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Content
1. Introduction
2. Literature review3. Rationale of Study
4. Objective of study
5. Research ethodolo!y
". #ata analysis and inter$retation
%. &indin!
'. (onclusion
). Liitation
1*. Su!!estions
11. Reference
12. +$$endi,
a. -uestionnaire
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INTRODUCTION
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INTRODUCTION
Marketing
&irst the word /ar0etin! eans very different thin!s to different $eo$le in different
industries. &or e,a$le a coal $roducer in entuc0y just needs to understand what $rice the
local buyer will be $ayin! for the $roduct and she can then $lan to /ar0et or just sell the
coal $roduced to the local buyer. Second thin0 about how uch different the above situation
is fro another case in which /ar0etin! ust be done. Lets say that you are a $roduct6
ar0etin! en!ineer at +!ilent 7echnolo!ies and your 8roduct 9ar0etin! 9ana!er has
infored you that you will be res$onsible for /ar0etin! a new $roduct that has been
conce$tuali:ed by en!ineers in the Research and #evelo$ent R;# #e$artent. &inallyassue a !ood friend of yours who has invented a new way for $eo$le to wash their car. She
has as0ed you /to ar0et her $roduct for her. In all three of these situations the $roduct has
already been conce$tuali:ed and $roduced. It wont hel$ the individual ar0eter at all to
consider how the ar0et will react to the $roduct. In situation one the coal iner ust just
e,tract the coal fro the !round and deliver it to a local coal bro0er for sale. In situation two
the $roduct ana!er at +!ilent ust first fi!ure out what the new $roduct will be !ood for
and who i!ht want to buy it. &inally in situation three your friend has already invented the
$roduct< it just reains for you to fi!ure out who the $eo$le are who wash their own car and
how to reach the. In all three situations the ar0eter is faced with coin! u$ with a way
to sell what has already been $roduced. 7his definition of ar0etin! unfortunately is how
ost $eo$le would define ar0etin! that is =9ar0etin! is how an or!ani:ation or individual
sells its $roduct or service.> 7hus in this definition ar0etin! is rele!ated to findin! and
e,$loitin! a ar0et of buyers for the $roduct or service.
?ut is that how ar0etin! $ractitioners and $eo$le who teach ar0etin! define it@ Lets
review soe alternate definitions of ar0etin! fro the business literature.
The American Marketing Associations definition. 7he +erican 9ar0etin! +ssociation
+9+ is the leadin! or!ani:ation in the A.S. re$resentin! the acadeic side of ar0etin!.
7he or!ani:ation is co$rised of and $riarily i$acted by $eo$le who teach ar0etin! at
the colle!e level. In 1)4' the +9+ defined ar0etin! as followsB
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The performance of bsiness acti!ities directed to"ard# and incident to# the f$o" of
goods and ser!ices from prodcer to consmer or ser.%
&AMA# '()*+.
Cote that the definition above focuses on the #IS7RI?A7IOC as$ect of ar0etin! and
doesnt really include the /&our 8sB 8roduct $rice $rootion $lace distribution.
