INTRODUCTION:

In the past few decades the concept of corporate social responsibility have emerged substantially as a main theme for corporations to address, moving from theoretical defining to a stage of recognition and investigation of the explicit means and techniques to put CSR into practice. It is evident from the research that stakeholders who influence the business to a greater extent are center of attention for the companies. Hence, institutions are less concerned about consumers and employees than the shareholders. The society and environment are even paid least attention, although equal importance is required by all under CSR. There is a big difference between the expression of a concern and implementation of an action to solve this problem (Crowther 2004) CSR activities are not easy to estimate as there are many incertitude about its effectiveness. The interdependence of business and society is apparent to wider groups of stakeholders. Corporate social responsibility initiatives are seen as an instrument of corporate uniqueness,

Corporate strategy and market power of some stakeholders. However, it is a matter of serious challenge for organization to understand the actual desires of stakeholders and the impact that CSR programs have on diverse audiences. There are numerous initiatives at the disposal of organizations that are related to various accomplishment mechanisms. During the last few years, corporate transparency and reporting are the most needful trends. The program includes not only corporate reporting, transparency, governance but also corporate social responsibility. This refers to the need for economic, social and environmental reporting, which is the current demand all over the world. To achieve this, CSR has to be genuine and made familiar to the customers and other stakeholders, if it has to be credible. Cause related marketing is one of the best tools to connect your business with a good cause. CRM translate promises into action and offers win-win situation for business, charities and customers. CRM refers to a commercial activity in which alliance is formed between business and nonprofit organization to market an image, product or service for mutual benefit. CRM assist you in differentiating your company from your competitors and offers an edge that provides other tangible benefits. Thus, CRM as a part of CSR is a program in which a company commits to donate an amount to a charitable institute for a noble cause.

This paper comprises of two parts. Cause–related marketing concept and its main trends in research are studied. After that, the impact of cause related marketing initiatives on consumer behavior and attitude is analyzed through a questionnaire focusing management students:

1. The concept of cause-related marketing:

The Business in the Community (BITC) association in UK, is working for cause related marketing since its establishment in 1982. It is the main source of important research, resources, information, guidelines and education on cause related marketing. It continues to promote its member companies to use best practices in achieving mutual benefits and make a positive impact on society. By focusing wider visibility of corporate social responsibility through added values of cause related marketing, there is much to be benefited. Business in the Community defines Cause Related Marketing as: "A commercial activity by which business and charities or good causes form a partnership with each other to market an image, product or service for mutual benefit." From the above given definition, it can be understood that cause related marketing is a profitable union that translate words and promises into action and offers win-win situation for business, charities and good causes, and consumers. Though, consumer contribution is very important to make certain a victorious marketing campaign connected to a cause and consequently should be cultured by focusing the future profits to the consumers by appropriate positioning and sufficient targeting of audience. Further the below points can be added to the above definition:

· Typically, CRM includes commercial donation to a charitable trust or a cause, on which the purchase decision of consumer is dependent to some extent.

· The company’s marketing function is responsible for CRM activity.

· The consumer also plays a role as a partner in this entire CRM process and is being benefited by drawing satisfaction of making an indirect donation.

The unambiguous association between goods and services purchased and the conveying of revenue to a definite charity is the highest type of CRM. Such alliances usually include a share of the revenue generated from the purchase of the product for the corporate associates which in return puts “brand” of the charity on the packaging of the product Cause related marketing, a thought which is defined in the United States as “working together in financial concert with a charity .. to tie a company and its products to a cause "(Ptacek and Salazar, 1997). Alternatively, it is also measured as, "a way to build brand equity .. as it creates the most added value and most directly enhances financial performance" (Mullen, 1997). Collins (1993) states that competitive advantage and long- term value for the survival of the company can be created through cause-related marketing In Europe, Cause related marketing gets deeper implication, as marketing specialist here studied that contributing to a cause offers chance to increase corporate reputation, raise customer loyalty, enhance brand awareness and boost sales (Kotler and Lee, 2005; Siltaoja, 2006). Cause related marketing also provides opportunity for marketing specialist to remain associated with consumers’ frame of mind and desires, as the instrument used by them is more sensitive , convincing and related to social order (Kotler and Lee, 2005; Siltaoja, 2006). Brand equity is initiated by this communication tool called CRM (Hoeffler and Keller, 2002, Lewis, 2003).

