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

• Main Authors: Nina Langen, Carola Grebitus, Monika Hartmann
• Format: Article
• Language: English
• Published: CentMa 2011-02-01
• Series: International Journal on Food System Dynamics
• Subjects: cause-related marketing; transparent labelling; donations efficiency
• Online Access: http://centmapress.ilb.uni-bonn.de/ojs/index.php/fsd/article/view/106

<p class="03Abstract" style="margin: 0cm 0cm 12pt;"><span lang="EN-GB"><span style="font-family: Calibri; font-size: x-small;">The popularity of ethical consumption increases. This has motivated firms to increasingly implement Cause-related Marketing (CrM) campaigns in Germany. But research reveals that especially German consumers are sceptic with regard to the amount of money spent for the good &lsquo;cause&rsquo; by the enterprises. This can be explained by the small share of information provided by CrM campaigns to consumers. In consequence, this can reduce consumers&rsquo; willingness to purchase CrM products. Therefore, this study analyses whether the efficiency and transparency of a CrM campaign are important for consumers. The share of money reaching the cause relative to the product price consumers&rsquo; pay is taken as a proxy for efficiency while transparency is understood as the open communication of donated amounts on the product by label. </span></span></p><p class="03Abstract" style="margin: 0cm 0cm 12pt;"><span lang="EN-GB"><span style="font-family: Calibri; font-size: x-small;">A consumer survey conducted in Germany in 2009 reveals that consumers have a great interest in the transparency of a CrM campaign. Furthermore, the study gives evidence that there is a gap between the levels of expected and requested efficiency of CrM donations. Consequently, firms should label the donation amount to meet consumers&rsquo; transparency needs. Furthermore, to create a successful CrM campaign companies also have to consider that the amount of money devoted to the good cause is of relevance for consumers.</span></span></p>