Download Cause-related marketing: More than just a

Cause-related marketing:
More than just a thought?
A literature review on the effects of human information processing
on consumers’ attitudes regarding CRM products
and the related purchase intentions
Author
Supervisor
T. Jaspers
S901923
Student Business Administration
Faculty of Economics and Business Administration
Tilburg University
Topic 18, cause-related marketing
E.A.A. Dreezens
Department of Marketing
Table of contents
Chapter 1. Introduction .............................................................................................................. 3
1.1
Problem background .................................................................................................. 3
1.2
Problem statement ...................................................................................................... 4
1.3
Research questions ..................................................................................................... 5
1.4
Conceptual model ....................................................................................................... 5
1.5
Relevance ................................................................................................................... 5
1.5.1 Academic relevance .................................................................................................. 5
1.5.2 Managerial relevance ................................................................................................ 6
Chapter 2. The definition of cause-related marketing ................................................................ 7
2.1 The definition of cause-related marketing........................................................................ 7
2.2 The Benefits of cause-related marketing .......................................................................... 7
2.3 Conclusions ...................................................................................................................... 9
Chapter 3. The course of human information processing ........................................................ 10
3.1 Introduction to the Elaboration-Likelihood model......................................................... 10
3.2 The Elaboration-Likelihood model ................................................................................ 10
3.3 Practical difficulties regarding the Elaboration-Likelihood model ................................ 12
3.4 The consumers’ motivation to process information ....................................................... 13
3.4.1 Motivation and routes of information processing ................................................... 13
3.4.2 Routes of information processing and consumers’ attitudes ................................... 14
3.4.3 Cause-related marketing and consumers’ motivation ............................................. 15
3.5 The consumers’ ability to process information .............................................................. 15
3.5.1 Intelligence & knowledge, consumers’ ability and consumers’ attitudes ............... 15
3.5.2 Situational factors, consumers’ ability and consumers’ attitudes ........................... 16
3.6 Conclusions .................................................................................................................... 17
Chapter 4. The consumers’ purchase intentions....................................................................... 18
4.1 The Theory of Planned Behaviour ................................................................................. 18
4.2 Purchase intentions ......................................................................................................... 20
4.3 Conclusions .................................................................................................................... 21
Chapter 5. Conclusions ............................................................................................................ 22
5.1 Conclusions .................................................................................................................... 22
5.2 Managerial implications ................................................................................................. 22
5.3 Suggestions for further research ..................................................................................... 23
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Chapter 1. Introduction
This chapter will address the problem background as an introduction to the term cause-related
marketing. From here the problem statement, the research questions and the conceptual model
will be formed. Then, the academic as well as the managerial relevance will be discussed.
1.1 Problem background
Cause-related marketing (CRM) can be defined as ‘marketing activities in which company
donations to a specified cause are based upon sales of specified goods or services’ (Larson,
Flaherty, Zablah, Brown & Wiener, 2008, p.272). One of the earliest and maybe one of the
most famous examples dates from 1982. The Statue of Liberty was in need of restoration and
the American Express company launched a very successful campaign, where American
Express contributed one penny to the restoration project for every purchase a customer made
with his or her American Express Card. The campaign raised $1.7 million, but more
importantly, the transactions made by American Express card holders rose by 28 per cent in
just the first month and the new card applications rose by 45 per cent (Kelly, 1991).
Various benefits of cause-related marketing have been discussed in the literature.
From a company’s perspective a better brand image and a loyal customer base (Pracejus &
Olsen, 2004; Bandyopadhyay & Martell, 2007) are a few benefits that can lead to higher sales
and an increased market share (Ross, Patterson & Stutts, 1992; Oldenburg, 1992). But to
claim any of these benefits, the company has to make consumers aware of the cooperation
between the company and the cause, so the company and the cause have to set up a CRM
campaign. A CRM campaign is designed for changing the consumers’ opinion, or for
eventually altering the consumers’ behaviour in a way that generates income for both the
company and the cause. But exactly what happens when a consumer is exposed to a CRM
campaign? And how could this exposure to a CRM campaign be related to consumers’
purchase intentions? These questions shall be answered by using the Elaboration-Likelihood
model (ELM) (Petty & Cacioppo, 1986) and in addition, the Theory of Planned Behaviour
(TPB) (Ajzen, 1985).
According to the Elaboration-Likelihood model (ELM) (Petty & Cacioppo, 1986),
consumers’ attitudes are formed or changed when consumers process information from a
marketing message. Processing information can be done in two ways; in a high involvement
manner (the central route) or in a low involvement manner (the peripheral route). The two key
variables that determine by which route consumers process information are consumers’
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motivation to process information and consumers’ ability to process information (Petty &
Cacioppo, 1986; Rucker & Petty, 2006). The main focus of this study lies on explaining how
consumers’ attitudes towards the buying behaviour regarding products from CRM campaigns
are influenced by these two variables. Here, the variable attitude is defined as a general
predisposition to behave favourably or unfavourably towards a certain object (Park &
Macinnis, 2006, p.16)
The next step in this study will be to explain how consumers’ attitudes towards the
buying behaviour are related to behavioural intentions. This shall be done by using the theory
of planned behaviour (TPB) (Ajzen, 1985). Instead of focussing on consumers’ attitudes
towards brands or products, this study focuses on consumers’ attitudes towards the buying
behaviour. Focussing on consumers’ attitudes towards the buying behaviour facilitates using
the theory of planned behaviour (TPB) (Ajzen, 1985) in the conceptual model, since the TPB
proposes that an attitude towards a behaviour is one of three determinants for behavioural
intentions, together with subjective norm and perceived behavioural control. According to the
TPB (Ajzen, 1985), behavioural intentions and perceived behavioural control are assumed to
be predictors of the behaviour itself. In this study the consumers’ behavioural intentions will
be replaced by the consumers’ purchase intentions, since ‘purchase intentions’ is in this case
the specified behaviour that is proved to be a predictor for consumers’ buying behaviour
(Morwitz, Steckel & Gupta, 2007; Bemmaor, 1995), and eventually consumers’ buying
behaviour will generate income for both the company and the cause. Furthermore, in this
study, only the relationship between the variable attitude towards the behaviour (in this case
towards consumers’ buying behaviour) and the variable behavioural intention shall be used as
an extension to the variables motivation to process information and ability to process
information. The other two variables, subjective norm and perceived behavioural control, are
excluded from the conceptual model because including these determinants could make the
conceptual model too complex and this could jeopardize the feasibility of this study. The
relationship between behavioural intentions and the behaviour itself will not be included,
since the predictive power of the variable behavioural intentions is impaired because of the
exclusion of subjective norm and the perceived behavioural control.