Cause-related marketing campaign differentiates the company from competitors and delivers other tangible benefits, including:

· Attracting new customers

· Increased sales

· Increased visibility

· Increased customer loyalty

· Enhanced company image

· Raise fund for a cause

· Reaching niche segments

· Positive media coverage

· Increased social responsibility

2. Trends in Cause-Related Marketing Research:

As per the report published by the Economist Intelligence Unit (2008), in the present scenario where many large companies are facing failures and the increasing pressure of high demand customers, it is a challenging job for managers to defend the company’s reputation.U.S. market gave birth to main approaches of ethical management, corporate governance, philanthropic approach, stakeholder orientation and corporate social responsibility. The basis of these practices was laid down by Frederick W. (1998) under two principles –

1. The principle of philanthropy:

This principle states that companies should offer volunteering help to the helpless and underprivileged.

2. The principle of tutoring:

Under this, it is not only the economic role performed by companies but they are also responsible for their activities that affect the communities and thus, play the role of custodians for public interest.

The modern version of the principle of charity is executed in the form of corporate philanthropy and voluntary action in favor of community concern. Alternatively, the principle of guardianship give rise to corporate practices which concentrate on the relationship between business and society, at the same time looking for interest of shareholders and management to be balanced with community. Both of the above principles are the basis for corporate social responsibility which includes cause- related marketing.

In ethics management strategies the trends and motivations in Europe and U.S. markets are different from each other. In U.S., as the strategies and practices are self-imposed by companies, there is a positive approach, while in Europe, the rules and principles imposed by the state and society builds a negative approach. In short, ethical activities are encouraged and motivated in U.S. market, whereas ethical rules and regulations are imposed in European atmosphere. If U.S. considers ethics as a product of competition and cause-related marketing is being taken as a unique component that adds value in competing with other brands in the market, in Europe , ethics appears to be an obligation forced from outside. The United States encourage innovation and volunteering in communal programs but, the rigid system in European market lead to standardization of ethical act and consistent cause-related marketing campaigns. However, the Romanian market follows the European trend in business ethics.

International Business Report shows through a survey around the world that small and medium businesses that are known as the “engine of world economy” will have to soon assess their approach towards the idea of social responsibility and cause-related marketing concept. Commonly, till now multinational companies were following ethical practices in the public prospect. As per the report, usually multinationals were concentrating in the following areas: operational settings, human rights, environment and corruption.

The study showed that the CSR practices are inspired by the factors such as: holding important employees, controlling costs to improve efficiency and save environmental resources, to build loyalty and trust, intensification of brands, developing relations with investors. It was also indicated by the same study that most companies preferred CSR activities related to cause-related marketing, as union with a cause strengthens the brand and helps in reputation building.

The CRM is still susceptible to the people who reject its strategic task and advocating, in decline times, dropping cost of social assets. The tangible financial profits of cause-related marketing concept should be promoted to overcome the criticism. For this, the value added and profits gained by it has to be proved, which is a difficult check. The profit test of cause-related marketing requires measuring its quantitative and qualitative impact indicators. Cause-related marketing activities can be best measured through social and environmental reports (Boston College Centre for Corporate Citizenship, 2010).

The two areas that are focused in academic research on cause-related marketing are CRM in terms of companies and its impact on consumer behavior and other relevant stakeholders. According to experts, cause-related marketing have an effective influence on consumers and also other stakeholders. Drumwright’s research (1996) revealed that the people inside the companies, like employees, management etc. are also strongly influenced by CRM campaigns. The conclusion of this qualitative research among employees is that a cause-related campaign plays the role of enhancing research, financial presentation and to communicate the company’s mission to stakeholders effectively.

