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Cause-Related Marketing, Part of Corporate Social Responsibility

and Its Influence upon Consumers Attitude

CAUSE-RELATED MARKETING, PART OF CORPORATE SOCIAL

RESPONSIBILITY AND ITS INFLUENCE UPON CONSUMERS ATTITUDE
Laureniu Dan Anghel1, Georgiana Florentina Grigore2 and Mihai Roca3
1) 2) 3)
The Bucharest Academy of Economic Studies, Romania

Abstract
Cause-related marketing as part of corporate social responsibility, becomes an increasingly
used tool by companies operating in the market. Many studies have shown the benefits of
cause related marketing campaigns, including attracting new customers, increasing sales of
products or services, creating a favourable brand image and raising funds for a social cause.
This article is structured in two parts. After analyzing the concept of cause-related
marketing and main trends regarding research in this area, a case study on the influence of
cause related marketing on consumer attitudes is presented, as reflected by the analysis of a
questionnaire administered to youth.
Keywords: corporate social responsibility, cause-related marketing, consumer behaviour,
marketing research
JEL Classification: M14, O16, D01, D03
Introduction
In the past 20 years, debates regarding corporate social responsibility have evolved
substantially, moving from the stage of conceptual defining and delimitation, to a stage of
identification and analysis of the specific methods and techniques to implement CSR.
Research shows that companies are focusing attention on those stakeholders who can more
influence their business. Thus, organizations are more concerned about shareholders than
consumers and employees, and very little about society and the environment, although CSR
involves equal emphasis on all. There is a big difference between the expression of a
concern and implementation of an action to solve this problem (Crowther 2004). The
evaluation of CSR activities is rather difficult since there is a lot of incertitude regarding its
efficiency.

Corresponding author, Laureniu Dan Anghel - [email protected]

This work was supported by CNCSIS UEFISCSU, project number PNII IDEI code 1888/2008 and
by project 91-067/2007 financed by CNMP.
This article is a result of the project POSDRU/88/1.5./S/55287 Doctoral Programme in Economics at
European Knowledge Standards (DOESEC)" . This project is co-funded by the European Social Fund
through The Sectorial Operational Programme for Human Resources Development 2007-2013,
coordinated by The Bucharest Academy of Economic Studies in partnership with West University of
Timisoara.

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While some see social responsibility initiatives as an expression of corporate strategy,

corporate identity, market power or dependency of some stakeholders, the challenge for
management becomes more serious in terms of understanding the real needs of stakeholders
and the way in which CSR programs may affect different audiences. Organizations have at
their disposal a number of initiatives, which are linked to a number of implementation
mechanisms. Initiatives may be functional (specific human resources, marketing activity,
the supply chain) and corporate (development, environmental protection, corporate
governance). Cause-related marketing (Cause Related Marketing - CRM), as a part of
companies CSR, is a type of program in which a company commits to donate an amount
that depends on the sales they achieved in certain period time for a cause (Kotler and Lee,
2006). Typically, a CRM campaign involves an offer that is valid for a period of time,
refers to a specific product of the company and performs for the benefit of nongovernmental organizations, or another partner, who has legitimacy in the selected cause
and the ability to manage money. (Figure no. 1)
This study consists of two parts. After analyzing the concept of cause-related marketing and
main trends regarding research in this area, case study upon the influence of cause related
marketing on consumer attitudes is presented, as reflected by the administration of a
questionnaire to students in the Bucharest Academy of Economic Studies.
1. The concept of cause-related marketing

Corporate social
responsibility

CauseRelated
Marketing

Figure no. 1: Cause-related marketing, part of social responsibility

In the UK, the Business in the Community (BITC) organization has been actively involved
in working to improve standards in responsible business practice since its inception in
1982. Its member companies are committed to using best practice in order to make a more
positive impact on society, and this takes the form of specific initiatives including causerelated marketing campaigns as well as considering the wider aspects of corporate social
responsibility. Business in the Community (2004) defines cause-related marketing as: "A
commercial activity by which business and charities or causes form a partnership with
each other to market an image, product or service for mutual benefit."

