Journal of Product & Brand Management

Charity affiliation as a determinant of product purchase decisions

Roger Bennett Helen Gabriel
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Roger Bennett Helen Gabriel, (2000),"Charity affiliation as a determinant of product purchase decisions", Journal of Product &
Brand Management, Vol. 9 Iss 4 pp. 255 - 270
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Sally Hibbert, Suzanne Horne, (1996),"Giving to charity: questioning the donor decision process", Journal of Consumer
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Philippa Hankinson, (2004),"The internal brand in leading UK charities", Journal of Product & Brand Management, Vol. 13
Iss 2 pp. 84-93 [Link]
Bodo B. Schlegelmilch, Alix Love, Adamantios Diamantopoulos, (1997),"Responses to different charity appeals: the impact
of donor characteristics on the amount of donations", European Journal of Marketing, Vol. 31 Iss 8 pp. 548-560 http://
[Link]/10.1108/03090569710176574

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 An executive summary for
managers and executive Charity affiliation as a
readers can be found at the
end of this article determinant of product purchase
decisions
Roger Bennett
Reader, Department of Business Studies, London Guildhall
University, London, UK
Helen Gabriel
Lecturer, Department of Business Studies, London Guildhall
University, London, UK

Keywords Brands, Charities, Fund-raising, Image, Consumer behaviour

Abstract A number of large UK charities have extended their product sales into areas not
traditionally associated with non-profit organisations. Examines the connection between
a person's assessment of the quality and value for money of conventional charity goods
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(T-shirts or coffee mugs for example) and their evaluation of the likely merits of new and
unfamiliar charity products (such as package holidays or household insurance). Emerges
that the former variable exerted a strong and statistically significant impact on the latter,
but that the form of the relationship was moderated by individual perceptions of the
degree of similarity between the old and new products. ``Similarity'' was defined in terms
of the skills and resources that consumers considered necessary in order to supply
various items and the charity's perceived capacity to employ these skills and abilities in
ways which generate fresh products of the same calibre as existing goods.

Introduction
Diversified activities The diversification of the fund-raising activities of large UK charities to the
sale of products unconnected with (or at best only marginally related to) their
primary philanthropic goals has constituted an important trend in non-profit
marketing during recent years (see for example Carter, 1995; 1997; Bawden,
1998; Dolon, 1998; Ramrayka, 1998; Rowe and Thorpe, 1998; Ramsay,
1999). Notable examples of the phenomenon are the flowers-by-post gift
service provided by the charity Age Concern; the personal equity plans,
insurance, savings and other financial services offered by Friends of the
Earth; telephone discount cards and branded music CDs sold by the Royal
British Legion; and the Family Planning Association's announcement in
January 1999 of its intention to market sex toys (Ramsay, 1999). Other
products currently offered by charitable organisations include mineral water
and confectionery, funeral plans, retail loyalty cards, sun tan lotion, and
alcoholic drinks. Moreover, increasing numbers of UK charities are now
active in the adventure holiday business, e.g. whitewater rafting in
Zimbabwe (SCOPE), bicycling in Egypt (MENCAP), and Himalayan
Trekking expeditions (WHIZZ-KIDZ). These trips might be described as
``sponsored events'', yet entail paid-for vacations. (The commercial travel
agencies have formally complained that they represent unfair business
competition (Ramrayka, 1998).)
For decades consumers have purchased certain types of product from
charities, typically via Christmas brochures and mail order catalogues

The research assistance of Yvonne Gleeson is gratefully acknowledged.

The current issue and full text archive of this journal is available at
[Link]

JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 9 NO. 4 2000, pp. 255-270, # MCB UNIVERSITY PRESS, 1061-0421 255
 promoting relatively low value gifts, trinkets and memorabilia. The purpose
of the current paper is to assess the extent to which the charity image
attributes that customers attach to familiar products which they have always
bought from charities (Christmas cards, leather wallets, T-shirts or coffee
mugs for example) are transferred by them to fresh and different types of
product supplied by the same organisations. This is an important topic
because, if positive image attribute transference can be demonstrated, then
charities are presented with lucrative opportunities for supplying an
extensive range of widely disparate product categories under their own
names and charity images. Otherwise the best strategy for marketing these
unconnected items would (from a fund-raising point of view) be to use
different and more ``commercial'' brand names not necessarily anchored
against the philanthropic image of the supplying organisation. Accordingly,
the paper assesses the images that customers hold about conventional charity
goods and employs these evaluations to explore the process of image transfer
from familiar charity products (i.e. those previously and regularly
experienced) to fresh products offered by charities. Specifically, it tests the
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hypothesis that the degree to which a customer perceives familiar and fresh
charity products to be ``similar'' (in relation to the business and other skills
needed to supply them and their capacity to provide the same value for
money) exerts a significant influence on the evaluation of new and
unconventional charity items.