In 1)'5 the +9+ definition was chan!ed to
the process of p$anning and e,ecting the
conception# pricing# promotion# and distribtion of ideas# goods# and ser!ices to create
e,changes that satisf- indi!ida$ and organiationa$ ob/ecti!es.% &AMA '(*0+
(o$are these two definitionsB Dow are they siilar and how do they differ@
Ehy do you thin0 the +9+ ade the chan!e in the definition of ar0etin!@
7he Seven Ste$s in the 9ar0etin! 8rocess
It is natural that $eo$le in different situations define ar0etin! differently. Dowever we will
a$$roach the definition of ar0etin! by first learnin! about the seven ste$s in the $rocess of
ar0etin!. Ehile this $rocess is not always followed it is i$ortant that any student of
ar0etin! understand what ste$s ust be ta0en to be successful in a ar0etin! effort. 7he
ar0etin! $rocess can be described in the followin! seven ste$sB
+. Understandthe ar0et wantsneeds of interest
?. ?ased on relative si:e and needs of the ar0et se$ectcertain se!ents of the ar0et that
are of the ost interest to you and your or!ani:ation
(. 7horou!hly describethese se!ents based on their individual needs
#. Create a $roduct or service that will eet the s$ecific needs identified
F. Commnicatethe conce$t of the $roduct or service to the tar!eted custoer in a way
that a0es sense to the custoer
&. De$i!erthe $roduct or service to the tar!eted custoer in a way that will be convenient
to the custoer
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G. 1o$icitfeedbac0 fro the custoer about how your $roduct or service could be i$roved
to eet the custoers needs even better
7his $rocess is a$$licable to ost situations encountered by those wantin! to ar0et a
$roduct or service. 7he $rocess of ar0etin! can be divided into /u$strea and
/downstrea activities. 7hat is ste$s + throu!h # are all /u$strea activities that should be
$erfored before a $roduct actually e,ists. Surely there are any readers who will say
=Eait this wont wor0 for e I a li0e those $eo$le who you described at first I already
D+HF a $roduct to sell I just need to find soebody to ?A I7J> +s ar0eters we
understand that any sellers dont have the o$tion or in$ut to create a new $roduct or
service. Dowever this e6boo0 is desi!ned for $eo$le who want to do ar0etin! the ri!ht
way. If you ust $ic0 u$ the $rocess after ste$s + ? and ( have already been $erfored
reali:e that soe ste$s have already been done and you should chec0 to see if they have
been done correctly.
+lso note that ar0etin! research $lays an inte!ral role in each of these sta!es. 7hat is the
or!ani:ation that is truly focused on custoer needs ust be driven by an active research
effort.
2hat is marketing management3
Ee will use the followin! definition of ar0etin! ana!eentB =Marketing management
is the $rocess allocatin! the resources of the or!ani:ation toward ar0etin! activities.> 7hus
a ar0etin! ana!er is soeone who is res$onsible for directin! e,$enditures of ar0etin!
funds. Related to the ter /ana!eent is the ter /strate!y. 9any words in the
vocabulary of business ana!eent were ta0en fro the field of ilitary science. &or
e,a$le the word /strate!y has been used in the ilitary for any decades to indicate a
lon!6ter coitent of resources toward acco$lishin! a certain !oal. 7hus it is often
said that ana!eent is res$onsible for conce$tuali:in! strate!ies and other e$loyees are
res$onsible for i$leentin! those strate!ies. 7he tie6honored 9ana!eent6by6Objectives
$ro!ras in which a su$ervisor will forulate strate!ies and other e$loyees will choose the
ethod of reachin! those objectives is an e,a$le of this relationshi$ in action. +s the
reader can see a discussion of /strate!y objectives and !oals can very Kuic0ly develo$ into
a iasa of ters and confusion. 7hus we will use the followin! definitions. &irst we will
consider !oals and objectives to be identical ters. Second we will use the ter /objective
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to refer to a broad6based desi!n of where the or!ani:ation would li0e to be at soe $oint in
the future. &or e,a$le as an objective the or!ani:ation i!ht decide to be the /leader in
$roduct Kuality as jud!ed by custoer surveys of our or!ani:ation and our five leadin!
co$etitors. Ee will define the ter /strate!y as a ethod used to reach an objective. &or
e,a$le to reach our $roduct Kuality objective our or!ani:ation i!ht decide to enroll in a
/total Kuality $ro!ra offered by ost lar!e consultin! firs. 7hus strate!y will have two
eanin!s. &irst it is the overall orientation an or!ani:ation choosin! to allocate its resources
and second strate!y is a s$ecific action used to i$leent $lans. 7hus there is a two6tiered
nature to strate!y. One at the to$ as a broad !uide to $referred action and one below hel$in!
to i$leent objectives. Ase /strate!y as a 0eyword search on the internet and see what you
find.
In ar0etin! we often use the /four 8s to desi!nate the areas of control a ar0etin!
ana!er has at hisher coand. 7he /four 8s as you $robably already 0now areB 8roduct
8rice 8rootion and 8lace. 7he /four 8s re$resents a convenient way to suari:e the
ain factors involved in any /ar0etin! strate!y. Dowever seen in a conte$orary sense
the four 8s ay ista0enly be liited to downstrea ar0etin! activities only and as
(ha$ter One indicates there are also u$strea ar0etin! activities that are related to the
ar0etin! i,. If this does not a0e sense to you $lease !o bac0 and review the ters used
in (ha$ter One.