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As can be inferred from the above definition, cause-related marketing is a commercial

agreement which is based on a win-win situation for both participants: the company and
supported social causes, while the consumer benefit is secondary. However, consumer
participation is vital to ensure a successful marketing campaign linked to a cause and
should therefore be cultivated by highlighting the long-term benefits to consumers through
the proper positioning and adequate targeting of audience.
The following points should be added to this core definition:
CRM classically involves the corporate donation to a charity or cause being
contingent on consumer purchase to some extent;
The responsibility for CRM activity lies within a company's marketing function;
The consumer is also a partner in the process and derives benefit of some kind from
it, if only the satisfaction of making an indirect donation.
The purest form of CRM is the explicit link between the purchase of goods or services and
the funnelling of revenue to a cause or specific charity. These arrangements typically
involve a charity putting its 'brand' on the packaging of a product in return for an advertised
share of the revenue created for the commercial partner through purchase.
In the United States, cause related marketing is a concept defined as working together in
financial concert with a charity to tie a company and its products to a cause "(Ptacek
and Salazar, 1997). On the other hand, is also considered a way to build brand equity as
it creates the most added value and most directly enhances financial performance
(Mullen, 1997). Collins (1993) states that a cause-related marketing can generate the longterm value needed for a company to survive and achieve competitive advantage.
Cause related marketing is a concept that gets deeper connotation in the Europe, where
marketing specialist have concluded that supporting a cause is an opportunity to enhance
corporate reputation, raise brand awareness, increase customer loyalty and build sales
(Kotler and Lee, 2005; Siltaoja, 2006). CRM is a communication tool that reinforces the
brand equity (Hoeffler and Keller, 2002, Lewis, 2003). Also, cause-related marketing help
marketing specialists to stay connected with consumers mood and wishes, as it uses more
sensitive, credible and relevant instruments to society (Kotler and Keller, 2006).
Among the benefits of a cause related marketing campaign there are (Kotler and Lee,
2005):
Attracting new customers - the most innovative case is the one of American Express
Company. By the fundraising campaign to restore the Statue of Liberty the company
increased the use of credit cards, and attracted new customers;
Reaching niche segments- nongovernmental organization are working with online
marketing leaders in order to reach niche consumers, to enter a specific audience and
generate interest towards an important campaign that could save lives;
Increasing sales of products or services;
Creating a positive image of a brand by associating with supporting the cause, the
company will reach a larger visibility which will consolidate brand equity;
Raise funds for a social cause example is the Avon brand, which positioned itself
by recruiting, training and motivating sales force, and created a strong CRM campaign to
fight against breast cancer.
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Customers are not satisfied just to receive a product or a service; they expect a value that
goes beyond quality, in the area of social responsibility. Customers are moving towards
those companies that prove citizenship and assume responsibility. Market research
highlighted that most consumers will prefer to buy from those companies that are engaged
in supporting a cause, while there are no differences in price and quality of products or
services (Cone 2007).
2. Trends in cause-related marketing research
According to a recent report published by the Economist Intelligence Unit (2008),
protecting the company's reputation is a challenge for today managers, amid large
companies failures and growing pressure coming from increasingly demanding consumers.
Ethical management, its main approaches, corporate governance, stakeholder orientation
and corporate social responsibility, were born in the U.S. market. Frederick W. (1998)
distinguishes two principles that formed the basis of these practices. First, the principle of
philanthropy, according to which companies should provide volunteering support for the
disadvantaged or helpless. Secondly, there is the principle of tutoring, which requires
corporations to play not only the economic role, but also the role of custodians for public
interest, acting in support of communities affected by their activities.
In its modern version, the principle of charity takes the shape of corporate philanthropy and
voluntary action by community interest. These have been imposed on the U.S. market since
1920, with the opening program of public funding charity Community Chest, forerunner of
the United Fund. On the other hand, the principle of guardianship evolves to corporate
practices attentive to the relationship between business and society, and seeking to balance
the interests of shareholders and management with the community. Both principles are the
basis for corporate social responsibility, where we include cause-related marketing.
Thanks to joint ownership, state-private, dominant for a long time in Europe, motivations
and trends in ethics management strategies are different from those of the U.S. market. If in
the U.S. we can find a positive approach, with strategies and practices self-imposed by
companies, in Europe a negative approach is defined, based on rules and principles imposed
by the state and society. While the U.S. market motivates and encourages ethical behaviour,
the European environment imposes ethical rules and regulates. If in the United States ethics
is a product of competition, cause-related marketing being seen as an added value and as a
distinctive element in competing brands on the market, in Europe, ethics does not seem to
be a need of the market, but a requirement imposed from the outside. While volunteering
and originality are encouraged in social programs in the United States, on the European
market the regulatory trends lead to a standardization of ethical performance criteria and
standardized cause-related marketing campaigns. Yet, regarding the business ethics, the
Romanian market follows the European trend.
International Business Report (Grant Thornton, 2008) questions more than 34 economies
