Is Product-Cause Fit a Panacea in Cause-Related Marketing? Impacts of Type of Fit, Product Type, and Donation Magnitude

Cause-related marketing (CRM) has become a major corporate philanthropic practice to donate money to a charity each time a consumer makes a purchase. The present investigation incorporates the idea of product-cause fit and explores different types of fit: compensatory and consistent fit. This research also examines the moderating roles of perceived product type and donation magnitude on consumer choice behavior. The results based on a computer-based survey involving a total of 512 choice-based conjoint interviews suggest that participants who perceive a product as hedonic prefer a cause that provides a compensatory fit with the product. On the other hand, those who view the same product as utilitarian favor a cause that provides a consistent fit. The beneficial effects of a compensatory-fit cause are enhanced when the donation magnitude is high. Based on the findings, managerial implications and possibilities for future research are discussed.

Citation:

Chun-Tuan Chang, Hsiu-Wen Liu, and Ting-Ting Chen (2011) ,"Is Product-Cause Fit a Panacea in Cause-Related Marketing? Impacts of Type of Fit, Product Type, and Donation Magnitude ", in E - European Advances in Consumer Research Volume 9, eds. Alan Bradshaw, Chris Hackley, and Pauline Maclaran, Duluth, MN : Association for Consumer Research, Pages: 498-499.