Consumers’ Implicit Mindsets and Responses to Cause-related Marketing Campaigns

Cause-related marketing (CRM) efforts (e.g., contributing a portion of sales to charities) enhance purchase intentions (Henderson & Arora, 2010), while donation amount that CRM garners (Elfenbein & McManus, 2010) or in-kind/monetary contributions of the company (Hildebrand et al., 2017) play significant roles. Although CRM has been steadily gaining in popularity, research linking consumers’ characteristics to CRM is limited. Current research shows that consumers’ implicit mindsets—whether they believe that characteristics can change (growth mindsets) or not (fixed mindsets)—may influence their responses to CRM efforts. Moreover, the interactive effect of benefits offered (for the consumer or for those in need) and firm– cause fit moderates the results. CRM messages may appeal to consumers through the self or others. With every pair of shoes purchased, TOMS donates one pair of shoes, an other-benefit appeal focusing on helping others (White & Peloza, 2009). Conversely, in a self-benefit appeal by Wendy’s, consumers receive a free milkshake for their support. Current research explores the ramifications of implementing these appeals in CRM campaigns. Extant literature identifies two mindsets that consumers may endorse: fixed and growth (Dweck & Leggett, 1988). Those with a fixed mindset perceive things as fixed/unchangeable entities, while growth mindsets perceive things in more dynamic/ flexible ways (Plaks et al., 2005). Butler (2000) argues that beliefs in immutability make fixed mindsets more receptive to outcome-related information. Conversely, growth mindsets are more sensitive to information about intermediary processes (Molden et al., 2006). Jain and colleagues (2009) show that while viewing an ad, fixed mindsets generate more outcome-related thoughts, but growth mindsets’ thoughts are mostly related to ad-tactics, proving their focus on the process. Mathur et al. (2016) suggest that growth (vs. fixed) mindsets more strongly value fairness of procedures used to achieve positive outcomes. Conversely, fixed mindsets focus on outcomes.