1. 2.7521
Inside This Issue
Message from the Dean of School of Business 2
Best Student Paper Award 2
Counterfeiting: An International Crisis, Joseph Dauber 3
Celebrity Endorsements, Josh Friedman 14
The Impact of Culture on Advertising, Adina Linn 19
The Result of Cause-Related Marketing on Consumers’
Attitude & Brand Loyalty, Elisheva Florence 24
Sweet Manipulation, Danielle Reifer 30
Mahna Mahna, Shevi Gartner 33
The History of the United States Monetary System, Rachel Morris 36
Investment Principles, Eric Lehmann 44
Equity Portfolio for the 21st Century, Rafi Mahilnitski 56
Sports Apparel Licensing, Simcha Himmel & Abraham Weiser 64
Revenge of the Machines, Dena Brookler 77
Adherence to Ethical Behaviors, Faygie Rakower 80
The Importance of a Creative Work Environment, Joseph Gomez 85
Is There an Optimal Time to Sell Equity?, Professor Eliezer Goldberg 91
Submission Requirements 99
Lander College of Arts and Sciences, Division of Touro College
TAB JOURNAL
ARTICLES
Spring 2012
Touro Accounting and Business Journal
WELCOME
Journal
Lander College of Arts and Sciences, Division of Touro College
TAB JOURNAL
Spring 2014
Touro Accounting and Business Journal

2. TAB Journal Page 2
Message from the
Dean of School of Business
Dr. Barry Bressler
I am very pleased that we have exceeded our
expectations and have received many more
outstanding papers qualifying for the inclusion of
the TAB journal than ever before. Not only have we
increased the quantity of refereed publishable
papers, but also we have expanded the purview
and range of topics. On behalf of Dr. Michael
Szenberg and myself, I want to commend the
students for their superlative work, the faculty,
(specifically Professor Tendler of LCW and
Professors Teich, Rovt, & Bigel) for their
encouragement of students and to our student
editorial staff consisting of Sol Lerner, Shimon
Krieger, & Lilian Hamadani for decoting their time
to assisting in the editorial process. Above all, we
thank our lead editor, Dr. Julita Haber, who
painstakingly read ever word of every paper and
was the final arbiter. Finally, there are no words to
adequately thank Esther Widroff for coordinating
every single detail of the editing process as well
general and specific overseeing of all aspects of
the journal.
Active participation in a student journal is a
reflection of a dedication to learning, academic
development, and striving for recognition and a
successful career. The manuscripts in this TAB
Journal contain theoretical analysis with real world
application covering major Business disciplines:
marketing, finance, economics, management and
strategy. Students demonstrate that they are able
to conduct inquiry research and extrapolate
principles of Business from the course material
into well-structured analysis of Business and its
ramifications.
Best Student Paper
Counterfeiting: An International Crisis
by Joseph Dauber
This edition of TAB is awarding $100 American
Express Gift Card to the Best Student Paper. The
TAB Editorial Board has evaluated all submissions
according to the content depth, analysis, research,
practical implication, paper organization,
structure, format, style, and grammatical rigor.
Based on the overall ratings, the board decided to
award Joseph Dauber for the manuscript titled
“Counterfeiting: An International Crisis” under the
direction of Professor Teich.
We hope to nominate many more worthwhile
manuscripts in the upcoming editions of TAB. All
Touro College students are encouraged to follow
this student’s footsteps by writing and conducting
research to produce high quality papers for future
submissions by their faculty. Congratulations
again to Joseph!

3. TAB Journal Page 3
Counterfeiting: An International Crisis
Joseph Dauber
The Agreement on Trade-related Aspects of
Intellectual Property Rights defines “counterfeit
trademark goods” as any goods, including
packaging, bearing a trademark without
authorization. This authorization is identical to
the trademark validly registered in respect of such
goods, or which cannot be distinguished in its
essential aspects from such a trademark, and
which thereby infringes upon the rights of the
owner of the trademark in question under the law
of the country of importation. Furthermore,
“pirated copyright goods” are defined as any
goods made without the consent of the right
holder or person duly authorized by the right
holder in the country of production and which are
made directly or indirectly without an infringement
of copyright under the law of the country of
importation (Wiedmann, Hennigs, & Klarmann,
2012).
As the technology and global infrastructure
improve, counterfeiting has become a rampant
problem. By the year 2015, analysts at the
International Chamber of Commerce (ICC)
estimate that the value of counterfeit goods will
reach more than 1.7 trillion dollars. Counterfeiting
is a very profitable business with low barriers to
entry; it requires minimal investment, and
consumer demand for counterfeit goods is high.
Apparel, shoes, and handbags account for an
estimated 29% of all counterfeit items (“Magnitude
of Counterfeiting”, 2009). Whether it is the latest
Gucci purse or Lacoste shirt, counterfeiters try to
capitalize on brand recognition.
