Student Papers in Business Administration, No. 1 (2006)
Connecting Social Contribution with Sales:
New Marketing Strategy called “Cause Related Marketing”
Masaya Yamazaki
Nowadays, companies have responsibilities to contribute for society. This report will discuss the
“Cause Related Marketing (CRM)” which some sales should be donated for social activities. I
will find discuss whether or not CRM is effective in Japan. In addition, I will explain effective
ways to implement CRM. I sent out a questionnaire to 50 Japanese people, and found that CRM
has some room in Japan. Furthermore, the survey also shows that companies should implement
CRM on low-price products for a long time.
今日、企業には社会に対して貢献すべきだといわれる。そこでこのリポートでは、「コ
ーズ・リレイテッド・マーケティング（CRM）
」と呼ばれる、商品やサービスの売り上げ
の一部を 社会活動に寄付するという活動に注目する。もっとも大事なものは２つあり、
日本で CRM が受け入れられるのかということが一点、二点目はどのような CRM の形態が
効果的なのかということである。５０人の日本人にアンケートをとり、日本における
CRM の可能性を探った。結果としては日本には CRM を受け入れる土台がありそうだとい
うことと、活動期間や商品の種類に効果が左右されるということである。より長く、よ
り安い商品で効果が高いと出た。まとめとして、日本では CRM は受け入れられやすいと
いうことと、期間や商品の種類が大切だということである。
Introduction
This research will take a marketing strategy that connects social contribution with
product sales. This is called “Cause Related Marketing”. I would like to find if this
strategy is really effective in Japan, and to show the most effective Cause Related
Marketing.
To reveal these points, I distributed a questionnaire to 50 Japanese people. By
collecting the questionnaire, I can show you the tendency of effective Cause Related
Marketing about price, contribution target, and terms. This result may be useful for
companies to begin a Cause Related Marketing activity. After companies see this
report, they might change their image of social contribution.
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Faculty of Business Administration, Hokkai-Gakuen University
Background
My research topic is one of the marketing strategies called “Cause Related
Marketing (CRM)”. Most people have never been heard of this term. CRM can connect
social contributions with product sales.
How to do CRM
There are many kinds of CRM activities. The first CRM activity started in 1980,
when American Express had an activity in that when people used their credit card, some
of this money was donated for the repair cost of the Statue of Liberty. After this activity
succeeded, this kind of activities become popular in the United States and Europe. Now,
there are some forms of CRM. According to Tanimoto et al. (2003), there are three types
of CRM. The first is the simplest pattern. Some of production sales is donated for a
social activity. The case of American Express is an example. The second type is
recognition of social problem through a CRM activity. One of these activities is the
human the right campaign of “Body Shop”, there are five values, Defend Human Right,
Protect Your Planet and so on. Third, companies pay money to get the right of using
logo of NPO or NGO. A popular example is Panda Mark of WWF (World Wide Fund
for Nature). In this research, I focus on the first CRM method. This is simple so we can
estimate the effect of CRM more easily.
What is the merit?
People and companies think it is a burden for them to donate for social activities.
However, if companies do a CRM activity, it will become not so difficult. In a CRM
activity, companies can draw out consumers’ potential desire to donate. According to
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Student Papers in Business Administration, No. 1 (2006)
Japan Business News (2003), “Case of internal internet business” shows us this fact. In
the United States, people have interests in social contribution. However, they have a
mind that it is troublesome to donate money because they have to take an extra action to
donate, such as telephone calls, paying money into a bank account, and so on. Therefore,
even though they are interested in donation, thought they do not always donate. To do a
CRM activity, there is a merit for consumers: they can donate for social activities more
easily.
For companies, they do not have to pay extra money to donate for social activities
because they collect donation money from consumers. Their burden will become very
little.
Cases in Japan
In Japan CRM activities are not so popular, but there are a few cases. For
example, MacDonald Japan donates money from the sales of “Happy Sets” for “Donald
MacDonald’s House”, accommodation service near hospital. It can reduce people’s
burden of nursing.
Early Research to Find Most Effective CRM
There are many studies of CRM in other countries. However, there are few
studies in Japan. One study was conducted by Sera (2003). He claims that people are
more likely to prefer CRM CMs than normal CMs. He introduced many early studies in
other countries. For example, in Strahilevits and Myers (1998), there was more
incentive of charity when people bought frivolous products than practical products. This
is one of my research topics. Another example was Webb (1999), who thought if
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Faculty of Business Administration, Hokkai-Gakuen University
company’s core business and contribution target were close, consumers would think the
company used contribution to only raise their images. However, the result of his
research shows that, consumers thought it was better if a company’s core business and
contribution target relationships were close.
Jeffery Alexander (2005) says companies have to choose their CRM partners that
are in a close relationship with the company’s core business. Furthermore, as for activity
terms, companies should do CRM activities in a long term. By doing so, they can raise
their image more than before they do a CRM activity.