around the world and reveals that small and medium firms, known as the "engine of world
economy" will have to review their attitude towards the concept of social responsibility and
cause-related marketing very quickly. In general, until now the ethical practices of
multinational companies were in the public sight. From these, it was expected the most in
terms of financial resources, time management and involvement in sustainable development
actions. According to the report, multinationals were traditionally focusing their attention to
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the following areas: human rights, working conditions, environment and fight against
corruption.
The study revealed that the motivating factors behind CSR practices are: keeping most
valuable employees, controlling costs to enhance efficiency and protect environmental
resources, the need to build trust and loyalty, strengthening brands, saving the planet, better
relations with investors and government pressures. The same study indicated that CSR
programs preferred by most companies are those related to cause-related marketing,
because the association with a disadvantaged cause has a positive impact on strengthening
the brand and reputation building.
Despite the enthusiasm it enjoys, the concept of CRM is still vulnerable to those who deny
its strategic role and advocating, in recession times, reducing costs of social investment. To
cope with criticism, the concept of cause-related marketing should be explored and
promoted in terms of tangible economic benefits that it brings. This involves passing the
most difficult test, that of value added and profits. The need to test cause-related marketing
programs in terms of profit stressed the need to measure their impact based on quantitative
and qualitative indicators. Social and environmental reports appear to be the most effective
methods of measuring cause-related marketing activities (Boston College Centre for
Corporate Citizenship, 2010).
Academic research on cause-related marketing mainly focused on two areas: CRM in terms
of companies and CRM effects on consumer behaviour and other relevant categories of
stakeholders. Experts say that there is a big influence of cause-related marketing on
consumers, but also on some other categories of stakeholders. Drumwright`s research
(1996) shows that the CRM activity has a strong impact on the people inside the
companies, such as employees, management. In this qualitative research among employees,
the conclusion is that a cause-related campaign has the role to enhance economic
performance and effectively communicate the company's mission to stakeholder groups.
Thus the company's goals are economic, non-economic, or mixed.
The success of a CRM campaign is given by the compatibility between the company and
the cause sustained. Compatibility is desirable but not absolutely necessary (Bloom,
Hussein and Szykman, 1995). Its shown that those programs where there is high
compatibility between the companies and their cause and are most effective.
Larson et al (2008) shows that there is a link between cause-related marketing and sales
forces performance. The research does not attempt to explore the reasons why companies
prefer to implement CRM, but focuses on how such campaigns targeted to a specific group
of stakeholders (example consumers) influence the reactions of other stakeholder groups
(example sales forces).
Another line of research shows how consumers react to a company's social initiatives and
cause-related marketing effects on consumer behaviour (Barone, Miyazaki and Taylor,
2000, Ellen More and Webb, 2000, Roy and Graeff, 2003).
CONE report (2007) studied consumer expectations from U.S. companies and how their
perceptions can influence purchase intentions, willingness to hire and investment decisions
related to companies. If initially consumers were primarily studied, research has been
extended to employees, investors and other key stakeholder groups. Most Americans said
when choosing companies they are influenced if there is any relevance and consistency
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between the sustained cause and the activity of a company. Environmental protection and
sustainable development are among the causes most appreciated by the Americans. There is
a sophistication of customer desires regarding cause-related marketing campaigns, so
companies are forced to reply with sustainable, authentic, transparent and effectively
communicated initiatives, in order to show the values that underpin their functionality
(Cone 2007).
3. Case study, research methodology and hypothesis
In this article we developed a selective survey, based on examining only a portion of the
total population, selected in a way that reflects the structure of the whole. Selective survey compared with exhaustive research - raises a number of benefits such as: reducing the
number of studied cases, short period of time to conduct the study, low cost
implementation, and the possibility of a more rigorous control regarding collection and
processing of information, lower human resources involved in research.
In achieving objectives through this selective research, we employed the questionnaire
survey - as a means of gathering information - with questions in a predetermined order,
most questions being closed or fixed-choice response. The questionnaire was administered
directly to students aged over 19 years from ASE, Bucharest. A total number of 100
questionnaires were completed of which 62% where answered by female. (Table no. 1)
The purpose of this research is to highlight the influences that cause-related marketing has
upon consumers attitudes.
Researchers affirm that attitudes are learned predispositions to respond consistently to an
object or a class of objects in a favourable or unfavourable way (Ctoiu and Teodorescu
2004). This suggests that attitudes are mental positions that cannot be observed directly, but
must be analyzed based on research results. The fact that attitudes are learned affirms they
will be affected by information and experience.
People acquire attitudes through action and learning and affect their purchasing behaviour.
People have attitudes toward religion, politics, clothes, music, food, sports, and practically
toward any other area that they interact with directly or indirectly. Attitudes put people into
a frame of mind: liking or disliking an object, moving toward or away from it. Attitudes
lead people to behave in a fairly consistent way toward similar objects. Because attitudes
economize on energy and thought, they can be very difficult to change (Kotler and Keller
2006).
Table no. 1: Structure of the sample
SEX
Women

