Cause-related marketing in South Africa : effects of donations and rewards on consumers’ perceived motives, perceived fairness, attitudes and purchase intention

Date
2021-12
Journal Title
Journal ISSN
Volume Title
Publisher
Stellenbosch : Stellenbosch University
Abstract
ENGLISH SUMMARY: Increased consumer pressure caused private firms to employ cause-related marketing to address key issues in South Africa, which include poverty, unemployment and a lack of access to addressing the basic needs (such as water, sanitation and education). Causerelated marketing ensured that benefits were received by worthy causes and non-profit organisations through donations. Donations to non-profit organisations was initially the main objective of cause-related marketing. However, firms started to realise that, by implementing cause-related marketing, they could also benefit because it often resulted in increased sales and profit. Consumers consequently became increasingly aware of the benefits a firm receive during cause-related marketing and started to question the motives of firms for participating in cause-related marketing. In addition, consumers realised that their participation in cause-related marketing benefitted them with only a ‘feel-good’ experience and no extrinsic benefits that were received by the firm and cause. Thus, a benefit disproportion existed between cause-related marketing stakeholders that could result in negative consumer responses. Against this background, this study investigated the influence of donation types (product and monetary) and reward types (product, monetary discount voucher and none) on consumer responses. The purpose was to determine whether consumer rewards would be able to rectify the benefit disproportion between cause-related marketing stakeholders and subsequently cultivate positive consumer responses towards cause-related marketing. Qualitative focus groups and a quantitative 2 x 3 between-subjects post-test only factorial experiment were conducted to address the research objectives. The target population included male and female South Africans earning an income that concurred with Living Standard Measure 7 to 10. The qualitative focus groups allowed for a better understanding of cause-related marketing in a South African context. The quantitative factorial experiment made use of a convenience sampling method and 219 respondents completed the questionnaire after being exposed to an experimental stimulus. The number of completed questionnaires ensured an accurate representation of the target population and fulfilled the requirements of the statistical testing that were implemented. The results indicated that reward types did not significantly influence consumers’ responses to cause-related marketing. The consequences of Covid-19 resulted in several South Africans being in need of assistance from the government or private sector. It appeared that consumers were subsequently less inclined to desire a reward themselves and preferred to focus on the donation that was offered to the individuals and groups in need. Consumers responded more favourable to a product donation in terms of valuebased fairness, attitude towards the cause, affective attitude towards the offer and purchase intention. Overall, the conclusion was made that consumers preferred product donations over monetary donations, and it was subsequently recommended that firms focus on product donations during cause-related marketing. In addition, due to the impact of Covid-19 and the willingness of consumers to participate in cause-related marketing without receiving a reward during this time, it was recommended that firms act on issues that garner high media exposure. A positive contribution was made towards marketing literature by proposing to combine rewards with cause-related marketing and investigating what the nature of the donation and reward need to be in order to deliver the most benefits to all the stakeholders involved. Furthermore, contributions were made towards marketing practitioners and nonprofit organisations to inform them on how to improve their cause-related marketing campaigns and offer practical advice to ensure a balanced partnership between them.
