ASSOCIATION FOR CONSUMER RESEARCH Labovitz School of Business & Economics, University of Minnesota Duluth, 11 E. Superior Street, Suite 210, Duluth, MN 55802 Product Or Cause?: the Impacts of Product Type and Cause Framing in Cause-Related Marketing Advertising Chun-Tuan Chang, National Sun Yat-sen University, Taiwan Yu-Kang Lee, National Sun Yat-sen University Ting-Ting Chen, National Taiwan University This research compares two cause-related marketing (CRM) ad execution styles. Moderating effects of product type and type of cause promotion are considered. Findings underscore the importance for marketers to learn more about how visuals work and reveal how practitioners can avoid consumer negative reactions to cause-related ads. [to cite]: Chun-Tuan Chang, Yu-Kang Lee, and Ting-Ting Chen (2011) ,"Product Or Cause?: the Impacts of Product Type and Cause Framing in Cause-Related Marketing Advertising", in NA - Advances in Consumer Research Volume 39, eds. Rohini Ahluwalia, Tanya L. Chartrand, and Rebecca K. Ratner, Duluth, MN : Association for Consumer Research, Pages: 465-467. [url]: http://www.acrwebsite.org/volumes/1009355/volumes/v39/NA-39 [copyright notice]: This work is copyrighted by The Association for Consumer Research. For permission to copy or use this work in whole or in part, please contact the Copyright Clearance Center at http://www.copyright.com/. Product or Cause? The Impacts of Product Type and Cause Framing in Cause-Related Marketing Advertising Chun-Tuan Chang, National Sun Yat-sen University Yu-Kang Lee, National Sun Yat-sen University Ting-Ting Chen, National Taiwan University Extended Abstract Because of increasing public concern over social and environmental matters, many companies have begun to affiliate their products with a range of popular causes related to social and ecological issues. Partnership between product and cause is referred to as cause-related marketing (CRM) (Varadarajan and Menon, 1988). One influential variable that has been identified to determine the success of CRM is its advertising (Chang, 2008 and 2011; Lafferty and Edmondson, 2009). This article contributes to this evolving stream of research by comparing the two execution styles (i.e., productoriented vs. cause-focused) in promoting CRM campaigns. This research will demonstrate that these two execution styles might not be equally persuasive in all conditions, and could be moderated by two variables: product type and cause framing. The findings from two experiments raise concerns about the effectiveness of visuals, as well as questions when different visuals (cause or product photo as dominance) are persuasive. The results suggest that selection of cause/product as visual can be an effective tool for influencing consumer behavior, notably in product purchase behaviors. Different from Lafferty and Edmondson (2009) in which the examined cause was low in importance and familiarity (i.e., the Conservancy’s efforts to protect the Northern Rocky Mountain Grizzlies’ habitat). In current research, World Vision in Study 1 was considered as a non-profit with high credibility and familiarity (Chang, 2008). Using a fictitious non-profit (i.e., Medical Research Charities Association), cause importance was considered as a covariate in Study 2. Extending recent developments in execution style of CRM advertising literature, the present research identifies boundary conditions associated with the roles of product type and cause framing in consumer evaluations of CRM ads. In doing so, the study is capable of providing insight into the important, but previously unanswered questions of “Under what conditions do cause-focused ads facilitate consumer attitudes and purchase intentions? Conversely, when does a cause-focused ad backfire?” The findings presented here establish that the influence of execution style on consumer response is relatively complex and contingent on product type and cause framing. In terms of the relative effects of different product types, this study shows systematic effects on consumer responses by comparing hedonic and utilitarian products/values. Five observations are noteworthy. First, the beneficial effects of using a cause as a visual focus occur when a hedonic product is promoted or when a product is perceived hedonic. Emotion contagion can be used to explain such a phenomenon. People think with their hearts for hedonic consumption, which arouses emotions including pleasure and guilt. Consistent to charity donation literature (e.g., Chang and Lee, 2009; Small and Verrochi, 2009), visuals of a cause may cause vividness and stimulate sympathy and, thus, more positive attitudes and purchase intentions. The congruence between emotion from hedonic product purchase and emotion evoked by a cause image facilitates people to purchase the promoted with a cause. From a practical point of view, the findings here should be considered encouraging companies who wish to employ cause photos in initiating CRM ads. Second, a product photo as a visual emphasis is more effective when a utilitarian product is promoted or when a product is perceived utilitarian. Using a product as focal visuals provides precise benefits/ attributes. This matches well with the rationality of utilitarian con- sumption. The finding echoes Lafferty and Edmondson (2009) that the photo of a utilitarian product (i.e., granola bars) had a greater effect on purchase intentions than the cause photo. Third, investigating impacts of value framing is an important marketing issue because both self-benefit and other-benefit appeals are commonly used as good-faith attempts to communicate why the cause should be supported. However, they may not be equivalent with respect to their ability to enhance CRM effectiveness. An otherbenefit appeal facilitates the effects of a cause-focused ad on hedonic product advertising, while a self-benefit appeal enhances the effects of product-oriented ad on utilitarian product promotion. This lends qualified support to the phenomenon of value congruity (Brunel and Nelson, 2000; Chang, Lee, and Chen, 2009) in charity promotion contexts. Altering the frame of a persuasive message is a relatively straightforward task. An appropriately framed message could be incorporated into CRM campaigns to increase its effectiveness. Fourth, it appears that cause framing could play a similar role as what execution style does in CRM advertising since both influences are contingent on product type. One major difference between cause framing and execution style is the format of presentation: the former is verbal portrayal and the latter is visual display. When comparing each interaction with product type, the experiment results indicate a stronger influence of execution style. The results echo an old saying “a picture is worth a thousand words.” Actually, image display is widely used in a charitable communication to boost vividness effects (Chang and Lee, 2009; Perrine and Heather, 2000; Thornton, Kirchner, and Jacobs, 1991). The use of visuals requires more expenses than verbal description, as more talent, artistic skills and digital enhancement are needed for developing impressive images. Meanwhile, good visuals improve advertising persuasion and increase product sales. Finally, the main effect of product type is consistently found in Study 1 and 2. The results demonstrate the previously observed effects of product type on CRM by comparing utilitarian and hedonic products (Chang, 2008; Strahilevitz, 1999; Strahilevitz and Myers, 1998). The advantage of perceived hedonic value resides in its ability to elicit more favorable consumer attitudes toward the company and toward the sponsoring firm. The current investigation provides guidance for practitioners to frame the nature of the product in CRM campaigns. Perceived hedonic value is an important element in CRM. Transforming a product with perceived utilitarian value into one with clear hedonic value can be an important re-positioning strategy for a company using CRM to successfully promote the product. To marketers who intend to promote products with charity incentive, this research provides marketing implications into how consumers respond to differently framed CRM messages based on product features. This research suggests that there are specific optimal ways for information presented in an ad that may optimize the effectiveness of cause-related campaigns. The present research should serve a starting point for entry into this under-researched area. 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