7he 9ar0etin! 9ana!eent (ycle
7he $lannin! cycle is co$osed of five basic ste$s. &irst 8lannin! is the $rocess of
e,ainin! and understandin! the surroundin!s within which the or!ani:ation functions. &or
e,a$le =environental scannin!> is the $rocess of studyin! and a0in! sense of all the
thin!s that i!ht i$act the firs o$eration that are e,ternal to the fir. 7his would include
studyin! and !ainin! an understandin! of such thin!s asB co$etition le!islation and
re!ulation social and cultural trends and technolo!y. ?oth $resent and develo$in! trends in
each of these areas ust be identified and onitored.
Second I$leentation is the $rocess of $uttin! $lans that have been ade into action. It is
the transition fro e,$ected reality to e,istin! reality.
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7hird 9onitorin! is the $rocess of trac0in! $lans and identifyin! how $lans a$ to chan!es
that ta0e $lace durin! $ro!ra o$eration when ore inforation is acKuired. (orrection is
the sta!e in which we ta0e action to return our $lan to the desired state based on feedbac0
obtained in the onitorin! sta!e. If we find that return to the $lanned state is not $racticable
we ay adjust our $lannin! outcoes. 7hus 9onitorin! and (orrection ay be considered
two sta!es because after $lans are $ut into action one ust continually onitor $erforance
and a0e adjustents to the $lan based on the feedbac0 !athered throu!h these onitorin!
activities. In suary the ar0etin! ana!eent cycle co$osed of $lannin!
i$leentin! onitorin! and correctin!. Ee use the use the ter /4IMC as a device to
reeber the sta!es.
9ar0etin! is related to the e,chan!e of !oods and services. 7hrou!h its ediu the !oods
and services are brou!ht to the $lace of consu$tion. 7his satisfies the needs of the
custoers. 7he followin! activities are underta0en in res$ect of the e,chan!e of !oods and
servicesB
'. 5athering and Ana$-sing Market Information6
Gatherin! and analy:in! ar0et inforation is an i$ortant function of ar0etin!. Ander it
an effort is ade to understand the consuer thorou!hly in the followin! waysB
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Ia!e (ourtesy B :ionand:ion.coia!esdia!ra26advertisin!6a!ency6$hoeni,.j$!
a Ehat do the consuers want@
b In what Kuantity@
c +t what $rice@
d Ehen do they want it@
e Ehat 0ind of advertiseent do they li0e@
f Ehere do they want it@
Ehat 0ind of distribution syste do they li0e@ +ll the relevant inforation about the
consuer is collected and analysed. On the basis of this analysis an effort is ade to find out
as to which $roduct has the best o$$ortunities in the ar0et.
7. Marketing 4$anning6
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In order to achieve the objectives of an or!anisation with re!ard to its ar0etin! the
ar0eteer chal0s out his ar0etin! $lan. &or e,a$le a co$any has a 25 ar0et share of
a $articular $roduct.
7he co$any wants to raise it to 4*. In order to achieve this objective the ar0eter has to
$re$are a $lan in res$ect of the level of $roduction and $rootion efforts. It will also be
decided as to who will do what when and how. 7o do this is 0nown as ar0etin! $lannin!.
8. 4rodct Designing and De!e$opment6
8roduct desi!nin! $lays an i$ortant role in $roduct sellin!. 7he co$any whose $roduct is
better and attractively desi!ned sells ore than the $roduct of a co$any whose desi!n
ha$$ens to be wea0 and unattractive.
In this way it can be said that the $ossession of a s$ecial desi!n affords a co$any to a
co$etitive advanta!e. It is i$ortant to reeber that it is not sufficient to $re$are a desi!n
in res$ect of a $roduct but it is ore i$ortant to develo$ it continuously.
). 1tandardisation and 5rading6
Standardisation refers to deterinin! of standard re!ardin! si:e Kuality desi!n wei!ht
colour raw aterial to be used etc. in res$ect of a $articular $roduct. ?y doin! so it is
ascertained that the !iven $roduct will have soe $eculiarities.
7his way sale is ade $ossible on the basis of sa$les. 9ostly it is the $ractice that the
traders loo0 at the sa$les and $lace $urchase order for a lar!e Kuantity of the $roduct
concerned. 7he basis of it is that !oods su$$lied confor to the sae standard as shown in
the sa$le.