Attitudes towards charity branded products

Organisational change Charities' observed activities generate public knowledge, feelings and
beliefs about them that help create an overall organisational image (McLean,
1998). Thus, an individual's familiarity with charities (gained perhaps via
personal experience of their work or through exposure to their marketing
communications or general media coverage of their operations) will
contribute to the formation of an image of charities which might be based on
pre-assumed philanthropic and altruistic traits powerful enough to influence
buyer behaviour (Park and Lessig, 1985; Tapp, 1996). Crucially, it is known
that consumers commonly employ heuristics (i.e. mental ``short cuts'') to
handle complex information processing tasks in order to lighten their
cognitive workloads (see Taylor et al., 1994, pp. 87-91). Hence they often
focus on just one or two aspects of a product when assessing its value (Alba
and Hutchinson, 1987). It follows that an item branded under the name of a
well known charity might be associated in consumers' minds with beliefs
about charitable attributes which influence their product evaluations (Park et
al., 1991; Meech, 1996). Thus, to the extent that product knowledge is
retained by consumers as sets of associations (see Lynch and Scrull, 1982;
Fiske and Taylor, 1984), a good's charity affiliation could represent an
important focal point around which mental associations revolve. In
particular, an auspicious charity image could generate ``halo effects'' vis-aÁ-
vis the supply of charity branded items, i.e. customers who lack detailed
knowledge about product attributes might assume that because charities are
``worthy'' organisations then the goods they sell must be sound, reliable, and
excellent value for money. Hence the cue of a charity affiliation may be used
as a predictor of product quality, acceptability, etc. when more explicit
information is missing (cf. Lee and Lou, 1995).
As well as affecting customer assessments of a charity's existing products
(tableware for example) the charity's image might be transferable to
influence the evaluation of new and entirely different charity products, such
as holidays or financial services. Arguably, however, customers like to

256 JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 9 NO. 4 2000

 categorise similar products into the same cognitive groups. If this occurs then
the more alike are a familiar product and a completely new product supplied
by the same charity then the higher the likelihood that the two items will be
perceived as belonging to the same cognitive category. Consequently the
greater will be the transference of the positive charity-related image
attributes from the familiar to the new product (cf. Mervis and Rosch, 1981;
Bierly et al., 1985). A substantial body of academic literature suggests that
perceived similarity is a key determinant of (commercial) brand extension
beliefs and evaluations (see for example Aaker and Keller (1990) and Park et
al. (1991) for details of relevant research). On the other hand, familiarity
with conventional charity products might cause consumers to form summary
beliefs about any product supplied by a charity, irrespective of whether it is
similar or different from charity products previously purchased. Also,
products supplied by a charity might be perceived as ``popular'', and it is
known that brand popularity can act as an extrinsic cue for product quality,
thus enhancing customer confidence in branded goods (Aaker, 1991).
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Giving to and buying from charities

Variables influencing Although the causes of decisions to support charities are known to be highly
charity support complex (see Hibbert and Horne, 1991), a number of variables appear to be
especially critical. The main factors have been identified as household
income, self-perceived financial security, educational level, whether a person
has children under age five, and attitudes towards religion (see
Schlegelmilch et al., 1997). Arguably, people who donate heavily to charity
will also be more favourably inclined towards charity products. Another
possible source of influence on a customer's rating of the acceptability of a
``non-traditional'' charity product might be the person's level of
psychological involvement with charitable organisations. A high level of
involvement could cause the individual to process charity marketing
messages more deeply and intensely and hence to be more receptive to
communications (Zaichkowsky, 1985; Martin, 1998). Thus, people who
regard the act of giving to (or otherwise supporting) charities as personally
relevant, important, interesting and necessary may be more likely to be
willing to purchase charity products. Such individuals might have greater
confidence in the integrity of the charity sector. It is relevant to note,
moreover, that a number of empirical studies have concluded that supporters
of charities tend to place more importance on prosocial personal values than
others, especially values connected with social responsibility (see Wymer,
1997, p. 5, for details of the academic literature supporting this proposition).
Indeed, personal values have been found to represent an excellent criterion
for discriminating between charity supporters and non-supporters (see
Killeen and McCarry, 1986; McClintock and Allison, 1989). The purchase of
charity branded items enables the individual to make a personal statement
about his or her moral values.

Hypothesis and methodology

These considerations suggest the following research hypotheses:
H1: A consumer's rating of the likely merits of a new and unconventional
product supplied by charities will depend positively and significantly on
his or her rating of familiar products supplied by charities. This
relationship will vary according to the consumer's perceptions of the
degree of similarity of the two product types. The more similar the latter
are perceived to be in terms of a charity's capacity to supply the goods,
the greater the strength of the relationship.

JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 9 NO. 4 2000 257

 H2: Persons who are more psychologically involved with the act of giving to
charity will rate the merits of unfamiliar new charity products more
favourably than others.
H3: Individuals who hold highly auspicious images of charities will rate
unconventional new charity products more favourably than people with
poor images of charities.
H4: Persons who exhibit characteristics known to be associated with high
levels of donation to charity will rate new and unfamiliar charity
products more favourably than others.
Questionnaire design In order to test these hypotheses a questionnaire was developed consequent
to discussions with the trading managers of two leading UK charities, a
representative of a major charity support organisation, and two senior
academics with specialist interests in the social and non-profit marketing
fields. Following a pretest designed to highlight ambiguities in the wordings
of particular items, the final version of the questionnaire was administered to
a convenience sample of 168 part-time students attending post-graduate or
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vocational courses at a university in the East End of London. Thus, all the
test subjects were paid employees of organisations or self-employed. The
questionnaire asked respondents to indicate how much they had donated to
charity over the previous four weeks. This generated a mean value of £4.28,
which compares with the national average (derived from the UK
government's Annual Household Expenditure Survey) of £4.92 (Waterson,
1999, p. 57). Of the sample, 52 percent were in ``professional'' jobs
(compared with 48.5 percent for the nation as a whole (see Waterson, 1999,
pp. 16-18)), 14 percent in clerical, 12 percent in skilled and 9 percent in
unskilled work (figures close to UK national averages). Likewise the
proportions of the sample describing themselves as ``very religious'' (5.5
percent) and ``not at all religious'' (32.3 percent) matched UK national
averages. Hence the sample was not atypical of members of the general
public who donate to charities. The age of the respondents varied from 21 to
46, with a median age of 29 years. Of the sample, 55 percent was female; 28
percent comprised (non-white) ethnic minority individuals. Overall the
sample contained a mix of people with cultural backgrounds, political
opinions, social attitudes, work and living experiences and other socio-
economic characteristics broadly comparable to employed residents of
Greater London, except for their higher average level of education. Note,
however, that a substantial number of previous studies have concluded that
well-educated individuals are more likely both to donate to charities and to
donate higher amounts (e.g. Harvey, 1990; Jones and Posnett, 1991;
Schlegelmilch et al., 1997).
Measurement of charity The first section of the questionnaire contained the instrument used to
usage measure charity image. This was assessed for internal reliability via a pretest
using a separate sample comprising a class of 52 undergraduate students and
a class of 42 part-time, post-graduate, short-course students at the authors'
home university. The characteristics of both the groups used for the pre-test
were essentially the same as for the main 168-strong sample, except that the
undergraduates were on average younger (mean age 21) than the others and
did not have full-time jobs (though most worked part time). However, no
significant differences in the overall patterns of the answers given by the two
sets of students participating in the pre-test could be discerned. Also, a study
completed in parallel with the current work found that the patterns of charity
giving of undergraduates in the sampling frame did not differ significantly

258 JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 9 NO. 4 2000

 from those of a much larger sample of members of the general public
(Bennett and Gabriel, 1999).
List of descriptors To construct the instrument an initial list of words and phrases relevant to
charity image was derived from the charity marketing, corporate reputation
and non-profit organisation management literature (e.g. Fombrun and
Shanley, 1990; Wray, 1994; Tapp, 1996; Nichols, 1996; Schlegelmich et al.,
1997; Hibbert and Horne, 1997; McLean, 1997; Kennedy, 1998). Common
themes among these descriptors were identified independently by the authors
plus three other academics with specialist interests in the non-profit
marketing and/or corporate identity fields. The five separate categorisations
of themes were then compared and amalgamated. There was a high degree of
overlap among the five evaluations, enabling the delineation of appropriate
headings and the removal of excessively repetitious items. This left 26
descriptors in the various hypothesised thematic categories. Next, the pre-test
sample of 52 undergraduates and 42 part-time post-graduates were asked to
write down the name of the first two ``famous charities'' that came into their
minds, and to rank their perceptions of the qualities (see Table I) of these
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charities (five-point scales: 5 = excellent; 1 = very poor) for each of the 26

descriptors. The results (n = 188) were factor analysed and subjected to
orthogonal and oblique factor rotations. Item to total correlations and
Cronbach's alphas were computed for the elements of each factor, resulting
in the removal of seven outlying items. The best solution involved the four-
factor varimax (orthogonal) rotation shown in Table I, which explained 76
percent of total variation within the data. (The mean values for the
composites of the scales under each heading in Table I were compared for
the two sub-samples, no substantial differences emerging.) A confirmatory
factor analysis was performed on the four-factor solution using one to six-
factor alternatives as comparators. The four-factor model easily
outperformed the next best three-factor solution (Chi-square [152 df] =
164.4, GFI = 0.911 compared with Chi-square = 188.6, GFI = 0.803 for the
Loading
Factor 1. Emotive altruism. Lambda = 6.08. Alpha = 0.93
Compassionate 0.91
Sympathetic 0.88
Kind 0.81
Idealistic 0.80
Caring 0.76
Passionate 0.62
Factor 2. Efficiency. Lambda = 3.8. Alpha = 0.91
Well-managed 0.86
Spends money on beneficiaries rather than administration 0.80
Uses its assets wisely 0.80
Highly professional 0.71
Employs people who really know how to get things done 0.60
Factor 3. Trust. Lambda = 3.04. Alpha = 0.90
Trustworthy 0.79
Reliable 0.74
Honest 0.70
Non-political 0.68
Factor 4. Modernity. Lambda = 1.52. Alpha = 0.86
Progressive 0.77
Modern 0.69
Energetic 0.55
Innovative 0.52

