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Have you ever considered using a small donation on product packaging to benefit your brand? Popular examples of this practice include, “buy a pack of toilet paper and the brand will donate 5 cents to the WWF” or “purchase a chocolate bar and 1.4 cents goes to UNICEF.” These promotional campaigns are known as Cause-Related Marketing Promotions (CMPs), which are designed to boost sales while supporting important causes of nonprofit organizations. Although these may seem small on the package, they are considerable investments for marketing managers. Beyond the donation, this promotion technique involves negotiation with the nonprofit organization as well as the redesign and reproduction of the packaging.

However, do CMPs actually drive sales, especially when they’re tucked away on a tiny part of the package? In addition, can they cut through the noise when consumers are faced with overwhelming product choices on grocery store shelves?

In a, authors Christina Schamp, Mark Heitmann, Yuri Peers, and Peter Leeflang investigate the potency of CMPs in driving short-term sales in fast-moving consumer goods (FMCG) retail settings. By analyzing eight years of data covering 63 CMP campaigns across 20 product categories, their study provides the first comprehensive field analysis of how CMPs impact sales in real-world retail environments. Below are the main findings:

CMPs Increase Sales on Average

On average, CMPs produce a 4.9% weekly sales increase while donating 3.2% of the product price. CMPs typically run for 11 weeks, creating sustained growth without the post-promotion dip seen in traditional price promotion (PP).

Who Should Use CMPs

The analysis reveals a large heterogeneity among different CMP campaigns. As CMPs might be overlooked at the point of sale, sales effects can double for categories where consumers notice the brand for factors other than the CMP itself:

• Category leaders
• Brands priced below category average
• Brands with fewer past price promotions
• Brands in simpler markets (fewer SKUs or less price dispersion)

When the setting does not suffice for a brand to enter the consumer’s consideration set, a simultaneously executed price promotion can boost the CMPs’ sales effects. Specifically, a 10% price reduction increases the CMPs’ sales lift by an average of 6.64% over and above the main effect of the PP itself.

How to Make Your Next CMP Campaign More Impactful

• For leading/low-priced brands: CMPs can work well on their own
• For non-leading/higher-priced brands: Combine with price promotions
• For all brands: time PPs and CMPs in parallel as opposed to subsequently

The logic behind this is simple: consumers can only respond to cause-related marketing that they actually notice. In crowded retail environments, shoppers quickly screen products using obvious cues, such as brand names and prices, so CMPs often go unnoticed unless the brand is already likely to be considered for other reasons. In other words, brands need to enter the consideration set to make CMPs work. CMPs do not drive the consideration set on their own.

“Brands need to enter the consideration set to make CMPs work. CMPs do not drive the consideration set on their own.”

We interviewed three of the authors to better understand the complex complementarity of CMPs and PPs and explore aspects of the research beyond what is reported in the article. Christina, Mark, and Yuri emphasized the role of price promotions in making CMPs a success in the FMCG sector, one of the largest and most diverse industries in terms of product categories, SKUs, and global turnover:

Q: What makes your research particularly valuable to both practitioners and researchers, and what surprising insights have emerged from it?

A: The main point of the paper is twofold. First, the average effect of CMPs is small, donations are modest, and sales gains are limited. Many brands do not repeat CMPs possibly because of insufficient economic returns. However, because these campaigns last longer than typical promotions, the total effect over time is not negligible. Other forms of promotion, such as price promotions, would experience diminishing effects over longer periods. Second, we found heterogeneity in CMP effects and studied why some cause-related marketing promotions work well while others do not. When you get it right, cause-related marketing has the potential of way higher effects than the average suggests.

Another special aspect of this study is that it tackles a phenomenon mainly studied in lab experiments, where the effects might appear larger than in the actual market. Rather than focusing on campaign design elements, it examines contextual factors such as pricing and competition—variables that are harder to test in lab settings but crucial for understanding what drives CMP success in the real world. With the actual data, we are able to study the actual economic returns of CMP.

Q: Typically, when brands run CMPs, they add to the marketing cost. Further adding PPs could end up hurting gains in the long run. Can brands boost their CMP performance with other marketing tactics, such as store positioning and in-store promotions?