1.2 Problem statement
Based on the problem background the following research question can be developed:
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How do consumers’ motivation and ability to process information influence consumers’
attitudes and how do consumers’ attitudes influence the related purchase intentions?
1.3 Research questions
1. What is cause-related marketing?
2. How does the consumers’ motivation to process information influence consumers’
attitudes towards the buying behaviour regarding CRM products?
3. How does the consumers’ ability to process information influence consumers’ attitudes
towards the buying behaviour regarding CRM products?
4. In what way do consumers’ attitudes towards the buying behaviour regarding CRM
products influence consumers’ purchase intentions regarding CRM products?
1.4 Conceptual model
Based on the problem background, the problem statement and the research questions, the
following conceptual model is drawn.
1.5 Relevance
1.5.1 Academic relevance
Multiple studies have focused on various, specific aspects of the relationship between CRM
and consumers’ attitudes towards firms or brands. For example, Ross et al. (1992) showed
that consumers hold a more favourable attitude towards a firm that supports a local cause than
a firm that supports a national cause. They also found that women hold a more positive
attitude towards the firm than men do. Samu and Wymer (2009) discovered that there is an
interaction effect between the perceived fit and the dominance of the advertisement. When the
perceived fit and the dominance where higher, the attitude towards the brand in the CRM
campaign were significantly more favourable.
All these studies have been done because CRM campaigns have specific features that
normal marketing campaigns do not have. For instance, because a CRM campaign consists of
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a charity and a company, the charity should be selected carefully and the consumer needs to
be informed well about the company’s and charity’s motives in order to reduce the
consumers’ distrust (Nan & Heo, 2007; Lafferty, 2007). Furthermore, a CRM advertisement
campaign generally features cues (logos, celebrities, pictures, background music) that are
intended to affect the consumers’ emotions, and these emotions (positive or negative) can
influence consumers’ attitudes towards brands (favourably or unfavourably) (Rucker & Petty,
2006). Thus, a CRM campaign is combination information and cues that are carefully selected
in order to persuade the consumer (Grau & Folse, 2007). However, no study has focused on
explaining how the manner in which consumers process this information and these cues from
a CRM campaign could influence consumers’ attitudes towards the buying behaviour, and
how this subsequently would influence consumers’ purchase intentions regarding products
from CRM campaigns.
1.5.2 Managerial relevance
For managers, this study gives a very useful insight for understanding how to communicate a
CRM message in a most effective way, that is, the way that benefits the company (and the
cause) most. The ELM (Petty & Cacioppo, 1986) assumes that there are two routes to
persuasion, the central route and the peripheral route. Each route has specific implications for
effectively communicating a message, and thus the marketer needs to adjust his campaign to
his marketing goals. In the central route, the route where consumers have high motivation and
a high ability to process information, the consumer generally requires more detailed
information to form a solid attitude. The peripheral route is the route where the consumer
does not have much motivation and does not have a high ability to process information. So
here, the marketer needs to focus on peripheral cues like pictures, background music or the
people to choose in the CRM campaign (e.g. celebrities). Thus, by providing this framework,
the marketer knows which implications follow from the CRM campaign.
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Chapter 2. The definition of cause-related marketing
This chapter will serve as an introduction to the phenomenon cause-related marketing. In the
first paragraph, a definition of cause-related marketing (CRM) will be given, as well as an
explanation why this definition is chosen. The second paragraph will treat benefits of CRM
from the company’s perspective.
2.1 The definition of cause-related marketing
In this paper, Larson et al.’s (2006, p.391) definition of cause-related marketing will be used,
where CRM is described as ‘marketing activities in which company donations to a specified
cause are based upon sales of specified goods or services’. The crucial factor for using this
definition lies in the fact that this definition pairs the companies’ donations with causes, and
that this definition also links the donations with the ‘sales of specified goods or services’.
Some broader definitions (e.g. the pairing of a firm and a charity in a marketing effort’ (Basil
& Herr, 2006, p.391)) do not link the donation size based on sales or donations in general
with CRM. By excluding the donation size (based on sales), any general marketing activity
between firms and causes, such as a sponsorship activity, which is in fact a form of corporate
philanthropy, would also fall under CRM. However, CRM should not be seen as solely a form
of corporate philanthropy, because besides all the ethical or social motives companies may
have for using CRM, companies want to make sales and profits and CRM should as well be
viewed as a tool for making those extra sales and profit (Varadarajan & Menon, 1988; Webb
& Mohr, 1998).
2.2 The Benefits of cause-related marketing
Nowadays consumers might face some problems when they buy products, because of the
wide range of products that is being offered to them by companies. To stand out from other
companies, companies would like to sell products that are distinct from the competitors’
products in one or more aspects; this is called the unique selling proposition, or the unique
selling point (Miller & Henthorne, 2007). A few examples of unique selling points are, that a
certain product is cheaper, a certain product has a higher quality or the company wants to
provide a product with higher quality services (e.g. customer helpdesk, delivery service).