Table I. Varimax factor analysis

JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 9 NO. 4 2000 259

 three-factor model). Cronbach's alpha was calculated for the sets of items in
each factor, the results indicating sound internal reliability (see Table I).
Hence each grouping was composited into a single scale to represent the
relevant sub-construct. The all-item composite for Table I correlated
positively and significantly (R = 0.88) with a further questionnaire item for
``overall assessment of the excellence of the charity'' (5 = excellent; 1 = very
poor), suggesting a high degree of convergent validity for the combined
scale. This was confirmed by a correlation of 0.81 between the composite
and responses to a questionnaire item worded ``This is a charity that others
should try to emulate''.
New, unconventional Section 2 of the questionnaire introduced the familiar and the new and
products unconventional products selected for the study. These items had been
previously selected via a separate procedure whereby the 52 undergraduates
and 42 part-time students used for the pretesting were presented with a list of
20 candidate products (12 of which were at that time offered for sale by at
least some UK charities) and asked to indicate on ten-point scales how closely
they regarded each item as ``traditionally sold by charities''. Four of the top-
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ranking products (i.e. T-shirts, coffee mugs, diaries and ``pens and pencils'')
were employed as the familiar goods. (Christmas cards were ranked as the
number one product in this category, but were not included because of their
essentially ad hoc and ephemeral nature.) The four lowest ranking items
(package holidays, household insurance, mineral water and shampoo) were
used as the unconventional products; while the four products in the middle of
the array (household furnishings, fashion jewellery, bed linen and children's
toys) constituted an intermediate category. Note the possibility that a charity
affiliation for a branded product might be less influential the more adverse the
consequences of making a bad purchase. The list of items generated by the
above-mentioned procedure is considered satisfactory in this connection as it
comprises a fair mix of mundane and inexpensive products on the one hand,
and dearer and more sophisticated products on the other. Accordingly it
becomes possible to capture differences in responses arising from perceived
disparities in the costs of making a poor purchasing decision. Each respondent
in the pre-test sample was questioned about two unconventional products
selected at random in even numbers from the pool of eight.
Familiar products The next section of the questionnaire asked respondents to rate their
perceptions of the merits of charity branded familiar products (irrespective of
whether they personally had ever purchased such items from charities)
according to the criteria shown in Table II.1A. These image characteristics
are adapted from those developed by Nebenzahl and Jaffe (1996) on the
basis of previous studies designed to measure the effects of country of origin
on consumer evaluations of branded products. Such scales have been tested
for reliability and validity by a number of researchers (see Nebenzahl and
Jaffe (1996, p. 9) for details). The alpha values for the responses for the five
items concerning the assessment of the calibre of conventional charity
products was 0.922, and that for unconventional products 0.901. Hence the
items were composited into single scales for the purposes of subsequent
analysis. The charities cited in Table II.1A were those most commonly
mentioned by the 94 people previously requested to write down the name of
the first famous charity that came into their heads. Pretesting of the
questionnaire revealed that individual evaluations of any one of the
conventional charity products mentioned in Table II.1A invariably correlated
closely with the person's evaluations of the other items. Thus, a high rating
given to (say) charity coffee mugs would be accompanied by equally high
ratings for diaries, T-shirts and pens and pencils. Hence there was no point in

260 JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 9 NO. 4 2000

 1. Ratings of products
A. Charities such as the RSPCA, Oxfam, Save the Children, the Imperial Cancer
Research Fund and the Royal National Institute for the Blind sell to the public
products such as coffee mugs, T-shirts, diaries, stationery items and pens and
pencils. Please indicate by ticking the appropriate boxes below your feelings
about the quality and value for money of these items. Please record your
impression even if you have not actually purchased any of these products from a
charity. (Key: SA = strongly agree; A = agree; N = neither agree nor disagree; D
= disagree; SD = strongly disagree)
My impression of the characteristics of these types of products supplied by such
charities is that they are:
(i) reasonably priced
(ii) of good quality
(iii) likeable
(iv) something that people are proud to purchase
(v) popular among the general public
B. Some of these charities are in the process of extending the range of the products
they sell to include such things as household insurance, package holidays,
chocolate bars, children's toys, fashion jewellery and household furnishings.
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Please think about two of these products, i.e. package holidays and chocolate
bars. Please indicate the extent of your agreement or disagreement with each of
the following statements for each of the two products
I would predict that an (unfamiliar and unconventional) product supplied by one
of these charities will be:
as (i) to (v) above
Note: Other versions of the questionnaire cited alternative pairs of products
2. Product similarity
(i) I believe that the managerial and technical skills needed to supply this (new
and unconventional) product are similar to those needed to supply traditional
charity products such as coffee mugs, T-shirts, pens and pencils, etc.
(ii) A charity needs to employ the same sorts of employee to be able to supply
this (unconventional) product as it needs to employ in order to supply
traditional charity products
(iii) A charity needs to possess the same marketing skills to be able to sell this
(unconventional) product as it needs to be able to sell traditional charity
products
(iv) The qualities that an organisation needs in order to be able to supply this
(unconventional) product resemble strongly the qualities needed to supply
traditional charity products
(v) This (new and unfamiliar) product can be expected to have the same levels
of reliability and dependability as the familiar product
(vi) This (new and unfamiliar) product can be expected to provide the same value
for money as the familiar product
3. The respondent
A. I would describe myself as someone who:
(i) in financial terms is comfortably off compared to most other people
(ii) is a religious person
(iii) worries a lot about not having enough money in the future
B. For me, donating to charity:
(i) is an important part of my life
(ii) gives me inherent satisfaction
(iii) is almost like giving something to yourself
C. I would feel guilty if I did not donate to charity
D. I am interested in the work of the charities I support even when I am not able to
make a donation
E. You can tell a lot about a person by whether or not they give to charity
F. (i) I have (please circle): no children/at least one child under age five/ at least
one child over age five
(ii) In the past I have/have not purchased goods from charities