A: We do not have data on marketing tactics, such as store positioning or in-store promotions, but our evidence suggests that improving product visibility and consumer consideration would theoretically enhance CMP effects. We find that price promotions are particularly effective in ensuring consumer consideration. At first sight, they might seem like a conceptual mismatch that appeals to egoistic consumer motives rather than the altruistic motives CMP relates to. However, consideration is critical to ensure that CMPs do not pass unnoticed limits. Combining these factors creates a synergistic benefit. Note that the additional CMP effect due to price promotions comes at the top of the regular price promotion effect. Importantly, we also do not observe post-promotional dips with CMPs; once customers buy because of cause-related marketing, their sales levels do not fall below regular sales. Since brands typically need to work with retailers to conduct price promotions while CMPs are fully under their control, we recommend better coordination and timing. If you are doing both promotions anyway, align them for maximum benefit, rather than running them separately.

Q: Based on market evidence, do you think brands should take care of maintaining a logical match—like toilet paper brands supporting forest projects—to make their CMPs perform better, sales-wise?

A: Empirically, fit as a moderator is difficult to objectively code in hindsight. For example, a German beer brand donated to rainforest conservation. While this might not seem to be a high fit, advertising and brand positioning might influence fit perceptions over time and suggest otherwise to consumers. A cause-related marketing meta-analysis (Schamp et al., 2023) found that fit is one of the most researched phenomena in lab settings; however, it has only a small effect on consumer response. In a preliminary analysis based on subjective coding of fit, we found similar small effects of fit but did not include them in the paper due to interpretational challenges. Conceptually and based on our findings, we would expect factors such as visibility, concurrent price promotions, and being a leading brand to play a more dominant role than fit, which individual consumers might perceive very differently. Also note that until now, there has not been much competition in terms of simultaneous CMP campaigns in one category in a given time, which might help to make fit considerations more salient.

From an NGO perspective, this could be good news. It might very well open up many more possible collaborations, such as the beer brand’s effort for rainforest conservation, that marketers might otherwise rule out due to concerns about a possible lack of fit. When negotiating with brands, we further recommend that NGOs focus on the duration of the campaign rather than just the donation amount. Since we see a constant weekly sales lift over the campaign period, focusing on campaign length creates a win-win for both brands and nonprofits.

Q: This study focuses on the FMCG sector, which has its own challenges. What kind of sales boost do you expect other product sectors to focus on CMPs such as apparel, cosmetics, and electronics?

A: One of the reasons we studied the FMCG sector was its one-of-a-kind nature. FMCG is roughly 14 trillion USD in global industry, marking about 10% of the global economy. This is important not only from an industry perspective but also from an NGO awareness perspective. Pretty much all of us go grocery shopping. Running the right collaboration with leading brands, brands with attractive price positions, or those willing to add price promotions has a good chance of reaching many people who might be interested in supporting charitable causes but due to different reasons might fail to do so otherwise.

While we lack data, we could try to draw some logical conclusions from our findings regarding other industries. For example, in electronics, Apple is a well-recognized brand; therefore, if they run a reasonable CMP, they would have a good chance of making a sizeable impact. Conversely, one of the many USB drive brands on Amazon risks smaller effects because CMPs do not attract consideration on their own. Therefore, in terms of generalization, we would not be able to differentiate industries but would think more about the actual shopping experiences and the complexity of consumers’ decision-making processes. Whenever consumers apply consideration-then-choice decision making, several factors such as the ones we observed should help CMPs boost sales and promote ethical consumerism. Of course, other factors not part of our investigation could play an additional role in other categories and would need to be considered in addition to these considerations.

Q: Some of the data are more than 10 years old, and consumer consumption has changed considerably since then in terms of increased digital retail and consumers’ rising awareness about societal issues. If this study were done today, what could be the possible differences in the results?

A: To investigate this, we controlled for time effects within our dataset and did not observe a strong shift in CMP effectiveness over time. Moreover, other ongoing projects have shown similar effect sizes. Regarding the role of consideration, we do not expect this to change over time. However, it is important to distinguish temporary cause-related marketing promotions specifically designed to boost short-term sales from brand positioning around ethical consumerism or corporate social responsibility (CSR). When any regular brand adds CMPs, consumers can only find them once they inspect these brands in more detail. However, ethically conscious consumers are often aware of sustainable brands and are likely to consider these without the need for additional price promotions or the necessity of being a market-leading brand. These brands may have profited from the rising awareness of societal issues. Note that very recently, the attention to CSR may have slowed somewhat, but as Forbes notes, “.” More brands are adopting these approaches and consumers are becoming more selective, requiring brands to be more informed about CSR execution and point-of-sale communications. A similar study of long-term CSR might shed further light on when and how to excite consumers with CSR.