Another example of a unique selling point is CRM, not only because it is a cooperation
between a company and a charity, but also because consumers are directly involved in the
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donation process since consumers contribute money that will be donated to the cause by the
purchases consumers make (Larson et al., 2008). Thus, one could say CRM has an altruistic
nature (Lafferty & Goldsmith, 2005), which is both beneficial and a unique selling point in
the contemporary marketplace.
The latest advertisement campaign of Crystal Clear is an excellent example for
clarifying the possible benefits that arise from CRM. In cooperation with Plan Nederland
Crystal Clear started an advertising campaign which is called ‘Women in Control’1. The
money that is raised by the sales will be invested in developing countries for women to live
their lives independently. In the commercials, solely women are shown in a rather
‘independent’ setting. For example, in one commercial two happy women have independently
reached the top of the Mount Everest and they enjoy that moment with a soft drink of Crystal
Clear. Then a reference to ‘Women in Control’ is being made in the commercial. In another
commercial, the focus lies again on independent, happy women, but this time working women
in developing countries are shown. This time, consumers are told to buy Crystal Clear
because by buying Crystal Clear soft drinks, the consumer supports the Women in Control
Fund.
Here Crystal Clear breaks through the advertising clutter from all the soft drinks
(Oldenburg, 1992) and thereby differentiates the brand Crystal Clear from other soft drinks
(Schlegelmilch & Woodruffe, 1995). Another possible benefit that arises from CRM is market
segmentation (Bennet, 2002), which can be defined as defining submarkets (groups of
consumers) based on specific characteristics of consumers (Chen, Cho, Poudyal & Roberts,
2009). By cooperating with Plan Nederland and promoting itself as a soft drink for women
that supports other women, women who like to support the idea of independent women are
more easily targeted (File & Prince, 1998).
Consumers are likely to perceive brands that engage in CRM as being altruistic and
generous (Hoeffler & Keller, 2002). In the Crystal Clear example, consumers could be
inclined to value the brand Crystal Clear higher than other brands based on those
characteristics (e.g. generous, altruistic) which the consumers ascribe to the brand (Polonsky
& MacDonald, 2000). The extra value consumers ascribe to the brand based on those specific
characteristics is called the brand equity (Netemeyer et al., 2004). Also, when consumers of
Crystal Clear identify themselves with the brand and/or the cause, the consumers could
1
http://www.crystalclear.nl/in-control
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remain loyal to the brand for a long period of time, which is beneficial in the long run
(Pracejus & Olsen, 2004).
Not only the relationship between consumers and a company is believed to improve
thanks to CRM campaigns. Also the relationship between a company and other stakeholders
is likely to improve, such as the relationship between a company and shareholders (Smith,
1990), between a company and important people in public life (Smith, 1990), but also
between a company and employees, whose morale is likely to be improved (Bennett, 1997;
File & Prince, 1998). This improved relationship is likely to be accomplished, because CRM
is accompanied with positive publicity, which gives stakeholders an insight in which activities
the company is currently engaging (Nichols, 1990). All mentioned benefits are excellent for a
company to build a good relationship with its customers. But CRM does not only help to
build a good relationship between a company and customers and/or stakeholders (Smith,
1990), it ultimately will effect sales and market share. Sales are most likely to increase
(Kropp, Holden & Lavack, 1999), which is very well illustrated in the example of the Statue
of Liberty in which transactions rose by 28 per cent in just the first month and the new card
applications rose by 45 per cent (Kelly, 1991). When sales increase with a higher percentage
than the overall market, market share also increases. For example, Pracejus and Olsen (2004)
tested under laboratory conditions the effects of CRM campaigns on market share. They
tested what effect a CRM campaign would have on market share. In their study, respondents
where exposed to different CRM campaigns in which some charities had a high fit with a
theme park and some charities had a low fit with a theme park. They calculated that market
share rose by 8.3 % for the low-fit setting and by 17.3 % for the high-fit setting. Apparently,
the amount of fit amplified the effects of CRM (Pracejus & Olsen, 2004).
2.3 Conclusions
This chapter has described CRM as a marketing activity in which company donations to a
charity are based upon sales of specified goods or services. Furthermore, this chapter has
described important benefits of CRM from a company’s perspective. Market differentiation
and market segmentation is easier to accomplish when a company uses CRM. Also, CRM
helps to build brand equity and brand loyalty. Moreover, the relationship with stakeholders is
likely to improve. Finally, sales and market share are most likely to increase when a company
uses CRM.
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Chapter 3. The course of human information processing
This chapter discusses how the course of human information processing influences
consumers’ attitudes towards the buying behaviour regarding CRM products. The first
paragraph will explain why the Elaboration-Likelihood model was chosen for this research.
The second and third paragraph will treat the Elaboration-Likelihood model and its practical
difficulties. The fourth and fifth paragraph will answer the question how consumers’
motivation and ability to process information influence consumers’ attitudes towards the
buying behaviour regarding CRM products.
3.1 Introduction to the Elaboration-Likelihood model
Two models which are often used in the marketing literature for explaining how consumers
process information from a persuasive message, are the Heuristic Systematic Model (HSM)
(Chaiken, 1980) and the Elaboration-Likelihood Model (ELM) (Petty & Cacioppo, 1986).
Both models share the view that in order to form or change an attitude, the consumer can
process information in two manners, in a manner in which the consumer has a lot of
motivation to process information and many cognitive resources (central processing and
systematic processing) or in a manner in which the consumer does not have a lot of
motivation to process information and does not have many cognitive resources (peripheral
processing and heuristic processing) (Rucker & Petty, 2006; Zuckerman & Chaiken, 1998).
While both models seem to be suitable for this research, only one model could be integrated
into the conceptual model. Two motives for using the ELM are firstly that the ELM focuses
on the formation process of attitudes, whereas the HSM also focuses on different types of
involvement consumers have when consumers process information (Chaiken, 1980). This
makes integrating the HSM into the conceptual model more difficult. And secondly, the HSM
does not consist of useable variables for investigating the formation process of attitudes,
whereas the ELM uses the variables motivation and ability to process information (Petty &
Cacioppo, 1986). In addition to previously mentioned motives, the ELM is proved to be an
excellent model for explaining the formation process of attitudes. That is why the ELM was
chosen for this study and was thereby integrated into the conceptual model.
