Journal of Nonprofit & Public Sector Marketing

ISSN: 1049-5142 (Print) 1540-6997 (Online) Journal homepage: http://www.tandfonline.com/loi/wnon20

A Taxonomy of Cause-Related Marketing Research:

Current Findings and Future Research Directions
Shruti Gupta PhD & Julie Pirsch PhD
To cite this article: Shruti Gupta PhD & Julie Pirsch PhD (2006) A Taxonomy of Cause-Related
Marketing Research: Current Findings and Future Research Directions, Journal of Nonprofit &
Public Sector Marketing, 15:1-2, 25-43, DOI: 10.1300/J054v15n01_02
To link to this article: http://dx.doi.org/10.1300/J054v15n01_02

Published online: 08 Sep 2008.

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A Taxonomy
of Cause-Related Marketing Research:
Current Findings
and Future Research Directions
Shruti Gupta
Julie Pirsch

ABSTRACT. Cause-related marketing is an increasingly popular method

of improving marketing relationships with customers, both for the sponsoring company and for the participating cause. This paper outlines the
rewards and risks for the company and the cause as they consider this
type of partnership, as well as the benefits and drawbacks for the customers asked to participate in these programs through the purchase of
the sponsored product or service. Future directions for research are
recommended in order to (1) expand the findings within this domain,
and (2) to maximize sales results from cause-related marketing initiatives for businesses and causes. [Article copies available for a fee from The
Haworth Document Delivery Service: 1-800-HAWORTH. E-mail address:
<docdelivery@haworthpress.com> Website: <http://www.HaworthPress.com>
2006 by The Haworth Press, Inc. All rights reserved.]

KEYWORDS. Cause-related marketing, taxonomy

Shruti Gupta, PhD, is Assistant Professor of Marketing, The Pennsylvania State
UniversityAbington, 1600 Woodland Road, Abington, PA 19001 (E-mail: sxg37@
psu.edu).
Julie Pirsch, PhD, is Assistant Professor of Marketing, Villanova University.
Address correspondence to: Julie Pirsch, Marketing Department, Villanova University, 3006 Bartley Hall, Villanova, PA 19085 (E-mail: Julie.Pirsch@villanova.edu).
The authors are listed in alphabetical order and contributed equally to the paper.
Journal of Nonprofit & Public Sector Marketing, Vol. 15(1/2) 2006
Available online at http://www.haworthpress.com/web/JNPSM
2006 by The Haworth Press, Inc. All rights reserved.
doi:10.1300/J054v15n01_02

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INTRODUCTION
In 1999, Sears partnered with Gildas Club, a non-profit network of
local meeting places for people living with cancer (Discount Store
News, 1999). By donating a portion of the sales from selected merchandise, and by creating strategic alliances with Die Hard Racing Team and
Levis, Sears helped Gildas Club families find resources to deal with
the devastating effects of cancer by raising over three million dollars. In
addition to the financial support generated for this cause, Sears increased the sales revenue of those products tied to the cause, and
brought national recognition to this otherwise unknown charity. Sears
continued this charitable partnership during the 1999 holiday season
by supporting the Give Gildas Club a Charge holiday campaign,
donating sales proceeds from every purchase made with a Sears Card
(Ebenkamp 1999). This partnership between Gildas Club and these national brands is and excellent example of cause-related marketing: a
program designed to create a partnership between a sponsoring firm and
a non-profit cause that raises money through product sales. Consider
these other examples of cause-related marketing:
Visa instigated a charitable partnership with Reading is Fundamental (RIF), a non-profit organization (NPO) focused on promoting childrens literacy. Every time the card was used with
partner merchants, Visa donated a percentage of an items purchase price to RIF. This cause association generated in excess of
$1million for RIF, increased national awareness of the importance
of youth literacy, enhanced Visas brand image, and increased
Visas transaction volume by 18.9% in the first year of the campaign (www.causepartners.com/cause.html).
Darden Restaurants Olive Garden chain raised $15 million over
the last 13 years for leukemia and lymphoma research, education
and treatment with their annual Pasta for Pennies program (www.
olivegarden.com/ourcommunity/pennies.asp). Through this program, more than one million students in schools around the country bring spare change to their classrooms each year to benefit the
local chapters of The Leukemia & Lymphoma Society. The class
in each school that raises the most money receives a pasta party
from Olive Garden.
In 1999, J.C. Penney offered A Very Rudolph Christmas CD,
donating two dollars of each cash purchase to its Can Do AfterSchool program designed to support high quality, affordable after

