THE INFLUENCE OF FIT AND APPEAL ON
CAUSE-RELATED MARKETING CAMPAIGNS
When doing good leads to doing better
Master: Research Master, Corporate Communication
Lecturer: J. Slevin
Student: Fatima Fahmoune (10602208)
Date: January, 2015
Abstract
Cause-related marketing (CRM) is an increasingly common form of promotion. The present investigation extends prior research by examining how message appeal and
organization-cause fit affect consumer attitudes towards CRM activities and promoted organizations.
Using an online experiment, this study demonstrates that a print advertisement with an emotional CRM message, compared with a print advertisement with a rational CRM message, elicits more favorable consumer attitude towards both the advertisement and the promoted organization. Such positive effect, however, does not emerge for purchase intentions. Furthermore, when the CRM message involves concordant partners versus discordant partners, consumer attitudes towards the advertisement and the organization were found to be more favorable. Lastly, the study failed to demonstrate the effects of fit on purchase intentions. Consequences of the findings for the field of CRM are discussed, as well as areas for future research.
The influence of fit and appeal on Cause related marketing campaigns
WHEN DOING GOOD LEADS TO DOING BETTER
Introduction
Society as a whole is increasingly involved in both producing, and mitigating environmental and social risks (Giddens, 1999). This social concern is central to the public analysis of the contemporary period, leading to alterations in the course of modernization (Beck, 1992). Organizations are increasingly aware of their responsibilities towards society; this trend has its manifestations in the ways their marketing activities and eventually their business have developed (Webb & Mohr, 1998). The license to operate is increasingly subject to societal expectations, resulting in a focus shift from only profit to gaining institutional legitimacy too (Cornelissen, 2011). On the one hand, organizations attract new investors, propose excellent risk management strategies and gain competitive advantage by creating good social policies (Adkins, 1999). While on the other, nonprofit seek to benefit from private sector as important development agents (Till & Nowak, 2000). In this context, Corporate Social Responsibility (CSR) has grown into a core business function that aims to meet or exceed the economic, legal, ethical and discretionary expectations stakeholders have of organizations (Carroll, 1979). The promotion of corporate social responsibility in marketing communications activities is known as Cause-related Marketing (CRM). The practice can be viewed as the alignment of corporate philanthropy and business enlightenment (Varadarajan & Menon, 1988). When done well, CRM is a very effective marketing tool that can provide a win for the business, for the non-profit, and for the consumer (Adkins, 1999). CRM has been found to have many benefits including enhancing reputation, building relationships, adding value and providing better economic results (Adkins, 1999). Nevertheless, research indicates that CRM can be a risky activity for
organization to venture into if not planned appropriately (Bronn & Vrioni, 2001). Varadarajan and Menon (1988, p.69) expound that when implementing CRM activities "firms walk a fine line between reaping increased sales, goodwill, and positive publicity and incurring negative publicity and charges of exploitation of causes”. While it opens new windows for organization’s marketing departments, the professional use of good causes is resulting in a more pertinent critique from society to the underlying motives of the CSR activities (Marsden, 2000). CRM has been found to foster “negative perceptions about a company's motivation for engaging in such activities” (Barone, Miyazaki & Taylor, 2000, p.249). Consumers question whether a company's support of the cause is designed to benefit the cause or the organization—the perceived intention affects the effectiveness of the marketing campaign (Webb & Mohr, 1998). Given the uncertainty and complexity of the CRM practice research is needed in order to provide insights in to when CRM is better applied. The aim of this study is to explore how this marketing tool is better implemented, here aspects such as the organization-cause fit and message appeal could provide the basis for meaningful differentiation.
There has been little consensus about the nature of fit, one commonality among perspectives is that it has multiple cognitive bases. For the purpose of the study we adopt a multidimensional view of fit mimicking Nan and Heo (2007, p.66), whom defined fit as “the overall perceived relatedness of the brand and the cause with multiple cognitive bases”. Fit is based in any meaningful association between them or their target markets (Samu & Wymer, 2009) for instance; similar consumer base or shared values. Previous research looking at organization-cause fit in CRM programs has been inconclusive regarding its effects, some advocated for higher degree of fit (Trimble & Riffon, 2006) while other are in favor of a lower degree (Foreh & Grier, 2003).
Message appeal refers to the communication’s specific appeal. Although the role of
emotional versus rational appeal in promotions has been devoted a great deal of attention in the Advertising literature (Brader, 2006). No CRM study to our knowledge deals directly with this type of message framing. This paper aims to provide new evidence to the organization-cause fit dispute and fill the message appeal-CRM knowledge gap by answering the following research question:
What are the effects of organization-cause fit and message appeal on consumer attitudes and purchase intention and to what extent fit is influenced by the specific appeal in which the message is framed in the CRM activity?
This study examines attitude and behavioral intentions toward the organizations after exposure to a print CRM advertisement. The present paper hypothesize that high levels of organization-cause fit will help organizations boost the benefits of the partnership. In addition, communication with emotional as opposed to rational appeal is expected to yield better results for the CRM activities. More concretely, we expect more positive consumer attitudes and enhanced purchase intentions when high fit and emotional appeal are present in the CRM advertisement. The need to explore this issue is justified by number of reasons. First, the ever increasing role of corporations in the economy and their greater impact in society. Second, the need of commercial advantage for both causes and business. Lastly, the increasing need of cost-efficiency in the present economic climate.
