Understanding the consumer market for cause-related goods : the Lindalein Project

Abstract

considerations. When proceeds from a sale benefit a charity, the cause(s) being supported become major factors in the purchase decision. Other factors also become important such as the primary type of value derived from the product (hedonic or utilitarian) and the perceived fit between the brand and the cause (Pracejus & Olsen, 2004; Strahilevitz & Myers, 1998). Hedonic products are primarily consumed for enjoyment or pleasure, whereas utilitarian products are consumed for their practicality and functionality. Morrison Woods is a health campus in Muncie that participates in a cause-related marketing project called the Lindalein Project in which senior citizens including Morrison Woods residents create crafts and jewelry which are then sold for the benefit of Second Harvest Food Bank and the Alzheimer's Association. This report analyzes a set of data collected through an electronic survey and seeks to answer the following research questions concerning this project: What are the demographics of the Lindalein Project's target market based on the causes supported as well as the products being sold? What are the demographics of those who like the Lindalein products? Is the target market price sensitive? How can the target market best be reached with marketing communications and sales? How should the Lindalein Project communicate its cause in order to maximize purchase intent? Should Morrison Woods include branded reading material with the products that describes the Lindalein Project?

It was discovered that the primary target market for the project is females ages 18-49. The secondary target market is females ages 69-86. Females' higher purchase intent is driven by their more positive attitude toward charitable organizations. Pins had the highest purchase intent, so Morrison Woods should focus most of its efforts on creating pins, especially ones similar to the butterfly pin and flower pin. Pins should be priced at $1, but the price of the earrings, shell craft, rainbow craft, and beach craft, along with products analogous to each of them, could likely be raised to $25, $10, $10, and $20, respectively, without significantly decreasing purchase intent. Facebook and publicity through radio and newspaper represent the most promising forms of media for reaching the target market. Several community events and businesses should be pursued as distribution channels for Lindalein Project products. These include the Living Lightly Fair, the Farmer's Market at Minnetrista, the UMC Holiday Baazar, the Yard Sale, Country Time Flea Market, and The Cup. Though it was not investigated in this study, Morrison Woods should also investigate the potential to sell products at a local elementary school holiday sale (i.e. "Secret Santa Shop" ). Communications describing the Lindalein Project Cause should appeal to the audience's feelings of love, sentiment, warm-hearted ness, guilt, pride, eagerness, and relief in order to increase purchase intent. Finally, Morrison Woods should include branded reading material that describes the Lindalein Project with every piece that it sells in order to increase brand exposure and positive brand image.