Table II. Questionnaire items

JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 9 NO. 4 2000 261

 conducting separate analyses for each of the conventional products, which
instead were regarded as a single whole. Likewise, pre-testing suggested
strongly that (using the criteria listed in Table I) individual perceptions of
each of the charities listed in Table II.1A were almost identical: a low
opinion of one was usually associated with low opinions of the others. Thus,
the questionnaire treated the named charities as representing the charity
sector: respondents were not questioned about their attitudes towards specific
organisations. The questionnaire also asked whether the respondent had
purchased any products from a charity over the previous two to three years.
Ninety-two per cent of the pre-test sample and 94 percent of the main 168-
strong sample had purchased at least one product (typically a low value
product) from a charity during this period. (Charity sales of inexpensive
items such as coffee mugs, greetings cards, T-shirts, etc., are extremely
common in the UK, especially at Christmas.) It follows that nearly all the
respondents had first-hand experience of charity products.
Similarity of products Six questions were asked to establish the degrees to which respondents
perceived products to be similar, as shown in Table II.2. This approach to the
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measurement of similarity among product types follows that of Agarwal and

Sikri (1996) who applied such items to the assessment of consumer
perceptions of the similarity of products originating in different countries.
The procedure focuses on perceptions of similarities in the skills and
resources applied to the supply of various types of product and the assumed
ability to employ these skills and abilities in ways which generate new
products that possess the same merits and value for money of old ones.
Clearly it is not possible to ask meaningful questions about perceived
similarities in product form; as each item has its own unique physical
identity, function, appearance, etc. Obviously, there is no physical similarity
whatsoever between, for example, chocolate and shampoo as products; but
the underlying organisational competencies required to supply them might
be regarded as essentially the same.
Section 3A of the questionnaire carried two items (A(ii) and (iii)) based on
Schlegelmilch et al.'s (1997) suggested methodology for assessing the role
of religion and individual perceptions of financial security. These were
followed by six questions (3B(i) to (iii), C, D and E) intended to assess
charity involvement. The items were derived from the general product
involvement literature, notably the contributions of Laurent and Kapferer
(1985), Mittal (1989) and Havitz and Howard (1995). Responses to the five
items had a Cronbach's alpha of 0.911, suggesting sound internal reliability.
Hence the items were combined into a single scale for the purpose of
measuring the charity involvement construct. The final section of the
questionnaire queried the respondent's age bracket; numbers and ages of
children, and whether the person had ever purchased goods from charities.
Education levels were not questioned, however, as most of the respondents
possessed similar educational qualifications. Pretesting revealed that
respondents were extremely reluctant to offer details of their household
incomes. Thus the questionnaire asked instead whether the person regarded
him or herself to be well off compared to ``most other people'' (item 3A(i)).

Analysis of the results

The six items relating to product similarity (Table II.2) had a Cronbach's
alpha of 0.894, permitting their combination into a single scale. Table III
gives the mean values for this composite for each of the products. It is clear
that assessments differed widely across the various items. In order to
evaluate the impacts of the key dimensions of the study on respondents'

262 JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 9 NO. 4 2000

 Product Mean SD
Package holidays 1.60 0.66
Household insurance 1.86 0.61
Shampoo 1.91 0.79
Chocolate bars 2.20 0.89
Children's toys 2.77 0.90
Household furnishings 2.94 0.85
Fashion jewellery 3.14 1.02
Bed linen 3.19 1.09
Notes: Six-item composite. Five-point scales

Table III. Perceptions of similarity among products

ratings of new and unconventional charity products a regression analysis was

undertaken designed to explain the five dependent variables listed in Table
IV. The first regression involved the composite for respondents' assessments
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of the likely merits of any new and unconventional charity product, using the
all-sample eight-product data (n = 336). A stepwise procedure was applied
whereby any independent variable failing to attain significance at the 0.1
level was deleted, provided its omission did not worsen the overall
performance of the regression. As there existed significant multicollinearity
among the raw data for the variables ``charity involvement'', ``trust'' and
``efficiency'', factor scores were extracted for the latter two composites and
the results mean-centred. Hence there was no correlation whatsoever