According to Miwa and Marutani (2004), in the long term CRM activity,
consumers evaluated about CRM connected with companies evaluate. In the U.S., 84%
of the people answered that they bought CRM products when CRM products and other
products had the same quality.
My Research
Based on these early studies, there are two questions about CRM. First, is CRM
effective in Japan? There are some CRM cases in Japan, but I cannot say it is popular.
According to Alexander (2005), most Americans bought CRM products if they were
satisfied with the product’s quality. In Japan, can we say the same thing? I think it might
be impossible for CRM activities to be popular CRM activities in Japan. We have to
reveal this point.
If I cannot find an obstacle to do CRM, then we can go to the next question: What
is the most effective CRM? There are many CRM factors, such as product, price,
contribution target, and activity terms, and so on. In this research I will investigate these
points. Based on my research companies can assemble CRM more easily and more
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Student Papers in Business Administration, No. 1 (2006)
effectively. This is very important to spread CRM activities in Japan.
Data Collection Procedure
In this research, I distributed a questionnaire to 50 Japanese people. A half of them were
students, and the other half were ordinary people.
People buy CRM products?
The first question is “Do you buy CRM products?” The second question is “Why
do not you buy CRM products?” And the last question is “After a company did a CRM
activity, how has the image of the company changed?” From this result, I can discuss
my first question “Is CRM effective in Japan?”
The most effective CRM
After these questions, other questionnaire items are to find the most effective
CRM.
First is about price. “How much price increase is acceptable of a CRM product?”
If companies want to do CRM without their burden, they have to increase the product’s
price. Therefore they have to make sure of the acceptable range of price up.
Second is about the contribution target. “What kind of social activities should
companies donate money?” In these two questions, there are two items. One of this is an
example of daily commodity “Tissue Box”. Another is an example of an expensive
product “Personnel Computer.” By compare these, we can find the relationship with
different items.
Last is about activity term. “How long should companies do CRM activity?” In
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Faculty of Business Administration, Hokkai-Gakuen University
early research, it is more effective if a company does a CRM activity for a long time. Is
this true in Japan too?
Results and Discussion
CRM is effective in Japan?
The first question was whether people buy CRM products. There are two choices,
“Yes” and “No”. In the result, most people answered “Yes” as Figure 1 shows.
Figure 1. Do you buy CRM products?
34%
Yes
No
66%
The next question was asked to people who answered “No” in the first question.
There are reasons why they do not want to buy CRM product. A half of them answered
“others”.
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Student Papers in Business Administration, No. 1 (2006)
Figure 2. Why do you not buy CRM products?
I do not like method that
social contribution with
sales
13%
I am afraid company’ｓ
opportunistic price hike
56%
31%
Others
As figure 2 shows 56% people answered others. Most of them wrote “I do not
care whether CRM product”. Therefore, about 80% (66% answered in Figure 1 plus
0.34*56% people answered in Figure 2) people do not have bad impression on CRM
products.
The third question is about changing of a company’s image. If most of the
consumers raise the company’s image through a CRM activity, there is some merit for
companies to do a CRM activity. The result is that most of them say CRM will raise the
company’s image.
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Faculty of Business Administration, Hokkai-Gakuen University
Figure 3. After CRM activity, how change company’s image?
0%
Raise
35%
not
change
Drop
65%
In Figure 3, there is no person who says CRM lowers a company’s image.
Therefore, there is not much of a risk for companies to do CRM activities. From these
results, there is a plenty of possibility that CRM activities become established in Japan.
What is the most effective CRM?
Question 4 is about price. “How much price increase can people accept to donate
for social activities?” The result is pastille and most people answered they pay extra
money to donate for social activities.
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Student Papers in Business Administration, No. 1 (2006)
Figure 4. What is the acceptable range of product?
PC
Tissues
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Under 1.25%
1.26~2.5%
2.6~5%
5.1~7.5%
7.5~10%
10.1~12.5%
Over 12.5%
Not buy if price increase
Like Figure 4, there is a clear difference among products in the acceptable range.
People answered that they would accept a higher price percentage for a tissue box. In
the company, half of them answered they would accept a price increase by only 1.25%
for a PC. From these results, it is more effective for companies to gather donation for a
CRM activity with daily commodities. However, I do not want to be misunderstood; I
do not say that expensive products cannot be used for CRM. You can find from Figure 4
that in PC, 87% people answered they would buy a CRM product, so there are
possibilities for expensive products to be used for CRM. However, it is sure that they
can gather donation more easily if they do CRM with daily commodities.
Next, in what situation can companies get highest support from consumers and
what kind of social activities should companies donate? The result shows that most
people chose the same social activities.
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Faculty of Business Administration, Hokkai-Gakuen University
Figure 5. What kind of social activities should companies contribute?
What problem company
should take
What target contribution
sales of tissues
What target contribution
sales of PC
0%
Education
Garbage, Rycycling
Drag
10%
20%
30%
40%
50%
Criminal
Medical
Other Environment
60%
70%
80%
90%
100%
Grobal Warming
Child
Other social
From Figure 5, there are not close relationships between the kind of items and the
contribution target. This result is much closed to “What kind of social activities should
companies grabble?”
