Asia Marketing Journal

Korean Marketing Association (한국마케팅학회)
권호 표지
DOI QR코드

DOI QR Code

Effect of Cause-Related Marketing in the Chinese Market: Moderating Effects of Product Type and Regional Characteristics

  • Seo, HaeJin (School of Business, Pusan National University) ;
  • Song, Tae Ho (School of Business, Pusan National University) ;
  • Li, Wang (Korea branch, JIAZHUANGSHI TIANLIN LEATHER PRODUCTS CO., LTD.)
  • Received : 2020.01.09
  • Accepted : 2020.10.19
  • Published : 2020.10.31
Download PDF
⟨ Previous Next ⟩

Abstract

Although companies perform societal marketing activities across different cultural regions, previous research was predominantly centered on a specific cultural region-the West. To address this limitation in the literature, the current research examines societal marketing in the Chinese market considering cultural characteristics. China has become the largest market in the world with great potential growth for its vast consumer base. Since there is heterogeneity among regions in China, it is imperative to divide China into several markets for better understanding. Thus, this study investigates different responses of Chinese regional (coastal vs. inland) consumers toward Cause-related Marketing (CM). Our findings reveal that Chinese consumers, in general, prefer utilitarian CM products compared to hedonic CM products, which is the opposite result of findings of the previous research. Further, this was truer for consumers in inland regions, while coastal consumers did not display any preference by product type. The academic and practical implications, limitations, and directions for future research are discussed.

Keywords

Acknowledgement

This work was supported by the Ministry of Education of the Republic of Korea and the National Research Foundation of Korea (NRF-2019S1A5B5A07094397)