Go to the Journal of Marketing Research

References

Kaplan, R. (2024), “Sustainability Isn’t in a Recession, It’s Graduating from High School,” Forbes (September 5).

Schamp, Christina, Mark Heitmann, Tammo H.A. Bijmolt, and Robin Katzenstein (2022), “,” Journal of Marketing Research, 60 (1), 189–215. doi:.

Schamp, Christina, Mark Heitmann, Yuri Peers, and Peter S.H. Leeflang (2024), “,” Journal of Marketing Research, 61 (5), 955–74. doi:.

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Across several experiments and studies, the researchers find that consumers overestimate the effectiveness of products based on color saturation—the richness, strength, or purity of a color—leading them to believe products with such colors are more potent. Consumers then use this perception of potency to infer how effective a product will be. This means that a more vivid and intense color can make a product seem more effective, even if the color has nothing to do with how well the product actually works. People make these inferences based on the color of both the product itself and its packaging. In addition, color saturation influences perceptions of product efficacy in advertising.

A more vivid and intense color can make a product seem more effective, even if the color has nothing to do with how well the product actually works.

For example, in one study, the researchers showed participants images of laundry detergent bottles. Some bottles had packaging with highly saturated colors, while others had less saturated colors. People were more likely to buy the detergent with the more saturated packaging because they believed it to be more effective. Researchers found similar results when showing people work gloves with varying levels of color saturation, suggesting that the link between color saturation and perceived efficacy extends beyond consumable products to durable goods.

Product Color Affects The Amount Consumers Use

Color also affects how much of a product people use. When the researchers placed hand sanitizer dispensers with varying color saturation in university lecture halls, people used significantly less of a highly saturated sanitizer than a less saturated option. In another study, students used less of a highly saturated cleaner to clean their desks. Although this might seem beneficial for promoting sustainable practices, it could be problematic for products where underuse is harmful.

At the same time, the relationship between color saturation and perceived efficacy is not always straightforward. It can be influenced by other factors, such as a consumer’s purchase goal. For instance, if a consumer is looking for a gentle facial cleanser, they might actually perceive a less saturated product to be more effective. This is because they associate lower saturation with gentleness, which is their desired benefit in this case. Conversely, a consumer searching for a strong facial cleanser would likely find the highly saturated product to be more appealing.

The Potential for Misuse or Underuse

The perception of increased potency can lead to unintended consequences. For example, consumers might underdose a brightly colored disinfectant, assuming a smaller amount will suffice. Similarly, medicines with bold packaging may be viewed as overly strong, causing hesitation or improper use.

So while bold colors can enhance product appeal, the fact that consumers make split-second judgements based on color can cause them to be misled when it comes to how the product should be used, which is particularly concerning for items like medications or sanitizers.

Implications for Marketers, Designers, and Policymakers

The findings highlight a tradeoff for marketers. Bold packaging colors can effectively communicate efficacy and capture consumer attention, but they must be used responsibly to avoid unintended consequences. Designing packaging isn’t just about aesthetics—it’s about functionality and trust. Marketers need to ensure that visual elements align with the intended use of the product, especially in categories where accuracy and safety are critical.

The study emphasizes the importance of carefully considering color saturation when designing products, packaging, and advertising:

• If you want to promote product efficacy, consider using highly saturated colors.
• If you want to encourage sustainable consumption, use highly saturated colors for products that tend to be overused.
• However, avoid highly saturated colors for products where underuse could be harmful. In these cases, marketers might consider providing additional information about the product’s potency to offset potential biases. For example, a label could read, “same powerful formula without added dyes.”

Design choices like color saturation can play a key role in promoting resource conservation. Governments and organizations are urging people to conserve resources, reduce waste, and adopt healthier habits. This research suggests marketers, regulators, and consumers can rethink product packaging to promote more sustainable and responsible behavior.

The findings may also be used to help address public health campaigns, ensuring consumers use sufficient amounts of medicines or disinfectants where needed. The underuse of important products like disinfectants or medications because of misleading color perceptions could exacerbate issues during health crises or flu seasons, making this a public health issue. Color psychology can be leveraged to encourage people to use just the right amounts of products to cut down on environmental waste without sacrificing efficacy.

