Exploring the effects of for‐profit and nonprofit size congruency: An exchange perspective on cause‐related marketing

Author(s):  
Anne Hamby ◽  
Niusha Jones ◽  
Guohong Yu
1988 ◽  
Vol 52 (3) ◽  
pp. 58-74 ◽  
Author(s):  
P. Rajan Varadarajan ◽  
Anil Menon

Cause-related marketing represents the confluence of perspectives from several specialized areas of inquiry such as marketing for nonprofit organizations, the promotion mix, corporate philanthropy, corporate social responsibility, fund-raising management, and public relations. The authors outline the concept of cause-related marketing, its characteristics, and how organizations, both for-profit and not-for-profit, can benefit from effective use of this promising marketing tool.


2018 ◽  
Vol 27 (6) ◽  
pp. 716-731 ◽  
Author(s):  
Ilaria Baghi ◽  
Veronica Gabrielli

Purpose Past research on cause-related marketing (CRM) suggests that these socially beneficial initiatives can be implemented as co-branding strategies. Little is known, however, about the role of brand prominence, in terms of visual conspicuousness of the two brands that are partner-involved (for-profit and non-profit brands). This study aims to advance a model of moderated mediation that explains how and under what circumstances brand prominence disparity enhances consumers’ attitudes toward CRM co-branded products and increases purchase intention Design/methodology/approach The authors test a model of moderated mediation in two studies. Study 1 shows that the effectiveness of brand prominence disparity is explained by the mediating role of attitude toward a CRM co-branded product. Study 2 demonstrates that this mediation is moderated by the positioning of the for-profit brand partner (luxury vs non-luxury positioning). Findings Results show that brand prominence disparity has a role in defining consumers’ purchase intention toward a CRM co-branded product through mediation of attitude. Moreover, positioning of the for-profit brand partner moderates the cognitive processes activated by the visual brand prominence. In luxury positioning, a loud visual prominence of the for-profit brand significantly improves consumers’ attitudes and intentions to buy the CRM co-branded product. Originality/value The study extends our understanding of how visual brand presence can promote the effectiveness of co-branded CRM initiatives, and it offers practical guidelines for marketers wishing to partner with social causes, while promoting products with luxury or non-luxury features.


Author(s):  
M. Mercedes Galan-Ladero ◽  
Clementina Galera-Casquet

Cause‐related marketing (CRM) is one of the most relevant corporate social responsibility (CSR) initiatives nowadays and is being employed by numerous brands across product categories. The most important characteristics are (1) there is a link between a for-profit business and a non-profit organization (NPO) in order to support a social cause and (2) corporate donation is conditioned by sales, that is, CRM ultimately depends on consumer behavior. In this chapter, we focus on CRM programs carried out in a digital context. Thus, our aim is to understand their fundamental features and the main digital technologies used. Our findings show a massive use of digital technologies in CRM campaigns. Different digital tools are currently combined in the same program, complementing them with conventional mass media. The main advantages of this combination are a quick diffusion of the CRM programs, and a global impact.


2020 ◽  
Vol 37 (3) ◽  
pp. 237-246
Author(s):  
Mazen Jaber ◽  
Kylie Jaber

Purpose Cause-related marketing (CRM) campaigns have become common features of the marketplace. CRM often involves a for-profit business agreeing to contribute a specified amount to a cause when the business’s customers engage in revenue-generating exchanges. Despite the central role that price is likely to play in a consumer’s decision to purchase or not to purchase an offer associated with a CRM campaign, to the best of the authors’ knowledge, very few have examined price framing effects in a CRM context. This paper aims to explore the effect of rightmost digits manipulation in prices on participation intentions for CRM campaigns. Design/methodology/approach In Study 1, 241 college students participated in an online experiment for class credit. The experiment used a 3 (price level: low, medium and high) × 2 (price ending: 99 ending and no ending) between-subjects design. The dependent variable was participation intention, and several moderators and mediators were considered. PROCESS was used to test the moderated mediation. In Study 2, 351 subjects participated in an online experiment with a design similar to the earlier study. In Study 2, however, new mediators were added and the moderated mediation was tested using SPSS PROCESS macro. Findings This research shows that price ending impacts the effectiveness of CRM as a tactic on consumers’ purchase intentions. Consistent with the authors’ prediction, this study shows that consumers exposed to a 99-ending CRM offer are more likely to participate in the offer compared to consumers exposed to a no-ending priced offer. Offer attractiveness, elaboration and corporate social responsibility were also shown to have a strong effect on participation intentions. Practical implications This research indicates that for moderately priced products, 99-ending prices led to an increased influence on consumer purchase intentions; on the other hand, no-ending/even-ending prices were more effective for high-priced products. Thus, the use of the right digit effect by managers in a CRM context as way of increasing consumers’ participation likelihood is likely to be more successful for moderately priced offers. Originality/value This research extends previous work on CRM and right digit effect in pricing. This study’s findings, in both Studies 1 and 2, demonstrate that the effectiveness of CRM campaigns on consumer choice is dependent on the offer price ending. Consumers exposed to the no-ending priced CRM offers tend to be affected less by CRM campaigns compared to consumers exposed to 99-ending offers, who perceive the offer as more attractive.


2008 ◽  
Vol 5 (3) ◽  
pp. 210-224 ◽  
Author(s):  
Francisca Farache ◽  
Keith John Perks ◽  
Lilian Soares Outtes Wanderley ◽  
José Milton de Sousa Filho

1999 ◽  
Vol 27 (2) ◽  
pp. 202-203
Author(s):  
Robert Chatham

The Court of Appeals of New York held, in Council of the City of New York u. Giuliani, slip op. 02634, 1999 WL 179257 (N.Y. Mar. 30, 1999), that New York City may not privatize a public city hospital without state statutory authorization. The court found invalid a sublease of a municipal hospital operated by a public benefit corporation to a private, for-profit entity. The court reasoned that the controlling statute prescribed the operation of a municipal hospital as a government function that must be fulfilled by the public benefit corporation as long as it exists, and nothing short of legislative action could put an end to the corporation's existence.In 1969, the New York State legislature enacted the Health and Hospitals Corporation Act (HHCA), establishing the New York City Health and Hospitals Corporation (HHC) as an attempt to improve the New York City public health system. Thirty years later, on a renewed perception that the public health system was once again lacking, the city administration approved a sublease of Coney Island Hospital from HHC to PHS New York, Inc. (PHS), a private, for-profit entity.


1999 ◽  
Vol 27 (2) ◽  
pp. 197-198
Author(s):  
Joseph R. Zakhary

In California Dental Association v. FTC, 119 S. Ct. 1604 (1999), the U.S. Supreme Court reviewed a decision by the U.S. Court of Appeals for the Ninth Circuit that a nonprofit affiliation of dentists violated section 5 of the Federal Trade Commission Act (FTCA), 15 U.S.C.A. § 45 (1998), which prohibits unfair competition. The Court examined two issues: (1) the Federal Trade Commission's (FTC) jurisdiction over the California Dental Association (CDA); and (2) the proper scope of antitrust analysis. The Court unanimously held that CDA was subject to FTC's jurisdiction, but split 5-4 in its finding that the district court's use of abbreviated rule-of-reason analysis was inappropriate.CDA is a voluntary, nonprofit association of local dental societies. It boasts approximately 19,000 members, who constitute roughly threequarters of the dentists practicing in California. Although a nonprofit, CDA includes for-profit subsidiaries that financially benefit CDA members. CDA gives its members access to insurance and business financing, and lobbies and litigates on their behalf. Members also benefit from CDA marketing and public relations campaigns.


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