Theory
Socially responsible organizations
Organizations pressure on addressing social issues has increased in recent years (Schreck, 2009); as a result organizations increasingly market themselves as socially
concerned. Significant resources are being devoted to several social initiatives going from community service to environmental protection (Cornelissen, 2011). Central to Corporate social responsibility (CSR) is the idea that the private sector is “the dominant engine of growth, the principle creator of value and managerial resources and that it has an obligation to contribute to economic growth and opportunity” in an equitable and sustainable manner (Jamali & Mirshak, 2006, p.244). These efforts however are driven not only by the believe that organizations can be a dominant and positive force for social change but also “by the multi-faceted business returns that corporations can potentially reap from their CSR endeavors” (Du, Bhattacharya & Sen, 2010, p.6) and the notion that “businesses are more likely to do well in a flourishing society than in one that is falling apart” (Bronn & Vrioni, 2001, p.209). In addition, consumers seem to be increasingly willing to take actions to reward the most socially concerned corporations as well as to punish the less socially concerned ones. Several studies (see table 1) found that consumers would switch from one brand to another if the second is associated with a good cause (price and quality being equal)— attesting the doing better by doing good premise.
TABLE 1. Studies of consumer attitudes towards corporate support of causes
USA (%) UK (%) Awareness of companies supporting causes 79 68 Likely to switch to brands that claim to help a cause 76 86 Likely to pay more for a brand that supports a cause 54 45 More likely to buy a product that supports a cause 78 N/A
Sources: Duncan and Moriarty (1997); O’Sullivan (1997); RSW (1993, 1996)
Furthermore, the CSR body of academic research reveals numerous business benefits that an organization can accomplish through CSR engagement: competitive advantage (Porter & Kramer, 2006), increased brand preference (Smith & Alcorn, 1991), image and reputation enhancement (Fombrun & Shanley 1990), improving employee attitudes and behavior (Brammer, Millington & Rayton, 2007) or customer loyalty (Stewart-Allen, 1998) among
others. To achieve these benefits organizations can exercise social responsibility in numerous ways, although most active companies limit its activity to one or two practices (Elving, 2013). This papers deals with an often-used practice: Cause-related Marketing (CRM).
The emergence of cause marketing
Early philanthropy was not entirely altruistic but driven by the concept of “enlightened self-interest” (Varadarajan & Menon, 1988). American corporations long understood that donations served to cast a favorable light on their presence. Over hundred years ago industry leaders such as J.Rockefeller began making sizable financial contributions “to start, expand, and maintain museums, universities, and other social and cultural institutions” (Berglind & Nakata, 2005, p.445). This was traditionally seen from a transactional perspective—a “doing good” relation in which the for-profit gives and the non-profit receives (Steckel & Steckel, 1999).
Today, corporate philanthropy is seen as an investment that could improve the long-term success of an organization. But, in the ever increasing competition and rapid technological change simply “doing good” is no longer sufficient—expenditure of resources must produce tangible benefits (Berglund & Nakata, 2005). In this context, Cause-related marketing (CRM) can be viewed as the alignment of philanthropy and business enlightenment. This is basically “a marketing program that 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” (Varadarajan & Menon, 1988, p. 59). Organizations communicate their CRM efforts (affiliation or work with non-profit) through advertising, packaging, promotions, etc. (Bronn & Vrioni, 2001). The example par excellence is that of American express. In 1983, American Express developed a campaign which donated funds to the reservation of the Statue of Liberty and
Ellis Island in the US. American Express donated 1-cent every time a member used its card and each time new members applied for a card a larger contribution was made (About.americanexpress.com, 2014). This example revealed that the marketplace would reward organization acting in a socially responsible manner—while the campaign ran card usage grew by 28% and new card applications increased by 17%, resulting in $1 million raised for the cause (Berglind & Nakata, 2005). American express name this new marketing activity: Cause Marketing (Berglind & Nakata, 2005).
Cause-related Marketing definition
Cause-related Marketing should be distinguished from other forms of socially responsible marketing. Although is often confused with corporate philanthropy, sales promotion, corporate sponsorship, corporate good samaritan acts, public relations or the foundation of deserved causes (Varadarajan & Menon, 1988). CRM has a distinctive feature; the contribution to a designated cause is directly linked to revenue-producing transactions between the customers and the organization. For the purpose of this study cause-related marketing will be defined as “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” (Varadarajan & Menon, 1988, p.60). A recent example of well publicized CRM is that of Tommy Hilfiger which features a promotion in which part of the price of a specific item (a bag) is donated to Breast Health International. The limited-edition handbag is retailed for €299. A third of the price of each sale (€100) goes directly to Fund for Living an initiative that assists women with breast cancer by covering costs associated with their care that are not covered by health insurance programs (UK.tommyhilfiguer.com).
Cause-related marketing prior research
Since the original proposal by Varadarajan and Menon (1988) cause-related Marketing has been studied extensively. However, existing evidence is equivocal regarding the efficacy of CRM campaigns (Barone et al., 2000). On the one hand, CRM has been found to engender favorable attitudes (Barone et al., 2000; Ross, Patterson & Stutts, 1992) and purchase intentions (Hajjat, 2003; Gupta & Pirsch, 2006). While on the other, has been found to foster negative perceptions about the organization’s motivation for engaging in CRM (Webb & Mohr, 1998). In other words it seems like “consumers might derive utility from giving […] and thus exhibit favorable purchase behaviors” but CRM could also “raise consumer skepticism about the company's motivation because the donation is conditional on sales and ensures the company's own benefit” (Müller, Fries & Gedenk, 2014 p. 179). If consumers perceive intention is negative (i.e. exploitative of the cause) the will became skeptical towards the claims what affects the success of the CRM campaign (Webb & Mohr, 1998).
Prior research has also looked at CRM as part of corporate social responsibility strategies with a critical eye. Some describe this practice as an attempt to increase corporate domination and a desperate try to convey an ethically image (Jahdi & Acikdilli, 2009). In addition, in the last years concerns about corporate deception have been raised leading to the emergence of terms such as “green washing”, which conceives corporate ethical efforts as mere manipulation of public opinion (Laufer, 2003).