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school programs for children nationwide, reaching their one million dollar goal.
As is evident from the above industry examples, cause-related marketing has become a popular strategic marketing tool for companies.
This surge in corporate enthusiasm can be traced back to American Express support of the Statue of Liberty restoration in 1983. Cause-related marketing is a critical part of the strategic marketing plan for
companies interested in satisfying the needs and wants of their publics.
While marketing in general is widely perceived as the process of selling, influencing and persuading the end user to purchase a product, it
also must serve and satisfy the human needs of its customers (Kolter
and Levy 1969) and all of its other internal and external publics (Kolter
1972). In order to reach these publics and differentiate one firm from
other firms, marketers can use cause-related marketing to support the
altruistic needs of its internal and external customers by tying its economic activity to a higher social purpose (Kolter and Levy 1969, p. 15).
Today, many large organizations have cause-related marketing programs that support a multitude of causes. Companies use these
cause-related marketing as a strategic and tactical tool to help realize a
plethora of corporate objectives such as increasing sales and market
share and improving company and product performance (Ross, Stutts,
and Patterson 1990-1991).
In the literature, cause-related marketing emerges as a distinct domain with a seminal paper by Varadarajan and Menon (1988). With almost 20 years since the inception of formal cause-related marketing
initiatives in practice, this paper seeks to review the literature in this domain, and offers a taxonomy that structures research efforts and helps
identify future research directions. Past research on cause-related
marketing has followed three major directions, each of which will be
discussed below. One direction has contributed to the conceptual development of the construct, the second seeks to understand the nature of
customer responses to cause-related marketing initiatives, while the
third highlights the rewards and risks for the alliance partners.
CONCEPTUAL DEVELOPMENT
In their seminal paper on cause-related marketing, Varadarajan and
Menon (1988, p. 60) offer the most comprehensive conceptualization of
cause-related marketing. These authors define cause-related marketing as:

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. . . 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 that satisfy organizational and individual objectives.
Cause-related marketing has also been referred to as joint venture
marketing (File and Prince 1998) that links organizational identity to
nonprofits with a social cause (Varadarajan and Menon 1988), and as a
. . . complex utilitarian economic exchange between the customer, the
firm and the cause (Ross, Patterson, and Stutts 1992). Still others describe cause-related marketing as marketing alliance using transaction-based promotions, joint issue promotions and licensing to reach its
goals (Andreasan 1986).
While most researchers define cause-related marketing in terms of
corporate commitment to a social cause in lieu of customers purchases
(Varadarajan and Menon 1988), others argue that it is simply another
form of corporate philanthropy, with the underlying objective of increased sales (DiNitto 1989). In marketing terms, cause-related marketing is best described as a strategy designed to promote the achievement
of marketing objectives (such as brand sales) via company support of
social causes (Barone, Miyazaki, and Taylor 2000).
Companies can choose to operationalize their cause-related marketing programs through one of two ways. First, companies may choose to
establish a direct relationship between sales of company products and
its support of a social cause. For example, Target retail stores may
choose to donate 1% of each consumer transaction to selected neighborhood community groups. Alternatively, companies may choose a less
visible and indirect path when making an overall effort to behave in socially responsible ways (Mohr, Webb and Harris 2001). Examples of
this option can be seen in donations of money, materials, and supplies to
causes, sponsoring public service announcements in the media (see
Ebenkamp 1999) or through employee volunteering (Meyer 1999).
Wal-Mart recently opted for this strategy in lieu of a purchase-sponsored program by donating $100 million in 1997 to support children and
families (Meyer 1999). In the end, however, the companys goal in participating in a cause-related marketing campaign is not only to provide
financial support to a worthy cause, but also to establish or reinforce an
altruistic public persona with respect to the firm, its brand, or both, in
the eyes of its most important audience: the customer.