3.2 The Elaboration-Likelihood model
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The ELM distinguishes two routes under which consumers process information, the central
route and the peripheral route (Petty & Cacioppo, 1986). When both motivation to process
information and ability to process information are high, the consumer processes information
under the central route. Under this route, not only external information (from the persuasive
message) but also all internal relevant information (previously stored information) is
deliberately taken into account by the consumer (Dotson & Hyatt, 2000; Rucker & Petty,
2006). In the light of CRM, an example of central processing could be the processing of both
strong arguments (e.g. facts) from the advertisement and the processing of previously stored
information about the cause and/or the company. Obviously, under central processing, the
initial state of attitudes will only change favourably or unfavourably if the nature of the
thoughts that come up in the consumers’ minds are positive or negative. When the nature of
the thoughts are neutral, no alteration of attitudes will occur (Rucker & Petty, 2006).
When either motivation or ability to process information is low, information will be
processed under the peripheral route. Here, the consumer unconsciously looks for peripheral
cues (pictures, logos, symbols or background music) or heuristics. Heuristics can be defined
as ‘simple decision rules’ (Zuckerman & Chaiken, 1998 p.621). Price can be an example of a
heuristic, in this case the consumer could perceive a high price of a product as an indicator of
high quality and a low price as an indicator of low quality (Darke, Freedman & Chaiken,
1995). An other example of a heuristic is the fact that the consumer could agree on the content
of a message based on the expertise of the messenger in a campaign (Chaiken, 1980).
Peripheral processing could as well be accompanied by classical conditioning (Till, Stanley &
Priluck, 2008). In the context of cause-related marketing, a highly respected expert, in for
example the field of sports, could make a statement (the conditioned stimulus) in an
advertisement why a CRM product benefits a certain cause. The use of this expert could
generate a certain emotion (e.g. trust, arousal, surprise) which is called the unconditioned
stimulus (Till, Stanley & Priluck, 2008). Although the conditioned stimulus and
unconditioned stimulus are unrelated, the consumer pairs them together so that the CRM
product, CRM brand or a certain behaviour is associated with that certain emotion.
When a campaign or advertisement solely consists of peripheral cues and heuristics,
the consumer saves energy and time because no elaboration is needed to process detailed
information. This is why, generally speaking, consumers tend to prefer putting less effort in
processing information from advertisements or campaigns (Darke, Freedman & Chaiken,
1995). In some cases, a consumer does not have motivation or ability to process information
from the persuasive message, nor does he get stimulated by any cues or heuristics. In this
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case, no information will be processed and obviously, no alteration of consumer attitude has
taken place (Petty & Cacioppo, 1986).
3.3 Practical difficulties regarding the Elaboration-Likelihood model
Although the ELM gives a clear insight on how attitudes are formed when consumers process
information (Areni, 2003), there are some practical difficulties which could make it difficult
for marketers to apply the ELM. First of all, the ELM fails to explain how given information
or cues could interact with the manner in which consumers process information. For instance,
if a CRM advertisement consists of central cues (e.g. strong arguments, many facts) that a
consumer finds interesting, consumers’ motivation to process the advertisement is most likely
to increase (Grau & Folse, 2007). To elaborate on this, some consumers have a higher
motivation to engage in cognitive activities than other consumers; this desire is called the
need for cognition (Steinhart & Wyer, 2009). The fact that some consumers may have a
higher need for cognition results from the consumers’ intrinsic desire to engage in challenging
cognitive activities (e.g. actively processing information from the add), but also from an
extrinsic desire to achieve positive outcomes (e.g. supporting charities) and avoid negative
outcomes (e.g. neglecting charities). Steinhart and Wyer (2009) demonstrated that when
individuals’ need for cognition increases, the motivation to complete tasks also increases.
Thus cues of CRM campaigns can enhance both intrinsic and extrinsic desires and thereby
also the consumers’ motivation (Steinhart & Wyer, 2009; Reinhard & Dickhäuser, 2009).
Here, the ELM alone does not explain how information and cues could influence consumers’
motivation.
In addition, Mackenzie, Lutz and Belch (1986) showed that peripheral processes and
central processes can be interrelated when message acceptance is taken into account during
cognitive processing. Message acceptance is determined by the degree in which beliefs
correspond with statements from campaigns (Areni, 2002). For example, the use of an expert
is considered to be a peripheral cue or a heuristic, especially if an expert’s argument
corresponds with the opinion of the consumer. But when an expert’s argument does not
correspond with the consumer’s opinion, the consumer is likely to put more elaboration in
retrieving additional information, and thus tends to process information under the central
route (Petty & Cacioppo, 1986). Here a peripheral cue has initiated central processing of
information, and the ELM does not give a clear view on the interrelationship between
peripheral and central processing.
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Various studies have demonstrated the importance of the quality of information and
arguments in advertisement campaigns (e.g. Peracchio & Meyers-Levy, 1997; Shiv, Edell &
Payne, 1997). However, practical problems regarding the ELM arise when the quality of
information and arguments is taken into consideration. The ELM only categorises central cues
and peripheral cues (Petty & Cacioppo, 1986). But the ELM does not categorise the
information, arguments and cues based on (perceived) quality, and thereby does not answer
the question why information, arguments and cues would in fact be effective or ineffective
(Boller, Swasy & Munch, 1990).
