Cause-Related Marketing Phenomena

Company: TOMS

Valeria AguerriFrancisco Silva

Bellakarina Solorzano

About TOMS

2

3

4

5

Sells & designs shoes1

Others: Eyewear, accessories, coffee

Cause-related marketing (CRM)

Altruistic and philanthropic brand image

For-Profit firm, Global Market

Consumers become

benefactors

Enhances corporate

image

Improves corporate credibility

Good attitude in

mind of buyers

Cause-Related MKT (CRM)

PRICENO CRM

PRICECRM

CRM & Price

Methodology

Online Survey

• Qualtrics and SPSS.• Social Media Channels and E-mail.• 137 participants.

Ad Scenarios

• A social responsibility ad featuring (a) high price ($70) and (b) low price ($40).

• A regular ad featuring (a) high price ($70) and (b) low price ($40).

Methodology

SR Ad + High Price SR Ad + Low Price

Methodology

NSR Ad + High Price NSR Ad + Low Price

Research Design

2x2 Design

Social vs. Non-Social

High Price vs. Low

Price

Data AnalysisTh

e m

ajor

ity o

f pa

rtici

pant

s wer

e:

• Female (59%).• Between 25 to 44 years old.• Employed either full-time or part-time.• Had an annual household income between

$0 and $39,999.• Single.• Had a professional or 4-year degree.

Demographics

Attitude towards TOMS

Attitude towards TOMS

Attrative or Unattractive

Good or Bad

Positive or Negative

Attention getting or not

attention getting at all

Socially Responsible

or not Socially Responsible

Attitude towards TOMS measure by items good or bad, and attention getting or not attention getting at all.

Two-way ANOVA

Attitude towards TOMS

Ad Type Price

H1: Consumers’ attitude toward TOMS will be jointly influenced by ad type (social responsibility vs. non-social responsibility) and

price (high vs. low). • (a) for the social responsibility ad condition, their brand attitude will be more positive

when the price is low, rather than high, whereas• (b) for the non-social responsibility ad condition, their brand attitude will be more

positive when the price is high, rather than low.

Results

Support H1

P-value: 0.04

Three-way ANOVA

Attitude towards TOMS

Ad Type

Price

Gender

H2: H1 will depend on gender.• (a) for male consumers, their attitude toward the brand will be jointly influenced by ad

type (social responsibility vs. non-social responsibility) and price (high vs. low)• (b) for female consumers, their attitude toward the brand will not be jointly influenced

by ad type (social responsibility vs. non-social responsibility) and price (high vs. low)

The analysis deemed as marginally significant (0.05<p=0.077<0.1)

Results

The analysis deemed as significant for Male

p=0.006

Isolated Results

The analysis deemed as not significant for Female p=0.595

Discussion• Attitude toward TOMS is more price

sensitive when Social condition is not shown in the ad.

Male

• Brand attitude was higher when the price is low, rather than high. There is a main effect of price in this case (p = .595).

Female

• Managers and marketers can develop marketing strategies based on the impact of ATBs perceived by Males and Females

Implications

Limitations1

• Data obtained was quantitative, limiting our ability to obtain in-depth data.

2• Only two out of four scales measuring Attitude Toward

the Brand were reliable.

3• Convenience sampling not representative of intended

sample population.

4• Response Errors: missed or skipped questions.

5• Incomplete Surveys and time constrain.

Do you haveany questions????