Cause-related marketing outcomes
Research indicates that generally CRM has positive outcomes. When partnering with a good cause consumers see the sponsoring organizations as socially responsible improving their general attitude towards the organization (Elving, 2013), as well as increasing their
purchase intentions (Nan & Heo, 2007). This is best explained by Heider ‘s Balance Theory (1946) that suggests that having a positive attitude towards a party (the social cause) will results in the other party (the organization) being balanced by the same valence attitude on behalf of the other—creating a halo effect.
Why is it important to aim for positive attitudes towards the organization? According to the Theory of Reasoned Action (Ajzen, 1991) an individual's willingness to perform a certain behavior is strongly influenced by the individual’s attitudes toward the behavior. Attitude can be defined as the association between an object and the evaluation of the object (Fazio, Powell & Williams, 1989). Attitudes together with product information help consumers to evaluate the offerings, eventually influencing choice (Barone et al., 2000). Positive attitude alone is insufficient. As explained previously, CRM is a marketing activity that strives to achieve both marketing and philanthropy related goals—organizations set CRM initiatives to improve corporate performance and help worthy causes—which eventually happens through purchases. The best predictor of purchase behavior is consumer purchasing intentions. Consumer purchase intention can be defined as “the tendency to purchase the brand routinely in the future and resist switching to other brand” (Yoo, Donthu & Lee, 2000, p. 195). The present study proposes that by connecting an organization to a cause, consumers attitudes towards the organization advertisements will be positively influenced and purchasing intentions will be enhanced. A win-win situation where the cause gains funding and the organization gains a more positive consumer response. Is expected that the variance in achievements is influenced by the organization-cause fit and by the message appeal.
Organization- cause fit
compatible or congruent with each other” (Samu & Wymer, 2009, p. 432). Fit is a “perceived link between the company's image, positioning and target market and the cause's image and constituency” in the mind of the consumer (Gupta & Pirsch, 2006). There no single prescription for good fit. Berger and colleagues (2004) presented a framework with nine dimensions of fit for potential partners to use in examining the existing degree of fit, compatibility on these dimensions is considered favorable for the alliance. The present study takes a multidimensional approach to fit and focuses on the consumer base and product type dimensions for improved fit.
Research suggests that good fit between the organization and the cause may have the ability to make the message believable and thus minimize negative effects of advertising skepticism (Elving, 2013), lowering the possibilities of bad CRM outcomes. Congruence has been proven to have an influence on skepticism based in any meaningful association between organization and cause. As example, P&G brands raise funds for the Special Olympics; the family image associated with Special Olympics is seen as compatible with Protect & Gamble desired image. Congruence theory is used to support this assertion, when a judgment must be made if the sets of information are incongruent the observer will experience pressure to change his judgment to one of the sides, but, if the two sets of information are congruent the observer will not experience pressure (Osgood & Tannenbaum, 1955). In this line, Rifon and colleagues (2004) found that greater fit between organization and cause promoted positive evaluations of the CRM strategy. Similarly, Trimble and Rifon (2006) explored the concept of compatibility within a celebrity endorsements and sponsorship context, the role of sponsor/cause compatibility was important for the creation of positive consumer perceptions of the donor. Pracejus and Olsen (2004) detected a positive relationship between organization-cause fit and the evaluation of cause-related marketing strategies.
Nonetheless, advice on this matter is mixed; critics have warned that being too close to the cause could result in the perception of the company as exploitative of the cause (Barone et al., 2000). Once more, Congruency theory is used to explain how incongruence could stimulate consumers cognitive which would lead to more positive effects (Foreh & Grier, 2003).
The present paper proposes that in order to achieve a satisfactory level of understanding the message should make the development of an associative link easier (a somewhat expected association). In the case of CRM initiatives, higher fit would corresponds to a positive evaluation of the campaign, leading eventually to positive attitudes towards the advertisement and the organization, and increased purchase intentions.
H1.a A print advertisement containing high organization-cause fit has a more positive
effect on consumer attitudes towards the advertisement than a print advertisement with discordant partners.
H1.b A print advertisement containing high organization-cause fit has a more positive
effect on consumer attitudes towards the organization than a print advertisement with discordant partners.
H1.c A print advertisement containing high organization-cause fit has a more positive
effect on purchase intentions than a print advertisement with discordant partners.
Framing the message appeal
Nowadays multitude CRM campaigns compete for a limited number of consumers. Marketing communications professionals are in need of cues that can encourage favorable CRM evaluations particularly among less socially involved consumers (Grau & Folse, 2007). Framing theory explains that the manner in which the information is framed is an important signal for consumer—different outcomes result from presenting messages differently (Kahneman & Tversky, 1984).
For the purpose of this paper, the present study follows the communications research trend abandoning the original definition of frames derived from the psychology field, in favor of the sociology definition that highlights the informational or persuasive features of messages (Scheufele & Iyengar, 2012). This approach is taken in other to appeal to the consumer sympathy and intrinsic satisfaction earned for caring and being an ethically responsible consumer (Scheufele & Iyengar, 2012).
The framing of the message has been extensively studied by CRM scholars. Several studies (Buda & Zhang, 2000; Block & Keller, 1995; Grau & Folse, 2007; Maheswaran & Meyers-Levy, 1990) investigated positive versus negative framing in the CRM context. In addition, objective versus subjective information framing has also been found relevant in the CRM context (Ford, Smith & Swasy, 1990; Kim & Lee, 2009).