3.4 The consumers’ motivation to process information
3.4.1 Motivation and routes of information processing
According to the ELM, consumers’ motivation to process information directly influences the
consumers’ course of information processing (Petty & Cacioppo, 1986). Motivation can be
defined as ‘the process that temporarily enhances sensitivity to specific stimuli and produces
goal-directed behaviours’ (Anselme, 2010, p. 292). It is determined by several other factors,
such as degree to which a consumer finds the information relevant (Petty & Cacioppo,
1979b), the degree to which a consumer feels personally responsible for processing the
information (Petty, Harkins & Williams, 1980) and degree to which a consumer takes
pleasure out of thinking in general (Haugtvedt, Petty & Cacioppo, 1992). Because consumers’
motivation to process information directly influences the consumers’ course of information
processing, it eventually affects consumers’ attitudes towards the buying behaviour regarding
CRM products.
Mackenzie and Spreng (1992) have two explanations why consumers’ motivation to
process information would determine the route under which the consumers process
information. Both explanations find empirical support across the literature, and thus both
explanations may be true (Mackenzie & Spreng, 1992). The first explanation states that if
consumers’ motivation to process information increases, the impact of processing central cues
(e.g. arguments, facts) on consumers’ attitudes towards the buying behaviour increases, and
the impact of processing peripheral cues (e.g. background music, celebrities and symbols) on
consumers’ attitudes towards the buying behaviour decreases (for empirical support: Celsi &
Olson, 1988; Miniard, Bhatla & Rose, 1990). The second explanation assumes that when
consumers’ motivation to process information increases, the impact on consumers’ attitudes
towards the buying behaviour remains the same (Mackenzie & Spreng, 1992). In this case,
when consumers’ motivation to process information increases, only the strength of the
13
relationship between peripheral processing and consumers’ attitudes towards the buying
behaviour decreases, and only the strength of the relationship between central processing and
consumers’ attitudes towards the buying behaviour increases (for empirical support: Gardner,
1985; Lutz, MacKenzie & Belch, 1983; Droge, 1989). Both theories correspond to the idea
that highly motivated consumers tend to process information systematically, and thus tend to
follow the central route (Maheswaran & Chaiken, 1991).
3.4.2 Routes of information processing and consumers’ attitudes
Consumers can be highly motivated to process information, and can thus be more likely to
process information under the central route (Petty & Cacioppo, 1986). This has a significant
impact on their attitudes towards the buying behaviour regarding products from CRM
campaigns. For instance, consumers are more likely to form solid attitudes that are not easily
changed by counterarguments from competitors (Petty & Cacioppo, 1986; Sengupta,
Goodstein & Boninger, 1997). The success of the CRM campaign can be dependent on the
consumers’ resistance to counter-messages from the company’s competitors (Sengupta,
Goodstein & Boninger, 1997). Also, compared to attitudes towards the buying behaviour
which are formed under the peripheral route, attitudes towards the buying behaviour which
are formed under the central route are generally better predictors for long-term purchase
intentions and other judgements than solely regarding the CRM product and cause (Petty,
Haugtvedt & Smith, 1995). One possible explanation for this could be that attitudes which are
formed under the central route require much thought, are easily retrieved into one’s mind
when needed and are held with much confidence (Maheswaran & Chaiken, 1991). If
consumers are not motivated to process information, and thus are more likely to
unconsciously process cues and heuristics under the peripheral route, consumers’ attitude
towards the buying behaviour regarding CRM products is most likely to alter for only a short
period of time. To elaborate on this, peripheral processing could be accompanied by an
emotional change, because cues could generate certain type of emotions (e.g. joy, trust, fear).
Since emotions are typically short of duration (Bosman & Winden, 2002), consumers’
attitudes towards the buying behaviour regarding CRM products is thus most likely to be
influenced for a relatively short period of time. One notion should be made, the effect of
peripheral cues which provoke emotional change should not be underestimated. Bosman and
Winden (2002) mention that emotions can be very influential in consumers’ decision making
process, because emotions tend to show up unintentionally when a decision has to be made.
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3.4.3 Cause-related marketing and consumers’ motivation
The question arises whether CRM campaigns increase consumers’ motivation to process
information. The answer to this question would have significant consequences since a higher
motivation would make the consumer inclined to process information under the central route,
and thus a more solid, easily retrievable attitude towards the buying behaviour would be
formed (Maheswaran & Chaiken, 1991). On one hand it seems clear that generally speaking
consumers find CRM attractive and thereby consumers’ motivation to process information
increases because of CRM campaigns (Petty & Cacioppo, 1986; Smith & Alcorn, 1991). But
on the other hand it should be kept in mind that the given information and cues could also
interact with consumers’ motivation to process information (Grau & Folse, 2007; MacInnis,
Moorman & Jaworski, 1991). The Crystal Clear campaign will be used as an example to
illustrate this. The Crystal Clear campaign consists of several peripheral cues, such as
background music, celebrities, the logo of Plan Nederland, bright colours and smiling faces of
people from all over the world2. In addition, plenty of information regarding the supporting
activities of the cause is given in the campaign. For interested consumers, a link to the website
is given, where additional information is given.
This campaign clearly consists of both central and peripheral cues, and thus, in this
case, the marketer could provoke both central and peripheral processing, depending on the
degree to which the consumer finds the content of the campaign personally relevant (Petty &
Cacioppo, 1986; Celsi & Olsen, 1988). Consumers who are interested in Crystal Clear or
CRM will have a higher motivation to process this advertisement, and thus central processing
is likely to occur. MacInnis, Moorman and Jaworski (1991) note that providing additional
information and cues could make a CRM campaign more relevant to consumers who find
Crystal Clear or CRM less interesting, and thereby consumers’ motivation to process
information would still increase. In summary, CRM campaigns could increase consumers’
motivation, but whether consumers’ motivation would actually increase depends on the
consumers’ characteristics (what consumers find personally relevant) and on the transmitted
peripheral and central cues consumers receive (MacInnis, Moorman & Jaworski, 1991).
