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Which Creates the Bigger Halo: Cause-Related Marketing Or Cause Sponsorship?

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Which Creates the Bigger Halo: Cause-Related Marketing Or Cause Sponsorship? WHICH CREATES THE BIGGER HALO: CAUSE-RELATED MARKETING OR CAUSE SPONSORSHIP? BY AMY ELIZABETH RESTKO THESIS Submitted in partial fulfillment of the requirements for the degree of Master of Science in Advertising in the Graduate College of the University of Illinois at Urbana-Champaign, 2014 Urbana, Illinois Adviser: Associate Professor Michelle R. Nelson ABSTRACT Corporate social responsibility (CSR) used to act as a set of rules for companies to abide by, but it has evolved into a central part of the business strategy (Keys et al., 2009). CSR practices have proven to greatly enhance the company’s reputation and brand. This study tests the benefits of a positive halo effect from CSR campaigns and explores the role of involvement in the relationship. A halo effect can be described as a cognitive bias in which one trait can positively affect the subsequent perceptions of a brand (Madden et al., 2012), and this study defines involvement through personal relevance. While there has been research on the positive brand effects produced by CSR, there is limited research into how consumer involvement in terms of personal relevance to the CSR campaigns can contribute to the extent of the halo effects. The present study examined to what extent two types of CSR (cause-related marketing; CRM and cause sponsorship; CS) versus a control group, create an overall favorable impression of the brand. Specifically, a 3 x 1 experiment was conducted with university students to see if a CS, CRM or control (no CSR) Facebook page for a fictitious café brand influenced liking of the brand, quality and other brand attributes, CSR, willingness to recommend, behavior, and behavioral intent. Based on halo effects and involvement, it was expected that the CSR campaigns would have a larger effect on the dependent variables. It was further hypothesized that CRM would create a bigger halo than CS and the control, and that involvement—in terms of personal relevance—would moderate the positive effects of that halo. In other words, if CRM induces greater message involvement, that involvement should heighten the positive effects of CSR. Results of the experimental study revealed that no halo effects were found on brand attribute ratings; however, both CSR campaign messages (CRM and CS) resulted in higher overall CSR ratings for the brand. Further, ii participants who view a CS campaign are more willing to recommend the Facebook page of the restaurant brand than the CRM group, and participants in the CS group are more likely to visit the restaurant. Both theoretical and practical implications are discussed and further research is recommended. iii For all who pushed me to set big goals and kept me on track to accomplish them. Special thanks to Michelle R. Nelson Brittany Duff John Wirtz And My colleagues in the Department of Advertising at the University of Illinois. iv ACKNOWLEDGEMENTS This master’s thesis would have been impossible without the support of the faculty and my colleagues in the Department of Advertising at the University of Illinois at Urbana- Champaign. Special thanks especially to my adviser, Dr. Michelle R. Nelson, who believed in me and encouraged me to pursue what I believe in—even during crunch time! I would like to thank my committee members, Dr. Brittany Duff and Dr. John Wirtz, who offered support and guidance and encouraged me to stay focused. Special thanks to Dr. Patrick Vargas for all of his wisdom and teachings in interpreting data. Thank you to Dr. Kevin Wise for pushing me to pursue a thesis and having confidence that I could finish it. I would like to also thank my advertising colleagues, the “adgrads” who will shape the future of advertising; especially Christoph Goeken, Nate Hartman, Quinn (Xuan) Qin, and Veronica Vorobyova who inspired me to develop my ideas and spent countless hours discussing theories and studies while choosing a topic. A special thank you to my wonderful friends for supporting me and encouraging me to enjoy the thesis process. Finally, a huge thank you to my family—Mom, Dad, Alli, and Mike, and my dog Sebastian who provided me with necessary stress relief—who supported me with love throughout the length of an extended academic career. v TABLE OF CONTENTS CHAPTER 1: INTRODUCTION…………………………………………………………………1 CHAPTER 2: LITERATURE REVIEW……………………………………………………….....6 2.1 Corporate Social Responsibility………………………………………………………………6 2.2 CSR Goes Digital…………………………………………………………………………….10 2.3 Involvement………………………………………………………………………………….12 2.4 Halo Effects………………………………………………………………………………….14 CHAPTER 3: HYPOTHESES…………………………………………………………………...19 3.1 Liking of the Brand ………………………………………………………………………….19 3.2 Behavior and Behavioral Intent...