Percentage
62%

Income
Under 500 RON

Percentage
21%

Man

38%

501-800
801-1200
1201-2000
Above 2000

28%
22%
18%
11%

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4. Research results
The questionnaire includes fictional situations that are designed to familiarize respondents
with the concept of cause-related marketing. We used for this the 5 point Likert scale (5
strongly agree - 1 strongly disagree) to measure constructs and to identify the degree of
involvement of respondents in the campaign presented below and to what extent it
influenced their purchase intention.
Campaign: Imagine that when eating at McDonalds, you see an advertising banner saying
that this chain of fast-foods will donate 1 RON for each soft drink sold over one year to a
national childrens charity. The total amount donated varies according to the number of
items sold; the more sold, the more the charity will receive.
Regarding the extent to which respondents agree that it would be worth buying from
McDonalds because of this donation, 37% consumers agreed with this statement, while
23% expressed total agreement (Table no. 2). Initiate a campaign of this kind draws
attention to the company and in consumers mind it creates the perception that buying the
products is justified in order to help the children charity.
Considering the degree in which respondents agree or not with the idea that they would buy
the product anyway, independently from the campaign, 35% expressed disagreement and
18% total disagreement (Table no. 2). Consumers prefer these products because they feel
they can support the cause-related marketing campaign.
As the analysis highlights, regarding the situation in which the consumers would buy from
the fast-food both for the quality of the products and the supported cause, 37% of
respondents agreed and 29% expressed total agreement (Table no. 2). Consumers show a
growing interest for products compliant with quality requirements, but an important aspect
is the corporate citizenship of the fast-food in the society. Corporate social responsibility
campaign enjoys greater visibility, within the global tendency of standardization, where
every company operates within a competitive market place, characterized by many products
of similar quality and price. In the long run, this context affects companys ability to carry
out its strategy, and therefore CSR can lead to competitive advantage.
As research showed, 61% of respondents believe that the campaign aims to increase sales,
11% expressed total agreement (Table no. 2). In this context, it is evident that consumers
truly believe the main objective for the company is to maximize the profit, rather than
genuinely support the charity, and ultimately the society. An explanation would be the
distrust, scepticism associated with these campaigns. Therefore, it is highly recommended
to focus on building confidence, by presenting the both positive aspects, the advantages and
also the disadvantages, in order to cultivate transparency and sincere communication with
audiences, actual and potential consumers.
Results outlined that 50 people agree and 4 people have consented with the assertion that
this fast-food has social value (Table no. 2). To have social value, a brand must first gain
recognition. The true value of a brand is its capacity to capture preferences and customers
loyalty. The above fictional situation reveals an effect of positive differentiation that
linkage with a cause has it upon consumers attitudes.

