Advanced Search
MyIDEAS: Login to save this paper or follow this series

Is there Need for more Transparency and Efficiency in Cause‐related Marketing

Contents:

Author Info

  • Langen, Nina
  • Grebitus, Carola
  • Hartmann, Monika
Registered author(s):

    Abstract

    “Growing awareness among consumers about sustainability issues ‐ ranging from recycling to fair wages for workers ‐ are starting to shape consumer buying patterns” (Partos 2009). Especially for conscious consumers ethical and sustainable consumption are becoming mainstream. With regard to ethical consumption the popularity is shown for instance by a growing relevance of Causerelated Marketing (CrM) campaigns in Germany. CrM is an increasingly applied marketing tool, where product purchase leads to target‐oriented donations regarding a designated cause – promoted on the product by label. However, research reveals that German consumers are sceptic with regard to the amount of money spent and have doubts towards unselfish motives of firms. At present little information is provided in CrM campaigns on how much of the sales price is spent on the ‘cause’ by the respective organization. If the gap between the sum consumers assume to be contributed and the amount really spent by the companies is too large this could lead to mistrust among consumers once they become aware of this. In the long run, this might decrease willingness to pay for those products in general. Also, firms’ reputation could be harmed (see e.g. Webb and Mohr 1998). Against this background, we aim to answer the question of (1) how much consumers assume to be contributing to the ‘cause’ by purchasing the respective product and (2) whether this information is of relevance for the consumer. We investigate (i) whether consumers want products to carry a label indicating the percentage or absolute amount of money being spent on the ‘cause’, (ii) how much money should be contributed to the ‘cause’ in the case of CrM, and (iii) how much consumers think companies do actually spend on the ‘cause’. In this regard, we conducted a consumer survey (n=217) in Germany in 2009. Results show that (i) consumers want to be able to evaluate the efficiency of the CrM donation. 71% want this information given in percent and 63% would like to know the exact amount of money reaching the addressee. (ii) Regarding CrM results show that 46% of respondents would pay 5.00€ for a pound of CrM coffee if they can be sure that 20% reaches the ‘cause’. At the same time (iii) 54% of respondents believe that a maximum of 6% of the CrM price premium reaches the ‘cause’. Overall, consumers desire transparency with regard to CrM. Hence, our study enables marketers to develop efficient and effective consumer‐oriented communication strategies.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://purl.umn.edu/100467
    Download Restriction: no

    Bibliographic Info

    Paper provided by International European Forum on Innovation and System Dynamics in Food Networks in its series 2010 Internatonal European Forum, February 8-12, 2010, Innsbruck-Igls, Austria with number 100467.

    as in new window
    Length:
    Date of creation: Oct 2010
    Date of revision:
    Handle: RePEc:ags:iefi10:100467

    Contact details of provider:
    Web page: http://www.fooddynamics.org/

    Related research

    Keywords: Cause‐related Marketing; donations efficiency; transparent labelling; Agribusiness; Agricultural and Food Policy; Food Consumption/Nutrition/Food Safety; Institutional and Behavioral Economics; Marketing; Research Methods/ Statistical Methods;

    This paper has been announced in the following NEP Reports:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ags:iefi10:100467. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.