our study contributes to a broader understanding of factors affecting the effectiveness of CRM campaigns and help managers design better CRM campaigns by carefully selecting the geographic scope, after considering a rising consumer segment: the ethnocentric consumer.

Suggested Citation

  • Ioanna Boulouta & Danae Manika, 2021. "Cause-Related Marketing and Ethnocentrism: The Moderating Effects of Geographic Scope and Perceived Economic Threat," Sustainability, MDPI, vol. 14(1), pages 1-19, December.
  • Handle: RePEc:gam:jsusta:v:14:y:2021:i:1:p:292-:d:712930
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    References listed on IDEAS

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    1. Constantine S. Katsikeas & Constantinos N. Leonidou & Athina Zeriti, 2016. "Eco-friendly product development strategy: antecedents, outcomes, and contingent effects," Journal of the Academy of Marketing Science, Springer, vol. 44(6), pages 660-684, November.
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    1. Prasant Kumar Pandey & Naval Bajpai & Abhijeet V. Tiwari, 2024. "Factors affecting attitude and purchase intention towards cause-related marketing: a systematic literature review using TCCM approach," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 21(2), pages 479-509, June.

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