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Charly Mint A. Israel


MBA111 - Advance Entrepreneurship and Marketing Management
Professor: Dr. Reynaldo T. Gulane

Journal Title : A Model for Cause-Related Marketing (CRM) Effectiveness:


Evaluating the TOMS Shoes One-for-One
Campaign
Proceedings of Business and Social Sciences Research
Conference Journal (2016)
Author : Nkosinathi Trevor Nkwanyana

Underlying issues or major ideas and concepts

A study was observed on the impacts of 'direct to the cause' campaign


on American Generation Y (GenY) customers. GenY is a demographic group
of shoppers conceived somewhere around 1980 and 1999. In the US, these
consumers spend billions each year on consumer goods/services and spend
more than all other age categories on apparel and footwear. TOMS Shoes
have become ubiquitous on college and high school campuses in the United
States (US). The brand makes a donation to a particular cause for each
product purchased in these campaigns for instance TOMS Shoes
gives/donates a pair of new shoes to a child in need for each pair sold on the
company website or at United States retail outlets. Since 2006, this CRM
campaign has resulted in the distribution of pairs of new shoes to children
living in poor communities in the US and in other countries across the world.
The first goal of this direct to the cause CRM campaign is marketing the
company and its cause, philanthropy, is secondary. Measuring campaign
effectiveness is vital since not all CRM campaigns are effective and some may
be completely ineffective. In direct to the cause CRM campaigns the
company/brand unilaterally addresses the cause/social issue and does not
partner with non-profit organizations. This article identifies the key factors that
affect message credibility in direct to the cause CRM campaigns targeting
GenY consumers, and/or how to create congruency between the brand and
the GenY consumer that influences positive behavioral intentions. The impact
of the TOMS one-for-one CRM offer on GenY consumers perceptions,
attitudes and behaviour is assessed through the CRM Response Model.

Findings

The following results/findings were noted:

1. Product category involvement is not a direct determinant of attitude


towards the advertisement but influences consumers attention to the
advertisements messages.
2. Attention is important in determining whether the consumer purchases the
advertised product or not, since images, symbols, sounds and so on act as
stimuli that make consumers stop and think.

3. Campaign messages that trigger positively evaluated emotions are more


liked by GenY consumers than those that irritate or disgust them. The
emotional reactions of the GenY consumer also influence their level of
attention to the campaign messages.

4. The attitude towards an advertisement construct has a positive influence


on the attitude towards the brand. CRM campaign messages that made a
favourable attitude towards the advertisement increase the probability of
obtaining a favourable attitude towards the brand.

5. Past experiences and belief constructs such as the credibility of the


campaign message or advertisement have been found to have the greatest
impact on consumers attitudes. Transparency and frequent communication
about campaign progress (i.e., donations made) would also help to increase
the campaigns credibility.

Hypotheses were tested and the following are the results:

H1 tested the relationship between involvement and attention,


and attitude towards the advertisement. The path coefficient between
attention and involvement is 0.860 (p-value < 0.01); the effect is
significant. The path coefficient between involvement and attitude
towards the advertisement is -0.14 (p-value < 0.01); the effect is not
significant. H1 is not supported.
H2 tested whether there was a relationship between attention and
attitude towards the advertisement. The path coefficient between attitude
towards the advertisement and attention is 0.864 (p-value < 0.01); thus,
the direct effect is significant. Consequently, H2 is supported.
H3 tested whether there was a relationship between emotions and
attitude towards the advertisement. The path coefficient between
emotions and attitude towards the advertisement is 0.335 (p-value <
0.01). Therefore, the effect is significant and H3 is supported.
H4 tested whether there is a relationship between attitude towards
the advertisement and attitude towards the brand. The path coefficient
between attitude towards the advertisement and attitude towards the
brand is 0.423 (p-value < 0.01). The direct effect is thus significant.
Therefore, H4 is supported.
H5 tested whether there is a relationship between consumers
purchase intentions and attitude towards the brand. The results indicate
a positive and statistically significant path co-efficient of 0.925 (p-value <
0.01), thereby providing support for H5.
These consumers attitude towards the advertisement or liking of
the campaign message has a positive effect on their attitude towards the
brand or brand liking as proposed in the hypothesis.

Relevance or contributions to the existing body of knowledge

The CRM Response Model integrates several psychological and


behavioural measures and delineates how a campaigns messages are
processed in the consumers mind. Direct one way causation assumes the
influence of attitude towards the ad on attitude towards the brand. Indirect
one-way causation assumes that the connection between the attitude
towards the ad and attitude towards the brand is influenced by consumers
perceptions. Thus, the more favourable the feelings consumers have
towards the campaign message, the more campaign message claims they
remember. In the CRM Response Model, the perceptions, attitudes and
behaviour of GenY consumers are linked through a path showing the
relationship between the exogenous and endogenous variables of the model.
Attention, involvement and emotions are exogenous, while purchase
intentions and attitudes are endogenous.

Your thoughts or opinions to the ideas and concepts presented in


the article

Companies like TOMS have chosen not to partner with any


organizations with a relevant cause for mutual benefit and the study
respondents had an overall positive attitude towards the TOMS Shoes CRM
campaign offer. It is important for a CRM campaign to focus on social issues
or a cause that have personal relevance to GenY consumers to be able to
gain their attention and liking of the campaign message. When consumers
are personally involved or if they are able to identify with the cause, the
chances of them being sceptical of the CRM claims are small. Though I think,
at some point, there was a noble cause behind it all, primarily, creating a
sense of social relevance to be attached to your product is simply to generate
more revenue. The consumer market nowadays dont just purchase goods to
satisfy the need for the product but also to get that feeling that they belong to
something that has a greater cause.

Potential for future research in the Philippines

Based on the results of this study, entrepreneurs will do have an


idea on how to make a strategic marketing and that is cause-related
marketing. Filipinos are well known for being kind to everyone especially to
those unfortunate people. They could use these results of the study as a
guide in making purposive philanthropic activities.
Despite concerns on authenticity of its intentions, lack of
transparency or doubts on the real beneficiaries, cause-related marketing has
been growing over the years and has been identified to not just increase
corporate profits but also to connect or lead companies toward CSR.
Hopefully, as companies gain and non-profit objectives are equally satisfied,
companies will then move toward creating more sustainable marketing
programs that not just support causes but also seek permanent solutions for
the greater good.

Reference
Nkwanya, N. (2016). A model for cause-related marketing(CRM)
effectiveness: evaluating the TOMS shoes One-on-One campaign.
Proceedings of Business and Social Sciences Research Conference.