Dependent variables:
1. Prediction of the merits of an unconventional product supplied by a charity. All-
sample data (n = 336)
2. Prediction of the merits of a high value unconventional product (package holidays
or household insurance) supplied by a charity (n = 86)
3. Prediction of the merits of a low value unconventional product (chocolate bars or
shampoo) supplied by a charity (n = 84)
4. Prediction that the price of a high value unconventional product will be
reasonable (n = 86)
5. Prediction that the quality of a high value unconventional product will be ``good''
(n = 86)
Regression
Independent variables 1 2 3 4 5
(i) Assessment of conventional 0.211 0.193 0.291 0.261 0.206
charity products (3.141)* (2.011)* (3.967)* (2.902)* (2.137)*
(ii) Similarity composite multiplied 0.104 0.106 0.111 0.212 0.237
by the assessment of (2.216)* (1.998)* (2.012)* (3.011)* (2.999)*
conventional charity products
(iii) Trust 0.199 0.301 0.167 0.110 0.201
(3.029)* (3.596)* (2.022)* (1.996)* (1.909)*
(iv) Perceptions of charity efficiency 0.161 0.310 0.191 01.08 0.316
(2.028)* (3.904)* (2.0)* (1.619) (2.222)*
(v) Charity involvement 0.222 0.109 0.169 0.10 0.202
(2.957)* (1.901)* (2.555)* (1.515) (1.918)*
(vi) Religion 0.099 0.10 0.088
(1.601) (1.716) (1.464)
Correlation coefficient 0.964 0.902 0.918 0.801 0.817
Note: * Denotes statistical significance at the 0.05 level or less

Table IV. Regression analysis

JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 9 NO. 4 2000 263

 between the new variables for trust and efficiency (since the factors were
orthogonal), and the correlations between these variables and charity
involvement fell to levels (R = 0.209 and 0.264) where multicollinearity
ceased to present a major problem. (Multicollinearity among regressors
causes their T-values to be biased upwards.) It can be seen from Table IV.1
that the prediction of the merits of new and unconventional products
supplied by major charities is positively and significantly determined by a
person's opinion of the calibre of conventional charity items (lending support
to hypothesis 1); by his or her belief that charities are honest and trustworthy,
and well-managed and operationally efficient; and by the extent of an
individual's psychological involvement with charity giving (confirming H2).
Charity attributes and Neither of the Table I variables ``emotive altruism'' nor ``modernity''
effect on perception of attained significance. It appears therefore that attributions of compassion,
products kindness, idealism, etc. apply only to a charity and do not influence
assessments of the merits of its products. Likewise, a progressive and
modern charity image seemingly does not translate into the belief that the
organisation will supply high calibre unconventional goods. None of the
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donor behaviour variables were significant, in contradiction of the fourth

hypothesis. Religion made a marginal impact and the power of the regression
fell following its removal; yet its individual impact was weak. The similarity
composite did not exert a significant influence itself, but did represent an
important moderator on the effects of a respondent's assessment of the merits
of conventional charity products on his or her rating of an unfamiliar
product. This is compatible with the first hypothesis. The specific
proposition here is that the regression coefficient (say b1) for the assessment
of conventional products (say variable X1) is itself a function of the
similarity composite (say X2). Thus b1 = b2 + b3X2 so that b1X1 = (b2 +
b3X2)X1 = b2X1 + b3X1X2. The finding that the regression coefficient on
independent variable (ii) in regression 1 was significant but that the
similarity composite was insignificant when employed as a separate
regressor means that similarity represents a ``pure'' moderator (Sharma et
al., 1981, p. 293). Thus it is not itself related to either the dependent variable
or to independent variable (i), but rather determines the size of the impact of
the latter on the former. This conclusion was confirmed via the procedure
recommended by Sharma et al. (1981, p. 296), i.e. the sample was
dichotomised into groups with similarity scores above or below the
composite median and the regression rerun for each set of data but excluding
the interaction term (i.e. variable (ii) in regression 1). The coefficient for the
group with a high perception of similarity was 0.297, and that for the group
scoring below the median 0.198; a difference of 34 percent.
Respondents' predictions of Regression 2 repeats the analysis using respondents' predictions of the likely
calibre calibre of the two high value unconventional items. The main difference in
the results is that the relationship between trust and the assessment levels for
these high value items (for which the consequences of making a bad
purchasing decision would be more serious) is substantially more powerful
than before. This finding also applies to the charity efficiency variable.
Conversely, the strength of the influence of individual charity involvement is
reduced. The reverse pattern emerged for the outcomes to regression 3 for
low value unconventional items. Regressions 4 and 5 employ the responses
to specific questions concerning anticipations that unconventional products
would be reasonably priced (see Table IIB item (i)) and of good quality
(2B(ii)). The impact of the perceived similarity composite increases
substantially in both regressions, suggesting that this variable is especially
salient for predicting these particular responses. Rerunning regressions 4 and

264 JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 9 NO. 4 2000

 5 for low value products did not generate any outcomes substantially
different to those for the all-sample data. There were no significant
differences in the patterns of results between people who in the past had
actually purchased goods from charities (n = 57) and those who had not
(n = 111). Regressions were also run separately for males and females, with
no substantial disparities emerging.