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CUSTOMER RESPONSES
TO CAUSE-RELATED MARKETING PROGRAMS
Existing research efforts have described how a cause-related marketing campaign influences customer attitudes and purchase intent. In a nationwide survey completed by Cone Communications and Roper Starch
Worldwide, consumers reported that when given a buy choice between
two products of equivalent price and quality, 78% would more likely
buy a product and 54% would pay more for a product associated with a
cause they care about. Sixty-six percent of those surveyed said they
would switch brands to support a cause and 84% said that cause-related
marketing helps create a positive company image (Carringer 1994).
Since the 2001 tragedy of September 11, consumer willingness to
participate in cause-related marketing initiatives has significantly increased (http://www.coneinc.com/Pages/pr_13.html). The 2002 Cone
Corporate Citizenship Study found that 89% of Americans believe that
it is more important than ever for companies to be socially responsible
(http://www.coneinc.com/Pages/pr_13.html). Additionally, the recent
increase in corporate scandal related to financial fraud (e.g., Arthur Anderson and Worldcom) has increased the publics willingness to punish
those corporations that consumers perceive to be working against the
best interests of their customers. Specifically, surveyed consumers offered the following responses to situations of corporate irresponsibility:
91% would consider switching to another companys products or
services;
85% would speak out against the company to family and friends;
83% would refuse to invest in the companys stock;
80% would refuse to work for that company.
Finally, when asked whether a companys commitment to social issues was important when deciding which companies consumers want to
see doing business in their community, responses increased from 58%
in March, 2001 to 84% in July, 2002. Clearly, consumers now more than
ever value a companys willingness to support relevant causes, rewarding
those companies that follow this path, and punishing those that do not.
As a strategic marketing tool, cause-related marketing has been found
to be more effective among customers purchasing luxury items than
practical ones (Ross, Patterson, and Stutts 1992; Strahilevitz and Myers
1998). In this case, cause-related marketing may offset the feeling of
guilt associated with the purchase and consumption of luxury products

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(Strahilevitz and Myers 1998). Other evidence shows that customers

prefer local causes to national causes, and that women are more favorable towards cause-related marketing than men (Ross, Patterson, and
Stutts 1992). In a situation when price and quality attributes are similar
across two competing brands, customers are likely to lean positively towards the manufacturer supporting a social cause (Carringer 1994; Staff
1997).
Although research generally shows an overwhelming level of customer support for cause-related marketing programs, some variations in
customer perceptions of cause-related marketing remain. This variation
is often explained by probing customer perceptions of a companys
motivation behind its cause-related marketing initiative (Drumwright
1996; Barone, Miyazaki, and Taylor 2000). The focal question for customers evaluating cause-related marketing initiatives is whether or not
they perceive cause-related marketing programs as cause-beneficial or
cause exploitative (Andreasan 1986; Varadarajan and Menon 1988;
Ross, Stutts, and Patterson 1990-1991). Specifically, is the goal of the
cause-related marketing initiative to increase sales revenue and market
share? Or does the companys motivation arise from a genuine support
of the social cause at hand? These two questions can have a critical impact on the success of the cause-related marketing initiative by calling
into question not only the initiative itself, but also the credibility of the
sponsoring brand. Understanding the answers to these questions is critical to both the sponsoring firm and the associated cause before launch of
the cause-related marketing initiative.
Other variations in customer responses to cause-related marketing
initiatives may come from the extent to which customers must make
tradeoffs between competing products based on differences in price
and/or performance when faced with a cause-related marketing product
choice (Barone, Miyazaki, and Taylor 2000, p. 258). The degree to
which competing products differ can affect the consumers willingness
to take a cause-related marketing initiative into consideration. When no
inter-brand differences exist, any cause-related marketing activity positively influences customer choice. However, when inter-brand differences exist and require tradeoffs by the customer, the tendency of
the customer to select a particular brand will depend on the size of
the cause-related marketing advantage provided by that firm (Barone,
Miyazaki, and Taylor 2000).
In the end, it is important to recognize that the overwhelming research focus in the domain of cause-related marketing has been on consumer responses to these programs when measuring the programs

