Does cause marketing work?

A Michigan School of Business article discusses a Management Science study that reviews the business impact of cause marketing, with some interesting findings.

It’s this spillover effect to a company’s other products that can make cause marketing worthwhile, the researchers say. In fact, even if a firm is unable to increase the price of a cause-related product enough to compensate for the donated money or if it simply ties a low-selling product to cause marketing, it can still increase its profits — as long as consumers feel good about buying the company’s other products.

Michigan School of Business

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