……………………………………………………………19 3.3 Brand Attribute Ratings ……………………………………………………………………..20 3.4 CSR Ratings …………………………………………………………………………………20 3.5 Willingness to Recommend …………………………………………………………………20 3.6 Halo Effects …………………………………………………………………………………21 3.7 Involvement …………………………………………………………………………………21 CHAPTER 4: METHOD………………………………………………………………………...22 4.1 Overview……………………………………………………………………………………..22 4.2 Participants…………………………………………………………………………………...22 4.3 Stimuli Development and Manipulation……………………………………………………..23 4.4 Main Experiment…………………………………………………………………………….25 4.5 Measurement…………………………………………………………………………………26 CHAPTER 5: RESULTS………………………………………………………………………...31 5.1 Manipulation Checks………………………………………………………………………...31 vi 5.2 Testing Hypotheses…………………………………………………………………………..31 5.3 Additional Measures – Thought-listing……………………………………………………...37 CHAPTER 6: DISCUSSION……………………………………………………………………38 6.1 Theoretical Implications……………………………………………………………………..39 6.2 Practical Implications………………………………………………………………………..40 6.3 Limitations and Future Research…………………………………………………………….40 CHAPTER 7: REFERENCES…………………………………………………………………...44 TABLES AND FIGURES……………………………………………………………………….51 APPENDIX A: STIMULI 1: FACEBOOK PAGE FOR AROMA CAFE……………………...66 APPENDIX B: STIMULI 2: FACEBOOK PAGE FOR THE BREAD COMPANY…………..67 APPENDIX C: STIMULI 3: FACEBOOK PAGE FOR PAT’S BISTRO, CRM…………..…..68 APPENDIX D: STIMULI 4: FACEBOOK PAGE FOR PAT’S BISTRO, CS……………..…..69 APPENDIX E: STIMULI 5: FACEBOOK PAGE FOR PAT’S BISTRO, CONTROL………..70 APPENDIX F: STIMULI 6: PAT’S BISTRO FLYER AS BEHAVIOR MEASURE………….71 APPENDIX G: MAIN EXPERIMENT QUESTIONNAIRE……………………………………72 APPENDIX H: DEBRIEFING STATEMENT………………………………………………….87 vii CHAPTER 1: INTRODUCTION Corporate social responsibility, or “actions that appear to further some social good, beyond the interests of the firm and that which is required by law” (McWilliams and Siegel, 2001, p. 117), used to act as a set of guidelines forced upon companies in order to stay out of trouble in the media and the law (Keys et al., 2009). Nowadays though, consumers are deliberately seeking out more socially responsible companies and are willing to pay a premium to support them. According to the 2013 Cone Research Report, 91% of global consumers are likely to switch brands to one associated with a good cause, given comparable price and quality, and 50% would be willing to reward a company by paying more for their goods and services. Additionally, 93% of consumers in the U.S. say that they have a more positive image, 90% are more likely to trust, and 90% are more loyal to companies that support a good cause (Cone, 2013). With consumer interest in brands supporting a good cause, brands are starting to take note and focus their marketing efforts on corporate social responsibility (hereafter CSR). McWilliams and Siegel (2001) define CSR as “actions that appear to further some social good, beyond the interests of the firm and that which is required by law” (p. 117). There are several forms of CSR that range from for-profit companies incorporating CSR initiatives into their mission statements, such as TOMS and their one-for-one mission (www.TOMS.com) or Microsoft’s commitment to corporate citizenship (http://www.microsoft.com/about/corporatecitizenship/en-us/) to short-term partnerships with charitable causes. Unilever recently began a new campaign called “Project Sunlight,” which says that “it is possible to build a world where everyone lives well and lives sustainably” by doing small actions everyday to make a difference (Neff, 2014). This campaign partners with Feeding 1 America to build consumer awareness of Unilever and their sustainability efforts, and Unilever provides donations to Feeding America (Neff, 2014). Unilever took “Project Sunlight” to television and paid media, but in this digital age, brands also recognize the need to employ their social responsibility efforts online. For example, Google began a campaign in November 2014 to help fight Ebola, where the company donates $2 for every $1 donated, on their homepage (google.com) and on their Facebook page (facebook.com/Google). Similar to Google, companies are utilizing their owned media to engage consumers with their CSR efforts. Embracing owned media can be much more cost-efficient than paid media and allows for increased speed, consumer engagement, and in some cases even reach on a larger scale (Chui et al., 2012). CSR also can enhance the corporate brand. Studies have shown that CSR can lead to an improvement in consumer beliefs, attitudes and intentions (Becker-Olsen et al., 2006), a positive effect on reputation (Arora and Henderson, 2007; Sen and Bhattacharya, 2001), more favorable brand and product evaluations (Brown and Dacin, 1997; Ellen et al., 2000; Sen and Bhattacharya, 2001) and increased loyalty (Maignan et al., 1999). Studies have also demonstrated
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