Transcript Ibtissam Abarar

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ETHICAL MARKETING IN
EMERGENT CONTEXT
The P&G Company
implementing the cause
related marketing
Ibtissam ABARAR
Assistant Professor, ESCA EM, Casablanca, Morocco
Jayesh Patel, Dharmesh Gadhavi and Yupal Shukla
Patel College of Management Studies, India
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Context
“Our belief that our financial
success performance must go
hand in hand with our social
and environmental
responsibilities, our purpose.”
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The begining …

American Express first used the
phrase "cause-related marketing" in
1983.

1 cent for every card transaction and
$1 for every new card issued during
the last quarter of 1983.

$1.7 million for the restoration – a 28
% increase in use of the credit cards massive press coverage and free
publicity.

1990-1999: American companies
spent one billion dollars per year on
CrM.
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Introduction

Corporate social responsibility has been propagating a change from
idealism to realism (Kotler and Lee, 2005).

In doing this, societal marketing has been a key promising tool for
corporations to get differentiated from competitors by creating an emotional
connects with consumers (Meyer, 1999).

The strategic alliances with non-for-profit organizations (NPOs) and
supporting social causes can shape the perceptions of consumers as ‘do well
by doing well’ and eventually results into market share hike and thus
revenues.
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Originality & value

The research is valuable in understanding the relationship
between company, cause and customer.

It also provides the insights to marketers about how cause
involvement influences attitudes and intention and thus
adds some valuable theory to the CrM literature.
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?

What happens if the consumers are involved with a cause?

Why some consumers participate in cause related marketing
and why some consumers do not?

Does this hurt the consumer attitude and their purchase
intention?
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Does the consumer has trust in corporate communication and
will it effect on its attitude and intention?
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Objectives of the study

Investigating the effectiveness of CrM on consumer attitude
and purchase intention.

The moderating effect of cause involvement on consumer
attitude and purchase Intention.

The moderating effect of consumer skepticism on consumer
attitude and purchase Intention.
+ 2. Review of literature and hypotheses

Cause-related marketing (CrM) was defined as “the process
of formulating and implementing marketing activities that
are characterized by an offer from the firm to contribute a
specified amount to a designated cause when customers
engage in revenue providing exchanges and satisfy
organizational and individual objectives” (Varadarajan and
Menon, 1988, pp. 60–61).

Rothschild (1984) defined cause involvement as “as the
relevance that the consumer feels in response to cause
exposure” (Myers and Kwon, 2013).

Attitude is a degree to which a person has favourable or
unfavourable evaluations (Ajzen, 1991).
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1 Cause related marketing and attitude
H1: Consumers will have more positive attitudes towards
brand practicing CrM than if the brand were not associated
with a cause.
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H2: Consumers will have more positive attitudes towards Ad
for a brand practicing CrM than if the brand were not
associated with a cause.
2. Cause related marketing & purchase intention
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H3: Consumers will have more positive purchase intention
for a brand practicing CrM than if the brand were not
associated with a cause
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.3. Cause
involvement
H4a:
Consumer attitude towards brand will be greater for those more
involved with the cause compared with those less involved with the cause.
 H4b:
Consumer attitude towards the ad will be greater for those more
involved with the cause compared with those less involved with the cause.
 H4c:
Consumer purchase intention will be greater for those more
involved with the cause compared with those less involved with the cause.
4. Skepticism of consumers



H5a: Consumers with a high level of advertising skepticism will
have unfavourable attitude towards the brand practicing CrM.
H5b: Consumers with a high level of advertising skepticism will have
unfavourable attitude towards ad of a brand practicing CrM.
H5c: Consumers with a high level of advertising skepticism will have
unfavourable purchase intention for the brand practicing CrM.
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Design & methodology approach
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The study utilizes experimental design, using a convenience
sample of 424 participants.
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Two structured questionnaire each for experimental and
control group are developed.
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The stimulus is in the form of brand name, the product
portfolio and the ad itself in the questionnaire for
experimental group.

ANCOVA is used to study the effect of covariates (cause
involvement and skepticism) on attitudes and intention.
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Stimulus for participants
For experimental group
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Stimulus for participants
For control group
+ Scale measures and reliability statistics
Variable
Specification
Items
1.
2.
3.
4.
5.
1.
2.
3.
4.
5.
1.
Three-item,
2.
five point likert
3.
type scale
unpleasant/pleasant (R),
unappealing/appealing (R),
bad/good (R),
unfavorable/favorable (R),
not likeable/likeable (R)
bad/good (R),
unconvincing/convincing R),
unappealing/appealing (R),
not likeable/likeable (R),
unfavorable/favorable (R)
I will try the brand.
I will consider purchasing the brand next time.
It is very likely that I will buy the brands.
Cause
Involvement
Five-item,
seven point
semantic
differential
scale
Skepticism*
Four-item,
five-point
likert type
scale
unimportant/important(R),
means nothing to me/means a lot to me (R),
personally relevant/irrelevant,
doesn’t matter a great deal to me/a great deal to me (R),
no concern/great concern to me (R)
Most claims made on package labels or in ad are true (R).
Because claims are exaggerated, consumers would be better off if such
claims on package labels or in ad were eliminated.
Most claims on package labels or in ads are intended to mislead rather
than to inform consumers.
I do not believe most claims made on package labels or in ad.
Attitude
towards
brand
Attitude
towards the
ad
Purchase
Intention
Five-item,
seven point
semantic
differential
scale
Five-item,
seven point
semantic
differential
scale
1.
2.
3.
4.
5.
1.
2.
3.
4.
Adapted from study
Spears and Singh
(2004),
Myers and Kwon
(2013)
Holbrook and Batra
(1987),
Krishnamurthy and
Sujan (1999),
Ferle et al. (2013)
Putrevu and Lord
(1994),
Lii and Lee (2012)
Cronbach
Alpha
0.881
0.889
0.780
Maheswaran et al.
(1990),
Grau and Folse
(2007)
0.737
Mohr et al. (1988),
BrØnn and Vrioni
(2001)
0.768
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Test of hypotheses
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Manipulation checks : Welch ANOVA statistics for study variables
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Testing the moderating effects of cause involvement
1.
2.
3.
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1.
2.
3.
ANCOVA results for cause involvement and attitude towards brand
ANCOVA results for cause involvement and attitude towards ad
ANCOVA results for cause involvement and purchase intention
Testing the moderating effects of skepticism
ANCOVA results for skepticism and attitude towards brand
ANCOVA results for skepticism and attitude towards an ad
ANCOVA results for skepticism and purchase intention
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Findings

Study demonstrates that CrM improves:
1.
the attitude towards brand,
2.
attitude towards an ad
3.
and purchase intention.
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Additionally, (1)attitudes and (2) intention is also improved
among those consumers more involved in a cause.
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Skepticism is not relevant to (1) attitudes and (2) purchase
intention.
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Practical implications

This study helps companies to rethink on selecting cause and
to suggest on how to make them participated maximally.

At the same time, study helps them to develop more effective
CrM campaigns aiming consumers purchase intention in
emergent context.
+ Research limitations & implications

Use of convenience sample is the main limitation of this
research.