The give and take of cause-related marketing: purchasing cause-related products licenses consumer indulgence

Cause-related marketing (CM) is the creation of a mutually beneficial relationship between a company and a nonprofit organization, with the dual objectives of boosting profit for the company and promoting the cause of the nonprofit. The present research demonstrates that mere exposure to CM evokes in consumers a desire to be prosocial and reduces the likelihood of self-indulgent choices. However, the act of purchasing CM products may provide consumers with a “warm glow” feeling from being prosocial. This feeling of a warm glow licenses subsequent self-indulgent behaviors, especially when the product with a cause is hedonic (vs. utilitarian) in nature. We further find that when the warm glow feeling is misattributed to something else (e.g., weather), the licensing effect is reduced. By distinguishing between the pre- and post-purchase effects of cause-related products, this research offers practical insights to managers on how to design and execute CM strategies.