Cause related marketing: A New Zealand investigation

Cause Related Marketing (CRM) is a phenomenon which has gained impetus in the New Zealand market over the last few years. From buying a loaf of bread to using your credit card, organisations are linking in with causes such as The Breast Cancer Research Foundation or Team New Zealand’s bid for the America’s Cup. New Zealand and overseas research would indicate that consumers view CRM in a favourable light if implemented correctly. The research in this document replicates part of a study carried out by Strahilevitz et al. (1998) in the New Zealand market. It looks at the notion that people respond better to CRM programmes when the product is of a frivolous nature than a practical nature. The original study found a correlation to frivolous products over practical. This research also found a correlation with the hypothesis in the New Zealand market. The research found a better response to service type offering than product offerings - for instance, harbour cruises or tickets to the circus. Future research opportunities in the New Zealand market were identified as being linked to brand exploration of products and the link to what constitutes a frivolous or practical product. From the research, the implication for managers was the need to consider CRM programmes in terms not only of a financial return, but also of the organisation being seen as a good corporate citizen - thus enhancing the company’s brand equity