The Impact of Cause-Related Marketing on Consumer Choices Research Paper

The Impact of Cause-Related Marketing on Consumer Choices - Research Paper Example This research will begin with the definition of Cause Related Marketing. A working definition of CRM is borrowed from Varadarajan Menon. In this regard, Varadarajan and Menon define CRM as the process of formulating and implementing marketing activities that are characterised by an offer from the firm to contribute a specific amount to a designated cause when customers engage in revenue providing exchanges that satisfy organizational and individual objectives. In this regard, CRM is a form of business orientated philanthropy geared toward â€Å"profit-motivated giving†. CRM is also characterized by symmetrical relations between business organizations/for-profit organizations and non-profit organization on the basis of shared advantages. To this end, the business organization seeks to obtain an increase in sales and the non-profit organization seeks to obtain an increase in funding. Thus CRM is both a â€Å"positioning† and â€Å"marketing tool† that intentionally connects a business or a brad to â€Å"a relevant cause or issue† for the benefit of the business and the social cause or its non-profit promoter. A business firms’ investment in CRM is based on the concept that consumers for the most part will choose a brand for both â€Å"expressive† and â€Å"practical reasons†. Therefore a business may choose CRM as a means of promoting attachment to brand by tapping into the social and environmental consciousness of consumers to their products. When businesses’ brands are already experiencing a high level of loyalty to their products and brands, CRM can be used as â€Å"brand extensions†.... 60). In this regard, CRM is a form of business orientated philanthropy geared toward â€Å"profit-motivated giving† (Varadarajan & Menon, 1988, p. 58). CRM is also characterized by symmetrical relations between business organizations/for-profit organizations and non-profit organization on the basis of shared advantages. To this end, the business organization seeks to obtain an increase in sales and the non-profit organization seeks to obtain an increase in funding (Kahle & Close, 2011). Thus CRM is both a â€Å"positioning† and â€Å"marketing tool† that intentionally connects a business or a brad to â€Å"a relevant cause or issue† for the benefit of the business and the social cause or its non-profit promoter (Pringle & Thompson, 1999, p. 3). A business firms’ investment in CRM is based on the concept that consumers for the most part will choose a brand for both â€Å"expressive† and â€Å"practical reasons†(Linton, 2005, p. 604). Th erefore a business may choose CRM as a means of promoting attachment to brand by tapping into the social and environmental consciousness of consumers to their products. When businesses’ brands are already experiencing a high level of loyalty to their products and brands, CRM can be used as â€Å"brand extensions† (David, 2000, p. 132). Ultimately, the marketing strategy employed in CRM is to engage the consumer’s emotions with the result that the consumer is left feeling that by purchasing a specific product, he or she is helping to further social goods (Strahilevitz, 1999). From the perspective of the business organization, there can be two specific benefits. First, in the long term, CRM can provide an advantage in that it may improve the business’s