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To Do Well by Doing Good: Improving Corporate Image Through Cause-Related Marketing

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Abstract

As part of their corporate social responsibility, many organizations practice cause-related marketing, in which organizations donate to a chosen cause with every consumer purchase. The extant literature has identified the importance of the fit between the organization and the nature of the cause in influencing corporate image, as well as the influence of a connection between the cause and consumer preferences on brand attitudes and brand choice. However, prior research has not addressed which cause composition most appeals to consumers or the impact of cause choice on corporate image. A between-subjects field experiment in the Netherlands examines the influence of three core cause attributes—cause type, cause scope, and cause acuteness—on consumers’ perceptions of corporate image. Furthermore, this experiment examines the extent to which consumer identification with the cause mediates the influence of the cause attributes on corporate image. The findings indicate that identification with the cause leads to more positive evaluations of marketing campaigns for cause type and cause scope. Also, however, our results uncover a negative direct relationship between cause scope and corporate image. Cause acuteness is only marginally influential in corporate image perceptions. By proposing and testing a comprehensive model of the influence of cause attributes on corporate image in cause-related marketing, this article provides important implications and suggests avenues for further research.

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Acknowledgments

Alex Michalos served as editor and Steve Brammer served as section editor for this article. The authors thank them and the four anonymous reviewers for their comments and suggestions during the review process.

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Correspondence to Adam Lindgreen.

Appendices

Appendix 1: Example of a Briefing Report

Appendix 2: Briefing Reports

Scenario 1 (Cause: Primary Need; Scope: Local/National; Acuteness: Sudden Disaster)

ELC supports victims of flood in the West-Netherlands

From our reporter

Electronics chain ELC announces a commitment to help the victims of the current flood in the west of The Netherlands that has caused more than 50,000 people to be homeless. ELC, which […] division of PFA. This division will use the money to help providing shelter to the victims of the flood. In an interview, […] for society and people in the flooded area are currently in need of immediate help. Our financial support to PFA helps this organization to provide these people with shelter and enables us […] tomorrow.

Scenario 2 (Cause: Primary Need; Scope: Local/National; Acuteness: Ongoing Tragedy)

ELC supports the homeless in the West-Netherlands

From our reporter

Electronics chain ELC announces a commitment to help the homeless in the West-Netherlands. ELC, which […] division of PFA. This division will use the money for providing shelter to the homeless in the West-Netherlands. In an interview, […] for society and part of the local population doesn’t have a place to stay. Our financial support to PFA helps this organization to provide these people with shelter and enables us […] tomorrow.

Scenario 3 (Cause: Primary Need; Scope: International; Acuteness: Sudden Disaster)

ELC supports victims of flood in East-Brazil

From our reporter

Electronics chain ELC announces a commitment to help the victims of the current flood in the east of Brazil that has caused more than 50,000 people to be homeless. ELC, which […] division of PFA. This division will use the money to help providing shelter to the victims of the flood. In an interview, […] for society and people in the flooded area are currently in need of immediate help. Our financial support to PFA helps this organization to provide these people with shelter and enables us […] tomorrow.

Scenario 4 (Cause: Primary Need; Scope: International; Acuteness: Ongoing Tragedy)

ELC supports the homeless in East-Brazil

From our reporter

Electronics chain ELC announces a commitment to help the homeless in East-Brazil. ELC, which […] division of PFA. This division will use the money for providing shelter to the homeless in East-Brazil. In an interview, […] for society and part of the East-Brazilian population doesn’t have a place to stay. Our financial support to PFA helps this organization to provide these people with shelter and enables us […] tomorrow.