3.5 The consumers’ ability to process information
3.5.1 Intelligence & knowledge, consumers’ ability and consumers’ attitudes
2
http://www.crystalclear.nl/in-control
15
The consumers’ ability to process information is for a large part influenced by the consumers’
intelligence and knowledge about CRM. As the consumers’ intelligence or knowledge about
companies and charities rises, the consumers’ ability to encode and to classify information
increases, which also creates an increase in learning abilities (Johnson & Russo, 1984). When
the consumer encodes and classifies information more efficiently, consumers’ ability to
process information rises and thus the consumer is more likely to process information under
the central route (Johnson & Russo, 1984; Petty & Cacioppo, 1986). In the context of CRM,
when a consumer with a lot of experience or with a lot of knowledge of the brand, of the
cause or of marketing in general watches an advertisement that promotes to buy a CRM
product, he is most likely to process the information under the central route. In this case,
based on the thoughts (favourable or unfavourable) that come up, a strong, enduring attitude
(positive or negative) towards the buying behaviour regarding CRM products would be
formed (Rucker & Petty, 2006).
3.5.2 Situational factors, consumers’ ability and consumers’ attitudes
Factors that are specific to the situation in which consumers process information could also
influence consumers’ ability to process information (Petty & Cacioppo, 1986). Time is an
example of a situational factor that could influence the consumers’ ability to process
information. One could see that the available amount of time is always constrained by other
factors such as the consumers’ environment or the consumers’ agenda. Because the available
amount of time is always constrained, consumers want to spend it wisely. That is why
consumers, or people in general, see time as an opportunity cost (Berry, 1996). As time
pressure increases, the constrains of time inhibit the consumers’ ability to put effort in
information processing, and thus consumers are more likely to process cues or heuristics
under the peripheral route (Rieskamp & Hoffrage, 2008).
One other example of a situational factor that could influence consumers’ ability to
process information is the amount of distraction the consumer experiences (Biswas, Biswas &
Chatterjee, 2008). When a consumer is distracted, his attention is drawn away from the
persuasive message. Now distraction has a negative impact on the consumers’ memory
(Barrouillet, Bernardin, & Camos, 2004). Thus now, consumers are less likely to put effort in
processing information, because consumers will have more difficulties in memorizing
information. In addition, extreme levels of distraction could make the process of memorizing
impossible for the consumer. Thus, distraction reduces consumers’ ability to process
information, and thereby gives the consumer a tendency to process cues or use heuristics
16
under the peripheral route (Barrouillet, Bernardin & Camos, 2004). In addition, Biswas,
Biswas and Chatterjee (2008) investigated if the sequence of transmitted peripheral cues
could influence the consumer decision making process. They demonstrated that under normal
circumstances without distraction, the cues that are firstly transmitted will have a greater
impact on the consumer decision making process than cues that are later on transmitted. When
the consumer is distracted, a reversed process takes place. The consumer’s decision making
process is more influenced by cues that the consumer had received in a later stage than by
cues that were received in an initial stage.
When consumers’ ability to process information is low, consumers are most likely to
process information under the peripheral route. Peripheral processing forms, compared to
central processing, attitudes towards a behaviour, firm or brand more quickly, since little
effort on the consumers’ side is required in the formation process (Rucker & Petty, 2006).
However, consumers’ attitudes towards the buying behaviour regarding CRM products are
also less enduring and more easily changed by counterarguments from competitors (Rucker &
Petty, 2006; Sengupta, Goodstein & Boninger, 1997).
3.6 Conclusions
This chapter has investigated whether consumers’ information processing influences
consumers’ attitude towards the buying behaviour regarding CRM products by using the
ELM. The two main variables of the ELM that describe how attitudes are formed, motivationand ability to process information were investigated. When a consumer has both motivation
and ability to process information, and thus central processing occurs, a stable and enduring
attitude towards the buying behaviour is formed. When a consumer lacks either motivation or
ability to process information, and thus peripheral processing occurs, a less enduring attitude
towards the buying behaviour is formed which is more easily changed by counterarguments of
competitors. However, peripheral processing is a process that requires little time and is
generally speaking preferred by consumers.
CRM campaigns are most likely to increase consumers’ motivation to process
information. However, it should be kept in mind that information and cues used in the
campaign could also have an effect on consumers’ motivation to process information.
Consumers’ ability to process information is not likely to be influenced by CRM, since
situational factors cannot be influenced by CRM campaigns. Only information about the
company or the charity in a CRM campaign could slightly increase consumers’ ability.
17
Chapter 4. The consumers’ purchase intentions
This chapter will explain how consumers’ attitudes towards the buying behaviour is related to
consumers’ purchase intentions. The first paragraph treats the Theory of Planned Behaviour
(TPB) (Ajzen, 1985). In the second paragraph, the relationship between consumers’ attitudes
towards the buying behaviour and consumers’ purchase intentions will be studied.
4.1 The Theory of Planned Behaviour
The Theory of Planned Behaviour (TPB) (Ajzen, 1985) was developed as an extension of the
Theory of Reasoned Action (TRA) (Fishbein & Ajzen, 1975). The TPB is used as a
conceptual framework for explaining human actions (Ajzen, 2001).
Figure 4.1 The theory of Planned behaviour (Ajzen, 1985)
To explain human behaviour, the theory assumes that two variables determine the likelihood a
certain behaviour will occur. Those two variables are behavioural intentions and perceived
behavioural control (Ajzen, 1985; Ajzen, 2002). Perceived behavioural control can be defined
as the perceived ease or difficulty of performing the behaviour (Ajzen 2002, p.665). As
mentioned in the first chapter, the consumers’ purchase intentions are the behavioural
18
intentions on which this study focuses. So according to the TPB, buying a CRM product, from
the consumer’s point of view, is determined by the purchase intentions the consumer has and
the amount of ease or difficulty the consumer perceives when he is performing the behaviour.
