Exploring conspicuous compassion as a brand management strategy

<jats:sec> <jats:title content-type="abstract-subheading">Purpose</jats:title> <jats:p>Cause-related marketing (CR-M) – promising to donate to a charity when consumers purchase specific products – is a popular brand strategy, particularly in the social media context. In light of Veblen’s theory of conspicuous consumption, the purpose of this experimental study is to test the impact of a brand’s level and the conspicuousness of a brand’s CR-M campaign on consumers’ brand-related responses. Results reveal a novel mechanism underlying the effects by showing that pride and guilt mediate results.</jats:p> </jats:sec> <jats:sec> <jats:title content-type="abstract-subheading">Design/methodology/approach</jats:title> <jats:p>This research is based on two studies that used a 2 (brand level: high-end vs low-end) × 2 (conspicuous of CR-M campaign: conspicuous vs non-conspicuous) between-subjects experimental design with random assignment to conditions and manipulation checks.</jats:p> </jats:sec> <jats:sec> <jats:title content-type="abstract-subheading">Findings</jats:title> <jats:p>Results reveal that consumers respond more favorably when high-end brands participate in CR-M, particularly when the CR-M promotion is conspicuous. That is, when a high-end brand partners with a charity, especially under conspicuous conditions, it significantly improves consumers’ brand attitudes and intent to share with others. Moreover, pride and guilt are important mediators in effects.</jats:p> </jats:sec> <jats:sec> <jats:title content-type="abstract-subheading">Practical implications</jats:title> <jats:p>The results of this study offer strong implications for brand managers seeking to partner with charities in CR-M campaigns. Results suggest that implementing CR-M campaigns may be fruitful for brands, particularly high-end brands when they enhance the conspicuousness of their CR-M campaign.</jats:p> </jats:sec> <jats:sec> <jats:title content-type="abstract-subheading">Originality/value</jats:title> <jats:p>Results empirically extend the notion of conspicuous consumption by demonstrating that social status can be achieved by displaying not only acquired goods but also benevolence.</jats:p> </jats:sec>