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effectiveness. This research drive has been partly motivated by the underlying assumption that cause-related marketing is targeted only towards one of the organizations stakeholdersthe consumers. This
assumption has somewhat erroneously led to the perception of cause-related marketing programs as primarily transaction-based. However,
other researchers argue that companies should instead measure performance of cause-related marketing programs not only by measuring customer purchase levels, but also by tracking changes in company image
and customer and employee satisfaction and loyalty (Andreasan 1986).
This debate between these two viewpoints is ongoing, and represents
a rich opportunity for future research within this domain. Specifically,
what motivation really underlies cause-related marketing initiatives?
Are they simply designed to increase sales, or does generating a more
positive brand image through politically correct sponsorship of a
needy population or organization equal (or even outweigh) potential
profits? Investigating these questions would provide valuable insight
for marketing practitioners generating these programs, and supply critical guidelines for understanding what rewards and risks companies
should expect from entering into these types marketing programs.
REWARDS FOR PARTICIPATING
IN CAUSE-RELATED MARKETING INITIATIVES
The three key stakeholders in a cause-related marketing program are
the sponsoring company, the cause receiving the support and the customers who must decide whether or not to purchase a cause-related marketing associated product. Following is a summary of the rewards
accrued by each participant.
Company Rewards
The sponsoring firm can realize the rewards of participating in a
cause-related marketing initiative at both the product level and at the organizational level.
Product related rewards to the company include increasing the products ability to break through the advertising clutter in the marketplace
(Shell 1989; Oldenberg 1992), generating low cost exposure for the
product (Pasley 1990; Zbar 1993), and increasing the products ability
to win customer support (Henricks 1991; Brown and Dacin 1997). Additionally, the positive perception associated with a particular sponsored product can spill over to other, related products offered in the

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same line or under the same brand name, resulting in a halo effect for the
companys products. This halo effect can produce an increase in the
customers willingness to purchase companys other products (Barone,
Miyazaki, and Taylor 2000), to pay premium prices (Meyer 1999), and
to switch brands (Larson 1994; Meyer 1999).
Organizational rewards from participating in cause-related marketing initiatives include generating favorable customer attitudes towards
the sponsoring firm (Ross, Stutts, and Patterson 1990-1991; Ross,
Patterson, and Stutts 1992; Brown and Dacin 1997), increasing favorable purchase intentions towards company brands (Andreasan 1986;
Ross, Patterson, and Stutts 1992; Webb and Mohr 1998; Meyer 1999;
Barone, Miyazaki, and Taylor 2000), creating a higher level of visibility
for the organization (Andreasan 1986), generating a differentiated image due to the association with social causes (Andreasan 1986; Shell
1989; Barich and Kotler 1991; Meyer 1999; Bronn and Vrioni 2001),
enhancing corporate image (Schiller 1988; Fombrun and Shanley 1990;
Larson 1994; Meyer 1999; Bronn and Vrioni 2001), allowing the company to communicate its core values to the society (Shell 1989; Mohr,
Webb, and Harris 2001), giving the company a competitive edge (Bronn
and Vrioni 2001) and reducing employee turnover (Meyer 1999). Finally, a cause-related alliance gives the corporation access to the
non-profits clientele, staff, trustees and donors, all of whom could be
potential customers (Andreasan 1986).
Of all the rewards for a company that engages in a cause-related marketing program, however, the key benefit of a cause-related marketing
initiative to the organization continues to be the generation of favorable
purchase intent or product choice among the organizations customers
(Shell 1989; Lawrence 1993; Mohr, Webb, and Harris 2001) (see Table 1). This can result in increased sales and profits for the company,
and the increased recognition of its brand name(s) and product offering
within its consumer base.
Cause Rewards
Causes accrue rewards such as new sources of much needed funds and
heightened public awareness (Caesar 1986; Varadarajan and Menon
1988) (see Table 2). These benefits are available with little or no out-ofpocket costs to the cause (Gayle 1999). Revenue earned from such
sources proves to be valuable to the cause because it can be used for operating expenses and routine capital expenditures that individual donors