References

  1. Adkins S (2008). Cause Related Marketing (2nd edn). Butterworth-Heinemann: London.
  2. Alon I, Lattemann C, Fetscherin M, Li S & Schneider AM (2010). Usage of public corporate communications of social responsibility in Brazil, Russia, India and China (BRIC). International Journal of Emerging Markets, 5(1), 6-22. https://doi.org/10.1108/17468801011018248
  3. Bagozzi RP and Yi Y (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16(1), 74-94. https://doi.org/10.1007/BF02723327
  4. Bartels R (1967). A model for ethics in marketing. The Journal of Marketing, 20-26.
  5. Baughn CC and McIntosh JC (2007). Corporate social and environmental responsibility in Asian countries and other geographical regions. Corporate Social Responsibility and Environmental Management, 14(4), 189-205. https://doi.org/10.1002/csr.160
  6. Bedford O and Hwang KK (2003). Guilt and shame in Chinese culture: A cross-cultural framework from the perspective of morality and identity. Journal for the Theory of Social Behaviour, 33(2), 127-144. https://doi.org/10.1111/1468-5914.00210
  7. Burnett MS and Lunsford DA (1994). Conceptualizing guilt in the consumer decision-making process. Journal of Consumer Marketing, 11(3), 33-43. https://doi.org/10.1108/07363769410065454
  8. Chang CT (2008). To Donate or Not to Donate? Product Characteristics and Framing Effects of Cause-Related Marketing on Consumer Purchase Behavior. Psychology & Marketing, 25(12), 1089-1110. https://doi.org/10.1002/mar.20255
  9. Chen CH and Wu HL (2005). Determinants of regional growth disparity in China's transitional economy. Journal of Economic Studies, 32 (5), 406-419. https://doi.org/10.1108/01443580510622397
  10. Child J and Stewart S (1997). Regional differences in China and their implications for Sino-foreign joint ventures. Journal of General Management, 23(2), 65-86. https://doi.org/10.1177/030630709702300205
  11. Cui G and Liu Q (2000). Regional market segments of China: opportunities and barriers in a big emerging market. Journal of Consumer Marketing, 17(1), 55-72. https://doi.org/10.1108/07363760010309546
  12. Deng L (2009). The relation and dimension of Confucian ethic "Ren, Yi, Li, Zhi, Xin" (in Chinese). Master thesis, Guizhou University. China.
  13. Dickson MA, Lennon SJ, Montalto CP, Shen D & Zhang L (2004). Chinese consumer market segments for foreign apparel products. Journal of Consumer Marketing, 21(5), 301-317. https://doi.org/10.1108/07363760410549131
  14. Dou W, Wang G & Zhou N (2006). Generational and regional differences in media consumption patterns of Chinese generation X consumers. Journal of Advertising, 35(2), 101-110.
  15. Faure GO and Fang T (2008). Changing Chinese values: Keeping up with paradoxes. International Business Review, 17(2), 194-207. https://doi.org/10.1016/j.ibusrev.2008.02.011
  16. Ferrell OC, Gresham LG & Fraedrich J (1989). A synthesis of ethical decision models for marketing. Journal of Macromarketing, 9 (2), 55-64. https://doi.org/10.1177/027614678900900207
  17. Henderson T and Arora N (2010). Promoting brands across categories with a social cause: Implementing effective embedded premium programs. Journal of Marketing, 74(6), 41-60. https://doi.org/10.1509/jmkg.74.6.41
  18. Hirschman EC and Holbrook MB (1982). Hedonic consumption: emerging concepts, methods and propositions. Journal of Marketing, 46, 92-101. https://doi.org/10.1177/002224298204600314
  19. Hofstede G (1980). Motivation, leadership, and organization: do American theories apply abroad?. Organizational Dynamics, 9(1), 42-63. https://doi.org/10.1016/0090-2616(80)90013-3
  20. Holbrook MB and Hirschman EC (1982). The experiential aspects of consumption: Consumer fantasies, feelings, and fun. Journal of Consumer Research, 9(2), 132-140. https://doi.org/10.1086/208906
  21. Hou J, Du L & Li J (2008). Cause's attributes influencing consumer's purchasing intention: Empirical evidence from China. Asia Pacific Journal of Marketing and Logistics, 20(4), 363-380. https://doi.org/10.1108/13555850810909704
  22. Hunt SD and Vitell S (1986). A general theory of marketing ethics. Journal of Macromarketing, 6(1), 5-16. https://doi.org/10.1177/027614678600600103
  23. IEG Report (2016). Available at: http://ieg.worldbankgroup.org
