Fit Contributions to Contrarian Consumers

You want the various aspects of your store operations to be consistent. This strengthens your brand image, resulting in consumers remembering you better. However, research findings at North Carolina State University and University of South Carolina indicate that this general rule doesn’t hold true when it comes to cause-related marketing.
     In cause-related marketing, a retailer addresses social responsibilities by making charitable contributions. For instance, you announce to your target markets that you’ll donate a certain amount of money for purchases from your store. The effect on sales can be impressive. As long as you don’t do it too often, your promise of a charitable contribution of $1 for each item purchased at the regular price will produce a higher average percentage gain in sales than offering a discount of $1 off the regular item price.
     But what charity to choose? The answer is that you’ll do best to include charities which don’t fit the personality of the store operations. The reason is that this gives the consumers more of a sense of personal participation in helping the cause. They feel noble, and a sense of nobility increases purchase intentions.
     Prior findings from University of Minnesota, University of South Carolina, and University of Georgia support this idea. Those researchers used one of the most basic personality dimensions in consumer psychology: promotion-focused versus prevention-focused.
     Prevention-focused shoppers put top priority on products and services which help them avoid losing what they have now. Promotion-focused shoppers put top priority on products and services which help them gain more than they have now.
     Shoppers in luxury stores are more likely to be promotion- than prevention-focused, while it’s the other way around for shoppers for necessities. This influences the merchandise they’ll buy in expected ways. But when it comes to the charitable activities, it’s different: Shoppers interested in self-enhancement in their purchases are more comfortable when their purchases sponsor charities supporting traditional causes, such as basics and conservation.
     If luxury stores do include a symphony orchestra or art exhibit among their partners, they might do well to also highlight continuing association with a charity providing food, shelter, and education to disadvantaged populations.
     On the other hand, stores selling commodities should include among their charity partners causes which promote self-enhancement. The effect here is not as strong, though. More important is that the money be for causes in the local communities so results are easily seen.

For your profitability: Sell Well: What Really Moves Your Shoppers

Click below for more: 
Pair Contributions with Purchases 
Differentiate Yourself in Charity Sponsorship