The relation between cause-related marketing and sales force performance is shown by Larson et al (2008). It does not reveal the reason why companies practice CRM, in spite focuses on how the particular targeted stakeholders (e.g. consumers) influence other stakeholder’s reactions (e.g. sales forces).

A different prospect of research reveals the consumers reaction towards the social activities of company and the impact of cause-related marketing on consumer behavior (Barone, Miyazaki and Taylor, 2000, Ellen More and Webb, 2000, Roy and Graeff, 2003). Consumer’s expectation from U.S. companies and the influence their perception have on purchase intention, motivation to engage and investment decisions related to companies was studied in Cone report (2007). According to most of the Americans, relevance and consistency between cause and company’s activities influences choice of companies. Americans valued cause related to environmental protection and sustainable developmental. Customer wishes regarding CRM campaigns is complex; as a result companies adopt genuine, transparent, sustainable and well communicated initiatives to prove the values that strengthen their functionality.

3. Research Methodology and Hypothesis:

A selective survey has been done in this article that means out of the total population only a part is selected for the study which represents the structure of the entire. There are a number of benefits of selective survey as compared to exhaustive research such as: number of cases studied is reduced, less time is required to conduct the survey, execution cost is low, gathering and processing of information is possibly more thorough, and requirement of man power to conduct the study is less. In this selective survey, the questionnaire is used to achieve the objectives and gathering information. The questions employed are predetermined, most being closed or fixed choice responses. The questionnaire focused students aged over 20 years. Total 100 questionnaires were filled in which 62% where female respondents (Table no. 1)

This research intends to draw attention towards the impact of cause-related marketing on consumer’s attitudes. According to researchers attitudes are "learned predispositions to respond consistently to an object or a class of objects in a favorable or unfavorable way" (Catoiu and Teodorescu 2004). From the above definition, it can be drawn that it is difficult to observe attitudes as mental states but can only be analyzed on the basis of research outcomes. The attitudes being learned affirms that they are affected by information and knowledge. The purchasing actions of people are influenced by the attitudes that they carry. Attitudes can be build towards religion, clothes, food, politics, sports, music and any other field that people interact with, directly or indirectly. A state of mind is developed by attitudes in the form of liking or disliking for an object. Attitudes make people act in a steady manner towards similar objects. Attitudes are hard to change, as they tighten their belt on thought and energy (Kotler and Keller 2006).

Table no. 1: Demographic Profile of the sample

Gender	Percentage	Income	Percentage
Male	38%	10000-15000	28%
		15001-20000	22%
		20001-35000	18%
		Above 35000	11%
Female	62%	Below 10000 Rs.	21%

4. RESEARCH RESULTS:

The questionnaire includes fictional situations that are designed to familiarize respondents with the concept of cause-related marketing. We used for this the 5 point Likert scale (5 strongly agree - 1 strongly disagree) to measure constructs and to identify the degree of involvement of respondents in the campaign presented below and to what extent it influenced their purchase intention To make respondents familiar with the cause-related marketing concept, the questionnaire was designed in such a way that it includes imaginary situations. To assess constructs and to spot the respondents level of participation in the campaign and its influence on their purchase intention, the 5 point Likert scale was used.

Campaign:

Imagine that when shopping at Big Bazaar, you see an advertising banner saying that Procter and Gamble Company will donate 1Rs. for each of its product sold over one year to child education under programme called "Shiksha". The donation amount will vary with the quantity of products sold; more charity with more sale. As regards to the level of respondent’s agreement to the worth of buying from Procter and Gamble because of this donation, 37% consumers agreed with this statement, whereas 23% showed total agreement. Such type of campaigns draw attention towards the company and it also generates a perception in consumer’s mind that buying such product is reasonable with the intention of children charity.