  24. Jiang B and Prater E (2002). Distribution and logistics development in China: The revolution has begun. International Journal of Physical Distribution & Logistics Management, 32(9), 783-798. https://doi.org/10.1108/09600030210452459
  25. Joshanloo M and Jarden A (2016). Individualism as the moderator of the relationship between hedonism and happiness: A study in 19 nations. Personality and Individual Differences, 94, 149-152. https://doi.org/10.1016/j.paid.2016.01.025
  26. Khan U and Dhar R (2006). Licensing effect in consumer choice. Journal of Marketing Research, 43(2), 259-266. https://doi.org/10.1509/jmkr.43.2.259
  27. Kim JE and Johnson KK (2013). The impact of moral emotions on cause-related marketing campaigns: A cross-cultural examination. Journal of Business Ethics, 112(1), 79-90. https://doi.org/10.1007/s10551-012-1233-6
  28. Kivetz R (1999). Advances in research on mental accounting and reason-based choice. Marketing Letters, 10(3), 249-266. https://doi.org/10.1023/A:1008066718905
  29. Kivetz R and Simonson I (2002). Earning the right to indulge: Effort as a determinant of customer preferences toward frequency program rewards. Journal of Marketing Research, 39(2), 155-170. https://doi.org/10.1509/jmkr.39.2.155.19084
  30. Lane KP, St-Maurice I & Dyckerhoff CS (2006). Building brands in China. McKinsey Quarterly, 35-41 (Special Edition).
  31. Lavack AM and Kropp F (2003). Consumer Values and Attitude Toward Cause-related Marketing: A Cross-cultural Comparison. Advances in Consumer Research, 30, 377-378.
  32. Lee-Wingate SN and Corfman KP (2010). A little something for me and maybe for you, too: promotions that relieve guilt. Marketing Letters, 21(4), 385-395. https://doi.org/10.1007/s11002-009-9093-2
  33. Lee JW, Kim SY & Song TH (2010). Rival-benefiting Effect of Advertising: From Minor Brands' Viewpoints. Korean Management Review, 39(5), 1123-1150.
  34. Lee SM, Kim SY, Yoo SJ & Song TH (2019). Cross-buying effect in a multi-vendor loyalty program in Korea. Asian Business & Management, Online Published
  35. Li F, Zhou N, Nicholls JAF, Zhuang G & Kranendonk C (2004). Interlinear or inscription? A comparative study of Chinese and American mall shoppers' behavior. Journal of Consumer Marketing, 21(1), 51-61. https://doi.org/10.1108/07363760410513969
  36. Li LM (2010). Research about Dong Zhongshu's thinking of Yi (in Chinese). Master thesis, Henan University, China.
  37. Lin L, Xi D and Lueptow RM (2013). Public face and private thrift in Chinese consumer behavior. International Journal of Consumer Studies, 37(5), 538-545. https://doi.org/10.1111/ijcs.12023
  38. Lutwak N, Panish J & Ferrari J (2003). Shame and guilt: Characterological vs. behavioral self-blame and their relationship to fear of intimacy. Personality and Individual Differences, 35(4), 909-916. https://doi.org/10.1016/S0191-8869(02)00307-0
  39. March AL (1974). The Idea of China Myth and Theory in Geographic Thought. New York: Praeger.
  40. Mishra A and Mishra H (2011). The influence of price discount versus bonus pack on the preference for virtue and vice foods. Journal of Marketing Research, 48(1), 196-206. https://doi.org/10.1509/jmkr.48.1.196
  41. Nicholls JAF, Li F, Mandokovic T, Roslow S & Kranendonk CJ (2000). US-Chilean mirrors: shoppers in two countries. Journal of Consumer Marketing, 17(2), 106-119. https://doi.org/10.1108/07363760010317187
  42. Nielsen Report (2015). Available at: http://www.nielsen.com.
  43. Nunnally, JC, Bernstein IH, & Berge JMT (1967). Psychometric theory. New York: McGraw-Hill.
  44. Okada EM (2005). Justification effects on consumer choice of hedonic and utilitarian goods. Journal of Marketing Research, 42 (1), 43-53. https://doi.org/10.1509/jmkr.42.1.43.56889
  45. Park H, Rehg MT & Lee D (2005). The influence of Confucian ethics and collectivism on whistleblowing intentions: A study of South Korean public employees. Journal of Business Ethics, 58(4), 387-403. https://doi.org/10.1007/s10551-004-5366-0
  46. Pracejus JW and Olsen GD (2004). The role of brand/cause fit in the effectiveness of cause-related marketing campaigns. Journal of Business Research, 57(6), 635-640. https://doi.org/10.1016/S0148-2963(02)00306-5
