What are pros and cons of brands engaging with social causes?
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Engaging with social causes can benefit brands by enhancing brand equity, loyalty, and consumer favorability . However, there are challenges and risks associated with this strategy. Brands need to carefully consider their history, political associations, and consumer segments before delving into social action advertising . Cause marketing, once a tool for driving product sales, has evolved with the rise of social media and political interest, requiring brands to actively participate in controversial conversations to avoid negative implications . Corporate social responsibility (CSR) initiatives, while beneficial for brand reputation and stakeholder relationships, must align with the business model to be successful . Strategic social alliances, like cause-related marketing programs, can help firms "do well by doing good," but they require careful consideration of factors like cause importance, proximity, congruence, and participation effort to maximize consumer engagement .
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| Papers (5) | Insight |
|---|---|
10 Jun 2022 2 Citations | Engaging in cause-related marketing can enhance consumer attitudes and brand loyalty, but firms must carefully consider factors like cause importance, proximity, congruency, and participation effort for successful outcomes. |
| Engaging with social causes can boost sales (pro), but silence on controversial issues can harm brand reputation (con). Brands must now move beyond cause marketing to activist branding. | |
| Engaging in social causes can enhance brand reputation and profits through positive PR, but may also pose risks and require resources for compliance and ethical alignment. | |
| Engaging with social causes can enhance brand equity and loyalty. However, it may lead to disengagement after brand affiliation ends. The impact on consumer behavior varies. | |
| Pros of brands engaging with social causes include increased emotional involvement, while cons involve risks of stereotypes and virtue signaling, impacting brand purchase decisions negatively. |
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