(Ajzen, 2002) For instance, when the consumer goes out to buy a CRM product, for example
a Crystal Clear soft drink, the consumer can perform all the right actions to buy the soft drink,
such as going to the super market, performing a search for the product and bringing a
sufficient amount of money to buy the product. But the consumer also has to deal with certain
circumstances, such as the availability of the product in his area. In most cases the consumer
probably does not perceive much behavioural control, but when he knows Crystal Clear
supplies to only a few supermarkets in his area, the perceived behavioural control is much
lower. In this case, the perceived behavioural control (in the form of product availability) does
not only restrict the consumer from actually buying the product when the product is not
available, but may also inhibit the consumers’ purchase intentions, because the consumer
perceives his capabilities to actually purchase the CRM product is substantially too low
(Ajzen, 1985; Ajzen, 2002; Bandura, 1991).
Thus perceived behavioural control influences behavioural intentions and actual
behaviours. But the TPB proposes that two other variables, subjective norm and attitude
towards a behaviour, also influence behavioural intentions. Subjective norm can be defined as
the perceived social pressure from significant others to perform a certain behaviour (Ajzen,
2002; Cheung & Lee, 2010). For example, when the consumer’s significant others (e.g.
family or friends) deliberately support charity by buying CRM products, the consumer might
feel some social pressure, and therefore be inclined to support the charity as well by buying a
CRM product. In the TPB, attitude towards a behaviour can be defined as the consumer’s
evaluation (favourably or unfavourably) of engaging in a single behaviour or a set of
behaviours (Fishbein & Ajzen, 1975).
According to the TPB, attitude towards a behaviour, subjective norm and perceived
behavioural control are all assumed to be results of the consumers’ beliefs (Ajzen, 1985). For
instance, attitude towards a behaviour is a result of the consumers’ underlying beliefs about
the consequences of the related behaviour (Ajzen, 2002). For example, if the consumer
believes that buying a CRM product will have positive consequences (e.g. supporting a
certain cause or satisfaction from the product), the attitude towards the buying behaviour will
probably be favourably towards buying the CRM product. The subjective norm is also a result
of the consumers’ beliefs, more specifically, it is a result of consumers’ beliefs about
expectations of other people, especially the expectations of significant others (Ajzen, 2002).
19
Perceived behavioural control is assumed to be a result of the consumers’ beliefs about the
likely consequences about the behaviour (Ajzen, 2002).
The TPB has been widely used as a predictor for all kind of behaviours, such as
weight loss behaviours (Schifter & Ajzen, 1985), driving behaviours (Elliot & Armitage,
2009), social networking behaviours (e.g. the use of facebook) (Cheung & Lee, 2010) and of
course as a predictor for consumer choice (Han, Hsu & Sheu, 2010; Cannière, Pelsmacker &
Geuens, 2009). In general, the TPB seems to predict behavioural intentions very well. In an
analysis of previous studies, Ajzen (1991) found that the three variables of the TPB (attitude
towards behaviour, subjective norm and perceived behavioural control) that should determine
behavioural intentions, in fact explained 31%-88% of the variance of behavioural intentions.
In an analysis of 185 previous studies, Armitage and Conner (2001) found that attitude,
subjective norm and perceived behavioural control explained 39% of the variance of
behavioural intentions, and in addition, 27% of the variance of the actual behaviours.
4.2 Purchase intentions
When consumers’ motivation and ability to process information is high, the consumer is
likely to process the information under the central route (Petty & Cacioppo, 1986). Attitudes
towards consumers’ buying behaviour that are formed under the central route are generally
stronger, are more easily retrieved from the mind, are less likely to be influenced by
competitors and are generally better predictors for long-term purchase intentions
(Maheswaran & Chaiken, 1991; Petty, Haugtvedt & Smith, 1995; Sengupta, Goodstein &
Boninger, 1997). On the other hand, under peripheral processing, which occurs when
consumers’ motivation and/or ability to process information is low, consumers’ attitudes
towards the buying behaviour is typically short of duration and relatively easily changed by
competitors (Petty, Haugtvedt & Smith, 1995; Sengupta, Goodstein & Boninger, 1997).
However, attitudes towards the buying behaviour formed under the peripheral route
could also influence consumers’ purchase intentions. To elaborate on this, consumers
generally prefer to put few effort in processing information from advertisements or campaigns
(Darke, Freedman & Chaiken, 1995). Thereby consumers’ motivation to process information
is low. But still, strong and relevant peripheral cues could engage the consumer to process the
cues under the peripheral route, and an immediate change in consumer attitude towards the
buying behaviour would occur (Rucker & Petty, 2006). In this scenario, consumers’ attitudes
towards the buying behaviour would then have a significant positive or negative impact on the
purchase intentions and the buying behaviour, depending on the nature of the consumers’
20
attitudes towards the buying behaviour (Lee, Park, Moon, Yang & Kim, 2009). In addition,
sometimes it is only possible for a marketer to persuade a consumer under the peripheral route
(Rucker & Petty, 2006). For example, consumers are exposed to many campaigns and
television commercials. This exposure makes the consumer less motivated and/or able to
process all the campaigns with full attention. In this case, to persuade the consumer and to
cause any attitude change, the marketer has to use peripheral cues (Rucker & Petty, 2006).
Regarding CRM, various studies have demonstrated that CRM campaigns have a
positive impact on consumers’ purchase intentions. Ross, Patterson and Stutts (1992) found
that after a consumer was exposed to a CRM advertisement, consumers’ purchase intentions
had increased. In Ross, Patterson and Stutts’ study, this increase of consumers’ purchase
intentions could be the result of an increased attitude towards the firm, an increased attitude
towards the cause, a favourable attitude towards the campaign and of a remarkably favourable
attitude towards the board of directors of the cause. Smith and Alcorn (1991) did a research to
switching behaviours and buying behaviours. In their study, they found that 46% of the
respondents would switch to brands that the respondent perceives as socially responsible.