8roducts havin! the sae characteristics or standard are $laced in a !iven cate!ory or
!rade. 7his $lacin! is called !radin!. &or e,a$le a co$any $roduces coodity M N
havin! three !rades naely +. /? and /( re$resentin! three levels of Kuality< best
ediu and ordinary res$ectively.
(ustoers who want best Kuality will be shown /+ !rade $roduct. 7his way the custoer
will have no doubt in his ind that a low !rade $roduct has been $aled off to hi. Gradin!
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therefore a0es sale6$urchase easy. Gradin! $rocess is ostly used in case of a!ricultural
$roducts li0e food !rains cotton tobacco a$$les an!oes etc.
0. 4ackaging and 9abe$$ing6
8ac0a!in! ais at avoidin! brea0a!e daa!e destruction etc. of the !oods durin! transit
and stora!e. 8ac0a!in! facilitates handlin! liftin! conveyin! of the !oods. 9any a tie
custoers deand !oods in different Kuantities. It necessitates s$ecial $ac0a!in!. 8ac0in!
aterial includes bottles canister $lastic ba!s tin or wooden bo,es jute ba!s etc.
Label is a sli$ which is found on the $roduct itself or on the $ac0a!e $rovidin! all the
inforation re!ardin! the $roduct and its $roducer. 7his can either be in the for of a cover
or a seal.
&or e,a$le the nae of the edicine on its bottle alon! with the anufacturers nae the
forula used for a0in! the edicine date of anufacturin! e,$iry date batch no. $rice
etc. are $rinted on the sli$ thereby !ivin! all the inforation re!ardin! the edicine to the
consuer. 7he sli$ carryin! all these is details called Label and the $rocess of $re$arin! it as
Labellin!.
:. ;randing6
Fvery $roducerseller wants that his $roduct should have s$ecial identity in the ar0et. In
order to realise his wish he has to !ive a nae to his $roduct which has to be distinct fro
other co$etitors.
Givin! of distinct nae to ones $roduct is called brandin!. 7hus the objective of brandin! is
to show that the $roducts of a !iven co$any are different fro that of the co$etitors sothat it has its own identity.
&or instance if a co$any wants to $o$ularise its coodity M N under the nae of =%%%>
tri$le seven then its brand will be called =%%%>. It is $ossible that another co$any is sellin!
a siilar coodity under +++ 7ri$le /+ brand nae.
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Ander these circustances both the co$anies will succeed in establishin! a distinct identity
of their $roducts in the ar0et. Ehen a brand is not re!istered under the trade 9ar0 +ct
1))) it becoes a 7rade 9ar0.
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ta0en by the ar0eter in this res$ect affects the sales. 7hese decisions are ta0en 0ee$in! in
view the bud!et of the co$any.
'=.4h-sica$ Distribtion6
Ander this function of ar0etin! the decision about carryin! thin!s fro the $lace of
$roduction to the $lace of consu$tion is ta0en into account. 7o acco$lish this tas0
decision about four factors are ta0en. 7hey areB i 7rans$ortation ii Inventory iii
Earehousin! and iv Order 8rocessin!. 8hysical distribution by ta0in! thin!s at the ri!ht
$lace and at the ri!ht tie creates tie and $lace utility.
''.Transportation6
8roduction sale and consu$tion6all the three activities need not be at one $lace. Dad it been
so trans$ortation of !oods for $hysical distribution would have becoe irrelevant. ?ut
!enerally it is not $ossible. 8roduction is carried out at one $lace sale at another $lace and
consu$tion at yet another $lace.
7rans$ort facility is needed for the $roduced !oods to reach the hands of consuers. So the
enter$rise ust have an easy access to eans of trans$ortation.
9ostly we see on the road sides $rivate vehicles belon!in! to 8e$si (oca (ola L9L
?ritannia etc. 7hese $rivate carriers are the livin! e,a$les of trans$ortation function of
ar0etin!. 8lace utility is thus created by trans$ortation activity.
'7.1torage or 2arehosing6
7here is a tie6la! between the $urchase or $roduction of !oods and their sale. It is very
essential to store the !oods at a safe $lace durin! this tie6interval. Godowns are used for
this $ur$ose. ee$in! of !oods in !odowns till the sae are sold is called stora!e.
