Cause marketing lowers charitable donations

Category: Community Published on Wednesday, 24 August 2011 18:12 Written by Michigan Chronicle

Cause marketing —when firms share proceeds from the sale of products with a social cause — reduces charitable giving by consumers, says a researcher at the University of Michigan’s Ross School of Business.

A new study forthcoming in the July issue of the Journal of Consumer Psychology shows that consumers who buy such products end up giving less money to a social cause or charity. Not only can cause marketing result in fewer donations, it can decrease consumer happiness

    “Consumers appear to realize that participating in cause marketing is inherently more selfish than direct charitable donation, reducing their subsequent happiness (versus a direct donation),” said Aradhna Krishna, the Dwight F. Benton professor of marketing.
    “Unfortunately, this doesn’t prevent them from substituting it for charitable  giving,   which
reduces the overall chari-
table donation.”