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TABLE 1. Sponsoring Company Rewards

Product Rewards
Increased ability to break through advertising clutter (Shell 1989;
Oldenberg 1992)
Generating low cost product exposure (Pasley 1990; Zbar 1993)
Increasing overall customer support (Henricks 1991; Brown and Dacin
1997)
Increasing customers purchase of companys other products (Barone,
Miyazaki, and Taylor 2000)
Increasing customers willingness to pay premium prices (Meyer 1999)
Increasing customers willingness to switch brands (Larson 1994; Meyer
1999)
Organizational Rewards
Generation of favorable purchase intent or product choice among the
organizations customers (Shell 1989)
Generating favorable customer attitudes towards sponsoring firm
(Ross, Stutts, and Patterson 1990-1991; Ross, Patterson, and Stutts
1992; Brown and Dacin 1997)
Increasing favorable purchase intentions towards company brands
(Andreasan 1986; Ross, Patterson, and Stutts 1992; Webb and Mohr
1998; Meyer 1999; Barone, Miyazaki, and Taylor 2000)
Creating higher level of visibility for the organization (Andreasan 1986)
Generating a differentiated image due to the association with social
causes (Andreasan 1986; Shell 1989; Barich and Kotler 1991; Meyer
1999; Bronn and Vrioni 2001)
Enhancing corporate image (Schiller 1988; Fombrun and Shanley 1990;
Larson 1994; Meyer 1999; Bronn and Vrioni 2001)
Communicating core company values to the society (Shell 1989)
Giving the company a competitive edge (Bronn and Vrioni 2001)
Reducing employee turnover (Meyer 1999)
Gaining access to the non-profits clientele, staff, trustees and donors, all
of whom could be potential customers (Andreasan 1986)

are less likely to fund (Lowell, Silverman, and Taliento 2001). Additionally, other research suggests that people perceive cause-related marketing to be an effective way to financially assist social non-profit
organizations (Ross, Stutts, and Patterson 1990-1991; Ross, Patterson,
and Stutts 1992).

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TABLE 2. Sponsoring Cause Rewards

Gain new sources of much needed funds and heightened public
awareness (Caesar 1986; Varadarajan and Menon 1988)
Little or no out-of-pocket costs to the cause (Gayle 1999)
Revenue earned can be used for operating expenses and routine capital
expenditures that individual donors are less likely to fund (Lowell,
Silverman, and Taliento 2001)
Positive perception that cause-related marketing is an effective way to financially assist social non-profit organizations (Ross, Stutts, and
Patterson 1990-1991; Ross, Patterson, and Stutts 1992)

Customer Rewards
Although the company and the cause realize the bulk of the rewards
of a cause-related marketing program, customers are rewarded by a
sense of additional perceived value to their purchase (Webb and Mohr
1998). Additionally, customers gain the ability to differentiate between
competing manufacturers (Barone, Miyazaki, and Taylor 2000), and
can satisfy their altruistic needs of the self by helping society (Polonsky
and Wood 2001) (see Table 3). According to Strahilevitz and Myers
(1998), customers most often seek to realize this added value in the purchase of frivolous goods, where they can rationalize their purchases
and reduce any cognitive dissonance associated with the exchange.
RISKS OF PARTICIPATING
IN CAUSE-RELATED MARKETING PROGRAMS
Several risks are also associated with a cause-related marketing strategy. These shortcomings can also be classified by stakeholder: those
experienced by the company, the cause and the customer.
Company Risks
Despite altruistic intentions, investment in cause-related marketing
programs poses a financial risk for the company (Shell 1989) (see Table 4). This is primarily because cause-related marketing is not philanthropy, and the funding for the program is usually apportioned from the
marketing budget (Ross, Stutts, and Patterson 1990-1991). Other pitfalls for firms associating with social causes include wasted monetary