Regarding the extent to which respondents agree or disagree that they would buy the product anyhow, without being interested in the campaign, 35% showed disagreement and 18% total disagreement. Consumers feel by preferring such products, they can be a support in cause-related marketing campaign. As per the investigation, concerning the condition in which consumers might buy the product from PandG both for the quality of product and the cause supported, the ratio of respondents agreed is 37% and totally agreed is 29%. Consumers are more attracted towards the products biddable to quality, but along with it corporate citizenship of company in the society is an important phase. In the global trend of standardization, corporate social responsibility campaigns have greater visibility since all company operates in a competitive market where most of the products are of comparable quality and price. Finally, CSR escort to competitive advantage and enhance company’s ability to perform its strategy in the longer run.

As per the study, the company launches the campaign to enhance sales, is agreed upon by 61% respondents and 11% totally agreed. In this reference, it is believed by the consumers that maximization of profit rather than actual charity and support to society, is the main objective of the company. Hence, it is necessary to build confidence and trust in consumers by sincere communication and being transparent with actual and potential consumers.It is revealed by the results of research that 50 respondents agree and 4 expressed total agreement to the statement that this FMCG Company has social value. Recognition is necessary to have social value for a brand. Customer loyalty and preference is very vital to achieve true worth for a brand. The above mentioned imaginary situation shows the impact that positive differentiation linked with a cause have on consumer’s attitude.

Majority of respondents think that company makes such charity to improve its image. Consumers’ perception for CRM campaigns gives rise to skepticism as they feel that away from philanthropic motive, companies have other intent. They also consider that the charitable amount collected is not significant enough to make genuine impact and to create a difference or cause. It is strongly thought by many that profit maximization and improvement of corporate image is the only intention of a company.

Campaign:

Imagine that in a mall while shopping for stationary, you come across a banner of ITC saying that this company is asking customers to vote for a charitable donation of their choice during one year, by depositing their cash receipt in one of three boxes (the RED CROSS, UNICEF, an international children's charity or help for EARTHQUAKE victims). 1% of the receipt amount put in the box is given as donation to the charity selected from above.

Association of campaign with three underneath causes provides a difference to it which makes majority of people to buy more. The direct involvement of consumers in supporting the charities and the imaginative, inventive plan of communication by the company is what that attracts the consumers.

Referring the statement that consumers are not interested in the campaign and thus their purchase decision would not be influenced, 42 respondents disagree, 12 strongly disagree and 28 are indifferent. Consumers would normally buy the product as they sense the requirement to buy, not because of any link with the cause. Hence, cause-related marketing campaign, as a part of corporate social responsibility, provokes a desire in the behavior of consumers. Consumers will only buy products when fascinated to the cause, and have connection with the cause. This creates a huge competitive advantage for the company.

As the analysis highlights, regarding the statement that this company makes respondent feel or do not feel that they are involved in choosing the right cause, 55% respondents agreed and 12% strongly agreed. Getting the chance to select between the three charities for donation, respondents perceive themselves to be a part of the campaign.

Concerning the statement,” I would buy more products to support the cause, as I think myself to be a responsible person”, 41 respondents agreed and 12 respondents strongly agreed. This campaign provides high purchased quantity because the customers receive more value.

Provided the assertion, “I think other companies should also often concerned about such campaigns”, 54 people expressed agreement and 33 people totally agreed. Majority of respondents consider that cause-related marketing campaigns are an obligation that should be focused upon and conducted regularly by corporation. According to respondents the field that requires support most is health (table no. 2)

Table no. 2: Field of Activity

Not Given

Fig nos. not given

Field that require Support:

When asked to people whether they would be ready to pay additional money for the purchase of products and services related with a social cause, nearly more than half of them i.e.52 people agreed and 17 people showed total agreement. The consumers who have an optimistic approach towards socially responsible products are ready to pay more for it. Consumers feel that by purchasing products associated with a cause, they can support deprived categories and make a difference. For highly responsible people, additional payment is justifiable if it is to serve a noble cause. An ethical person would definitely impart positive impact on society. Furthermore the brand equity can be measured by the extent to which consumers are ready to give an extra sum of money.