This paper explores the topic of counterfeits in the
apparel, shoe, and handbag industries, focusing
on consumer decision process of purchasing
counterfeits and strategies companies can
implement to fight counterfeiting. In order to fully
understand the severity of the issue at hand, one
must fully understand the business of the
counterfeiting industry. As such, this paper
provides extensive background information on
this subject matter, current statistics, reasons why
consumers purchase counterfeit goods, why
consumers should not purchase counterfeit
goods, as well as other topics. When there is a
core understanding of the counterfeit business, it
will be easier to understand the need for retailers
to strategize against this pervasive issue.
This is an issue that has spread like wildfire with
the advent of technology and globalization. It is
important to educate people on this matter
because it is something that should be at the
forefront of company policy. Studies have
estimated, for example, that between 1994 and
2004, the worldwide market for counterfeit and
pirated goods increased by 1,100%. Astonishingly,
figures from 2004 also suggested that counterfeit
goods accounted for seven percent of global
trade. This number will continue to rise if nothing
is done to quell the problem (“Business Action to
Stop Counterfeiting”).
The apparel, shoe, and handbag industries are
interesting to study with regard to counterfeit
goods because of the unique aspects these
specific markets offer. First, knockoff brand
named clothing, shoes, and handbags give the
consumer the same self-expressive and symbolic
look as an authentic product. A study by Nia and
Zaichkowsky (2000) showed that all respondents
found luxury products fun and worth the amount
of money spent, whether they were original or
counterfeit. Despite feeling that luxury products
were_more_worthwhile, participants_were_unable_
Joseph is a student at Lander College for Men and is majoring marketing.

4. TAB Journal Page 4
to_distinguish_between the real and the
counterfeit product. Someone who purchases a
product strictly for its practical use, such as
medicine, however, may be able to tell the
difference more readily between authentic and
counterfeit goods. Furthermore, the counterfeit
apparel market is interesting to examine because
studies suggest that up to 73% of apparel-related
purchases are non-deceptive purchases, meaning
the consumer is knowingly purchasing a
counterfeit (Bian & Moutinho, 2011). Therefore, if
marketers can implement defensive strategies to
make counterfeits less desirable and offensive
strategies to keep current consumers brand loyal,
serious steps could be taken to mitigate the sale
of counterfeit goods.
Background
Counterfeiting is not a new phenomenon.
Economists claim that it is the second-oldest
“profession” in the world. There is evidence dating
back as early as 800-400 B.C.E. proving there was
counterfeit Greek pottery sold in the Roman black
markets. In France, there is also evidence from 27
B.C.E. of counterfeit wine stoppers being sold on
the black market. More recently, the British
counterfeited American currency during the
American Revolution. In the 21st century, various
products have been plagued by counterfeiters,
including cigarettes, candy, medicines,
automobiles, and clothing (Yi-Chieh, 2009).
Advancements in technology and global
communication, as well as globalization, have
made the development of counterfeit goods easier
and more efficient. Technology allows
counterfeiters to quickly imitate and manufacture
high quality knockoffs, even replicating a
product’s labeling and packaging. The Internet has
also allowed for more efficient communication
between suppliers and consumers. With more
widely available Internet access and the evolution
of more intricate trade networks, counterfeit
suppliers from overseas are quickly and
professionally able to connect to buyers and drop-
shippers. The Internet allows for illegal suppliers
to look professional and legitimate, as well as to
remain anonymous. Counterfeit apparel suppliers
can be found in a mere instant by doing a Google
search for “wholesale Lacoste polos” or “wholesale
Ralph Lauren dress shirts”. Thousands of
knockoffs can also be found on Chinese business
to business websites, such as www.alibaba.com.
Counterfeiters also give customers the ability to
purchase their goods on the local streets instead
of having to go into a store, although that option
is also available. As a case in point, walking
around 34th Street and Broadway in Midtown New
York, pedestrians will be bombarded by peddlers
seeking to lure in the customers with their
counterfeit products. Globally, counterfeit
products are also relatively easy to come by. One
can visit the famous Silk Street in Beijing, or the
Arab Shuk in the Old City of Jerusalem, or
Indonesia’s Harco Glodok, for example, and
effortlessly purchase all sorts of counterfeit
apparel.
There are three main methods of counterfeit
production used when producing apparel, each
having unique characteristics. The most common
technique used when producing designer label
knockoffs is the procurement of authentic items
by the counterfeiter, who then produces his own
version in his illegal factory or warehouse. Another
manner in which counterfeit apparel is produced is
by subversive employees of legitimate suppliers
who produce ‘over-runs’ or unauthorized goods
during nonoperational hours. Companies such as
Lacoste and Ralph Lauren will have contractual
agreements with overseas manufacturers they
trust to produce apparel exclusively for their
company. Dishonest plant managers will take
huge kickbacks, usually in the

5. TAB Journal Page 5
form of cash or drugs, and agree to run ‘night
shifts’, to produce “over-runs”. These are unique
counterfeits because the same company on the
same production line produces them, but due to a
breach in contractual agreement, law deems them
as counterfeits. The most uncommon
counterfeiting technique is whereby counterfeiters
produce plain clothing, without trying to replicate
an authentic version, and just add the designer’s
logos, tags, and labels. These are usually very easy
to recognize, as they are usually of inferior
quality.
