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cause marketing

Cause marketing is a tactic employed by brands where charitable efforts are linked with profit schemes. In other words, a partnership is developed between for-profit and non-profit entities in the hopes of building a mutually beneficial relationship. The non-profit organization will benefit because of the awareness raised about their cause and any donations they receive from the brand. The for-profit company will benefit from associating their name with an issue important to consumers. Furthermore, the brand hopes that consumers will be even more motivated to spend when they know they are also supporting a good cause. For example,a recent attempt was made by Starbucks to link racism issues with coffee purchasing. Other notable examples are the connections that brands draw between themselves and diseases. This strategy is sometimes criticized because a consumer may have simply wished to buy something and they end up leaving feeling guilty for not having donated.

Source: cbc.ca//news/canada/british-columbia/starbucks-race-together-campaing-stirs-controversy-and-coffee-to-court-cash-1.3000491

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Economics of Advertising

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