Conclusion
The first hypothesis, that a person's rating of a new and unfamiliar charity
product depends on his or her rating of familiar products supplied by major
charities, is generally supported. This latter evaluation of familiar charity items
exerted powerful influences on all five dependent variables listed in Table IV.
Such a finding is compatible with the previously discussed heuristic approach
to the cognitive processing of complex information (Alba and Hutchinson,
1987). A customer's positive experience of a familiar charity product
seemingly forms a basis for mental shortcuts to believing that new and
unconventional items will also be satisfactory. The result also confirms prior
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research which concluded that a charity's organisational image can exert

powerful influences on customer perceptions and behaviour (cf. Tapp, 1996;
McLean, 1998). Moreover, the perceived similarity (as defined) of unfamiliar
to familiar charity products significantly moderated the responsiveness of an
individual's assessment of unfamiliar products to his or her rating of familiar
charity items. The more similar a new product was perceived to be relative to
conventional products, the more powerful and extensive the transference of
beliefs regarding familiar products to beliefs about the new and unconventional
product. Accordingly, the proposition that people commonly hold and
manipulate information as sets of associations (Lynch and Scrull, 1982; Fiske
and Taylor, 1984) is reinforced by the outputs to the present investigation.
Attribute transference does seem to happen regularly (cf. Bierly et al., 1985)
and it does appear to affect beliefs and perceptions (cf. Park et al., 1991).
Psychological involvement H2 and H3 are also confirmed. People who were psychologically highly
involved with the charities to which they donated were more likely than
others to perceive unconventional charity products favourably. This result is
compatible with the view that high involvement causes messages to be
processed more deeply (Martin, 1998) and for people to be more receptive to
communications (Zaichowsky, 1985). Involvement with charity giving
apparently generated greater levels of confidence in the integrity of products
supplied by the charity sector. Concomitantly, individuals who thought very
highly of a charity were more likely to rate its unconventional products more
favourably (H3), corroborating the existence of ``halo effects'' (cf. Lee and
Lou, 1995) within this particular sample. It is clear, moreover, that charity
branding evoked strong positive associations among many people (Park et
al., 1991; Meech, 1996). Likewise, high degrees of trust in charity integrity
and the belief that charities are operationally efficient and employ their
assets wisely also led to higher evaluations. Conversely, H4 is rejected;
variables which previous research has shown to encourage people to donate
heavily to charity do not appear to induce them to rate unfamiliar items
supplied by charities more favourably. Financial benevolence, it seems, does
not translate into higher regard for charity products.

Managerial implications and recommendations

These findings have a number of practical implications for charity
marketing. Individual perceptions of the similarity of unfamiliar to
conventional items was a salient determinant of the strength of the transfer of

JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 9 NO. 4 2000 265

 opinions of familiar products to new and unconventional products. This
suggests that charities should focus their product extension strategies on
items which are seen as ``similar'', as defined by the present research. Thus,
charities' marketing communications need to emphasise critical aspects of
similarity, e.g. through advertising old and new products side by side, and by
providing evidence of the ability to transfer competencies used when
supplying one type of product to the supply of other product categories.
Accordingly, promotional materials should emphasise a charity's general
business skills and its competence vis-aÁ-vis customer care and after-sales
service, order fulfilment and delivery systems, quality control procedures,
etc. In short, the charity must establish a sound overall reputation for
supplying high quality products. Particular attention needs to be devoted to
the trust and efficiency aspects of a charity's public image (see Table I).
Positive brand image The results underscore the desirability of creating attractive brand identities
for existing (albeit mundane) charity products. It is clear from the research
that a positive image of these conventional items enables a charity to
introduce fresh products which will rapidly gain customer acceptance. This
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creates numerous opportunities for charity fund-raising via the sale of all
sorts of new items. The finding that people who are highly involved
psychologically with the charities they support also rate unfamiliar charity
products more favourably implies that suppliers need to target this type of
person when marketing unconventional charity goods. Thus existing heavy
donors, volunteers and others known to be interested in a charity's work
should be contacted when promoting fresh and unfamiliar products. Further
research is required into the specific factors which might trigger consumer
interest in unconventional charity items. Note the parallels between the
present findings and those of Tapp's (1996) survey of the ``charity brand
values'' most likely to stimulate donations. The most powerful brand values
were trust, rationality (comparable to ``charity efficiency'' in the current
work), and the evocation of pity of sympathy (cf. the altruistic element of
charity image reported in Table I). Tapp's sample of respondents held mixed
views on whether it was better to portray a charity as a radical campaigner
rather than one with traditional values. Research is necessary into the
relevance of these donor behaviour issues in relation to the sale of
unconventional charity products.
The generalisability of these results may be limited by the facts that the
respondents were on the average younger than the population as a whole, and
resided in London. However, there is no research evidence to suggest that
fundamental attitudes towards and actual support of charities differ significantly
with respect to geographical location in western countries. Indeed, the
similarities of donor behaviour across countries have been found to outweigh
substantially any differences (see Pharoah and Smerdon, 1998). Also, age
category has never been found to represent a major determinant of attitudes
towards charities, only levels of financial donation (due essentially to older
people typically having more money). Confidence in the overall generalisability
of the findings of the present study is further enhanced by the observation that
the results fit comfortably with the outcomes to previous academic research on
the effects of product similarity (e.g. Aaker and Keller, 1990; Park et al., 1991;
Nebenzahl and Jaffe, 1996). Notwithstanding these comments, there is clearly a
need for more research into the role of perceived similarity among charity
products within particular age groups, geographical areas, and among other
market segments. Further research into the precise causes of the observed
significant relationship between ``trust'' in a charity and favourable opinions
regarding its unconventional products would also be useful.