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Table no. 2: Cause-related marketing and perceived image
Questions
Because of this donation, its
worth buying from this company
I would buy the product anyway;
Im not interested in the
campaign.
I would buy the product, both for
its quality and the supported
cause.
I feel the company is making this
donation to increase sales.
I believe McDonalds brand has
social value.
The company id making this
donation to improve corporate
image.

5
Strongly
agree

4
Agree

3
Neutral

2
Disagree

1
Strongly
disagree

23%

37%

18%

18%

4%

7%

11%

29%

35%

18%

29%

37%

20%

11%

3%

11%

61%

16%

8%

4%

4%

50%

25%

18%

3%

37%

54%

2%

4%

3%

The vast majority of respondents consider that this donation is intended to improve
company image. In cause-related marketing campaigns, scepticism arose as consumers
perception is that the companies have other interests, beyond the philanthropic intent. They
may also believe that the amount of money collected is not so substantially as to have a real
impact and to make a difference or the cause. Many strongly believe that the sole purpose
of a company is to maximize profits and improve corporate image.
Campaign: Imagine that when shopping in a hypermarket for a soft drink, you see an
advertising banner saying that this chain of hypermarkets is asking customers to vote
during one year for a charitable donation of their choice by depositing their cash receipt in
one of three boxes (UNICEF, an international childrens charity, the RED CROSS or help
for EARTHQUAKE victims). The donation given to the selected charity is 1% of the amount
of the receipts put in the box.
The majority would buy more (Table no. 3) because of this campaign, as they perceive a
difference by linkage with three supporting cause. Consumers are attracted by the creative,
innovative idea of the company to communicate to them and directly involve them in the
process of sustaining the charities.
The majority of respondents would buy more (Table no. 3) because of this campaign, as
they perceive a difference by linkage with three supporting cause. Consumers are attracted
by the creative, innovative idea of the company to communicate to them and directly
involve them in the process of sustaining the charities.

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Table no. 3: Cause related marketing and consumers degree of involvement

Questions
Because of this donation, I would buy
more from this hypermarket.
The campaign doesnt interest me; it
would not influence my purchase
decision.
I feel like this company involves me
in choosing the cause.
I consider myself a responsible
person, therefore I would buy more to
support the cause.
I believe other companies should
regularly be involved in similar
campaigns.

1
5
4
3
2
Strongly
Strongly
Agree Neutral Disagree
disagree
agree
9%

38%

25%

21%

7%

8%

10%

28%

42%

12%

12%

55%

22%

9%

2%

12%

41%

26%

20%

1%

33%

54%

9%

3%

1%

The majority of respondents would buy more (Table no. 3) because of this campaign, as
they perceive a difference by linkage with three supporting cause. Consumers are attracted
by the creative, innovative idea of the company to communicate to them and directly
involve them in the process of sustaining the charities.
Regarding the statement that the campaign doesnt interest them, therefore it would not
influence their purchase decision 42 respondents disagree, 12 strongly disagree and 28 are
indifferent (Table no. 3). They wouldnt normally buy the products, but not that there is a
relation with the cause, the feel the need to buy. Therefore cause-related marketing
campaign, as a part of corporate social responsibility, may induce an impulse in consumers
behaviour, as they are attracted to the cause and the will buy products only because o the
linkage with the cause, which in this case constitutes a great competitive advantage for the
hypermarket.
When referring to the statement that respondent feel or don not feel that they are involved
in the choosing the right cause, 55 respondents agreed and 12 strongly agreed (Table no. 3).
By the opportunity of selecting between the 3 charities, which will be the one to receive the
donation, they feel truly engaged in the campaign.
Regarding the statement I consider myself a responsible person, therefore I would buy
more to support the cause, 41 people agreed and 12 people strongly agreed (Table no. 3).
This campaign offers more value for the customers, which justifies the higher purchased
quantity.
Given the affirmation "I believe other companies should regularly be involved in similar
campaigns, 54 people agreed and 33 expressed total agreement (Table no. 3). Most of
them said that cause-related marketing campaigns should be conducted regularly, therefore
we discovered that consumers honestly believe this is a necessity that corporation should be
focused upon.
Respondents consider that the field that mostly needs support is health. (Figure no. 2)
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Figure no. 2: Main area that requires supporting

