ETHICAL MARKETING IN EMERGENT CONTEXT The P&G Company implementing the cause related marketing

1. ETHICAL MARKETING IN EMERGENT CONTEXT The P&G Company implementing thecause related marketing Ibtissam ABARARAssistant Professor, ESCA EM, Casablanca, MoroccoJayeshPatel, DharmeshGadhaviand YupalShukla Patel College of Management Studies, India

2. Context “Our belief that our financial success performance must go hand in hand with our social and environmental responsibilities, our purpose.”

3. The begining … • American Express first used the phrase "cause-related marketing" in 1983. • 1 cent for every card transaction and $1 for every new card issued during the last quarter of 1983. • $1.7 million for the restoration – a 28 % increase in use of the credit cards - massive press coverage and free publicity. • 1990-1999: American companies spent one billion dollars per year on CrM.

4. Introduction • Corporate social responsibility has been propagating a change from idealism to realism (Kotler and Lee, 2005). • In doing this, societal marketing has been a key promising tool for corporations to get differentiated from competitors by creating an emotional connects with consumers (Meyer, 1999). • The strategic alliances with non-for-profit organizations (NPOs) and supporting social causes can shape the perceptions of consumers as ‘do well by doing well’ and eventually results into market share hike and thus revenues.

5. Originality & value • The research is valuable in understandingthe relationship between company, cause and customer. • It also provides the insights to marketers about how cause involvement influences attitudes and intentionand thus adds some valuable theory to the CrM literature.

6. ? • What happens if the consumers are involved with a cause? • Why some consumers participate in cause related marketing and why some consumers do not? • Does this hurt the consumer attitude and their purchase intention? • Does the consumer has trust in corporate communication and will it effect on its attitude and intention?

7. Objectives of the study • Investigating the effectiveness of CrM on consumer attitudeand purchase intention. • The moderating effect of cause involvement on consumer attitude and purchase Intention. • The moderating effect of consumer skepticism on consumer attitudeand purchase Intention.

8. 2. Review of literature and hypotheses • Cause-related marketing (CrM) was defined as “the process of formulating and implementing marketing activities that are characterized by an offer from the firm to contribute a specified amount to a designated cause when customers engage in revenue providing exchanges and satisfy organizational and individual objectives” (Varadarajan and Menon, 1988, pp. 60–61). • Rothschild (1984) defined cause involvement as “as the relevance that the consumer feels in response to cause exposure” (Myers and Kwon, 2013). • Attitude is a degree to which a person has favourable or unfavourable evaluations (Ajzen, 1991).

9. 1 Cause related marketing and attitudeH1: Consumers will have more positive attitudes towards brand practicing CrMthan if the brand were not associated with a cause. • H2: Consumers will have more positive attitudestowards Ad for a brand practicing CrM than if the brand were not associated with a cause. 2. Cause related marketing & purchase intention • H3: Consumers will have more positive purchase intention for a brand practicing CrM than if the brand were not associated with a cause

10. .3. Cause involvementH4a: Consumer attitude towards brand will be greater for those more involved with the cause compared with those less involved with the cause. • H4b: Consumer attitude towards the ad will be greater for those more involved with the cause compared with those less involved with the cause. • H4c: Consumer purchase intention will be greater for those more involved with the cause compared with those less involved with the cause. 4. Skepticism of consumers • H5a: Consumers with a high level of advertising skepticismwill have unfavourable attitude towards the brand practicing CrM. • H5b: Consumers with a high level of advertising skepticism will have unfavourable attitude towardsad of a brand practicing CrM. • H5c: Consumers with a high level of advertising skepticism will have unfavourable purchase intention for the brand practicing CrM.

11. Design & methodology approach • The study utilizes experimental design, using a convenience sample of 424 participants. • Two structured questionnaire each for experimental and control group are developed. • The stimulus is in the form of brand name, the product portfolio and the ad itself in the questionnaire for experimental group. • ANCOVA is used to study the effect of covariates (cause involvement and skepticism) on attitudes and intention.

12. Stimulus for participantsFor experimental group

13. Stimulus for participantsFor control group

14. Scale measures and reliability statistics

15. Test of hypotheses • Manipulation checks: Welch ANOVA statistics for study variables • Testing the moderating effects of cause involvement • ANCOVA results for cause involvement and attitude towards brand • ANCOVA results for cause involvement and attitude towards ad • ANCOVA results for cause involvement and purchase intention • Testing the moderating effects of skepticism • ANCOVA results for skepticism and attitude towards brand • ANCOVA results for skepticism and attitude towards an ad • ANCOVA results for skepticism and purchase intention

16. Findings • Study demonstrates that CrMimproves: • the attitude towards brand, • attitude towards an ad • and purchase intention. • Additionally, (1)attitudes and (2) intention is also improved among those consumers more involved in a cause. • Skepticism is not relevant to (1) attitudes and (2) purchase intention.

17. Practical implications • This study helps companies to rethink on selecting cause and to suggest on how to make them participated maximally. • At the same time, study helps them to develop more effective CrM campaigns aiming consumers purchase intention in emergent context.

18. Research limitations & implications • Use of convenience sample is the main limitation of this research.