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TABLE 3. Customer Rewards

Gain new sources of much needed funds and heightened public
awareness (Caesar 1986; Varadarajan and Menon 1988)
Little or no out-of-pocket costs to the cause (Gayle 1999)
Revenue earned can be used for operating expenses and routine capital
expenditures that individual donors are less likely to fund (Lowell,
Silverman, and Taliento 2001)
Positive perception that cause-related marketing is an effective way to
financially assist social non-profit organizations (Ross, Stutts, and
Patterson 1990-1991; Ross, Patterson, and Stutts 1992)

funds caused by linking up with a charity that offers little or no synergism, a difficulty in measuring the social contributions of the cause-related marketing initiative, and the risk of customer cynicism (Meyer
1999). Finally, as pointed out by Drumwright (1996, p. 71) one of the
more critical risks of these types of non-economic marketing activities is the risk that customers perceive it as marketings most unabashed exploitation (see also Smith and Stodghill 1994).
Cause Risks
The biggest cause-related marketing participation risk for the cause
is that involvement with a corporate sponsor can bring the taint of commercialism to the causes image (Garrison 1990) (see Table 5). Another
risk for cause is that cause-related marketing funds may be viewed by
customers and companies as a substitute for regular individual and corporate philanthropic contributions, rather than as a supplement to their
contributions (Andreasan 1986; Caesar 1986). Other risks for cause include the risk of wasted resources (if the alliance fails to meet its objective), the loss of organizational flexibility to enter into other similar
alliances with the sponsoring firms competitors, the use of antithetical
marketing practices by the corporate partner, increased dependency on
corporate funds, and the risk of overwhelming the causes ability to administrate incoming contributions (Andreasan 1986).
Customer Risks
In a summary article, Polonsky and Wood (2001) identify several
sources of concern that cause-related marketing programs pose to cus-

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TABLE 4. Sponsoring Company Risks

Increased financial risk for the company (Shell 1989)
Decreased marketing budget for other marketing activities (Ross, Stutts,
and Patterson 1990-1991)
Wasted monetary funds caused by linking up with a charity that offers
little or no synergism (Meyer 1999)
Difficulty in measuring the social contributions of the cause-related
marketing initiative (Meyer 1999)
Risk of customer cynicism (Meyer 1999)
Risk that customers perceive program as exploitation of the cause
(Smith and Stodghill 1994)

TABLE 5. Sponsoring Cause Risks

Taint of commercialism to the cause's image (Garrison 1990)
Funds may be viewed by customers and companies as a substitute for
regular individual and corporate philanthropic contributions, rather than
as a supplement to their contributions (Andreasan 1986; Caesar 1986)
Risk of wasted resources if the alliance fails to meet its objective
(Andreasan 1986)
The loss of organizational flexibility to enter into other similar alliances
with the sponsoring firms' competitors (Andreasan 1986)
The use of antithetical marketing practices by the corporate partner
(Andreasan 1986)
Increased dependency on corporate funds (Andreasan 1986)
Risk of overwhelming the cause's ability to administrate incoming
contributions (Andreasan 1986)
Individual donors perceive the cause no longer needs assistance,
creating to a shortfall in cause funding and hindering the ability of the
cause to assist its constituencies (Polonsky and Wood 2001)

tomers and to society. Customers run the risk of being misled by sponsoring firms that exaggerate cause-related marketing related generosity
(see Table 6). This might lead the individual donor to perceive that the
cause no longer needs assistance, creating a shortfall in NPO funding,
which in turn becomes a detriment to the customer by forcing the NPO
to reduce client services. The company-cause alliance may also lead

