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How Social-Cause Marketing Affect Consumer Perceptions

1) Companies are increasingly investing in affinity marketing by sponsoring social causes, sports teams, and entertainment events as a strategic move to differentiate their brands and gain desirable effects like increased marketing efficiency. 2) Experimental studies show that consumers respond more positively to brands affiliated with social causes or activities they are passionate about. However, affiliations must be relevant and not viewed as insincere or questionable by consumers. 3) Conjoint analysis, a market research tool, can help companies predict which affinity marketing affiliations will provide the best return by examining consumer preferences for brands with different affiliations.
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0% found this document useful (0 votes)
46 views

How Social-Cause Marketing Affect Consumer Perceptions

1) Companies are increasingly investing in affinity marketing by sponsoring social causes, sports teams, and entertainment events as a strategic move to differentiate their brands and gain desirable effects like increased marketing efficiency. 2) Experimental studies show that consumers respond more positively to brands affiliated with social causes or activities they are passionate about. However, affiliations must be relevant and not viewed as insincere or questionable by consumers. 3) Conjoint analysis, a market research tool, can help companies predict which affinity marketing affiliations will provide the best return by examining consumer preferences for brands with different affiliations.
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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CONSUMER BEHAVIOR

A.SWETHAN BABU, 09152.

How social-cause marketing affect consumer perceptions


-Paul N.Bloon, Steve Hoeffler, Kevin Lane Keller and Carlos E.Basurto meza.

Experiments suggest that the research method known as conjoint analysis could be a
valuable market research tool to help companies predict which of several alternative affinity
marketing affiliations would provide the best return on investments. Companies are making
substantial investment to demonstrate an affinity with consumers invested in sport teams,
entertainment events and social ensues. While company at one time might have sponsored an
activity simply because executives wanted to help a favorite team or cause, companies today are
increasingly treating investments in affinity marketing as important strategic moves.

Companies are achieving there objectives is only beginning to understand. There is


evidence that sports and entertainment sponsorship can be successful, but the available empirical
research on this topic limited. Companies have been able to use societal marketing to help
differentiate their brands from competitors in consumer’s minds, in turn leading to a range of
desirable effects including efficiency for other marketing efforts.

Managing is more likely to find pursuance evidence about the benefits of societal
marketing if they examine the growing body of experimental studies reported in the academic
literature. The experimental results show that consumers will respond with more favorable rating
and a higher likelihood of choice to brands that have certain social-cause affiliates. For example,
an avid college basket ball for will probably respond more positively to message about a swanker
brand that outfits the fails favorites college team than he or she would to message about a
swanker brand that did not maintain any affiliations.

However, when a promotional initiative does not mention affiliations or when the
affiliations is one of the consumers view as run-of-the-mills (or) deserving of skepticisms,
consumers may weight a brands’ style of marketing as an unimportant or possibility even
negative attribute. More over a social cause affiliation could also have a halo effects on how
brand is seen on other attributes such as trustworthiness on quality.
CONSUMER BEHAVIOR
A.SWETHAN BABU, 09152.

Conjoint analysis has become a staple in the marketing research field for helping
companies predict the most effective configurations of attributes, such as warranty length, prices
or product size. To the best of our knowledge conjoint analysis has been used for pretesting
societal marketing initiatives or other affinities marketing programs. Conjoint analysis can help
marketers estimates the effects of specific promotional programs using a small subset of target
consumers prior to making a financial commitment to a particular program. Instead of just asking
consumers to rate these for options, the brand manager could obtain more reliable predictions of
consumer’s behavior by setting up an experimental studies using conjoint analysis.

In several experiments, the authors used conjoint analysis to examine how consumer’s
responses to a brand of beer, milk or juice would be affected if the brand had a marketing
affiliation with a social cause or with a sport or entertainment event. For some of the products
studied, affiliations with social causes had more positive effects on consumer rankings than
affiliations with sports or entertainment events. However, this was not always true; for example,
it was not the case for the milk brands studied, suggesting that the effect of social-cause
marketing initiatives may vary by industry. The authors also discuss how brand managers can
use conjoint analysis to compare potential marketing initiatives.

SOURCE: MITSLOAN Management Review.

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