This study explores the role of corporate involvement and brand perception in moderating the Cause Related Marketing on consumer purchase intention in the luxury product category among Japanese consumers. This research examines three core cause attributes - cause scope, cause type and cause acuteness developed by Vanhamme, Lindgree, Reast and van Popering (2012) as well as an additional component of duration – with corporate involvement and brand perception moderating the effect on purchase intention.
The general public places judgment on a corporation based on how much of positive or negative impacts its business has on environment or society (Sheikh & Beise-Zee, 2011). In fact, more corporations have been developing corporate social responsibility (CSR) programs, no matter how big their business sizes, big or small, are (Brinkvan, Odekerken-Schroder, & Pauwels, 2006). The general public loses its faith in corporations, especially after a financial crisis or malfeasances of big corporations and as a result, corporations are under stronger pressure to contribute to environmental or societal causes in order to reclaim lost faith from the general public (Sheikh & Beise-Zee, 2011; Berglind & Nakata, 2005). One way corporations contribute to society has been to employ marketing strategies that link product sales to the support of specific charities to create and maintain favorable brand images known as cause related marketing or CRM. CRM has been growing faster as a type of marketing that allow corporations to contribute to environment or society (Brinkvan et al., 2006).
Various factors have been extensively researched on and identified as pertinent in the success of cause-related marketing campaigns such as brand-cause fit (Bigne-Alcanniz, Currase-Perez, Ruiz-Mafe and Sanz-Blas, 2011; Nan and Heo, 2007; Samu and Wymer, 2009), donation size (Dahl and Labvack, 1995; Pracejus, Olsen and Brown, 2003), types of causes (local causes are preferred to national ones) (Ellen, Mohr, and Webb, 1996; Smith and Alcorn, 1991) and product type with luxury products found to be more effective (Strahilevitz and Myers, 1995).