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customers to mistakenly perceive that the cause has participated in the

development of the sponsoring firms products and/or practices. For example, in 1994 Johnson & Johnsons McNeil Consumer Products Company introduced a line of value priced painkillers branded under the
Arthritis Foundation name in exchange for a donation of over $1 million
a year for arthritis research (Sebastian 1994; Weisz 1994). McNeil discontinued marketing the product in 1996 and agreed to pay 19 states $2
million to settle allegations that it and the Arthritis Foundation led consumers to believe that the cause was involved in developing the drugs
and that the drugs had been specially formulated with Arthritis Foundation research (Staff 1996a; Staff 1996b). Finally, in an attempt to forge
more lucrative relationships with sponsoring firms or to expand their
customer base, causes may choose to shift their focus to include a new
topic or group, in extreme situations at the expense of the original program. For example, a cause focused on breast cancer may choose to expand its potential constituency by also focusing on lung cancer, or by
abandoning breast cancer altogether to focus exclusively on lung cancer. While in the short term this might benefit the cause by generating a
larger potential audience, in the long term the consumer may be misled
as the causes activities may be inconsistent with the consumers perceptions at the time of their initial support (Polonsky and Wood 2001).
FUTURE RESEARCH DIRECTIONS
The above literature review presents the key research findings in
peer-reviewed journals in the domain of cause-related marketing. The
material included in the review was classified into one of the following
areas:
1. Conceptual definition of cause-related marketing.
2. Customer responses to cause-related marketing programs.
3. Outcomes of cause-related marketing-rewards and risks for the
participants.
A number of general observations regarding the literature reviewed
in this paper are useful for defining the frontiers of knowledge in the
area of cause-related marketing, as well as any gaps in the literature that
may be targeted for future study. The first important future consideration in the domain of cause-related marketing lies in the treatment and
execution of the cause-related marketing programs themselves. While

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TABLE 6. Consumer Risks

Risk of being misled by sponsoring firms that exaggerate cause-related
marketing related generosity (Polonsky and Wood 2001)
Customers may mistakenly perceive cause has participated in the
development of the sponsoring firms products and/or practices (Polonsky
and Wood 2001)
Adoption of new or supplementary causes by the non-profit organization
may be inconsistent with the consumers perceptions of the cause from
the time of their initial support (Polonsky and Wood 2001)

the tactical issues listed above have been classified to enhance the readability of the sections, in practice many decisions relating to what are
here regarded as separate issues are in fact interdependent. In other
words, the conceptualizations of cause-related marketing programs are
interrelated to the type and intensity of customer response that in turn
influences its success or failure. Therefore, for cause-related marketing
partners, the operationalization, customer action and outcome of causerelated marketing programs should be discussed as an integrated concept and not as three separate issues. Researchers, too, should embrace
this approach when designing research programs and discussing theory
in this domain. In order to effectively apply academic research into the
business world, recognition of the interdependence of the elements of a
cause-related marketing program is critical.
Second, while some authors have defined cause-related marketing in
their works, the majority of writers have been content with the definition offered by Varadarajan and Menon (1988). While this definition
has proved a solid foundation for research, a more updated definition
may be necessary at this point. Specifically, a revised definition should
stretch the scope of the measure of cause-related marketing success to
include responses from all stakeholder groups, including customers,
employees, suppliers and investors.
For example, recall Vardarajan and Menons (1988, p. 60) definition
of cause-related marketing 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 that satisfy organizational and individual objectives. A revised definition might read as
follows:

