1. Cause- Related Marketing as a Peripheral Cue? Neil Mardian Michael Basil Debra Basil

2. What is CRM? Definition:  When a company donates a percentage of its sales or profits to a non-profit organization (for each unit sold) Use:  CRM is being used more and more!

3. WE DON’T KNOW! Previous research has shown CRM is very effective. But mostly this has been studied with low priced products. POSSIBLE MECHANISM: The Elaboration Likelihood Model (ELM) might predicts it works as a peripheral cue How does CRM work?

4. Objectives of the Study Examine the whether the effects of CRM hold for high priced products. Examine if the effects of CRM also hold for high involvement situations. Study whether CRM functions as a peripheral cue. Examine if the ELM can explain how cause- related marketing influences consumer attitudes and purchase intentions.

5. Study Design 3 Stages 1.Pre-Test #1 (n=28) 2.Pre-Test #2 (n=46) 3.Experiment (n=160)

6. Pre – Tests #1 and #2 Pre-Test Objectives: To find two high and low priced products that had similar levels of involvement To find two equally perceived brands for each of the two high and low priced products (8 brands total) Results: 2 High Priced Products (PDA, In-line skates, Condoms & Toothbrushes) 2 Brands for each: –PDA = Palm & Compaq –In-Line Skates = CCM & Rollerblade –Condoms= Trojan & Lifestyles –Toothbrushes= Crest & Oral B

7. Experimental Design 2 x 2 x 2 Fully Crossed, Mixed Factorial Design –Involvement (Hi or Low) –Price (Hi or Low) –CRM (Present or Absent) Within Subjects Factors: Each subject viewed both the …. High & low involvement situations High & low priced products With and without CRM

8. Experimental Design CRM Present CRM Absent High Price Low Price CRM Present CRM Absent High Price Low Price High Involvement Situation Low Involvement Situation

9. Hypothesis #1 Ads with CRM will lead to more positive attitudes and higher purchase intentions than advertisements without CRM

10. Hypothesis #1 Results  The main effect relationship for H1 was supported Hypothesis #1 Results for Consumer Attitudes 3.35 3.4 3.45 3.5 3.55 3.6 3.65 3.7 3.75 3.8 CRM No CRM Hypothesis #1 Results for Purchase Intentions 2.7 2.8 2.9 3 3.1 3.2 3.3 3.4 CRM No CRM

11. Hypothesis #2 A two-way interaction is predicted, such that: In low involvement situations, ads with CRM will lead to higher purchase intentions than ads without CRM. In high involvement situations, CRM ads will lead to similar purchase intentions than advertisements without CRM.

12. Hypothesis #2 Results  The two-way interaction between involvement and CRM was NOT supported Hypothesis #2 Results for Consumer Attitudes 3.35 3.4 3.45 3.5 3.55 3.6 3.65 3.7 3.75 3.8 LO Involve HI Involve NO CRM With CRM Hypothesis #2 Results for Purchase Intentions 2.7 2.8 2.9 3 3.1 3.2 3.3 3.4 LO Involve HI Involve NO CRM With CRM

13. Hypothesis #3 Predict an interaction between price and CRM such that: CRM will be more effective for low priced products than high priced products

14. Hypothesis #3 Results  The effectiveness of CRM did not depend on the price of the product. H3 was NOT supported Hypothesis #3 Results for Consumer Attitudes 3.35 3.4 3.45 3.5 3.55 3.6 3.65 3.7 3.75 3.8 LO Price HI Price NO CRM With CRM Hypothesis #3 Results Purchase Intentions 2.7 2.8 2.9 3 3.1 3.2 3.3 3.4 LO Price HI Price NO CRM With CRM

15. Conclusions  Consumers tend to responded positively to CRM offers (regardless of involvement with or the price of the product)  Higher involvement situations do not decrease the effectiveness of CRM  Due to their effectiveness in high involvement situations, this suggests that CRM is not just a peripheral cue.

16. Real World Implications Objective To provide insights for managers on when to potentially use CRM techniques with their products Result Use CRM claims whenever possible, as they are a useful marketing strategy to influence the consumers’ attitudes and purchase intentions