Building brand equity with cause-related marketing: A comparison with sponsorship and sales promotion

Abstract

Building brand equity is a key objective for a range of communication activities; however, greater understanding is required on how different communication options compare in their impact on consumer response to a brand. In particular, firms are increasingly using cause-related marketing (CRM) to achieve business as well as social objectives, yet there has been limited research comparing the effectiveness of this strategy to other communication methods that may achieve similar brand-related outcomes. Using an experimental design, we examine consumer attitudes toward CRM and CRM's impact on brand attitude compared with two other communication options: sponsorship and sales promotion. Our results show that consumers respond more positively to CRM and that this strategy can be more effective in achieving brand-related objectives. However, consumers must perceive that the partnered cause fits with the brand. In fact, perception of fit plays a more critical role in determining the impact of CRM than in the impact of sponsorship or sales promotion. These findings suggest that when firms are considering their communication mix, CRM can be a more effective way of developing favorable brand associations, but managers must associate with causes that consumers will perceive to fit with the brand. Furthermore, this fit should be communicated.

Keywords::

• cause-related marketing
• brand equity
• sponsorship
• sales promotion

Acknowledgments

The authors would like to acknowledge and thank Professor Michael Beverland, University of Bath and Dr Ashton de Silva, RMIT University for their constructive feedback on drafts of this paper.

Additional information

Notes on contributors

Kate Westberg

Kate Westberg is an Associate Professor of marketing at RMIT University in Melbourne, Australia. She has published in Industrial Marketing Management, the International Journal of Sports Marketing and Sponsorship, Public Relations Review and Qualitative Market Research. Her research interests include sponsorship, branding and corporate community partnerships.

Nigel Pope

Nigel Pope is an Associate Professor of Marketing at Griffith University in Australia. His work has appeared in the Journal of Advertising and European Journal of Marketing and he has authored several texts.