The present paper will focus on an additional way of framing the message not investigated yet in the context of CRM activities but widely studied in the Advertising literature: the message appeal. Framing the message appeal consists on emphasizing certain features as opposed to others (Brader, 2006). Two types of appeals can be distinguished: rational appeal and emotional appeal. The rational appeal is concerned with highlighting the benefits of owning the product. The emotional appeal on the other hand, uses symbols to connect with the individual's deep-seated interests (Obermiller, Spangenberg & MacLachlan, 2005). Advice on message appeals in the Advertising literature is mixed. Both emotional appeals (Simmons & Becker-Olsen, 2006) and rational appeals (Holmes & Crocker, 1987) have been found to increase positive attitudes and enhance purchase intentions when applied in different situations. Scholar’s discussion supports the idea that there is an appeal-by-product interaction (Stafford & Day, 1995). This is in line with the contingency approach, which implies that the type of appeal should match the type of product. In the CRM context Webb and Mohr (1998) advocate that CRM activities should carry emotional appeal since is
presumed that people like the idea of doing something good for society. Thus, the present study proposes that an emotional frame would trigger better outcomes, improving positive attitudes and enhancing purchase intentions.
H2a: A print advertisement containing emotional appeal has a more positive effect on
consumer attitudes towards the advertisement than a print advertisement with rational appeal.
H2b: A print advertisement containing emotional appeal has a more positive effect on
consumer attitudes towards the organization than a print advertisement with rational appeal.
H2c: A print advertisement containing emotional appeal has a more positive effect on
purchase intentions than a print advertisement with rational appeal.
Relation between fit and appeal
The influence of message framing as a communication strategy is also expected to have implications regarding fit. Empirical studies have shown that equivalent descriptions of a decision problem can lead to systematically different decisions—depending on the way the problem is framed (O’Keefe & Jensen 2007). The emotional appeal frame will provide ‘standpoint explicitness’ (the extent to which the overall conclusion in a message is clearly articulated) influencing the persuasiveness of the CRM print advertising (Corner & Hahn, 2009). The present study proposes that message framing will be particularly important when the congruence between the organization and cause is lower, and it will be more effective in enhancing fit when there is already a high fit. To our knowledge, no other studies have attempted to examine this relation.
H3a: The difference between consumer attitude towards the company resulting from a
print advertisement containing emotional appeal compared to a print advertisement with rational appeal, will be larger for the fit print advertisements than for print advertisements without a fit.
H3b: The difference between purchase intentions resulting from a print advertisement
containing emotional appeal compared to a print advertisement with rational appeal, will be larger for the fit print advertisements than for print advertisements without a fit.
H3c: The difference between purchase intentions resulting from a print advertisement
containing emotional appeal compared to a print advertisement with rational appeal, will be larger for the fit print advertisements than for print advertisements without a fit.
Fit influencers
Previous studies on CRM have led to the identification of several variables that could have a confounding effect. The most relevant to this paper are discussed and incorporated. However, the following variables are not the focus of this study and hence no specific hypotheses are formulated to test them, and are only considered due to their potential influence on key variables.
Skeptical consumers
Skepticism among consumers is on the rise due to the growing number of organizations involved social responsibility activities (Bronn & Vrioni, 2001). Consumers often questions whether a company support of the social cause is design to benefit the cause or the organization (Barone et al., 2000). If consumer perceptions are negative (e.g. exploiting the cause), the outcome of CRM activities could be detrimental (Elving, 2013). On this bases, CRM campaigns will be more likely to generate choice for the sponsored brand when consumer perceive that the primarily use of CRM by organizations is positive (e.g. supporting the cause). According to Bronn and Vrioni (2001) highly skeptical consumers perceive the accuracy of marketing claims to be low; a consumer with a low level of skepticism will rate the accuracy of a claim higher. Variance in consumer perception has
implications for both attitudes towards the organization and purchase intentions. The present paper addressees a call for quantitative research (see Webb and Mohr, 1998) to consider consumer perception’s on the organization motives of engaging in CRM initiatives as a relevant aspect for CRM success. Thus, consumer skepticism is used as a control variable.
Gender
Research into donation behavior and prosocial behavior suggest the predisposition of an individual to help is related to perceived sex roles (Maheswaran & Meyers-Levy, 1990). In an investigation of gender and proximity effects in CRM Ross and colleagues (1992) found females to be more inclined than males towards organizations that employ CRM. In addition, males and females often react to stimuli in different ways. Research shows that females tend to be more easily persuaded and their interpretations of stimuli are more creative and are associated with feelings and motivations to a greater level (Ross et al., 1992). In addition, females tent to respond strongly to emotionally intense scenes (Baird, Wahlers & Cooper, 2007). Given the possible influence of sexual role in the present study, gender will be included as a control variable.
Involvement
Consumer involvement with the cause is another important aspect to take into account. Research suggests that the effects could be more positive when consumers hold the cause in high regard. This is consistent with the Elaboration Likelihood Model (ELM) of persuasion, in which the likelihood of elaboration is determined by the observer motivation and ability to evaluate the argument (Petty & Cacioppo, 1986). Drumwright (1996) observed that causes for which target customers have a strong affinity moderated the effects of the evaluations of the marketing efforts. For example, Tommy Hilfiger’s crusade against breast cancer may enhance women’s preferences for Tommy Hilfiger, because being able to
understand better the suffering of breast cancer. Therefore is important to be aware of this potential influence, and involvement will be considered as a control variable in the present study.
Socially responsible consumers
The consumer value structure—i.e. whether they are more or less altruistic could influence their attitudes towards organizations that engage in social causes. In addition, CRM reinforces the altruistic person's self‐awareness, by generating a context which provokes altruistic values (Basil & Weber, 2006). In this context, “the greater predominance of altruistic values could strengthen the suspicion scenario that CRM causes in the consumers” (Bigné‐Alcañiz, Currás‐Pérez & Sánchez‐García, 2009, p.438). Given the possible influence, the degree of support for socially responsible businesses will be included as a control variable in the present study.
