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<p> An increasing number of brands in the marketplace are being linked to social causes. Such enhancements are called embedded premiums (EP) and can be quite effective as a sales promotion strategy. Across three experiments, using a nationwide internet panel, we find that (i) at low denominations EP is more effective than an equivalent price discount, (ii) EP benefits an unknown brand more than a known brand, (iii) an identifiable segment of individuals prefer the “other” over “self,” suggesting possible EP optimization and segmentation strategies, (iv) a customization strategy is shown to be more effective than a coverage strategy. These findings have broad implications for brand managers in regard to resource allocation and EP program ROI. </p>
</abstract>

An increasing number of brands in the marketplace are being linked to social causes. Such enhancements are called embedded premiums (EP) and can be quite effective as a sales promotion strategy. Across three experiments, using a nationwide internet panel, we find that (i) at low denominations EP is more effective than an equivalent price discount, (ii) EP benefits an unknown brand more than a known brand, (iii) an identifiable segment of individuals prefer the “other” over “self,” suggesting possible EP optimization and segmentation strategies, (iv) a customization strategy is shown to be more effective than a coverage strategy. These findings have broad implications for brand managers in regard to resource allocation and EP program ROI.

Doing Well While Doing Good. Linking A Social Cause To Product Promotions: Why It Works And How To Make It More Effective

McCombs School of Business, University of Texas at Austin, 1 University Station B6700 Austin, TX 78712 Tel: (512) 232-3746 Fax: (512) 471-1034

John P. Morgridge Chair in Business Administration, Wisconsin School of Business, University of Wisconsin- Madison, 975 University Ave. Madison, WI 53706 Tel: (608) 262-1990 Fax: (608) 265-4193

NIM Marketing Intelligence Review

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

An increasing number of brands in the marketplace are being linked to social causes. Such enhancements are called embedded premiums (EP) and can be quite...

Doing Well While Doing Good. Linking A Social Cause To Product Promotions: Why It Works And How To Make It More Effective

Published Online: Jul 19, 2014

Page range: 8 - 15

DOI: https://doi.org/10.2478/gfkmir-2014-0066

© 2014

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.