When a stigmatized brand is doing good

Abstract

Purpose This study aims to investigate consumer responses to cause-related marketing (CRM) implemented by socially stigmatized industries, especially in fast food restaurants. Design/methodology/approach This experimental study uses a 2 (degree of perceived fit) × 2 (complementary fit) × 2 (brand equity) between-subjects design. Findings Results show significant interaction effects between the degree of fit and brand equity and complementary fit and brand equity on consumers’ brand evaluation. When a company with high brand equity chooses a high fit (vs low fit) or complementary fit (vs non-complimentary fit) for CRM promotion, this leads to consumers’ more positive attitude and higher intent to participate in CRM promotion. Practical implications This study provides practical implications for designing effective CRM promotion in the stigmatized industry such as fast food restaurants and casino. Originality/value Given the increased demand on CRM in the hospitality industry, the paper contributes to extend the realm of CRM literatures by investigating antecedents affecting consumers’ responses toward the CRM in the stigmatized companies or brands.