Method
Research design
This study aims to discuss the effects of adopting different message appeals in attitudes and purchase intentions. In addition, it aims to explore the effects of a fit between the organization and the sponsored cause on attitudes and purchase intentions. Eventually, the investigation intends to identify factors of successful CRM advertising, it is a causality study. As the purpose is to compare consumer response toward the CRM print advertisements with fit or with no-fit, in the emotional or rational message framing conditions, an experimental study is the most appropriate method to test the hypotheses.
Hence, a 2x2 between-subjects online experiment including a pretest was conducted to research the effects of fit (fit vs. non-fit) and message appeal (rational vs. emotional) in a print advertisement.
The experiment was hosted in an online experiment tool that randomly assigned the respondents to one of the four conditions where the independent variables varied systematically. Respondents were approached through social media and face-to-face contact.
The sample
sampling method. The sample consisted of 54% males and 46% females; the age range was 23- 50 years old with a mean age of 36. The respondents were Euro-American. At least 55% of the respondents hold a Bachelor degree. The demographic profile of the respondents in this study does reflect the overall characteristics of the Euro-American population according to The Organization for Economic Co-operation and Development (2014). Hence, is appropriate for this study.
TABLE 2. Experimental design of the study
Message appeal
Organization-cause fit Rational Emotional
Fit Condition 1 (n=30) Condition 2 (n=30) No fit Condition 3 (n=30) Condition 4 (n=30)
Rational for organizations’ choice
As this study aims to investigate the differences between fit and no-fit, for this experiment the organization chosen was Toys R Us, Inc., a toy and baby products retailer. Due to their focus in children the expected fit with a cause related to children is more likely, than if the chosen brand had a wider target consumer. Hence:
The fit-organization was Childhood Leukemia foundation, a non-profit organization that provides a myriad of services to children battling Leukemia (Clf4kids.org, 2014). The no-fit-organization was Prostate Cancer Foundation a non-profit organization that works as a source for new standard-of-care and research information to men battling prostate cancer (Pcf.org, 2014). Although the two foundations used in the print advertisement exist, they are both overseas foundation and therefore they were expected to be unfamiliar to respondents. Unfamiliar foundations were chose in order to reduce variations in participants’ previous experiences with the organizations.
Data collection and analysis
Respondents had 10 days to participate in the online study. In order to meet the ethical standards of scientific research after opening the link provided, the first page offer general information about the study, the assurance of anonymity and the possibility to contact the researcher. Then respondents were faced with the pre-test questionnaire, which contained questions that measure their support for socially responsible businesses, brand familiarity, brand reputation and whether they have used Toys R Us is the past. After completing the first part, a message page asked respondents to look at the stimulus material in detail as well as to read the text. In order to ensure internal validity and to prevent respondents from not looking at the image carefully, the go to next section button appeared after 50 seconds of opening the page. A subsequent page contained questions that measure respondent’s general information (e.g. age) dependent variables, control variables and the manipulations checks. After completing the questionnaire, the last page showed a thank you message and the possibility of providing feedback on the experiment. The questionnaire can be found in Appendix A.
Pre-test
Toys R Us is an existing well-known company, in order to take into account possible influence of preconceptions about the company, brand and cause familiarity and band
reputation were measured before exposure to the stimulus materials. In addition, the
participants support for socially responsible business and whether they have purchased from
Toys R Us in the past, was also measured.
Brand familiarity was measured on a seven-point bipolar scale (1 = not familiar at all; 7 = very familiar) taken from Biswas (1992) by asking respondents to indicate their level of familiarity (Cronbach's α = .80) with Toys R Us, Childhood Leukemia Foundation and Prostate Cancer Foundation. Brand reputation was measured with three items (Veloutsou &
Moutinho, 2009) on a seven-point Likert scale (Cronbach's α = .88). An example of an item is: “I think Toys R Us is a reputable brand”. A low score indicated negative reputation; a high score indicated positive reputation. The three items were averaged to form a single measurement of brand reputation.
The degree of respondents support for socially responsible business was measured by five items (Maignan, 2001) on a seven-point Likert scale (Cronbach's α = .80). An example of an item is: “I would pay more to buy products from a socially responsible company”. The five items were averaged to form a single measurement of support for socially responsible business. Whether the respondents purchased from Toys R Us in the past was measured with a single question: “Have you ever made a purchase from Toys R Us?” and was recorded on a dichotomous scale.
Manipulation
Organization-cause fit was manipulated by varying the nonprofit organization involved in the CRM print advertisement (e.g. Nan & Heo, 2007; Lafferty & Goldsmith, 2005). Since Toys R Us is a retailer that sells children products, in the high
organization-cause fit condition, Toys R Us was matched with Childhood Leukemia Foundation. On the
contrary, in the low organization-cause fit condition, Toys R Us was matched with Prostate Cancer Foundation.
The second independent variable, message framing emotional versus rational appeal was manipulated by varying the advertisement set-up. For the rational appeal condition no specific image of the cause is shown, and the text explaining the cause explains specifically how the money donated will be spend(i.e. day care).
fit: child; low fit: adult) and the explanation text does not give details on how the donation will be spend. The manipulations of all four conditions can be found in Appendix B.
TABLE 3. Combinations used in the study
Message appeal
Organization-cause fit Rational Emotional Fit Childhood Leukemia foundation
Rational text
Childhood leukemia foundation Emotional text and child image No fit Prostate cancer foundation
Rational text
Prostate cancer foundation Emotional text and adult image
Measures
Consumer responses were evaluated through: attitude towards the advertisement,
attitude towards the organization and purchase intentions. Attitudes towards the
advertisement was measured by three items (Huertas, Gázquez & Lengler, 2014) on a seven-point Likert scale (Cronbach's α = .93). An example of an item is: “Overall, my attitude towards the print advertisement is positive”. The three items were averaged to form a single measurement of attitude towards the advertisement. Likewise, attitudes towards the organization were measured by the same three items (Cronbach's α = .88) this is: good, favorable and positive. An example of an item is: “Overall, my attitude towards the organization is favorable”. The three items were averaged to form a single measurement of attitude towards the organization. A confirmatory factor analysis loaded one factor (Cronbach's α = .87). Higher scores on the scale indicate a more positive attitude.
