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Doing Well While Doing Good. Linking A Social Cause To Product Promotions: Why It Works And How To Make It More Effective

Author

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  • Henderson Ty

    (McCombs School of Business, University of Texas at Austin, 1 University Station B6700 Austin, TX 78712 Tel: (512) 232-3746 Fax: (512) 471-1034)

  • Arora Neeraj

    (John P. Morgridge Chair in Business Administration, Wisconsin School of Business, University of Wisconsin- Madison, 975 University Ave. Madison, WI 53706 Tel: (608) 262-1990 Fax: (608) 265-4193)

Abstract

An increasing number of brands in the marketplace are being linked to social causes. Such enhancements are called embedded premiums (EP) and can be quite effective as a sales promotion strategy. Across three experiments, using a nationwide internet panel, we find that (i) at low denominations EP is more effective than an equivalent price discount, (ii) EP benefits an unknown brand more than a known brand, (iii) an identifiable segment of individuals prefer the “other” over “self,” suggesting possible EP optimization and segmentation strategies, (iv) a customization strategy is shown to be more effective than a coverage strategy. These findings have broad implications for brand managers in regard to resource allocation and EP program ROI.

Suggested Citation

  • Henderson Ty & Arora Neeraj, 2010. "Doing Well While Doing Good. Linking A Social Cause To Product Promotions: Why It Works And How To Make It More Effective," GfK Marketing Intelligence Review, Sciendo, vol. 2(1), pages 8-15, May.
    • Handle: RePEc:vrs:gfkmir:v:2:y:2010:i:1:p:8-15:n:2
    DOI: 10.2478/gfkmir-2014-0066
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