The influence of gender on socially responsible products:

The correlation between gender and the status structure of respondents along with their attitude towards socially responsible products, is studied by combining the groups i.e. r2

After calculating the test, it was revealed that there exists a significant relation between the two variables. The significant correlation is expressed by the coefficient of contingency value which is 0.301. Secondly, a positive direct relation is represented by 0,328 coefficient of contingency that has an average strength. In comparison to men, women are expected to be more inclined towards the purchase of socially responsible products. Alternatively, when it comes to social responsibility, women are more anxious, and many a times their buying behavior is affected by the company doing social campaign. Hence, it can be said that people assess females to preferably buy products associated with a social cause than men. Conversely, women are concerned with the fit between product and the associated issues. The company involved in social campaign influence the buying habits of women. This makes the hypothesis that women are keen to buy socially responsible products. Hence we can prove the hypothesis that states, women are inclined to purchase cause-related products or services.

Source of information gathered are Internet (69%), TV/radio (59%), newspaper (54%) and friends (48%). The main course of action of corporate social responsibility as per consumers’ perception is aimed at environmental protection.

Table no. 3: Sources of information as per consumers’ preference

Source of Information	Responses		Cases
Source of Information	N	Percentage	Percentage
Internet	69	23.8%	69.0%
TV/ Radio	59	20.3%	59.0%
Newspapers/Magazines	54	18.6%	54.0%
Friends	48	16.6%	48.0%
Brochures/Flyers	35	12.1%	35.0%
Colleagues	11	3.8%	11.0%
Other sources	9	3.1%	9.0%
None	5	1.7%	5.0%
Total	290	100.0%	290.0%

Table no. 4: Corporate Social Responsibility and Consumer Attitudes

Consumers attitude	Yes	No
As part of acquirement process explore information about socially responsible companies.	23%	77%
Purchase cause related brand.	54%	46%
Awareness of Recycle products	66%	34%
Involvement in volunteering programs.	29%	71%
Interested in blood donation.	23%	77%
Concern for environmental protection.	80%	20%

CONCLUSION:

· Corporate social responsibility is an essential tool for gaining competitive advantage and long-term success. It is a way to sustainable development of society. As new consumers are concerned, they will usually prefer to purchase from companies who are devoted to noble cause , provided there are negligible differences regarding quality and price of products.Following issues are focused through the study made in this paper, on the impact of cause related marketing:

· When 52% people questioned agreed that they would prefer to pay extra amount for a social cause-related product or service.

· 91% give consent that a positive image of company is created by the practice of cause related marketing.

· Regular involvement of organizations in cause related marketing programs is supported by 87% people.

· 74% would prefer to choose product or service linked to social cause when have to pick between similar quality and price products or services.

· The buying behavior of women is more influenced by cause-related products.

In this circumstance, social responsibility becomes more significant. The major competitive advantage of company is reputation. Organizations with a high positive image are capable enough to change the buying behavior of consumers even with higher prices of their products. In conclusion, we will draw attention towards the transmission of information flow made instant and cheaper by the technological development. The Internet plays an important role in information transmission to a global audience and in building consumers confidence in socially responsible organizations. We would like to highlight that in the famous Fortune magazine, online information about social responsibility campaigns and the participation in social problems is offered by 80% of 500 presented companies. Companies communicating openly, sincerely and continuously, win the trust of consumers. This moral issue should be assumed by every organization

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Received on 04.10.2017 Modified on 25.11.2017

Asian Journal of Management. 2018; 9(1):366-372.

DOI: 10.5958/2321-5763.2018.00057.4