A key difference between cause marketing and a charitable contribution is
A) a charitable contribution provides an organization with a lower tax deduction.
B) there is no limit to the amount of charitable deductions a firm can make, but a firm is limited to the number of cause marketing efforts it can make during a fiscal year.
C) charitable donations are contributed at the sole discretion of the firm while for cause marketing the amount is directly affected by consumers' purchases.
D) cause marketing is generally linked to public causes and concerns while straight charitable contributions are generally given to private institutions.
E) there is essentially no difference between a charitable contribution and cause marketing.

Question

Quizplus · Accepted Answer

The key difference between cause marketing and a charitable contribution is that for cause marketing, the amount of the contribution is directly affected by consumers' purchases, whereas for charitable donations, the firm has sole discretion over the amount contributed. Additionally, cause marketing can also provide the firm with marketing benefits such as increased brand awareness and consumer loyalty. Charitable deductions and limitations on cause marketing efforts are not relevant to the difference between the two strategies.

A Key Difference Between Cause Marketing and a Charitable Contribution