  47. Ralston DA, Gustafson DJ, Cheung FM & Terpstra RH (1993). Differences in managerial values: A study of US, Hong Kong and PRC managers. Journal of International Business Studies, 24(2), 249-275. https://doi.org/10.1057/palgrave.jibs.8490232
  48. Ralston DA, Holt DH, Terpstra RH & Kai-Cheng Y (2008). The impact of national culture and economic ideology on managerial work values: A study of the United States, Russia, Japan, and China. Journal of International Business Studies, 39(1), 8-26. https://doi.org/10.1057/palgrave.jibs.8400330
  49. Ralston DA, Kai-Cheng Y, Wang X, Terpstra RH & Wei H (1996). The cosmopolitan Chinese manager: Findings of a study on managerial values across the six regions of China. Journal of International Management, 2, 79-110.
  50. Seo HJ and Song TH (2015). The Study of the Impact of Message Frame on the Effects of Cause-related Marketing - Based on Ambivalence of Cause-related Marketing. Korean Management Review, 44(3), 767-799. https://doi.org/10.17287/kmr.2015.44.3.767
  51. Seo HJ and Song TH (2019a). Comparison of Cause-related Marketing Effect in Korean and Chinese Markets, Management Information Systems Review, 38(4), 95-111. https://doi.org/10.29214/damis.2019.38.4.006
  52. Seo HJ and Song TH (2019b). The Study on the Ambivalence of Cause-related Marketing and the Effect of Message Frame: The Moderating Effect of Product Type, Korean Management Review, 48(2), 435-462. https://doi.org/10.17287/kmr.2019.48.2.435
  53. Seo HJ, Song TH & Yang JH (2018). Differential Effects of Corporate Social Responsibility (CSR) by Self-construal Level: Brand Hierarchical Structure Perspectives. Journal of Commodity Science & Technology, 36 (1), 113-122
  54. Seo HJ, Song TH & Yu JC (2019). The Impact of Corporate Social Responsibility, Volatility of Customer Satisfaction, and the Interaction Effect on Firm's Financial Performance. Journal of Commodity Science & Technology, 37(1), 31-42
  55. Seo HJ, Zhao A, Kim TW & Song TH (2018). A Study on the Effect of Customer Satisfaction Index in Chinese Market: The Moderating Role of Market Environment. Journal of China Studies, 21(4), 97-117. https://doi.org/10.20288/JCS.2018.21.4.97
  56. Song TH (2014). U-Shaped Goal-Gradient Hypothesis: The Application to Customer Loyalty Programs. Journal of Korean Marketing Association, 29(4), 95-107.
  57. Song TH (2016). How do Guanxi and Relationship Marketing Work in Chinese Market?, Journal of Product Research, 34(6), 27-34 https://doi.org/10.36345/kacst.2016.34.6.004
  58. Song TH (2018). A Comparison of Customer Equity to Financial Performance Using Corporate Disclosure Data: The Relationship between the Core Components of Customer Equity and the Customer Retention Strategies. Journal of Korean Marketing Association, 33(3), 39-71. https://doi.org/10.15830/kmr.2018.33.3.39
  59. Song TH and Kim JY (2016). Dynamic Effect of Customer Equity on Firm Performance: Comparison between Leader and Follower. Journal of Commodity Science & Technology, 34(2), 1-10.
  60. Song TH and Kim JY (2020). The Differential Effect of Customer Relationship Management Strategy in the Competitive Marketing Environment: The Case of the Telecommunication Industry. Korean Nanagement Review, 49(2), 305-330 https://doi.org/10.17287/kmr.2020.49.2.305
  61. Song TH and Kim SY (2019). The Effect of the Competitive Environment on the Profitability of Long-term Orientation: Perspective of Customer Relationship Management. Journal of Korean Marketing Association, 34(1), 75-95. https://doi.org/10.15830/kmr.2019.34.1.75
  62. Song TH, Kim MC & Ko WL (2014). The Application of the Goal-Gradient Hypothesis and the Temporal Construal Theory to Customer Loyalty Programs - Goal Gradient Hypothesis and Temporal Construal Theory. Asia Marketing Journal, 16(1), 1-12. https://doi.org/10.15830/amj.2014.16.3.1
  63. Song TH, Kim SY & Kim JY (2013). Optimality of Customer Relationship Management: Does Profitability Really Matter?. Asia Marketing Journal, 15(3), 141-157.
  64. Song TH, Kim SY & Kim JY (2016). The Dynamic Effect of Customer Equity across Firm Growth: The Case of Small and Medium-sized Online Retailers. Journal of Business Research, 69(9), 3755-3764. https://doi.org/10.1016/j.jbusres.2015.12.067
