| Cause-related marketing is a relatively new phenomenon used by companies within the last two decades to link elements of corporate social responsibility with strategic marketing initiatives. Numerous studies have shown cause-related marketing associated with increasing brand equity, brand awareness, and revenue. When a company has its reputation negatively affected, traditional efforts to repair this image are often seen as opportunistic. This study examined how select consumers perceived the use of cause-related marketing strategies for companies with negative reputations within the financial services industry in the United States. Data was collected in a three-stage process. First, participants were solicited through the Los Angeles Business Journal. Second, the participants were directed to an online qualifier survey. Finally, from this group of qualified participants 20 randomly selected individuals were chosen for in-depth interviews. The participants were asked about their perceptions of CRM strategies with companies that have a negative reputation, and what if any factors play a factor in this reputation recovery effort. What was discovered was that CRM can be an effective strategy to improve the image/reputation of a firm; however it is most effective if coupled with an operational fix. This qualitative study offers guidelines and ideas that business leaders can modify for the most effective application of the strategy in their respective industries. |