The third dependent variable, purchase intentions was measured by five items (Cornwell & Coote, 2005) on a seven-point Likert scale (Cronbach's α = .82). An example of an item is: “I would drive out of my way to buy from a good cause sponsor”. The five items were averaged to form a single measurement of purchase intentions.
Control variables
As well as the variables in the pretest two other measurements were included as control variables skepticism and involvement with the good cause. The degree of skepticism among respondents was measured by five items (Obermiller & Spangenberg, 1998) on a seven-point Likert scale (Cronbach's α = .87). An example of an item is: “Advertising is generally truthful”. The five items were averaged to form a single measurement of skepticism. The degree of respondents involvement with the good cause was measured by three items (Nowak & Washburn, 2000) on a seven-point Likert scale (Cronbach's α = .85). An example of an item is: “I feel a personal responsibility to support the cancer cause”. The three items were averaged to form a single measurement of involvement.
Manipulation check
To assess whether participants perceived the manipulations of organization-cause fit as intended, participants were asked to assess the fit between the organization and the cause by answering the question: What type of advertising appeal was used in the poster?. In addition, to assess whether participants perceived the manipulations of message appeal as intended, participants were asked to point whether the advertisement contained fit or not.
Findings
The analysis of the gained data after conclusion of the 2x2 between-subjects online experiment was performed using the statistical software SPSS 20.0.
Fit
The first set of hypotheses relate to the predictor variable organization cause-fit. The present study proposed that choosing a concordant partner (fit) will yield better results for the CRM efforts. Analyses of covariance were conducted to examine the relationship between
organization cause-fit and the three outcome variables: attitudes towards the advertising,
attitude towards the organization and purchase intentions.
H1a: A print advertisement containing high organization-cause fit has a more positive
effect on consumer attitudes towards the advertisement than a print advertisement with discordant partners. The analysis was conducted with organization cause-fit (i.e., fit vs.
no-fit) as the independent variable. Findings show a significant effect (F (1, 118) = 11.85, p < .001) attitudes were more positive for the advertisements containing fit (M = 5.16, SD = 1.29) than those with discordant partners (M = 4.34, SD = 1.48). Hence, H1a is supported.
H1b: A print advertisement containing high organization-cause fit has a more positive
effect on consumer attitudes towards the organization than a print advertisement with discordant partners. The analysis was conducted with organization cause-fit (i.e. fit vs.
no-fit) as the independent variable. Findings show a significant effect (F (1, 118) = 4.04, p < .05) attitudes were more positive for the organization when the advertisement contained fit (M = 5.02, SD = 1.18) than those with discordant partners (M = 4.72, SD = 1.45). Hence, H1b is supported.
H1c: A print advertisement containing high organization-cause fit has a more positive
effect on purchase intentions than a print advertisement with discordant partners. The
analysis was conducted with organization cause-fit (i.e. fit vs. no-fit) as the independent variable. Findings show a non-significant effect (F (1, 118) = .740, p = ns). Hence, H1c is rejected. Nevertheless, purchase intentions were slightly higher for the advertisement containing fit (M = 4.33, SD = 1.30) compared to the one showing discordant partners (M = 4.27, SD = 1.37).
Appeal
The second set of hypotheses relate to the predictor variable message appeal. The present study proposes that using an emotional message appeal in the CRM activities will yield better results. Analyses of covariance were conducted to examine the relationship between message appeal and the three outcome variables: attitudes towards the advertising, attitude towards
the organization and purchase intentions.
H2a: A print advertisement containing emotional appeal has a more positive effect on
consumer attitudes towards the advertisement than a print advertisement with rational appeal. The analysis was conducted with message appeal (i.e. emotional vs. rational) as the
independent variable. Findings show a significant effect (F (1, 118) = 11.74, p < .001) attitudes were more positive for the advertisements where the message appeal was emotional (M = 6.05, SD = 1.18) as opposed to the one with rational appeal (M = 5.07, SD = 1.38). Hence, H2a is supported.
H2b: A print advertisement containing emotional appeal has a more positive effect on
consumer attitudes towards the organization than a print advertisement with rational appeal.
The analysis was conducted with message appeal (i.e. emotional vs. rational) as the independent variable. Findings show a significant effect (F (1, 118) = 11.66, p < .001) attitudes were more positive for the advertisements where the message appeal was emotional (M = 6.11, SD = 1.29) as opposed to the one with rational appeal (M = 6.07, SD = 1.38). Hence, H2b is supported.
H2c: A print advertisement containing emotional appeal has a more positive effect on
purchase intentions than a print advertisement with rational appeal. The analysis was
conducted with message appeal (i.e. emotional vs. rational) as the independent variable. Findings show a non-significant effect (F (1, 118) = 0.09, p = ns). Hence, H2c is rejected.
Nevertheless, purchase intentions were slightly higher for the advertisement containing emotional appeal (M = 4.28, SD = 1.90) compared to the rational one (M = 4.24, SD = 1.34).
Interaction between fit and appeal
The third set of hypotheses postulate a two-way interaction effect between the variables; organization cause-fit (i.e. fit vs. non-fit) and message appeal (i.e. emotional vs. rational). The present study proposed that using an emotional appeal together with fit the in CRM activities will yield better results.
H3a: The difference between consumer attitude towards the company resulting from a
print advertisement containing emotional appeal compared to a print advertisement with rational appeal, will be larger for the fit print advertisements than for print advertisements without a fit. The analysis was conducted with message appeal and organization-fit as the
independent variables. Findings show a non-significant effect (F (1, 118) = 1.34, p = ns). Hence, H3a is rejected. Nevertheless, attitudes were more positive for the advertisements where there was fit and the message appeal was emotional (M = 6.14, SD = .89) as opposed to the one with rational appeal (M = 4.94, SD = 1.27).
