The Impact of Cause-Related Marketing (CRM) in Spectator Sport
Ki Tak Kim
Paichai University
Yu Kyoum Kim
The Florida State University
Dae Hee Kwak
Indiana University
PP: 530 - 542
Abstract
Cause-related marketing (CRM) is not philanthropy; it is a strategy for an organization that demonstrates corporations' social commitment. Even though CRM decisions may be partly charitable, they may also serve corporate self-interest. However, CRM's strategic potential as an effective management tool for connecting sport organizations (i.e., teams) with consumers has not been thoroughly examined in a sport management context. In order to provide an improved picture of spectator sport consumers' perceptions toward a sport team's CRM initiatives, we developed a structural model that incorporates perceived CRM, attitude toward team, and re-attendance intention. Using LISREL analysis, the findings showed that CRM's effect on re-attendance intention was completely mediated through the attitude toward the team. In addition, perceptions toward the team's motive for CRM did not vary CRM's effect on attitude and behavioral intention. The lack of interaction effect might provide evidence that there may be universal appeal and effectiveness of CRM in a spectator sport context. Consequently, the findings provide a useful rationale for making managerial decisions about implementing and maintaining CRM efforts in sport organization.
Keywords
Corporate social responsibility, cause-related marketing, sport consumption
Article Text
Because of growing public concern over social and ecological issues, many organizations wish to develop synergy between business and philanthropic acts (Kukalis 2009; McAlister & Ferell 2002). Associating organizations with good causes has become attractive to many businesses, and particularly for those in the sport industry (Cregan 2008). In particular, a growing body of literature has suggested that cause-related marketing (CRM) programs are reported to enhance company image (Rigney & Steenhuysen 1991), improve favorable attitudes and beliefs toward sponsoring companies (Becker-Olsen, Cudmore & Hill 2006; Ross, Stutts & Patterson 1991), and increase purchase intentions (Becker-Olsen et al 2006). Further, from an organizational standpoint, CRM efforts could place an organization in a competitive position over longer time period (Brammer & Millington 2009). Despite CRM's strategic potential as a viable management tool and its apparent appeal to organizations and consumers (Berger, Cunningham & Kozinets 1996; Ross, Patterson & Stutts 1992; Smith & Langford, 2009), the impact of CRM on consumers' evaluations and intentions in the sport management domain has received very little attention from researchers (cf. Roy & Graeff 2003). Therefore, this study attempts to broaden our understanding of spectator sport consumers' perceptions toward the team's CRM initiatives as well as their cognitive and behavioral responses to these strategic efforts.
It should be noted that CRM is a form of marketing rather than an unconditional philanthropy. Decisions undertaken as corporate social responsibility in the form of CRM may be partly altruistic, but they may also serve corporate self-interest (i.e., generating revenue) (Dean 2004). In this regard, CRM is subject to the criticism that it is exploitative of the cause (Varadarajan & Menon 1988). Even among nonprofit organizations, CRM is often controversial because it overly emphasizes self-interest and it threatens to commercialize non-profits (File & Prince 1998). Prior evidence has allowed researchers to suggest consumers will not necessarily accept these social causes as purely altruistic; thus, social causes may or may not actually reward the firm (Barone, Miyazaki & Taylor 2000; Becker-Olsen et al 2006; Brown & Dacin 1997; Ellen, Mohr & Webb 2000).
Previous research raises some important questions for sport managers as well as academicians. For example: Does a team's motive for engaging in CRM influence fans' attitudes toward the team and loyalty? Specifically, would fans report more (less) favorable attitudes and intentions if they perceived the team's motive for engaging in CRM as purely altruistic (profit-oriented)? Specific to a spectator sport consumption context though, little is known about whether the organization's (i.e., team) motive for CRM changes the relationship between CRM and its effects on consumers' evaluation and intentions.
Consequently, we seek to find answers to the abovementioned questions. To answer the questions, a structural model was developed that incorporates perceived CRM, attitude toward team, and re-attendance intentions based on prior literature on social responsibility (cf. Barone et al 2007; Dean 2004) and the potential moderating effect of motive for CRM on consumers' response to the team's social initiatives was hypothesized. A cross-sectional survey-based research design was used for the empirical investigation. The measurement model was tested using confirmatory factory analysis and the relationships in the hypothesized model were tested using simultaneous equations and multiple group analysis.
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