When analyzing a country’s production of
counterfeit goods, precise data is often difficult to
obtain due to the covert nature of the business.
Extrapolation from a sample of websites, peddlers,
and stores is not an accurate measure of the
magnitude of the counterfeit industry. First, there
are thousands of web pages, peddlers, and stores,
and they are too numerous and varied to quantify.
Second, quantity available for purchase is usually
not publicly available information. In fact, it may
be in the sellers’ interest to underestimate
quantities available, both in order to drive up the
selling price and in order to protect themselves
from the scrutiny of policing authorities.
Furthermore, because counterfeiters are always
trying to work one step ahead of the authorities,
they will be selling the same merchandise through
many different mediums. Finally, in order to get
the best estimates on the number of counterfeit
goods, one must delve into the yearly customs
reports produced by each nation’s border police
and account for the number of confiscated
packages in their analysis. There are a lot of
confounding variables in making such calculations
and estimations. Official estimates of the number
of counterfeit goods produced vary significantly,
and it seems that the only thing various officials
really agree on is the escalating nature of the
counterfeit goods market. The 2012 European
Union (E.U.) Customs Enforcement of Intellectual
Property Rights Report claims 90,473 cases of
counterfeits were seized at the borders, with a
total estimated value of €896,891,786 (the
equivalent of approximately $1.2 billion dollars).
In 2012, U.S. officials claimed that the United
States Department of Homeland Security seized
counterfeit goods valued at over $1.25 billion, a
number comparable to that of the E.U. Sixty
percent of counterfeit goods seized by customs
agents in the E.U. and U.S. originated from China,
Thailand, Hong Kong or Malaysia.
U.S. customs agents have seized millions of
counterfeit apparel items. All types and all styles
of apparel have been counterfeited. Statistics from
last year show last that $25.3 million dollars of
shoes were seized. Most of the shoes confiscated
were Nike knock-offs. However, counterfeiters
also managed to counterfeit other highly popular
and exclusive national brands like Uggs, Christian
Louboutin, Air Jordan, and Jimmy Choo. $14.8
million dollars of counterfeits seized were
designer clothing. The retail value of those goods
was over $126.3 million. Seized goods included all
categories of clothing, with a preponderance of
national brands such as Guess, Ralph Lauren,
Lacoste, Burberry, Armani, and Hugo Boss.
Additionally, $8.4 million dollars of seized goods
were watches, with a retail value of over $112
million dollars. Watch brands included Rolex, Tag,
Breitling, as well as many others.
Damage from Counterfeiting
The fact that 73% of Americans purchase
counterfeit apparel with the knowledge that it is
counterfeit indicates that Americans feel that
purchasing counterfeit apparel is acceptable.
Interestingly, it is not only illegal to sell
counterfeit goods, but it is also illegal to purchase
counterfeit goods (Bian and Moutinho, 2011).
Governments have made buying and selling

6. TAB Journal Page 6
counterfeit apparel illegal in order to protect
legitimate retailers and patents and to protect the
unsuspecting consumer, as well. Furthermore,
counterfeiting can damage the economy and the
public welfare in general. Counterfeit rings have
been linked to all sorts of illegal activity including
terrorism, organized crime, and drug trafficking.
Counterfeiters also do not pay taxes on their
goods. They usually do not pay their employees
fair wages and often provide extremely harsh
working conditions.
Counterfeits may destroy brand value and firm
reputation, and can detract from the incentive to
innovate. Counterfeit sales reduce the ability of
companies to develop new products. Companies
may not be willing to invest as much in new styles
and ideas if potential profits are minimized
because counterfeiters are taking a portion of
them.
Counterfeiters can also affect the consumer more
personally. Purchasing knockoffs from
counterfeiters’ web sites may put the consumers
at risk for identity theft; when dealing with
unscrupulous people, who knows where they draw
the line? Counterfeiters may be more than happy
to use customers’ credit card information at their
disposal to commit other fraud. Furthermore,
counterfeit apparel may be made with dangerous
materials that are hazardous to one’s health. A
recent study published by the American Consumer
Institute (“Intellectual Property”, 2013), surveyed
1,000 U.S. adult citizens to assess consumer
opinions on the effects of counterfeit goods. One
of the findings of the study was that 89% of
respondents saw the sale of counterfeit and
pirated goods as negatively affecting American
jobs and 90% believed that the sale of counterfeit
goods is bad for the U.S. economy. Additionally,
91% of participants supported strong enforcement
of laws to protect against the sale of counterfeit
goods. The results demonstrate that consumers
really know the detrimental effects of purchasing
knockoffs. Nonetheless, a large number of
consumers, as mentioned above, continue to
purchase counterfeits goods. When there is an
understanding of why consumers continue to
purchase these goods despite their seeming ill-
will against them, it may help give marketers ideas
about how to fight counterfeiting (The American
Consumer, 2013).
