Overcoming the Cause Marketing Paradox

Abstract

The current research examines whether and when cause marketing, whereby firms link product sales to the support of a charity or cause, can increase charitable giving and happiness. Previous research suggests that cause marketing might reduce charitable giving and happiness among consumers. However, the present research finds the opposite result by introducing nostalgia as a moderator; cause marketing can enhance consumers’ charity giving when their nostalgia is triggered. Moreover, results show that charitable giving increased by cause marketing improves feelings of happiness, suggesting that people view charitable behavior as a means of enhancing happiness. Interestingly, charitable giving and happiness are promoted by the situational priming of nostalgic events, but not by chronic individual differences such as nostalgia proneness.

Keywords

• cause marketing
• cause marketing paradox
• nostalgia
• charitable giving
• happiness