Balancing Consumer Self-Benefits and Altruism in Online Shopping: Examining Consumer Preferences for Customized and Personalized Cause-Related Marketing Campaigns Versus Price Discounts

Abstract

Recently, the well-established marketing concepts of personalization and customization have also been applied to cause-related marketing (CRM) to empower consumers and overcome issues of such campaigns with a specific, pre-determined cause. This study examines the effectiveness of customized and personalized CRM for apparel products compared to price discounts. The results of a representative choice based conjoint experiment among German consumers (n = 388) show that consumers prefer customized CRM to other types of CRM campaigns and price discounts. While personalized CRM is also perceived as more effective than price discounts, CRM campaigns with a baseline cause are outperformed by price discounts. The study also found that psychographic consumer characteristics, i.e., consumers’ personality structures and cultural orientations can be used to explain consumers’ heterogeneous preferences for different marketing appeals. Finally, three consumer segments were identified – pro-social consumers, pricesensitive consumers, and Amazon Captives – that retailers can target with tailored marketing strategies.