Literature Review 1
Counterfeits and branded products (CBP): effects
of counterfeit ownership. Explored the impacts of
counterfeit branded products (BP) on branded
goods, and explored the determinants of CBP
purchase intentions of both CBP owners and non-
owners. Bian and Moutinho (2011) ran a study to
try to answer three simple questions. They wanted
to know if consumers favored BP over CBP, if the
ownership of CBP would alter their perceptions of
CBP or BP, and if current CBP ownership interacts
with perceptions of CBP in determining CBP
purchase intention. This article investigates non-
deceptive purchase, where a buyer knowingly
purchases the counterfeits. Bian and Moutinho
explained the uniqueness of luxury apparel
counterfeits, whereby the product attributes tend
to serve less of a utilitarian function and more of a
symbolic or “self-expression” function, and thus a
counterfeit good may accomplish the same task as
the authentic good. The authors pointed out that
consumers realize that an authentic product is
usually of better quality, and comes with excellent
service, which allows the manufacturer to demand
a higher price in the market. To help understand
consumer behavior, they attempted to limit the
purchase of counterfeit goods to consumers who
shared certain demographic characteristics. The
article concluded based on previous research from
Bloch (Bloch, Bush, & Campbell, 1993), that age
and household income were not significant criteria

7. TAB Journal Page 7
for consumers who chose to purchase counterfeits
instead of authentic items. Nia and Zaichowsky
(2000) found that respondents believed the value,
satisfaction, and status of the original brand
names were not diminished by counterfeit goods.
Bian and Moutinho (2011) choose the U.K. because
it is a major recipient of counterfeit goods in the
market. They interviewed one in every ten
consumers 18 years or older who walked into a
pre-approved supermarket. Research was done
over a period of 14 days, including both weekdays
and weekends. Just in case consumers had not
previously purchased counterfeit goods, the
authors showed them an authentic Rolex as well
as a counterfeit Rolex and asked them to fill out a
survey, taking into consideration the watches in
front of them.
Results from the 430 consumers that were
surveyed revealed people found significant
differences on all traits except for brand
personality. In other words, people did not care
whether the Rolex was authentic or not! The
results indicated consumers were aware of the
superiorities of BP over counterfeits in many
aspects of the product itself, as well as the brand.
Results further showed consumers who had
purchased counterfeits did not have a less
favorable impression of the counterfeit brand
name product, especially the brand image. It is
important to note that the results showed
counterfeit product owners had more favorable
impressions of counterfeits in all categories across
the board than non-owners. Specifically, the
results revealed that compared with non-owners,
counterfeit owners were more likely to consider
that CBP provide good choice of size, good style,
good value, can bring image benefit, and are fun.
Results indicated that counterfeit owners’ and
non-owners’ perceptions of authentic
merchandise do not differ significantly. In
conclusion, from a perception perspective,
counterfeits might not devalue the brand equity of
authentic products.
Analysis
Insight into how consumers think about
counterfeits can help marketers understand
consumer buying behavior, and perhaps this
information can be used to help deter
counterfeiting. Marketers should note from this
study that consumers perceived a higher level of
social risk in relation to CBP over BP. Another
noteworthy result is that, in addition to social and
financial risks related to the purchase of CBP and
BP, consumers also perceived a security concern
when purchasing a counterfeit. In terms of a
purchase intention, the critical dependent
construct of consumer behavior, the findings
clearly indicate that consumer purchase intention
of CBP can be predicted through the effects of the
perceived competence personality, perceived
satisfaction benefit, perceived social risk, and
perceived functional attribute. Therefore,
marketers must create a strategy incorporating
these facts to convince consumers to purchase
authentic items.
The research findings of this study, although not
conclusive, represent a step toward resolving the
ongoing debate as to whether the presence of CBP
damages BP brand equity. The majority of genuine
luxury brand owners believe that brand equity will
be adversely affected by the CBP, because it will
decrease the value of the BP, the satisfaction
derived from it, and the status of the genuine
luxury brands. This article suggests CBP users
evaluate BP as positively as CBP non-users;
however, CBP users evaluate CBP more positively
than CBP non-users. Although there is room for
conflicting interpretations, this study seems to
indicate that there may not be an immediate loss
of sales of BP. This research suggests that
marketers should consider how the brand

8. TAB Journal Page 8
meaning they construct through promotional
activities influences CBP consumption. The
research findings indicate that consumers’ CBP
purchase intention is predominantly determined
by perceived CBP brand personality. Thus, the
prevalence of advertisements linking luxury
brands to an aspirational personality may actually
encourage purchase behavior of CBP. To inhibit
the demand for CBP, marketers need to adopt
image-based advertisements that not only
communicate a positive brand meaning of BP but,
equally importantly, project negative brand
personalities of CBP.