Also, 30% of the respondents said that they where inclined to buy the CRM products, solely
because the company is engaging in a cause-related marketing effort. Lee et al. (2009)
conducted a research in South-Korea into consumers’ purchase intentions when the firms
where engaging in corporate philanthropy. In this research respondents’ purchase intentions
was impacted positively by respondents’ attitudes, but in this case, respondents’ attitudes
towards the firm.
4.3 Conclusions
This chapter has investigated the relationship between the variables attitude towards the
buying behaviour and the consumers’ purchase intentions, using the theory of planned
behaviour. Chapter three showed that both strong and weak attitudes towards the buying
behaviour could be formed, depending on the route under which consumers process
information. Strong, stable attitudes towards the buying behaviour are useful for predicting
long term purchase intentions. Although weak attitudes towards the buying behaviour are
more easily changed by competitors, and are not useful for long term purchase intention
predictions, they are very useful for predicting immediate purchase intentions and behaviours.
Of course, consumers’ purchase intentions are only impacted positively (negatively) by
attitude towards the buying behaviour when the nature of the attitude is favourable
21
(unfavourable). Regarding CRM, CRM campaigns have a positive effect on consumers’
purchase intentions.
Chapter 5. Conclusions
5.1 Conclusions
Firstly, the aim of this study was to investigate whether the manner in which the consumer
processes information influences consumers’ attitudes towards the buying behaviour. The
course of information processing was divided into two variables: consumers’ motivation to
process information and consumers’ ability to process information. This study has
demonstrated that regarding CRM, both variables have a significant impact on consumers’
attitudes towards the buying behaviour. Subsequently, in accordance with the TPB, this study
has illustrated that consumers’ purchase intensions are either positively or negatively
influenced by consumers’ attitudes towards the buying behaviour, depending on the nature
(favourable or unfavourable) of consumers’ attitudes. CRM campaigns do have a positive
influence on consumers’ attitude and the related purchase intentions.
5.2 Managerial implications
Since the consumers’ ability to process information is determined by individual characteristics
of the consumer and by situational factors, it is difficult for marketers to influence the
consumers’ ability to process information. So marketers have to adjust their CRM campaign
to the consumers’ ability to process information. Thus when the target consumer group’s
ability to process information is likely to be high, marketers could decide to include central
cues (information) to provoke central processing, and thus induce a strong, stable attitude. In
this case the attitude is a relatively strong predictor for consumers’ purchase intentions. When
consumers’ ability to process information is low, marketers should always include peripheral
cues in order to be able to persuade the consumer. Here, a less stable attitude is formed which
persist for only a short period of time. In addition, consumers’ attitudes towards the buying
behaviour that is formed under peripheral processing will produce an immediate purchase
intention of CRM products.
22
However, it is essential for marketers to realise that the consumers’ motivation is not
only determined by characteristics of consumers, but could as well be aroused by
characteristics of the CRM campaign. This implies it is safer to launch a CRM campaign with
attractive peripheral cues, but also with some additional information to ‘feed’ the consumers’
motivation. While peripheral cues will provoke the formation of relatively less stable, less
enduring attitudes, central cues provoke the formation of consumers’ strong, enduring attitude
towards the buying behaviour. These strong, enduring attitudes are good predictors for
consumer purchase intentions, especially for the intentions regarding long-term purchase
decisions. Although the use of central cues may seem favourable towards the use of peripheral
cues because of it’s benefits, the marketer has to remember that the formation of attitudes
under the peripheral route is actually preferred by consumers since peripheral processing
requires less effort than central processing.
Marketers make good use of both central and peripheral cues in CRM campaigns,
since eventually CRM campaigns have a positive influence on consumers’ purchase
intentions. The Crystal Clear example illustrated that the proper use of central cues can
stimulate consumers’ motivation to process information. Peripheral cues were used to
persuade consumers who lack either motivation or ability to process information. Here,
consumers are most likely to be influenced either by central cues or peripheral cues,
depending on consumers’ motivation and ability to process information.
5.3 Suggestions for further research
This study has conducted a research to consumers’ attitudes towards the buying behaviour,
because according to the TPB, consumers’ attitudes towards the buying behaviour aims
directly at consumers’ purchase intentions. Although theoretical support from the ELM
indicate that CRM campaigns do influence consumers’ attitude towards the buying behaviour,
no empirical support was found in the literature regarding consumers’ attitudes towards the
buying behaviour. Further empirical research could reveal if, regarding CRM, consumers
perceive their attitudes towards the brand or firm as being different from their attitudes
towards the buying behaviour.
Chapter three has showed there are practical problems regarding the ELM. One of
those problems, the interrelationship of central and peripheral processing, could be overcome
when both central and peripheral processing could occur simultaneously. The ELM assumes
that either central or peripheral processing occurs, while the HSM proposes that both types of
processing, heuristic and systematic processing, could occur simultaneously. Thus by using
23
the HSM, the problem of the view on the interrelationship of heuristic and systematic
processing does not exist. could be overcome. Future research could also reveal if the view on
the formation of attitudes towards CRM behaviours or CRM products is essentially different
when the HSM is used.
The examples which were used in this paper are based on necessity goods: normal
products (e.g. normal food and drinks) that are consumed on a daily basis. However, it is also
possible that a company combines a luxury good (exclusive, status products) with CRM.
Significant differences between the effects of CRM on attitudes towards necessity goods and
luxury goods, or on attitudes towards behaviours regarding necessity goods and luxury goods
are likely to exist. Peripheral cues are most likely not sufficient to persuade a consumer, since
detailed information about the product does not correspond with the nature of peripheral cues.
Also, compared to the CRM campaign of necessity goods, the amount of fit between the
company and cause could have a different effect on the success of the CRM campaign of
luxury goods. In the consumers’ purchase process of luxury products, higher fit might be
required to reduce consumers’ distrust of company’s motives for engaging in CRM. Future
research regarding CRM applied to both necessity goods and luxury goods could provide a
clear view on the differences and/or similarities of the relationship between consumers’
attitudes and both types of consumer goods.
24
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