&or the ar0etin! ana!er stora!e is an i$ortant function. +ny ne!li!ence on his $art ay
daa!e the entire stoc0. 7ie utility is thus created by stora!e activity.
1ocia$ Case
+ social cause additionally called a social issue or a social ailent alludes to an issue thati$acts and is contradicted by an i$ressive nuber of $eo$le inside a !eneral $ublic. It is
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freKuently the result of variables broadenin! $ast an individuals control and local
!eo!ra$hical environent. Cow and a!ain a social issue is the wells$rin! of a conflictin!
o$inion on the !rounds of what is seen as an ethically just individual life or societal order.
#istinctive social orders have diverse discernents. Social issues are reco!ni:ed fro
econoic issues< in any case a few issues for e,a$le ii!ration have both social
and financial view$oints. 7here are additionally issues that dont fall into either classification
for e,a$le wars. F,a$les of few social causes aybe Social stratification Fconoic
issues Social disor!ani:ation +!e and the life course IneKuality Fducation and $ublic
schools Eor0 and occu$ations Fnvironental racis +bortion etc.
Case Re$ated Marketing
(ause6related ar0etin! has introduced in recent years even thou!h it is a youn! conce$t
which any bi! or!ani:ations usin! for creatin! brand eKuity and for achievin! a co$etitive
advanta!e. (ause ar0etin! or cause6related ar0etin! refers to that ty$e of ar0etin! which
involves the coo$erative efforts of both $rofit as well as non$rofit or!ani:ation for utual
benefit. 7his ty$e of ter is soeties used broadly as well as !enerally refers to any ty$e
of ar0etin! effort for social and other causes. It $rovides the eotional as well as the
rational en!a!eent of the consuer with the brand. (ause 6 related ar0etin! is different
fro cor$orate !ivin! as the cor$orate !ivin!
!enerally involves soe s$ecific donation that is ta, deductible while cause related
ar0etin! is a ar0etin! which is based on ar0etin! relation and not necessarily based on a
donation.
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9IT>RATUR> R>?I>2
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9IT>RATUR> R>?I>2
Introdction6
(ause6related ar0etin! (R9 is defined as =the $rocess of forulatin! and
i$leentin! activities that are characteri:ed by an offer fro the fir to contribute a
s$ecified aount to a desi!nated cause when custoers en!a!e in revenue6$rovidin!
e,chan!es that satisfy or!ani:ational and individual objectives> Haradarajan and 9enon
1)''. (ause6related ar0etin! includes $roduct sales $rootions and $ro!ra6driven
collaborations between co$anies and non$rofit causes. 7here are seven ain ty$es of (R9
arran!eents. 7he first five ty$es relate to standard cor$orate $ractices and these include
advertisin! $ublic relations s$onsorshi$ licensin! and direct ar0etin!. &acilitated !ivin!occurs when a business facilitates custoer donations to the charity. 7he ost widely used
(R9 $ractice is $urchase6tri!!ered donations. 7his occurs when a co$any $led!es to
contribute a $ercenta!e or set aount of a $roducts $rice to a charitable cause or
or!ani:ation. 7his thesis will concentrate on $urchase6tri!!ered donations to deonstrate
(R9 relationshi$s between $rofit a,ii:in! or!ani:ations 89Os and non$rofit
or!ani:ations C8Os.
(ause6related ar0etin! was first launched by +erican F,$ress in the early 1)'*s.