Limitations
A limitation of this article is that results are not
applicable to other luxury apparel. After all, this
research only investigated one brand of one
product category in the context of non-deceptive
counterfeiting. It is possible the counterfeit Rolex
they showed participants was an unusually good
replica, which may have given them more
favorable outlook toward counterfeit goods. Other
counterfeit products, such as polo shirts or jeans
may not look as legitimate, which may cause
consumers to have less favorable outlook toward
them. In addition, consumers perceive brands
differently, even within the same product
category; therefore, results might not have been
the same if another watch brand, such as Tag or
Breitiling, had been tested.
Further Research
Future research could involve analyzing the extent
to which price plays a role in the consumers’
decision to purchase counterfeit items. The article
dismissed the likelihood that a price is the main
contributing factor in a consumers’ decision and
cited numerous other factors, such as novelty
seeking, risk taking, self-image, and product
importance. Price is likely the biggest factor
influencing the purchasing of CBP. Future research
could address different grades of CBP and more
visible and heavily counterfeited products
consisting of clothing, handbags or sunglasses.
The present study could be expanded by including
brands from different product categories.
Literature Review 2
Sahin and Atilgan (2011) explain why consumers
prefer to purchase counterfeits. The price-quality
perception of consumers toward counterfeit
products, social effect and brand loyalty for
luxury-branded products, thoughts about ethical
issues for purchasing counterfeit branded
products, and purchase intentions for the
counterfeit versions of luxury brands, are all
variables investigated in this study. There are four
hypotheses developed. Hypothesis one states
there is a positive relationship between
consumers’ perception of counterfeit brands as
having high quality-price ratio and their purchase
intentions toward counterfeits of luxury brands.
The second hypothesis states there is a positive
relationship between consumers’ inclination to use
luxury brands as a social affecting tool and their
purchase intentions toward counterfeits of luxury
brands. Hypothesis three states there is a positive
relationship between brand loyalties of consumers
towards luxury brands and their purchase
intentions toward counterfeits of luxury brands.
Lastly, hypothesis four states there is a positive
relationship between the perception of consumers
about purchasing counterfeit products as ethical
and their purchase intentions toward counterfeits
of luxury brands.
Sahin and Atilgan’s survey consisted of 26
questions. The first two questions determined
approximately how many counterfeit branded
products the respondents purchased during the
previous year, and categorized their previous
purchases. Twenty questions focused on
measuring quality-price perceptions, social

9. TAB Journal Page 9
impacts, brand loyalty, ethics, and purchase
intentions for counterfeits of luxury-branded
products (see case study for exact questions).
There were four questions to determine the
respondents’ demographics, such as age,
educational background, income, and gender. Out
of the 404 subjects surveyed, 47.3% were female
and 52.7% were male. 66.6 % of respondents
surveyed were between the ages of 21 and 40.
Results showed a strong positive correlation
between consumers who see the action of
purchasing counterfeit products as ethical, and
their purchase intentions towards counterfeit
products. Respondents, who found purchasing
counterfeits to be ethical, were more likely to have
positive purchasing intentions. Lower price of the
counterfeit item justified the act of choosing it
over the authentic article, thereby eliminating any
ethical dilemma for the consumer and positively
affecting the purchase intention of consumers
towards these products (r=0.536, p<0.001). Also,
the study showed there was a weak positive
relationship between social effect of using luxury
branded products and purchase intention towards
counterfeits of luxury brands (r=0.160, p=0.001).
Also, consumers in the age group of 21 through
30 (mean=2.7826, SD=1.1082) and consumers in
the age group of 41 through 50 (mean=3.4256,
SD=1.3863) showed significant differences in
regard to brand loyalty (p=0.004). The study
showed brand loyalty for older consumers in the
age group of 41 to 50 are higher than the brand
loyalty of consumers at the age of 20 or younger.
The age and ethical factors can be very crucial
when creating a defensive strategy marketing
campaign to convince consumers not to purchase
counterfeits.
What emerges from this study is that when
consumers view counterfeit luxury branded
apparel as having a high quality to price ratio, and
they find it ethically acceptable to purchase such
products; their intentions of purchasing such
products are positively affected. Respondents
show the tendency to purchase these products
since they think that the quality of these
counterfeits is just as reliable, and the properties
are similar to those of the genuine products. Also,
consumers think that if quality-price inference of
counterfeits is high, they do not perceive the
action of purchasing such products as unethical.
Consumers with high education levels believe that
brand is not necessarily a good indicator of quality
and consumers with lower education levels do not
generally share this perception. This suggests
that those with higher education are more likely to
think counterfeits are unethical.