AFRIKAANSE OPSOMMING: Toenemende druk op verbruikers het veroorsaak dat private ondernemings saakverwante bemarking gebruik om sleutelkwessies in Suid-Afrika aan te spreek, wat insluit armoede, werkloosheid en 'n gebrek aan toegang tot basiese behoeftes (soos byvoorbeeld water, sanitasie en onderwys). Saakverwante bemarking het dan ook verseker dat waardige kwessies en nie-winsgewende organisasies voordele deur middel van donasies ontvang. Donasies aan nie-winsgewende organisasies was aanvanklik die hoofdoel van saakverwante bemarking. Ondernemings het egter toenemend begin besef dat hulle kan baat by die implementering van saakverwante bemarking, omdat dit dikwels lei tot verhoogde verkope en wins. Verbruikers het gevolglik toenemend bewus begin raak van die voordele wat 'n onderneming tydens saakverwante bemarking ontvang. Gevolglik het hulle die motiewe van ondernemings vir deelname aan saakverwante bemarking begin bevraagteken. Daarbenewens het verbruikers besef dat hulle deelname aan saakverwante bemarking hul bevoordeel met slegs 'n 'goedvoel'-ervaring en geen ekstrinsieke voordele soos deur die onderneming en kwessie ontvang is nie. Daar bestaan dus 'n onewe verdeling van voordele tussen saakverwante bemarking belanghebbendes wat moontlik kan lei tot negatiewe verbruikerreaksies. Teen hierdie agtergrond het hierdie studie die invloed van tipe donasies (produk en moneter) en tipe belonings (produk, monetere afslagbewys en geen) op verbruikers se reaksies ondersoek. Die doel was om vas te stel of verbruikersbelonings die onewe verdeling van voordele tussen saakverwante bemarking belanghebbendes sou kan regstel en gevolglik positiewe reaksies van verbruikers teenoor saakverwante bemarking bewerkstellig. Kwalitatiewe fokusgroepe en 'n kwantitatiewe 2 x 3 faktoriale-eksperiment is uitgevoer om die navorsingsdoelstellings aan te spreek. Die teikenpopulasie het mans- en vroue Suid-Afrikaners ingesluit wat 'n inkomste verdien wat ooreenstem is met die Lewensstandaardmaatstaf 7 tot 10. Die kwalitatiewe fokusgroepe het 'n beter begrip van saakverwante bemarking in 'n Suid-Afrikaanse konteks moontlik gemaak. Die kwantitatiewe faktoriale eksperiment het gebruik gemaak van 'n geriefsteekproefnemingsmetode en 219 respondente het die vraelys voltooi nadat hulle blootgestel is aan 'n eksperimentele stimulus. Die aantal voltooide vraelyste het 'n akkurate voorstelling van die teikenpopulasie aangedui en voldoen aan die vereistes van die statistiese toetse wat geimplementeer is. Die resultate toon dat belonings-tipes nie die reaksies van verbruikers op saakverwante bemarking beduidend beinvloed het nie. Die gevolge van Covid-19 het daartoe gelei dat verskeie Suid-Afrikaners hulp van die regering of private sektor benodig. Dit het geblyk dat verbruikers gevolglik minder geneig was om self 'n beloning te begeer en verkies om te fokus op die donasie wat aangebied is aan individue en groepe in nood. Verbruikers reageer meer gunstig op 'n produk donasie as ‘n monetere donasie in terme van waardegebaseerde billikheid, houding teenoor die saak, affektiewe houding teenoor die aanbod en koopvoorneme. Oor die algemeen kan die gevolgtrekking gemaak word dat verbruikers produk donasies verkies bo monetêre donasies, en daar word dus aanbeveel dat ondernemings op produk donasies fokus tydens saakverwante bemarking. Vanwee die impak van Covid-19 en die bereidwilligheid van verbruikers om deel te neem aan saakverwante bemarking sonder om 'n beloning gedurende hierdie tyd te ontvang, word daar ook aanbeveel dat ondernemings betrokke raak by daardie kwessies wat hoe blootstelling in die media ontvang. Hierdie studie lewer ʼn betekenisvolle bydrae tot die bemarkingsliteratuur deur nie slegs voor te stel dat belonings met saakverwante bemarking gekombineer moet word nie, maar ook dat die aard van belonings en donasies ondersoek moet word. Sodoende word verseker dat alle belanghebbenes die optimum voordele ontvang. Verder word bydraes gelewer aan bemarkingspraktisyns en nie-winsgewende organisasies ten einde hulle in te lig oor hoe hulle sakeverwante bemarkingsveldtogte kan verbeter. Praktiese aanbevelings word ook gemaak ten einde 'n gebalanseerde vennootskap tussen belanghebbenes te verseker.
Description
Thesis (MCom)--Stellenbosch University, 2021.
Keywords
Social marketing -- South Africa, Consumer goods -- Marketing -- South Africa, Consumer attitudes -- Social marketing -- South Africa, UCTD
Citation