266 JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 9 NO. 4 2000

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&

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 This summary has been Executive summary and implications for managers and
provided to allow managers executives
and executives a rapid
appreciation of the content Charity trading isn't easy and doesn't always succeed
of this article. Those with a Charities have long been involved in ``trading'' ± the marketing of goods for
particular interest in the sale on a profit basis with the aim of contributing those profits to the income
topic covered may then read of the charity. Most of the trading activity has been in the form of mail order
the article in toto to take and retailing but, as Bennett and Gabriel observe, charities in the UK have
advantage of the more become more adventurous in the promotion of goods and services for sale.
comprehensive description The value for charities of the trading approach is that it provides a means of
of the research undertaken securing income away from the mainstream search for donations and gifts.
and its results to get the full This means that the charity can approach regular supporters on a different
benefit of the material basis while maintaining the communication with supporters about the
present charity's work.
Given a solid basis of trading activity and a substantial customer and donor
base, Bennett and Gabriel investigate the potential for successful extension
of the trading operation to encompass a bigger range of goods and services.
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What is under examination is whether the consumer sees the link between old
and new products in the same way as they would in a straightforward
commercial context.

Brand image ± the crucial element in charity trading

Charities exploit their positive image when they develop a trading operation.
However, this image is not different in its fundamental nature from the brand
image that a commercial trader might enjoy. But charities, in making their
appeal, draw on a secondary motivation. The consumer might choose the
charity's product or service because any profits go to a ``good cause''.
In the past, some charities have been accused of exploiting the altruism that
underlies public support by offering poor quality goods on the back of ``pity
and sympathy''. What these charities have come to realise is that the
consumer's altruism is tempered by a demand for quality. Indeed, we could
argue, the quality products and services enhance the image of the charity ±
in marketing terms the charity's brand.
The charity's image builds up from a variety of factors. The type of work
undertaken by the charity, its positioning with the sector and the quality of
both work and communications. An important element is the choice between
being a radical campaigning organisation or a traditional charity focusing
on ``good works''.

Extending the charity trading brand ± where to start

For a charity desirous of extending its trading operation into new areas
there is a need to define the type of customer to whom the new products or
services might appeal. Bennett and Gabriel cast a little light on this by
showing that the influence of ``pity and sympathy'' is greatest with the core
supporter ± regular donors, volunteers and collectors. Bennett and Gabriel
argue that new products should be tested on this group of supporters.
At the same time we should act warily in extensions based solely on this
premise. After all, the reason for buying from a charity catalogue is not
purely altruistic ± the consumer (we can assume) actually wants to buy
something of value. And the more expensive the product or service on sale
the more important it is that targeting encompasses a desire for that type of
product as well as a commitment to the charity or a sympathetic ear.

JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 9 NO. 4 2000 269

 There is a big difference between buying a pack of six drink coasters with
animal pictures ± costing just a few pounds ± and buying an adventure
holiday costing several hundred pounds. We might, as consumers, write off
the smaller purchase as effectively a ``donation'' to the charity but the
holiday has got to fit in with what we want as well.

Links with the charity's work ± a good tactic in trading

UK aid charity, Oxfam, has for many years sold products manufactured in
the third world and imported on a ``fair trade'' basis. These products are
attractive, they create a difference for the trading operation and they provide
a link with the work of Oxfam out in the field.
Similar links can be made by conservation and nature charities ± the UK's
Royal Society for the Protection of Birds (RSPB) sells bird feeders and bird
boxes. Such sales support the charity's aims by encouraging people to
promote wild birds in their gardens ± as well as providing valuable income
for the RSPB.
For some charities the links are harder to forge ± if your work involves
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rehabilitating criminal teenagers it's hard to find a product that fits. In some
cases, the charity can sell things produced by clients but for many charities
there is the need to fall back on the traditional mix of gifts, cards and
ornaments as the basis for the trading operation.

Remember the ``rules'' of commercial trading

Just because you are a charity doesn't exempt you from the basics of good
product marketing. And the central element should be the record of support
± the customer database. Bennett and Gabriel are right to propose that new
products are sold alongside established products and also to suggest that the
starting point for a new product promotion should be the identification of
those existing customers and donors who are most likely to respond.
Trading operations are not a guarantee of success. For every charity with a
successful trading arm there are several that gave up trading because it
didn't turn a profit or took up too much time to justify the income. And the
extension into new areas should be carefully researched and tested before a
full commitment is made.

(A preÂcis of the article ``Charity affliation as a determinant of product

purchase decisions''. Supplied by Marketing Consultants for
MCB University Press.)

270 JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 9 NO. 4 2000

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