Analysis
This study pointed out that 47.8% of respondents
purchase five or more luxury branded counterfeit
items a year, and 24.8% purchase between six and
ten counterfeits of luxury branded products.
Maybe past experience with counterfeit luxury
brands should be taken into consideration.
Perhaps the reason respondents found it ethical to
purchase counterfeits and viewed the quality of
the counterfeits as on par with the authentic
product is because of the role of their past
experiences with counterfeits. The study states
only 27% of respondents have never purchased a
counterfeit. Therefore, it must be factored into the
results that these respondents were accustomed
to purchasing counterfeits, something that is not
taken into consideration in other case studies.
Limitations
In this research, the factors affecting the intention
of the consumers to purchase counterfeits of
luxury brands are limited to consumers living in
the central districts of Mersin, Turkey. Turkey is
monitored by the United States of America Trade
Representative due to the high number of
counterfeit activity that occurs there. Perhaps the

10. TAB Journal Page 10
study was conducted there because of the
availability of subjects familiar with counterfeit
merchandise. However, in a more ethical or
better-educated society results would vary.
Compare and Contrast
This journal article was informative, because Sahin
and Atilgan (2011) asked respondents with what
frequency they previously purchased non-
deceptive counterfeit goods. This study also
stated there were certain demographic factors that
help us determine counterfeit purchases. This
needs to be taken into consideration when
devising a strategic marketing plan against
counterfeiters. Lastly, this study was unique
because respondents were surveyed on the streets
close to where counterfeited products were
frequency being sold, and not just upon entrance
to a shopping center (e.g., setting of the first
study). Since surroundings affect people’s actions
and perceptions, respondents in Turkey may have
felt more justified when purchasing counterfeits
because they are so common.
Literature Review 3
A study by Zhang, Hong, and Zhang (2012)
investigated the impact of counterfeits on the
price, market share, and profitability of authentic
products. In this complex study, Zhang et al.
studied consumer decision processes and
attitudes toward purchasing both an authentic
luxury piece of apparel as well as a non-deceptive
piece of counterfeit apparel. The study also
examined a counterfeit’s effects on authentic
products. Zhang et al. did not focus their research
specifically on apparel; instead, they equated all
counterfeit goods within the study. The article
failed to mention the specific brand name of the
apparel used in surveying respondents; it just
mentioned the apparel was from a well-known
designer handbag company. There are different
tiers within designer handbag companies, and I
think that it would have been helpful to provide
that level of information. Zhang et al.
implemented the standard vertical differentiation
model, and unlike the two previous case studies,
they gave respondents their choice of purchasing
an authentic product, a counterfeit, or nothing at
all. They studied subjects’ behavior and came up
with many conclusions. Results showed that
counterfeit goods lower the price and profit
margin of each authentic product, in line with
one’s expectations. To help support this, the
authors collected data from Chinese markets to
find the equilibrium price of luxury handbags.
Furthermore, results indicated the impact of
counterfeits on the profit of brand name products
increases as the quality difference between the
authentic products and their counterfeits narrows.
Ironically, the study also showed counterfeits drive
more consumers to make purchases, and hence
the counterfeits may actually have a promotional
effect on and enhance the popularity of authentic
products. Zhang et al. (2012) also examined a
market with two competing brand name products
and a counterfeit. Results from that study
indicated a counterfeit of one brand name product
can even draw some consumers away from and
damage the profitability of a different brand name
product. Clearly, as Zhang et al. illustrated, there
is a complex benefit/damage relationship between
counterfeit and authentic products.
The study also suggested a strategy for luxury
brands to implement in order to protect
themselves from counterfeiting. It found that a
brand name company had more incentive to invest
in raising the quality level of its own product (an
offensive strategy) rather than reducing the image
and reputation of a counterfeit (direct fighting
strategy). Zhang et al. (2012) asserted it is more
productive for a company to proactively invest in
improving its own product’s quality, rather than
reducing that of the counterfeit’s perceived

11. TAB Journal Page 11
quality. They concluded that a company should
have taken on the counterfeit directly only if they
strongly believed that it was much more effective
to do so.
