Private-label grocery buyers’ donation intentions and trust in CRM campaigns: an empirical analysis by employing social identity theory

Abstract

Purpose Businesses embark on corporate social responsibility initiatives such as cause-related marketing (CRM) as a strategy to enhance behavioural intentions. This study was undertaken due to the limited ability of the existing CRM literature to directly examine whether and how consumers’ trust affects the donation intention, specifically in the private-label grocery retailing context. This study employs social identity theory as a unified theory to explain the variables adopted and contributes to the body of knowledge on CRM-linked private-label consumption. Design/methodology/approach This study used SPSS 25 and AMOS to analyse the quantitative data. The structural equation modelling was adopted to test moderation and mediation effect and the sample consisted of 456 private-label grocery shoppers. Findings The findings of this study established that general trust in CRM alone would not translate into triggering donation intentions for CRM private-label brands and further validates the mediating role of trust in retailers’ CRM campaigns (TRCC) in shaping monetary donation intentions. Moreover, religious values confirmed a significant moderating role while translating TRCC to donation intention. Research limitations/implications The limitation of this study was the restricted focus on private labels. This research may be limited to only one private-label packaged product but may focus on other private-label products in future research. Practical implications This study has practical significance for advertising managers in designing and implementing campaigns. More specifically, it establishes that consumers who trust the CRM phenomenon and seek private-label products associated with CRM campaigns are likely to provide monetary donations towards non-profit organization (NPOs). Originality/value This information will help practitioners, including grocery retailers, NPO managers and advertising professionals, design effective CRM campaigns for private-label products by understanding the fundamental relationship between trust in CRM campaigns and monetary donation intentions.