The last question is how long consumers think companies should keep their CRM
activity. Companies can get better results by doing a long-term CRM activity.
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Student Papers in Business Administration, No. 1 (2006)
Figure 6. How long do companies have to do CRM?
3%
6%
Within 3months
23%
３~6months
6months~1year
1~3years
58%
Over 3years
10%
From Figure 6, about 60% people answered companies have to do a CRM activity
over three years. This is the same result from Alexander (2005). Companies should keep
their CRM activity as long as they can.
In conclusion, most effective CRM is for daily commodities whose contribution
target is global warming and garbage pollution, recycling, and for a long term.
Conclusion
This paper discussed effective CRM activities. There are two main points to do
effective CRM. First, CRM is not a wasteful activity in Japan, either. Second, there are
some constituents. They are not influenced by kinds of items, but low price products are
most effective than expensive products for a most effective CRM. Companies should
contribute to the activities that grabble with global warming, garbage, and recycling
problems. Lastly, companies have to do CRM activities for a long term as thoroughly as
possible.
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Faculty of Business Administration, Hokkai-Gakuen University
If CRM will be more popular in Japan, we can contribute to the world.
References
Alexander, Jeffery. (2005) 『米国におけるコーズリレイテッドマーケティング事
情』 http://www.keieiken.co.jp/pub/future19/no19_it.pdf
Japan Business News (2003) 『企業が NPO と手を組む 社会貢献マーケティング
による販売戦略』http://www.jnews.com/domestic/2003/d0390.html
Miwa, Akiko (三輪昭子) & Marutani, Yuichiro(丸谷雄一郎) . (2004) 『コーズ・リレ
イテッド・マーケティング アメリカにおける概念と実態』
http://leo.aichi-u.ac.jp/~maruya/cause%20related%20marketing.pdf
Sera, Koichi (世良耕一). (2003). The effects of the Relationship between Consumers
and Causes on the Evaluation of Cause-Related Marketing.
Hokkai-Gakuen
University, correction of business administration Vol.1 Num.3
Tanimoto, Hitoshi(谷本寛治) et al. (2003) 『企業評価の新しいものさし コーズマ
ーケティング導入のすすめ』 東京：宣伝会議 2004 年 1 月号 (P73~91)
Appendix
Appendix A: My research questionnaire
1. What your sex?
（１）woman
（２）
man
2. What kind of social problems do you have interested? Please check number（you can check
three number）
（１）Education
（２）Criminal
（３）Global Warming
（4）Garbage, Recycling
（５）Medical
（６）Child
（７）Drag
（８）Other Environment problems (
)
（９）Other social problems（
）
3. what kind of social problems company should grabble with？ Please check number（you
can check three number）
（１）Education
（２）Criminal
（３）Global Warming
（4）Garbage, Recycling
（５）Medical
（６）Child
（７）Drag
（８）Other Environment problems (
)
（９）Other social problems（
）
4. Do you buy the product that parts of product sales are donate for social activities?
（１）Yes
（２）No
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Student Papers in Business Administration, No. 1 (2006)
5. I ask people who answered “Yes” in question 4. How acceptable range of price increase of
product? (This price increase goes to donate)
〈１〉 Product is “Tissue Box” (400 yen)
（１）Under 5 yen
（２）6~10 yen
（３）11~20 yen
（４）21~30 yen
（５） 31~40 yen
（６）41~50 yen
（７）Over 51 yen
（８）Do Not buy if price increase
〈２〉Product is “Personnel Computer” (200000 yen)
（１）under 2500 yen
（２）2501~5000 yen
（３）5001~10000 yen
（４）10001~15000 yen
（５）15001~20000 yen
（６）20001~25000 yen
（７）Over 25001 yen
（８）Do Not buy if price increase
６． I ask people who answered “Yes” in question 4. Do you have most attractive what kind of
social activities companies’ donation?
〈１〉 Product is “Tissue Box” (400 yen) Please check number（you can check three number）
（１）Education
（２）Criminal
（３）Global Warming
（4）Garbage, Recycling
（５）Medical
（６）Child
（７）Drag
（８）Other Environment problems (
)
（９）Other social problems（
）
〈２〉 Product is “Personnel Computer” (200000 yen)
Please check number（you can check
three number）
（１）Education
（２）Criminal
（３）Global Warming
（4）Garbage, Recycling
（５）Medical
（６）Child
（７）Drag
（８）Other Environment problems (
)
（９）Other social problems（
）
7. I ask people who answered “Yes” in question 4. How long company should this activity?
（１）Within 3months （２）３~6months （３）6months~1year （４）1~3years
（５）Over 3years
8. I ask people who answered “Yes” in question 4. Why do you not buy this product?
（１） I do not like connect contribution and sales
（２） There are possibility to the follow up increase
（３） Others（
）
9. Do you change company image that do above activity?
（１）Raise their image （２）Do not change
（３）Drop their image
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