Analysis
One interesting result of this study is that the
authors showed that non-deceptive counterfeits
may enhance the popularity of the authentic
products and have a positive promotional effect
on the authentic product. Zhang et al. (2012)
suggested that only offensive strategies be
implemented and that it is a waste of company
resources and expenses to implement defensive
strategies to fight counterfeiters head on. I agree
with the researchers in regard to other counterfeit
products, but they incorrectly included the apparel
industry in their suggestion. I would argue that
the apparel industry is different from other
industries because of several unique aspects. First,
studies revealed that up to 73% of counterfeit
apparel is purchased by consumers who know that
the product is a knockoff, as mentioned earlier,
which is a number higher than that of other
industries. Furthermore, counterfeit apparel offers
consumers similar value of a luxury brand at a
much more attractive price. Therefore, apparel
companies must implement defensive strategies
to lessen the risk of having counterfeits damage
the business. This can only be done by directly
attacking counterfeits. Companies can ‘attack’ by
educating the customers as to why they should
not to purchase counterfeit apparel. Marketers
must produce marketing campaigns
demonstrating counterfeits are socially
unacceptable and of lower quality. The target
market should be limited to educated 21- 41 year
old men and women. Companies must also let
counterfeiters know they will be prosecuted to the
fullest extent of the law. Despite being
discouraged by exorbitant legal costs, companies
should understand fully prosecuting unscrupulous
individuals will discourage others from attempting
to counterfeit their products, and counterfeiters
will choose to go after other brands who take a
less aggressive approach.
Specific Organization
I chose Lacoste as the specific organization to
focus on. Lacoste has always been one of my
favorite luxury brand clothing lines. My
grandparents have generously been giving me
Lacoste polo shirts on my birthday every year
since I was four years old. I continue to sport the
polo on vacations and in more casual settings.
History
It was in 1927 that René Lacoste had made for
himself a batch of shirts which were more
comfortable to wear ‘in the heat of the American
courts’. These shirts were made of a mesh
material, which completely absorbed perspiration,
and caused a sensation in the courts. In 1933,
Andre Gillier, the owner of one of the biggest and
oldest hosiery factories in Troyes specializing in
mesh materials, entered the scene. The two men
joined forces to set up a company to manufacture
the crocodile logo-embroidered pique knit shirts.
They created ‘La Chemise Lacoste’ and the brand
name was registered in June 1933. Lacoste
continued to work on his inventions and designs
until shortly before he died in 1996 at the age of
92. He left a global empire that was presided over
by his son, Bernard Lacoste, who was the
president of the company from 1963 until his
death in 2006 (“History of Lacoste”, 2013).
Today, the Lacoste collection consists of more
than just polo shirts. Lacoste’s product line
includes sweaters, pants, dress shirts, eyewear,
footwear, and watches. A consumer can walk into
any high end retailer such as Macy’s or Nordstrom
and purchase Lacoste apparel. Lacoste also has its
own retail boutiques. Lacoste invests a great deal

12. TAB Journal Page 12
in brand building and in quality control. Currently,
Lacoste has many celebrities modeling its
clothing, including Ginnifer Goodwin, Paco
Delgado, Anne Hathaway, and Russel Crowe.
Lacoste claims to sell two Lacoste items per
second worldwide. In 2011, the Lacoste brand
achieved a wholesale turnover of 1.6 billion Euros.
The company has a worldwide presence in 115
countries including the U.S., France, Italy, Greater
China, and Japan. Lacoste currently sponsors
numerous world sporting events, including the
Australian Open, Dubai Tennis Championships,
Madrid Open, ATP World Tour Finals, French Open,
and more (“Lacoste Press Kit”, 2012).
Lacoste’s high brand recognition and exclusivity
make it a common target for counterfeiters.
Counterfeiters are easily able to stich a Lacoste
tag into the collar and an alligator onto the left
chest of a polo shirt. Lacoste polos retail for about
$72.00. Counterfeiters sell them wholesale for
about $8.00 each and retail on sites like eBay for
$20.00-$32.00. I would argue that one of the
most common counterfeit pieces of apparel
currently sold on eBay is the fake Lacoste polo.
Conclusion
When one carefully examines a counterfeit Lacoste
polo shirt, one may notice many slight variances
that distinguish it from an authentic one. The fine
details of a genuine Lacoste crocodile and the
material from which the buttons are made are
usually never found in counterfeit products. To
avoid purchasing a knockoff, one should purchase
merchandise through official retailers only. If one
purchases a ‘Lacoste’ from a street vendor or on
eBay, it is probably a counterfeit.
Lacoste invests millions of dollars annually to
combat counterfeiting. The company has full time
employees dedicated to defending its products
and trademark around the world. It works with
police and customs officials in a number of
countries to foil counterfeiters.
References
Bian, X.,& Moutinho, L., (2011). Counterfeits and branded products - Effects of counterfeit ownership. The
Journal of Product and Brand Management, 20(5), 379-393.
Bloch, P., Bush, R., & Campbell, L. (1993). Consumer ‘accomplices’ in product counterfeiting. Journal of
Consumer Marketing, 10(4), 27-36.
Business action to stop counterfeiting and piracy (BASCAP). (n.d.). International Chamber of Commerce.
Retrieved from http://iccwbo.org/advocacy-codes-and-rules/bascap/
History of Lacoste. (2013). Retrieved from http://www.devanlay.fr/public/hr/History.aspx
Intellectual property on the facts and consumer opinions on counterfeit and pirated goods. (2013). American
Consumer Institute. Retrieved from http://www.theamericanconsumer.org.