Scenario 5 (Cause: Secondary Need; Scope: Local/National; Acuteness: Sudden Disaster)

ELC supports the West-Netherlands Museum after flood

From our reporter

Electronics chain ELC announces a commitment to help the West-Netherlands Museum to restore its paintings that were heavily damaged by the recent unexpected flood. ELC, which […] division of PFA. This division will use the money to assist the West-Netherlands museum with the restoration of the paintings that were damaged during the flood. In an interview, […] for society and situation in the West-Netherlands Museum endangers our national cultural heritage and requires immediate action. Our financial support to PFA helps this organization to provide the appropriate support to the museum and enables us […] tomorrow.

Scenario 6 (Cause: Secondary Need; Scope: Local/National; Acuteness: Ongoing Tragedy)

ELC supports the West-Netherlands Museum

From our reporter

Electronics chain ELC announces a commitment to help the West-Netherlands Museum to restore its paintings. Many paintings have suffered from decades of high humidity levels, caused by the museum’s proximity to a river. ELC, which […] division of PFA. This division will use the money to assist the West-Netherlands museum with the restoration of damaged paintings. In an interview, […] for society and the situation in the West-Netherlands Museum endangers our national cultural heritage. Our financial support to PFA helps this organization to provide the appropriate support to the museum and enables us […] tomorrow.

Scenario 7 (Cause: Secondary Need; Scope: International; Acuteness: Sudden Disaster)

ELC supports East-Brazilian Museum after floods

From our reporter

Electronics chain ELC announces a commitment to help the East-Brazilian Museum to restore its paintings that were heavily damaged by the recent unexpected flood. ELC, which […] division of PFA. This division will use the money to assist the East-Brazilian museum with the restoration of the paintings that were damaged during the flood. In an interview, […] for society and situation in the East-Brazilian Museum endangers our global cultural heritage and requires immediate action. Our financial support to PFA helps this organization to provide the appropriate support to the museum and enables us […] tomorrow.

Scenario 8 (Cause: Secondary Need; Scope: International; Acuteness: Ongoing Tragedy)

ELC supports East-Brazilian Museum

From our reporter

Electronics chain ELC announces a commitment to help the East-Brazilian Museum to restore its paintings. Many paintings have suffered from decades of high humidity levels, caused by the museum’s proximity to a river. ELC, which […] division of PFA. This division will use the money to assist the East-Brazilian museum with the restoration of damaged paintings. In an interview, […] for society and the situation in the East-Brazilian Museum endangers our global cultural heritage. Our financial support to PFA helps this organization to provide the appropriate support to the museum and enables us […] tomorrow.

Appendix 3: Manipulation Check

We ran a pretest of the manipulation on 70 respondents; they were randomly assigned to one of the eight scenarios and rated three five-point semantic differential scales anchored with the notion that the described cause was “a cause related to a problem that involves the most basic human needs, that is, basic physical requirements [personal, social, or cultural life enhancement or development, that is, not related to basic human needs],” “a cause that is related to a problem that has happened geographically close to me [far away from me],” and “a cause that is related to a problem that has occurred suddenly [has been going on for some time].” As expected, the manipulations of cause scope, type, and acuteness were successful and orthogonal. Respondents who read the scenario with the flood perceived a more primary need than did respondents who read the scenario about the museum (F(1, 69) = 140.082, p = .000; 1.53 vs. 4.52), and the manipulation of cause type did not affect the ratings for the two other questions (p > .451). Respondents who read the scenario with the local cause perceived it as geographically closer to them than respondents who read the Brazilian cause scenario (F(1, 67) = 160.380, p = .000; 1.84 vs. 4.72), and the manipulation of cause scope did not affect the ratings for the two other items (p > .641). Finally, respondents who read the scenario about the disaster perceived it as sudden, more than those who read the scenario about the ongoing issue (F(1, 69) = 103.329, p = .000, 1.58 vs. 4.23), and the manipulation did not affect the ratings for the two other questions (p > .399).

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Vanhamme, J., Lindgreen, A., Reast, J. et al. To Do Well by Doing Good: Improving Corporate Image Through Cause-Related Marketing. J Bus Ethics 109, 259–274 (2012). https://doi.org/10.1007/s10551-011-1134-0

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