Cause- Related
Marketing as a
Peripheral Cue?
Neil Mardian
Michael Basil
Debra Basil
What is CRM?
Definition:
 When a company donates a percentage
of its sales or profits to a non-profit
organization (for each unit sold)
Use:
 CRM is being used more and more!
How does CRM work?
WE DON’T KNOW!
Previous research has shown CRM is very
effective. But mostly this has been studied
with low priced products.
POSSIBLE MECHANISM:
• The Elaboration Likelihood Model (ELM)
might predicts it works as a peripheral cue
Objectives of the Study
•
•
•
•
Examine the whether the effects of CRM hold
for high priced products.
Examine if the effects of CRM also hold for high
involvement situations.
Study whether CRM functions as a peripheral
cue.
Examine if the ELM can explain how causerelated marketing influences consumer attitudes
and purchase intentions.
Study Design
3 Stages
1. Pre-Test #1 (n=28)
2. Pre-Test #2 (n=46)
3. Experiment (n=160)
Pre – Tests #1 and #2
Pre-Test Objectives:
•
•
To find two high and low priced products that had similar
levels of involvement
To find two equally perceived brands for each of the two high
and low priced products (8 brands total)
Results:
•
•
2 High Priced Products (PDA, In-line skates, Condoms & Toothbrushes)
2 Brands for each:
–
–
–
–
PDA = Palm & Compaq
In-Line Skates = CCM & Rollerblade
Condoms= Trojan & Lifestyles
Toothbrushes= Crest & Oral B
Experimental Design
2 x 2 x 2 Fully Crossed, Mixed Factorial
Design
– Involvement (Hi or Low)
– Price (Hi or Low)
– CRM (Present or Absent)
Within Subjects Factors:
Each subject viewed both the….
• High & low involvement situations
• High & low priced products
• With and without CRM
Experimental Design
High Involvement Situation
Low Involvement Situation
CRM CRM
Present Absent
CRM CRM
Present Absent
High
Price
Low
Price
High
Price
Low
Price
Hypothesis #1
Ads with CRM will lead to more positive
attitudes and higher purchase intentions
than advertisements without CRM
Hypothesis #1 Results
 The main effect relationship for
H1 was supported
Hypothesis #1 Results for Consumer Attitudes
Hypothesis #1 Results for Purchase Intentions
3.8
3.75
3.4
3.7
3.3
3.65
3.2
3.6
3.1
3.55
3
3.5
2.9
3.45
3.4
2.8
3.35
2.7
CRM
No CRM
CRM
No CRM
Hypothesis #2
A two-way interaction is predicted, such that:
•
•
In low involvement situations, ads with CRM will lead to higher
purchase intentions than ads without CRM.
In high involvement situations, CRM ads will lead to similar
purchase intentions than advertisements without CRM.
Hypothesis #2 Results
The two-way interaction between
involvement and CRM was NOT
supported
Hypothesis #2 Results for Purchase Intentions
Hypothesis #2 Results for Consumer Attitudes
3.8
3.4
3.75
3.3
3.7
3.2
3.65
3.6
NO CRM
3.55
With CRM
3.5
3.45
3.1
NO CRM
3
With CRM
2.9
2.8
3.4
3.35
2.7
LO Involve
HI Involve
LO Involve
HI Involve
Hypothesis #3
Predict an interaction between price and
CRM such that:
CRM will be more effective for low
priced products than high priced products
Hypothesis #3 Results
The effectiveness of CRM did not
depend on the price of the product.
H3 was NOT supported
Hypothesis #3 Results Purchase Intentions
Hypothesis #3 Results for Consumer Attitudes
3.8
3.4
3.3
3.2
3.75
3.7
3.65
NO CRM
3.6
3.55
With CRM
3.5
3.45
3.4
3.35
LO Price
HI Price
NO CRM
3.1
3
2.9
2.8
2.7
With CRM
LO Price
HI Price
Conclusions
Consumers tend to responded positively to
CRM offers (regardless of involvement with
or the price of the product)
Higher involvement situations do not
decrease the effectiveness of CRM
Due to their effectiveness in high
involvement situations, this suggests that
CRM is not just a peripheral cue.
Real World Implications
Objective
To provide insights for managers on when to
potentially use CRM techniques with their
products
Result
Use CRM claims whenever possible, as they are a
useful marketing strategy to influence the
consumers’ attitudes and purchase intentions