The Effects of Featured Advertising and Package Labeling on Sustainability of Cause-Related Marketing (CRM) Products

Sunhee Choi, Sangno Lee and Wesley Friske
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Sunhee Choi: John L. Grove College of Business, Shippensburg University, Shippensburg, PA 17257, USA
Sangno Lee: College of Commerce, Chonbuk National University, Jeonju 54896, Korea
Wesley Friske: College of Business, Missouri State University, Springfield, MO 65897, USA

Sustainability, 2018, vol. 10, issue 9, 1-12

Abstract: This paper seeks to examine the relative efficacy of cause-related marketing (CRM) product package labeling versus featured advertising efficacy on market performance. One natural setting using scanner data from a grocery store chain and an open-ended survey were conducted to evaluate the financial performance of featured advertising and product labeling in terms of sustainability of cause-related marketing products. Our findings suggest that cause-related marketing product package labeling without featured advertising appears to provide a competitive advantage resulting in superior financial performance. Also, featured advertising without product package labeling boosts products sales. However, when featured advertising is applied to cause-related marketing product package labeling, the effect of such labeling is diminished. Based on our findings, we suggest that final and intermediate sellers of cause-related marketing products should deliver a persuasive message about the sustainability of cause-related marketing products in the context of a conspicuous environment (e.g., Facebook and Twitter). Although featured advertisements and product package labels are two of the most widely-used tools to promote cause-related marketing products, the cause-related marketing literature has largely neglected a meaningful comparison between the two. This paper seeks to fill the gap in the literature.

Keywords: cause-related marketing; retailing; package labels; featured advertisements; theory of reasoned action; social identity theory (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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