  65. Song TH, Kim SY & Ko WL (2017). Developing An Effective Loyalty Program Using Goal-Gradient Behavior in Tourism Industry. Journal of Travel and Tourism Marketing, 34(1), 70-81. https://doi.org/10.1080/10548408.2015.1130110
  66. Song TH, Kim SY & Lee JH (2009). The Relationship between Customer Equity and Firm's Profitability. Journal of Korean Marketing Association, 24(4), 35-65. https://doi.org/10.6107/JKHA.2013.24.2.035
  67. Song TH, Kim SY, Kim H & Lee JW (2019). Rival-benefiting effect of advertising: experimental extension and empirical investigation. International Journal of Advertising, 38(4), 603-627. https://doi.org/10.1080/02650487.2019.1612622
  68. Song TH, Yoo S & Lee J (2016). Effective Demand Lifting through Pre-Launch Movie Marketing Activities. Asia Marketing Journal, 18(3), 1-18. https://doi.org/10.15830/amj.2016.18.3.1
  69. Song TH, Yuan X & Kim JY (2009). Re-Considering Aggregated Data Bias by Extending. Journal of the Korean Operations Research and Management Science Society, 34(2), 91-100.
  70. Stayman DM and Batra R (1991). Encoding and retrieval of ad affect in memory. Journal of Marketing Research, 28(2), 232-239. https://doi.org/10.1177/002224379102800211
  71. Strahilevitz MA (1999). The Effects of Product Type and Donation Magnitude on Willingness to Pay More for a Charity-linked Brand. Journal of Consumer Psychology, 8(3), 215-241. https://doi.org/10.1207/s15327663jcp0803_02
  72. Subrahmanyan S (2004). Effects of price premium and product type on the choice of cause-related brands: a Singapore perspective. Journal of Product & Brand Management, 13(2), 116-124. https://doi.org/10.1108/10610420410529744
  73. Sun X and Collins R (2006). Chinese consumer response to imported fruit: intended uses and their effect on perceived quality. International Journal of Consumer Studies, 30(2), 179-188. https://doi.org/10.1111/j.1470-6431.2005.00474.x
  74. Sun Y, Garrett TC & Kim KH (2016). Do confucian principles enhance sustainable marketing and customer equity? Journal of Business Research, 69(9), 3772-3779. https://doi.org/10.1016/j.jbusres.2015.12.069
  75. Swaidan Z (2012). Culture and consumer ethics. Journal of Business Ethics, 108(2), 201-213. https://doi.org/10.1007/s10551-011-1070-z
  76. Tang L and Li H (2009). Corporate social responsibility communication of Chinese and global corporations in China. Public Relations Review, 35(3), 199-212. https://doi.org/10.1016/j.pubrev.2009.05.016
  77. The Chinese Culture Connection (1987). Chinese values and the search for culture-free dimensions of culture. Journal of Cross-Cultural Psychology, 18(2), 143-164 https://doi.org/10.1177/0022002187018002002
  78. Thompson M (2011). Chinese hedonic values and the Chinese classical virtues: Managing the tension. Journal of Management Development, 30(7/8), 709-723. https://doi.org/10.1108/02621711111150227
  79. Tian Z, Wang R & Yang W (2011). Consumer responses to corporate social responsibility (CSR) in China. Journal of Business Ethics, 101(2), 197-212. https://doi.org/10.1007/s10551-010-0716-6
  80. Tse D (1996). Understanding Chinese people as consumers: past findings and future propositions. The Handbook of Chinese Psychology, Oxford University Press.
  81. Vaidyanathan R, Aggarwal P & Kozlowski W (2013). Interdependent self-construal in collectivist cultures: Effects on compliance in a cause-related marketing context. Journal of Marketing Communications, 19(1), 44-57. https://doi.org/10.1080/13527266.2011.551833
  82. Varadarajan PR and Menon A (1988). Cause-related marketing: A coalignment of marketing strategy and corporate philanthropy. Journal of Marketing, 52(3), 58-74. https://doi.org/10.2307/1251450
  83. Verlegh PW, Steenkamp JBE & Meulenberg MT (2005). Country-of-origin effects in consumer processing of advertising claims. International Journal of Research in Marketing, 22(2), 127-139. https://doi.org/10.1016/j.ijresmar.2004.05.003
  84. Vo TT, Xiao X & Ho SY (2019). How does corporate social responsibility engagement influence word of mouth on Twitter? Evidence from the airline industry. Journal of Business Ethics, 157(2), 525-542. https://doi.org/10.1007/s10551-017-3679-z