H3b: The difference between purchase intentions resulting from a print advertisement
containing emotional appeal compared to a print advertisement with rational appeal, will be larger for the fit print advertisements than for print advertisements without a fit. The analysis
was conducted with message appeal and organization-fit as the independent variables. Findings show a non-significant effect (F (1, 118) = .648, p = ns). Hence, H3b is rejected. Nevertheless, attitudes were more positive for the advertisements where there was fit and the message appeal was emotional (M = 6.14, SD = .89) as opposed to the one with rational appeal (M = 6.14, SD = 1.13).
H3b: The difference between purchase intentions resulting from a print advertisement
containing emotional appeal compared to a print advertisement with rational appeal, will be larger for the fit print advertisements than for print advertisements without a fit. The analysis
was conducted with message appeal and organization-fit as the independent variables. Findings show a non-significant effect (F (1, 118) = .745, p = ns). Hence, H3c is rejected. Nevertheless, attitudes were more positive for the advertisements where there was fit and the message appeal was emotional (M = 4.45, SD = .205) as opposed to the one with rational appeal (M = 4.14, SD = 1.42).
Simple comparison
For a clearer indication of which of the four conditions yield better results (1: Rational+fit; 2:Emotional+fit; 3:Emotional+no fit; 4:Rational+no fit). We ran a simple comparison factorial MANCOVA. Findings show that condition 2 (i.e. Emotional+ fit) yields better results for all three outcome variables as presented in Table 1. The analysis indicated significant effect for attitudes towards the advertisement (F (1, 118) = 4.66, p <05), and attitudes towards the organization (F (1, 118) = 8.07, p <.001) but failed to indicate significant results for purchase intentions (F (1, 118) = .266, p = ns).
TABLE 3. Conditions comparison
Conditions Mean Std. Deviation Outcome variable:
attitude towards advertisement
Emotional+fit 6.14 .891 Emotional+no-fit 5.95 1.42 Rational+fit 4.94 1.27 Rational+no-fit 5.21 1.49
Outcome variable:
attitude towards organization
Emotional+fit 6.14 1.13 Emotional+no-fit 6.08 1.45 Rational+fit 5.22 1.16 Rational+no-fit 4.74 1.16 Outcome variable: Purchase intentions Emotional+fit 4.45 2.05 Emotional+no-fit 4.11 1.75 Rational+fit 4.14 1.42 Rational+no-fit 4.34 1.29
Manipulation checks
A One-way between subjects ANOVA was conducted to investigate if the organization fit manipulation worked as intended. The analysis was conducted with the experimental condition (fit vs. no-fit) as the independent variable. Findings show a significant effect (F (1, 118) = 124.67, p < .001), respondents in the fit condition experienced more organization cause-fit (M = .086, SD = .36) as opposed to the one with rational appeal (M = .15, SD = .04).
A second One-way between subjects ANOVA was conducted to compare to investigate if the message appeal manipulations worked as intended. The analysis was conducted with the experimental condition (emotional vs. rational) as the independent variable. Findings show a significant effect (F (1, 118) = 96.13, p <001), respondents in the fit condition experienced more organization cause-fit (M = .78, SD = .41) as opposed to the one with rational appeal (M = .11, SD = .32).
Control variables
Several control variables were included in the present study, only two have been found to have a confounding effect on the key variables of the analysis. For the sake of clarity only the significant effects will be mentioned. First, brand reputation had a significant effect on attitude towards the organization (F (1, 118) = 5.70, p < .05). Second, gender had a significant effect on attitude towards the organization (F (1, 118) = 4.17, p < .05).
Conclusions and managerial implications
The aim of the current study was to enhance our knowledge on how organizations can better implement a CRM strategy to maximize the benefits of partnering with a good cause in an increasingly competitive marketplace. We did so by answering the question: What are the
effects of organization-cause fit on consumer attitudes and purchase intention and to what extent is this influenced by the specific appeal in which the message is framed in the CRM activity? The results of the investigation provided answers to the research problem and the
testable hypotheses that investigated the effects of organization-cause fit and message appeal on consumer attitudes and purchase intention.
Results indicate that marketing managers should carefully choose to support a cause that is perceived as reasonably concordant with the organization (i.e. causes that are related to their core business practices). Choosing the appropriate cause will impact the ability of the strategy to influence attitudes, and an appropriate match would yield better results for the CRM activity. In other words, P&G brands partnership with the Special Olympics and the shared family image example mention in the introduction seems to have its benefits in terms of improving consumer attitude towards the CRM activity and the promoting organization. Moreover, marketers should explicitly articulate common links between the parties; this is in line with the Brand extension literature that advocates the importance of creating an effective link in the consumer’s mind (Keller, 1993).
Despite the expectations with regards to purchase intentions, the investigations failed to demonstrate a difference between print advertisements containing fit and those with discordant partners. Although, partnering with the Special Olympics have some benefits for P&G brands as explained above, the increase in actual purchases is less probable. The following section discussion will delve into this matter.
To our knowledge, this is the first study that examined the impact of message appeal on CRM activities. Results indicate that CRM activities should be framed in emotional terms for increased effectiveness. Particularly when seeking to improve consumer attitudes marketing managers should consider framing communications in emotional terms. To
continue with the P&G example, a CRM activity that connects at a visceral level—perhaps by showing images of Paralympic athletes—and speaks to potential consumers through an emotive language should be preferred when the intention is to improve consumer attitudes of P&G.
Study results failed to demonstrate a significant difference in purchase intention among print advertisements framed with different appeals. If the intention is to increase sales managers should look for alternative ways to do so. However, when compared to rational appeal, emotional framing should still be the favored option according to the results.