Perry Eelsh the senior vice $resident at the tie believed that card ebers would be
encoura!ed to use their +erican F,$ress cards for local $urchases if they had a local cause
to su$$ort #aw 2**". In 1)'3 +erican F,$ress e,$anded the $ro!ra nationally because
of its early success. +erican F,$resss new objective was to increase card use and new card
a$$lications and at the sae tie su$$ort the non$rofit Restoration &und. +erican F,$ress
donated one cent for every card transaction and one dollar for every new card a$$lication to
the non$rofit Restoration &und #aw 2**". In three onths the Restoration &und raised
over Q1.% illion and +erican F,$ress card use rose 2% $ercent while new card
a$$lications increased by 45 $ercent co$ared to the $revious year #aw 2**". 7his cause6
related ar0etin! $ro!ra deonstrated that utually beneficial relationshi$s could be built
between non$rofit or!ani:ations and cor$orations. + 1)'' study for Inde$endent Sector
re$orted that cause6related ar0etin! $rootions are a$$ro$riate and useful benefitin! the
cor$oration the non$rofit and the consuer Ea!ner and 7ho$son 1))4. +s a result of its
a$$arent success cause6related ar0etin! !rew in the Anited States fro Q12* illion in
1))* to an estiated Q1.*' billion in 2**5 F$stein 2**5. 9any anufacturers and retail
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chains such as +von (adbury 7he Doe #e$ot 7ar!et 7iberland 9c#onalds and
(on+!ra all $ractice (R9. 7he ty$es of non$rofit or!ani:ations that tea u$ with firs are
the so6called $ublic benefit or!ani:ations. 8ublic benefit or!ani:ations are those that serve a
scientific literary education artistic environental or charitable $ur$ose that benefits the
$ublic. In the non$rofit world these are 0nown as =5*1c3s.>
9iteratre Re!ie"6
Benefits Associated With A Cause-Related Marketing Relationship
9any non$rofit or!ani:ations face financial $ressure as a result of the increasin!
needs of society. In order to satisfy the social needs of society and $roduce $ublic !oods
non$rofit or!ani:ations need to increase their revenue sources. C8Os can either increase
$rivate donations fro individuals or increase $roceeds fro a cor$orations sale of !oods or
services that are lin0ed to the nae of the non$rofit or!ani:ation. Increasin! donations fro
individuals is often difficult to do. Eeisbrod 1))' states that individual !ivin! has reained
at around 1.) $ercent of $ersonal incoe for over two decades. ?etween 1)%3 and 1))4 it
has ran!ed between 1.%% $ercent and 2.** $ercent Eeisbrod 1))'. Eeisbrod 1))' ar!ues
that there is little reason to e,$ect that donations can be increased si!nificantly unless ta,
laws are substantially chan!ed. 7herefore coercial activities such as cause6related
ar0etin! are iediate ways for C8Os to !enerate additional revenue.
Con$rofit or!ani:ations are able to secure a fair share of increased revenues derived
fro cause6related ar0etin! with a 89O. #ruwri!ht 2*** re$orts that the Girl Scouts of
+erica has an arran!eent with #ryers ice crea such that 1* $ercent of the $rofits for the
ice crea that dis$lays the youth or!ani:ations nae and lo!os !oes to the Girl Scouts.
+ccordin! to #ruwri!ht 2*** this a!reeent corres$onds with standard business $ractice
in which licensin! fees avera!e five to ten $ercent of net !ain. 8olons0y and Eood 2**1
$oint out that increased financial resources that result fro this ty$e of $artnershi$ enable
non$rofit or!ani:ations to e,$and their services and at the sae tie increase their $rofile.
Fstablishin! a cause6related ar0etin! $artnershi$ enables a non6$rofit or!ani:ation
to access a wider and a ore diverse audience. &or e,a$le Susan G. oen &oundation
has develo$ed a relationshi$ with &ord (redit a subsidiary of &ord 9otor (o$any and
C+S(+R Race Fvents #aw 2**". +s a result the Susan G. oen &oundation is !ainin!
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ar0etin! e,$osure at no direct cost. 8olons0y and Eood 2**1 ar!ue that this e,tensive
$ublicity ay enable a non$rofit or!ani:ation to !ain a !reater $resence in the ar0et.
(ause6related ar0etin! decreases a C8Os transactions costs because C8Os do not
have to directly a$$roach consuers for a donation. (ostuers indirectly donate to a cause
throu!h their $urchases. 7herefore C8Os do not have to s$end additional resources as0in!
the $ublic for direct donations. 8olons0y and Eood 2**1 ention that consuers ay feel
that they are doin! soethin! !ood for society without it costin! the any additional cost
when they buy a $roduct lin0ed to a cause. (ustoers $urchase at their discretion and
essentially donate on ore than one occasion throu!h the continued use of a certain $roduct.
&urtherore earned6incoe !eneratin! activities are viewed as ore reliable fundin!
sources than donations and !rants #ees 1))'. +ccordin! to #ees 1))' self6fundin! is the
new antra since de$endency on individual donors is now bein! seen as a wea0ness #ees
1))'.
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