More than half of respondents (52 people) agreed and 17 expressed total agreement (Figure
no. 3) when asked if they would be willing to pay an extra amount of money for the
products or services associated with a social cause. This highlights a positive attitude from
consumers, who want to pay more for socially responsible products. This can be explained
by the fact that consumers believe they can make a difference; they can help disadvantaged
categories when acquiring products linked to a cause. For people with a high sense of
responsibility, the extra payment is legitimate when serving to a noble purpose. A moral
individual would surely have a positive impact on society. Moreover the degree to which
consumers would pay an extra amount of money represents a measurement for brand
equity.

Figure no. 3: The extent to which consumers are willing to pay an extra price
for a product or service related to a social cause
The influence of sex on socially responsible products
To study the correlation between gender and respondents class structure, and to outline
their attitudes towards socially responsible products, weve combined the groups.

Therefore, when calculating

test, we discovered there is a significant relation between
the two variables. The value for coefficient of contingency is 0.301, and indicates a
significant correlation; coefficient of contingency is 0,328 which represent a positive direct

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relation that has an average intensity. Women are more likely to buy socially responsible
products, in comparison with men. On the other hand, women are more preoccupied by
aspects connected to social responsibility, and sometimes their purchase behaviour is
influenced by the company that develop social campaigns.
One can say that people prefer female to buy socially responsible than men. On the other
hand, women are those concerned with issues associated with those products and their
purchasing habits are influenced by companies engaged in socially responsible. This bears
out the hypothesis that women are inclined to purchase socially responsible products. We
can therefore confirm the hypothesis which states that women are lean to buy products or
services related to a cause.
The main sources of information (Tabel no. 4) are Internet (69%), radio/TV (59%),
newspapers (54%), and friends (48 %). Regarding consumers attitudes towards corporate
social responsibility principal direction of action aimed at protecting the environment
(Table no. 5)
Table no. 4: Consumers preference towards sources of information
Responses
N

Cases
Percentage percentage

Internet

69

23.8%

69.0%

Newspapers/Magazines

54

18.6%

54.0%

Radio/TV

59

20.3%

59.0%

Brochures/Flyers

35

12.1%

35.0%

Friends

48

16.6%

48.0%

Colleagues

11

3.8%

11.0%

None

1.7%

5.0%

9
290

3.1%
100.0%

9.0%
290.0%

Other sources
Total

Table no. 5: Consumers attitudes towards corporate social responsibility

Consumers attitude
Search information regarding socially responsible
companies, as part of acquisition process.
Buy brand related to a cause.
Recycle.
Participate to volunteering programs.
Donate blood.
Show interest in environment protection.

82

Yes

No

23%
54%
66%
29%
23%
80%

77%
46%
34%
71%
77%
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Conclusions
Corporate Social Responsibility is important for acquiring long-term success, being each
organizations essential competitive advantage and a path to societys sustainable
development. The new consumers identify with increased requirements and will prefer to
buy from companies that are committed to noble social causes, as long as there are no
major differences concerning the quality of the products.
The study in this paper, made over the impact of cause related marketing, highlighted the
following issues:
52% of the questioned people said that they are willing to pay extra for a product or
a service associated with a social cause
91% agree that cause related marketing creates a positive image of the company
87% think that organizations should regularly involve in cause related marketing
programs
Should they have to choose between two products/services with the same quality and
price, 74% would rather pick the product/service associated with a social cause.
Women are influenced in their buying decision by cause related products.
In this context, the importance of social responsibility becomes obvious. Reputation is the
most competitive advantage a company has. Those organisations that enjoy a positive
image will obtain higher prices for their products and will have the ability to change
consumer buying behaviour.
Finally, we will highlight that technological development has allowed transmitting the
information flows instantly and at low cost. The Internet has a high importance in
transmitting information to a global audience and can help increasing consumers
confidence in socially responsible businesses. We remind that in the famous Fortune
magazine, 80% of the 500 presented companies offer online information about social
responsibility programs and their involvement in social problems. Consumers trust those
companies that communicate openly, continuously and sincerely. Its a moral issue that
every organisation has to assume.
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