Lastly, the combination of fit and emotional appeal in a simple comparison test has been proved to be a fruitful one. Marketing managers should consider both aspects when planning CRM activities in order to improve consumer attitudes towards the advertisement and the promoted organization. By following these guidelines, both the organization and the cause can increase the benefits of a CRM partnership as well as maximize their return on investment. All in all, when planning CRM print activities an organization such as Protect & Gamble could benefit from partnering with a concordant cause, as well as from communicating in emotive terms rather than functional, when the aim of the strategy is to improve consumer’s attitudes.
To sum up, both fit and emotional appeal have considerable influence on consumer attitudes towards the advertisement and towards the commercial organization, independently and in conjunction. However, separately or in cooperation both failed to show a significant effect on purchase intentions.
Discussion
Although the practice of corporate philanthropy can be traced to a much early stage, the cause-related marketing strategy started evolving rapidly in the in the early 1980s. In the light of public concerns for the wellbeing of society as a whole, corporate socially responsibility has been an object of interest for many corporations seeking to develop a competitive advantage in their markets. However, CRM has had limited research attention in comparison with other marketing activities, and studies have been inconclusive (Varadarajan & Menon 1988). Although empirical research suggests that the CRM practice is generally perceived as positive by consumers (Barone et al., 2000) several papers have addressed a number of risks (Webb & Mohr, 1998). Hence, the marketing field is in need of a better understanding of this complex practice. The present study aimed to explore how this marketing tool is better implemented in order to improve consumer attitudes and enhanced purchase intentions. This investigation contributes to the cause-related Marketing literature by investigating further a CRM critical success factor organization-cause fit and incorporating a new element to the CRM discussion message appeal.
Fit is a key aspect in the improvements of consumer attitudes in CRM activities. These results are consistent with previous research in the field. In an experiment study with data collected from undergraduate students Trimble and Riffon (2006) confirmed the role of sponsor/cause compatibility for the creation of positive consumer perceptions, and highlight the importance of individual characteristics of the cause. Similarly, Pracejus and Olsen (2004) found that donations to a high-fit charity could result in 5–10 times the value of donation to a low-fit charity. In addition, Elving (2013) found that good fit between the company and the CSR domain resulted in lower levels of skepticism towards the CRM activity thus better consumer attitude. Moreover, the results of the study are in line with the Associative network theory (Simmons & Becker-Olsen, 2006) and the Congruency theory
(Osgood & Tannenbaum, 1955) that suggest that high fit has a positive influence on consumer attitude, because the partnership is seen as appropriate.
In terms of purchase intentions the non-significant results contradict previous studies suggesting that under conditions of customer‐company and customer‐cause congruence purchase intent increases (Gupta & Pirsch, 2006). The unsatisfactory results might be explained by a study by Brink and colleagues (2006) that suggested that only long‐lasting CRM campaigns can be linked to loyalty and purchase while tactical CRM campaigns such as the one presented in the current study do not exhibit a significant impact on purchase intentions.
In addition to fit, the present study features message appeal as an important aspect in CRM activities that affects consumer attitudes towards both the advertisement and the organization. This is in line with previous Advertising appeal research and the Contingency theory. Biel and Bridgwater (1990) provided compelling evidence for a contingency relationship between products with value expressive associated features and emotional appeal. Bruzzone (1981) provided additional evidence of interdependency between feelings and products. The application of the contingency theory to CRM suggests that the type of appeal should match the type of product, suggesting that CRM activities should be emotional as it matches the emotional aspect of charitable-good causes (Stafford & Day, 1995). In consonance, social marketers often use emotional appeals in an attempt to encourage compliant behavior from the public (Brennan & Binney, 2010).
Overall, this research demonstrates that choices of fit and message appeal are capable of affecting the outcome of CRM efforts. However, although field studies have the potential to shed insights onto social phenomena, they also present limitations.
Limitations
As is natural in any study of consumer behavior, the above interpretations are limited by the stimuli, participants, and instruments. A number of important limitations need to be considered. First, methodological limitations should be acknowledged. The study is subject to the typical limitations of experiments, premeditated scenarios and lack of control. This experimental study required a level of concession between the understanding of the CRM practice and the isolation of a sole example affected by manipulation. In other words, the Toy R Us example may give indications of what could happen in this specific context, but not necessarily others. Second, brand familiarity was found to have some influence on brand attitude, future research might consider using a fictional organization to avoid this type of inferences. Third, the online experiment was completed outside a laboratory environment and at respondent’s convenience what results in less control for some extraneous factors. Fourth, the present study took a multidimensional approach to fit; additional analysis should look at specific dimensions of fit for a better understanding of the results. Lastly, the present study used print advertising, a static medium. The use of more dynamic mediums that include video or sound may yield different results.
Future research
The study should be replicated to determine whether these results can be extended to other conditions. Future research that builds on the findings of this study and overcomes its limitations is recommended. First, as suggested by Brink and colleagues (2006) purchase intentions have a close relation with loyalty. Further research should consider studying long‐ lasting CRM campaigns in order to explore how to better enhance purchase intentions. Second, future research should also consider testing message appeal in CRM activities for high and low involvement products. Theory suggests that for those purchased infrequently,
individuals would retrieve earlier beliefs as they process new information giving greater thought to factual messages (Holmes & Crocker, 1987). Here, rational appeals might be better suited. Finally, the results of a single comparison between the groups pointed the emotional-fit condition as the most fruitful. Research should further investigate the relation between these two variables.
Despite the shortcomings and limitations presented before, we believe the results of the present study have important implications for both organizational researchers and practitioners. The general message is that organization-cause fit and message appeal are important aspects to take into account when planning CRM activities. Theory wise findings proved that although message appeal has not been explored in a CRM context up until now this type of framing is worth further investigation.
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