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The effects of cause and donation size of cause - related marketing program on consumers´s intention to buy

Sinčić Ćorić, Dubravka and Kurnoga Živadinović, Nataša and Dropuljić, Marija (2012) The effects of cause and donation size of cause - related marketing program on consumers´s intention to buy. In: Marketing challenges in new economy. Sveučilište Jurja Dobrile u Puli. ISBN 978-953-7498-57-3

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Although Adkins (1999: 9) states that some solitary examples of commercial cooperation between enterprises and non-profit organizations can be found at the end of the nicneteenth century, and Husted and Whitehouse (2002: 5) confirm that McDonald’s organized a locally run campaign of that type in 1974, the majority of the researchers (i.e. Adkins (1999: 15), Andreasen (1996: 4), and Varadarajan and Menon (1988: 59)) agreed in 1983 American Express was the first company that managed a cause-related marketing campaign. The method of the campaign was to give a cent from each transaction and a dollar for each new card member for the renovation of the Statue of Liberty. The results were great; the number of transactions rose 28% in relation to the same period the previous year, the number of card members rose 45%, and the amount donated to the renovation of the Statue of Liberty was 1.7 million dollars. Among the first researchers of the cause-related marketing were Varadarajan and Menon. In their seminal paper from 1988 they emphasized that firms have long attempted to enhance their corporate image, cultivate a favorable attitude in the minds of consumers, and/or realize incremental sales gains by prominently advertising their acts of philanthropy and sponsorship of worthy causes. They consequently view cause-related marketing as a manifestation of the alignment of corporate philanthropy and enlightened business interest. They point out that cause-related marketing strives to achieve two objectives: improve corporate performance and help worthy causes by linking fundraising for the benefit of a cause to the purchase of the firm’s products and/or services. There were different understandings of cause-related marketing during the eighties. For instance, Varadarajan (1986) viewed cause-related marketing as a form of horizontal cooperative sales promotion; Grahn, Hannaford, and Laverty (1987) described it as a tie-in between corporate philanthropy and sales promotion, while Williams (1986) thought of it as synonymous with corporate sponsorship of charitable causes, and Rapp and Collins (1987) saw it as the initiation and funding of deserving causes (all in Varadarajan and Menon, 1988: 60). In the absence of a formal definition at that time, Varadarajan and Menon first offered one, proposing that „cause-related marketing is the process of formulating and implementing marketing activities that are characterized by an offer from the firm to contribute a specified amount to a designated cause when customers engage in revenue-providing exchanges that satisfy organizational and individual objectives“ (1988: 60). They concluded that cause-related marketing is distinct from sales promotion, corporate philanthropy, corporate sponsorship, corporate good Samaritan acts, and public relations, though it is often an amalgam of such activities. Contemporary understanding of cause-related marketing is that it is a specific type of partnership between profit and non-profit organizations (Sinčić Ćorić, Kurnoga Živadinović, 2009: 71) that also serves as a strong marketing communication tactic (Adkins, 1999: 43; Subrahmanyan, 2004, 116; Adler, 2006: 5). Different social and market circumstances facilitate its development. Some of them are hypercompetitive business environment, growing distributors’ power, proliferation of similar products and services, high price pressures, a general raise of social sensitivity, as well as the changes in non-profit organizations’ funding (Holmes, Kiliban, 1993, 69; Andreasen, 1996, 4; Sinčić Ćorić, Kurnoga Živadinović, 2009, 71). Smith (1994: 111), as well as Hess, Rogovsky and Dunfee (2002: 111) add that cause-related marketing stems from a new corporate philanthropy that evolved in the nineties, while Adler (2006, 4) emphasizes that companies’ marketing messages need to be aligned with consumers’ values, one of which is social sensitivity. Daw (2006: 42) describes the development of cause-related marketing through four phases, which go from short-term partnerships to strategic alliances between profit and non-profit organizations. Husted and Whitehouse (2002: 6) similarly point that it started with a short-term cooperation between profit and non-profit organizations, evolved as products were linked to non-profit causes, and is now regarded as a long-term cooperation between profit and non-profit organizations and implementation in profit organizations’ corporate strategy. On the other hand, Thorne McAlister and Ferell (2002: 693) challenge this view and point out that long-term cooperation is an exception. Wetsch and Pike (2009: 1) think along similar lines and simultaneously advocate the need for a long-term partnership, which will lead to greater performance and better business results. Sinčić Ćorić and Kurnoga Živadinović (2009: 71) conclude that by cooperating with both of the partners successfully accomplishes business goals and promotes their beliefs and ideas. The points stated above prove that this theme entered the realm of research interest in the 1980’s. The research can be grouped in one of the following four: (1) The first group, which has received the most academic attention, consists of studies about consumers’ perspective. The authors explore the influences that cause-related marketing programs have on consumers’ opinions, attitudes and intention to buy a certain product or brand that is related to the program. Some of the authors in that stream of research are: Webb and Mohr (1998), Hajjat (2003), Lavack and Kropp (2003), Youn and Kim (2008), and Sinčić Ćorić and Kurnoga Živadinović (2009). (2) The second group of researchers explores company perspectives in causerelated marketing programs, such as motives and benefits that companies have to cooperate with non-profit organizations, as well as specific influences that cause the success of a campaign. Some of the researchers in that group are: Smith (1994), Prince (1998), Brønn and Vrioni (2001), and File and Benett (2002). (3) The third stream of research deals with the perspective of non-profit organizations. It includes research about benefits and potential risks for non-profit organizations. Authors that explore the non-profit organizations’ perspectives are: Andreasen (1996), Nowak and Clarke (2003), and Farache, Perks, Wanderley and Filho (2008). (4) The last group of research relates to the exploration of development, forms and ways of cooperation between profit and non-profit organizations through organizing cause-related marketing campaigns. These studies specifically analyze the influences of campaigns and the formation of alliances. Some of the authors that contributed to this area of research are: Varadarajan and Menon (1988), Till and Nowak (2000), Polonsky and Wood (2001), Pracejus, Olsen and Brown (2003), and Gupta and Pirsch (2006). Taking previous studies into account, the goal of this paper is to explore the role of a cause-related marketing campaign in consumers’ intention to buy, more precisely, to determine to what extent the consumers’ intention to buy a certain brand during a cause-related marketing campaign is influenced by their relation to the cause and donation size from that campaign.

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Tip objekta: Dio knjige
Dodatne informacije: e-book
Teme: 3 Društvene znanosti > 33 Ekonomija. Ekonomska znanost > 339 Trgovina. Međunarodni gospodarski odnosi. Svjetsko gospodarstvo > 339.1 Opća pitanja trgovine. Tržište > 339.138 Marketing
Odjeli: Odjel za ekonomiju i turizam "Dr. Mijo Mirković"
Datum pohrane: 04 Jul 2013 06:23
Zadnja promjena: 04 Jul 2013 06:23
URI: http://eknjiznica.unipu.hr/id/eprint/2212

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