In sum, marketers should align visual design with consumer expectations and product functionality. In a world where packaging often serves as a primary touchpoint for consumers, getting the balance right is crucial.

Source: Lauren I. Labrecque, Stefanie Sohn, Barbara Seegebarth, and Christy Ashley, “,” Journal of Marketing.

Go to the Journal of Marketing

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The interconnected nature of modern technologies means that continued use depends on a products’ capacity to interact with other devices, objects, and infrastructures. Consider gaming consoles that interact with televisions, Bluetooth connections, internet connections, and electricity infrastructures. Their continued use is facilitated or disrupted depending on whether they can establish and maintain these connections.

In a new , we find that customers take active roles in extending a technology product’s lifecycle and that companies must consider this “entropy work” before limiting or encouraging these activities. Entropy work spans maintenance and repair activities, such as checking connections, resetting/cleaning devices, applying updates, replacing parts, and consulting others for help. When people cannot perform entropy work, they experience declines in the usefulness and ease-of-use of their devices.

The increasing prevalence of smart technologies means that these connectivity problems are increasing the amount of entropy work required from users. Moreover, technology companies often restrict users’ abilities to maintain and repair devices and connections. For instance, using third-party parts to replace failing displays or batteries tends to result in annoying notifications or reduced device functionality for iPhone users.

Continued Use Trajectories

By exploring this issue through the lived experiences of technology consumers, we identify four “continued use trajectories” that chart common events during the lifecycle of a variety of technology products from adoption to disposal.

1. First, some products enjoy a supporting trajectory in which devices work seamlessly with others, automatically connecting and functioning for long periods. For instance, Samsung partners with iFixit, a firm that empowers consumers to maintain their own devices through kits and guides. As such, Samsung sanctions its customers to maintain Galaxy smartphones with the support of a trusted third party.
   
   
2. Second, a decaying trajectory occurs when a tech product is easy to use in its early years but thereafter sees gradual declines in performance. Batteries drain faster, programs get slower, and connections to other tech products become complex.
   
   This situation can be caused by the nature of after-sales support: When consumers receive support to perform entropy work early on but this help recedes in later years, the usefulness of a device will likely decay. For instance, AppleCare is available for two to three years after purchase and, once that warranty ends, customers must consult costly certified technicians or attempt entropy work without support.
   
   
3. The third trajectory is a taxing trajectory in which tech products quickly fail to function as expected and consumers need immediate help. Famously, Samsung immediately recalled and replaced many of its smartphones in 2016 after reports of overheating and explosions. By immediately owning the problem, Samsung salvaged its brand image.
   
   
4. Finally, tech products can exist in oscillating trajectories, going back and forth between functioning properly and running into problems. These situations are frustrating because they force consumers to do unpredictable amounts and kinds of entropy work.

When users cannot derive the useful benefits of a device, they are more likely to abandon it, but they also get frustrated with brands. And if a company restricts consumers’ ability to receive help from outside sources and funnels them toward their own services, consumers can feel trapped.

To navigate these different trajectories, companies can provide resources such as guides for common recurring problems. Moreover, they can establish or endorse platforms that offer free troubleshooting advice, like Reddit communities and Adobe’s community, which offer support for products.

The Right to Repair

Given the worsening cost-of-living crisis, we can understand why consumers increasingly demand the “right to repair” their own devices via access to third-party services and parts. Oregon, Colorado, and the European Union have all enacted right-to-repair laws, illustrating a growing movement’s momentum to guarantee consumers’ ability to perform entropy work and maintain their devices.

Mindful of these movements, companies must consider how they support or limit consumers’ entropy work. We offer several suggestions for chief marketing officers:

• Keep in mind that as the connectivity of a tech product increases, the chances for these connections to enable problems to emerge increases.
  
  
• Incentivize customers to upgrade to a new device to improve ease-of-use when entropy work overwhelms them.
  
  
• Implement holistic investigations into which technologies, people, and other objects have the capacities to increase the entropy work customers must do to maintain their device’s continued use.
  
  
• Establish enduring service relationships when tech product issues are likely to recur to help customers maximize periods of stable continued use.

Source: Paolo Franco, Robin Canniford, Marcus Phipps, and Amber M. Epp, “,” Journal of Marketing.

Go to the Journal of Marketing

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