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Cause-related marketing is 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 to
induce favorable responses from all company stakeholders (e.g.,
investors, suppliers, employees and customers) which in turn satisfy organizational and individual objectives.
This modified definition relates closely to the debate about the goals
of cause-related marketing for participating companies, and how success is measured for these programs. While literature in this domain has
generally measured success as the customers intent to purchase a sponsored product, other considerations should be made when assessing the
results of a cause-related marketing initiatives. Andresean (1996) initiated this suggestion, arguing that cause-related marketing programs
should measure performance by tracking changes in variables like company image and customer and employee satisfaction and loyalty.
Equally important in assessing the success of cause-related marketing initiatives is the motivation behind the participation of the sponsoring company; perception of this motivation can not only affect the
willingness of the customer to purchase the sponsored product, but also
how other internal stakeholders (e.g., employees, investors) feel about
their companys true motives behind the program. If stakeholders perceive that their (sponsoring) company is launching a cause-related initiative only to increase sales, improve brand image, or appear more
politically correct, the net result to the company could far outweigh
any positives gained from cause sponsorship. The question remains,
however, as to how companies should balance the issues of profitability
and altruism. Certainly the companys stakeholders recognize that there
is likely some motivation for profitable firms to participate in cause-related marketing programs beyond simple altruism. Improved brand image, satisfied customers, product differentiation from competitors, and
increased sales are all reasonable results to expect from participating in
cause-related programs. But how do companies most effectively convey their sincerity of motivation to their publics, and balance their capitalistic motivations with their altruistic ones? This area remains ripe for
study, and presents interesting ethical dilemmas for marketing managers on the company and cause side alike.
Third, though empirical work on customer responses has identified
gender and type of purchase (practical vs. frivolous) as moderating variables that controls the intensity of response towards the cause-related

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JOURNAL OF NONPROFIT & PUBLIC SECTOR MARKETING

marketing initiative, work on studying moderating effects of other variables is largely absent. Future research opportunities include investigating how variables like consumer awareness, consumer skepticism of
and level of involvement with the cause-related marketing program
moderate the nature and degree of customer response.
Fourth, empirical studies have not been confined to any particular industry or product offering. Questions therefore remain as to whether
cause-related marketing initiatives become more or less effective as the
product offered or the industry targeted changes.
Fifth, a large number of authors list the resulting rewards and risks
for companies and nonprofit organizations participating in the cause-related marketing program. However, researchers have not adequately
explained the reasons or processes that trigger these rewards and risks
among consumers. For example, why does participation in a cause-related marketing initiative sometimes take the place of regular charitable
contributions in the mind of the participating consumer, even when the
cause-related marketing contribution is far less in value than the consumer generally gives? Developing a deeper understanding of the processes that result in some of these outcomes would greatly assist
marketing practitioners as they design cause-related marketing programs for their target audiences, and would aid causes in understanding
how to maximize their income through cause-related marketing programs.
Sixth, this review indicates an absence of work addressing how
cause-related marketing partnerships are determined to maximize returns and maximize market impact. For example, how does Sears decide that Gildas Club is the right cause to partner with? Why did Sears
choose Gildas Club rather than another, better known cause? In light of
the growing popularity of and large investments in cause related marketing programs by firms, these are important questions to answer and
understand. Thus, it is evident that further research is needed in order to
structure the most effective decision making structure for companies
and for causes alike as they determine their cause-related marketing
partners.
Finally, all empirical work has studied the effectiveness of causerelated marketing by examining the consumers intent to purchase the
sponsored product. Do consumers tend to be loyal to companies that
repeatedly engage in cause-related marketing programs, e.g., Avon,
Campbell Soups, General Mills? Can the effectiveness of cause-related
marketing be more sustainable and long-term than the current shortterm measure of purchase? Are customer loyalty and customer satisfac-

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41

tion more appropriate indicators of the performance of cause-related

marketing?

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SUMMARY
In short, cause-related marketing initiatives represent an increasingly
popular method of strategic marketing and competitive differentiation,
particularly in mature or saturated markets. Companies frequently turn
to this marketing option as a means of exhibiting their corporate citizenship and altruistic intentions, while at the same time contributing to
their bottom lines. Causes capitalize on increased consumer attention by
partnering with branded products, hoping for increased contributions
and improved brand awareness. And, consumers have the opportunity
to take advantage of value added to their purchases, assuage any guilt
about extravagant spending, and can support their altruistic intentions
toward society. This research domain has established a solid base in the
literature as researchers have begun to understand the constructs and
important variables in this domain. However, as outlined in this paper,
important work remains to be done, presenting an exciting and developing opportunity for researchers worldwide.
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Received: February 28, 2003

Reviewed: March 31, 2003
Accepted: July 24, 2003