Are all Cause-Fit the Same for Green Products? A Study using Discrete Choice Experiments
Consumers are increasingly more attentive to the ethical and social consequences of their purchases. This has resulted in greater conversation surrounding the consumption of green products, and consequently, more companies are now choosing to engage in Cause Related Marketing (CRM) in order to be perceived as socially responsible market players. Despite this trend, the question remains as to whether CRM can be effective in the case of green products. This study posits that an effective CRM strategy can significantly increase the brand share for green products. If, however, the CRM is not properly designed, it can backfire and result in a significant decrease in brand share compare to green products that are not backed by any CRM. Testing for the effect of cause fit and cause type on the effectiveness of CRM for green products, the findings of this study suggest that regardless of cause context, a cause with high relatedness to a green product will result in a more effective CRM compared to a cause with low relatedness. Moreover, a highly related cause in non environmental context will result in a more effective CRM compared to all other CRM campaigns, as well as no CRM offer. These findings provide novel insights on the impact of CRM on environmentally friendly products.