Greater fit between company and cause in the cause related marketing alliance should lead to a more favorable response to the alliance in the form of a favorable evaluation, either
through the process of positive associations developed as a result of partnering with a cause, or through elaboration of the company’s public identity based on this association Gupta and
Pirsch, 2006. Based on their research about the company-cause-customer fit decision in cause related marketing, they found that when company-cause fit is high, consumer attitude
toward the fit will be more positive than when the company-cause fit is low, also when consumer attitude toward the company-cause fit is high, intent to purchase the sponsored
product will be higher than when consumer attitude toward the company-cause fit is low. Pracejus and Olsen 2003 recently demonstrated that the degree of brand-cause fit
can have a substantial, positive impact of CRM campaigns on behavioral loyalty. More specifically, high-fit CRM programs have an impact that is five to ten times greater than the
impact of low-fit campaigns. Furthermore, companies can improve their overall performance by adopting strategic philanthropy, which aligns philanthropic efforts with companies’
mission, vision and resources McAlister and Ferrell, 2002. Drumwright 1996 notes that advertising campaigns with a social dimension are more likely to be successful if there is a
degree of congruency between the company and the cause. Research done by Lafferty et al 2004 found that the fit between the cause and the brand name is a necessary antecedent for
a successful cause-brand alliance campaign. It also found that consumer perceptions of product-category fit should hold when a cause is linked with a product.
Hypothesis 1: The congruency between the cause and a company’s core competencies in a CRM campaign is positively related to brand loyalty.
2.1.5. Duration
Miller 2002 proposes that companies should show a certain degree of behavioral commitment toward the CRM campaign, which can eventually lead to brand loyalty. One of
the factors that can demonstrate a company’s commitment is the duration of the CRM program Miller, 2002. Till and Nowak 2000 suggest that the effectiveness of a CRM
program increases with its duration. Companies that consistently support a specific cause can benefit significantly Welsh, 1999. Varadarajan and Menon 1988 state that CRM
campaigns with a medium-term to long-term focus have a higher potential of increasing consumers’ perceptions of company image.
Long-term relationships have also shown that consumers recognize the brand and the charity cause if the relationship is strong and take place over a long period of time Pringle
Thompson 1999 in Nilson Rahmani 2007. Duration of the relationship is also important. A time period should be set stating how long the cooperation is going to last rather
than confusing the consumers thinking that it is a lifelong relationship ibid. Moreover, advertising campaigns with a social connotation are more likely to be successful with a
longer time commitment Drumwright, 1996.
Hypothesis 2: The duration of a CRM campaign is positively related to brand loyalty.
2.1.6. Invested Resources
Apart from financial means, a company may invest in a CRM program through employee expertise, volunteer work or any other non-monetary alternative. In this respect, it
is asserted that company commitment toward a CRM campaign can be enhanced by including employee volunteers and making in-kind donations instead of monetary contributions Miller,
2002. Welsh 1999 confirmed that employee participation in a CRM campaign can increase a company’s commitment. Similarly, Macleod 2001 suggests that companies should set up
a special CSR team with grass-roots employees in order to build credibility for the respective CSR initiative. Ellen, Mohr and Webb 2000 found that consumers evaluated CRM offerings
in which a company donated cash less favorably than donations involving a company’s products. Larger donations to social causes increased the appeal of the related product in the
market Mohr, Webb, and Harris, 2001.
Hypothesis 3: The amount of resources invested in a CRM campaign is positively related to brand loyalty.
2.1.7. Management Involvement