  85. Wang CL and Lin X (2009). Migration of Chinese consumption values: traditions, modernization, and cultural renaissance. Journal of Business Ethics, 88(3), 399-409. https://doi.org/10.1007/s10551-009-0308-5
  86. Wang L (2016). Chinese Consumers' Response toward Cause-Related Marketing: A Comparison between the Coastal and Inland regions, Master degree thesis, Pusan National University, South Korea.
  87. Wang Z and Rao CP (1995). Personal values and shopping behavior: a structural equation test of the RVs in China. NA-Advances in Consumer Research, 22.
  88. Wei R (1997). Emerging lifestyles in China and consequences for perception of advertising, buying behaviour and consumption preferences. International Journal of Advertising, 16(4), 261-275. https://doi.org/10.1080/02650487.1997.11104695
  89. Wei R and Pan Z (1999). Mass media and consumerist values in the People's Republic of China. International Journal of Public Opinion Research, 11(1), 75-96. https://doi.org/10.1093/ijpor/11.1.75
  90. Winterich KP and Barone MJ (2011). Warm Glow or Cold, Hard Cash? Social Identity Effects on Consumer Choice for Donation Versus Discount Promotions. Journal of Marketing Research, 48(5), 855-868. https://doi.org/10.1509/jmkr.48.5.855
  91. Wymer W and Samu S (2009). The influence of cause marketing associations on product and cause brand value. International Journal of Nonprofit and Voluntary Sector Marketing, 14(1), 1-20. https://doi.org/10.1002/nvsm.348
  92. Xin-an Z, Grigoriou N & Ly L (2008). The myth of China as a single market. International Journal of Market Research, 50(3), 377-402. https://doi.org/10.1177/147078530805000307
  93. Xu K (2006). Early Confucian principles: The potential theoretic foundation of democracy in modern China. Asian Philosophy, 16(2), 135-148. https://doi.org/10.1080/09552360600772793
  94. Xue QIN (2005). An Analysis on the Regional Differences of China Tourism. Journal of Guilin Institute of Tourism, 1, 004.
  95. Yang JH, Seo, HJ & Song TH (2016). A Reexamination of the Impact of the Fit of Corporate Social Responsibility on the Brand Attitude: The Perspective of Brand Hierarchy. The Korean Journal of Advertising, 27(8), 59-90. https://doi.org/10.14377/KJA.2016.11.30.59
  96. Yeung YM and Hu XW (1992). Chinas coastal cities: catalysts for modernization. Honolulu University of Hawaii Press.
  97. Yuan X, Kim SY, Song TH & Lee JW (2018). Business Relationship Strategy for Foreign-Invested Enterprises in China: The Moderating Role of Competitive Structure and Entry Type. Journal of Asian and African Studies, 53(5), 703-720. https://doi.org/10.1177/0021909617714276
  98. Yuan X, Song TH & Kim SY (2011). Cultural influences on consumer values, needs and consumer loyalty behavior: East asian culture versus eastern european culture. African Journal of Business Management, 5(30), 121-184.
  99. Zaichkowsky JL (1985). Measuring the involvement construct. Journal of Consumer Research, 12, 341. https://doi.org/10.1086/208520
  100. Zemack-Rugar Y, Rabino R, Cavanaugh LA & Fitzsimons GJ (2016). When donating is liberating: The role of product and consumer characteristics in the appeal of cause-related products. Journal of Consumer Psychology, 26(2), 213-230. https://doi.org/10.1016/j.jcps.2015.06.001
  101. Zhang H, Yuan X & Song TH (2020). The Role of Marketing Activities and eWOM in Movie Diffusion: A Decomposition Perspective. Electronic Commerce Research, 20, 589-608. https://doi.org/10.1007/s10660-020-09423-2
  102. Zhang YB, Lin M, Nonaka A & Beom K (2005). Harmony, hierarchy and conservatism: A cross-cultural comparison of confucian values in china, korea, japan, and taiwan. Communication Research Reports, 22(2), 107-115. https://doi.org/10.1080/00036810500130539
  103. Zheng S (2006). On the cultural characteristics of ocean culture in early modern Chaozhou-Shantou. Master degree thesis, J Guangdong Polytechnic Normal Univ. China.
  104. Zhou JX, Arnold MJ, Pereira A & Yu J (2010). Chinese consumer decision-making styles: A comparison between the coastal and inland regions. Journal of Business Research, 63(1), 45-51. https://doi.org/10.1016/j.jbusres.2009.01.010
  105. Zhu J (2014). Understanding the Influence of Culture on Cause-Related Marketing Practices. Master degree thesis, Miami University, Florida.