Lacoste press kit. (2012). Retrieved from
http://www.lacoste.com/library/contents/press/pdf/LACOSTE_presskit_en.pdf
Magnitude of counterfeiting and piracy of tangible products: An update. (2009, November). Organisation for
Economic Co-operation and Development. Retrieved from http://www.oecd.org/industry/ind/44088872.pdf

13. TAB Journal Page 13
Nia, A., & Zaichkowsky, J. L. (2000). Do counterfeits devalue the ownership of luxury brands? Journal of
Product & Brand Management, 9(7), 485–497.
Sahin, A., & Atilgan, K. O. (2011). Analyzing factors that drive consumers to purchase counterfeits of luxury
branded products. The Journal of American Academy of Business, 17(1), 283-292.
Wiedmann, K. Hennigs, N.; Klarmann, C. (2012). Luxury consumption in the trade-off between genuine and
counterfeit goods: What are the consumers' underlying motives and value-based drivers? Journal of Brand
Management, Special Issue: Luxury and Counterfeiting,19(7), 549.
Yi-Chieh, J. L. (2009). Knockoff: A cultural biography of transnational counterfeit goods. Retrieved 24 Nov.
2013 from http://udini.proquest.com/view/knockoff-a-cultural-biography-of-pqid:1851554141
Zhang, J., Hong, L. J., & Zhang, R. Q. (2012). Fighting strategies in a market with counterfeits. Annals of
Operations Research, 192(1), 49-66.
Additional Bibliography
Annual report on intellectual property enforcement. (2011). U.S. Intellectual Property Enforcement
Coordinator. Retrieved from
http://www.whitehouse.gov/sites/default/files/omb/IPEC/ipec_annual_report_mar2012.pdf
Counterfeiting: problems and solutions in report of the Committee on Economic Affairs and Development.
(2004, February). Council of Europe (CoE). Retrieved from
http://assembly.coe.int/documents/WorkingDocs/doc04/EDOC10069
Economic impact of counterfeiting in Europe, global anti-counterfeiting group. (2000). Center for Economic
and Business Research (CEBR). Retrieved from http://www.cebr.com
Global counterfeiting background document. (2003). APCO. Retrieved from:
http://counterfeiting.unicri.it/docs/Global%20counterfeiting%20background.pdf
Grossman, G., & Shapiro, C. (1988). Foreign counterfeiting of status goods. Journal of Economics, 103(1),
79-100.
Lowe P. (1999). The scope of the counterfeiting problem. International Criminal Police Review, Number 476-
477, 92-97.
Report on EU customs enforcement of intellectual property rights: Results at the EU border. (2012). European
Commission. Retrieved from
http://ec.europa.eu/taxation_customs/resources/documents/customs/customs_controls/counterfeit_piracy
/statistics/2013_ipr_statistics_en.pdf
Wilcox, K., Kim, H.M. and Sen, S. (2009). Why do consumers buy counterfeit luxury brands? Journal of
Marketing Research, 46(2), 247-259.

14. TAB Journal Page 14
Celebrity Endorsements
Josh Friedman
Creating, communicating, delivering, and
exchanging goods or services that have value to
consumers is called marketing. Advertising is a
form of marketing communication in which it
persuades a certain market to take actions from
that advertisement. Celebrity endorsement is a
form of advertising campaign, which involves a
popular figure, using their name to promote a
product or service. The credibility of the
endorsements source, as well as the relevance of
the subject of the endorsement itself, affects the
consumer attitude towards celebrity
advertisements. The importance of doing research
in the field of celebrity endorsement is vital to its
projected success in the consumer market. The
goal for using a celebrity for advertisement is to
associate the targeted consumer market with the
product or service being promoted.
Background Statement
The concept of celebrity advertisement originally
dates back to the early 18th century. In a market
where advertising plays a vital role in the
consumer market, companies need to take all the
possible steps to persuade the consumers to make
a purchase through an effective advertisement
campaign. As marketers devise their advertising
plan and begin to make decisions, marketers need
to know whether or not to use celebrity endorsers.
Celebrity advertisement can be a very effective
way that companies communicate with the
consumer market, however it is also extremely
expensive. In addition, while celebrities can have a
positive impact on the targeted consumer market,
they can easily have a negative effect. Therefore,
when a company is faced with the task of selecting
a celebrity, they need to focus on the relevance
and credibility of that celebrity, as well as all the
factors that this celebrity may have on the market.
Celebrities are found to be effective when they
promote products or services that they are more
likely to use.
Literature Review
Advertisement has a subliminal and influential
effect on our everyday lives. Each day, consumers
are exposed to over 1,500 messages promoted
from companies and brands. These messages can
address the consumer market in a variety of ways.
Consumers are exposed via television, billboards,
radio, mobile phones, convenient stores, and open
environments (Grede, 2002). In today’s society,
most of the popular brands select a well-known
person, either from the film industry or from the
sports world, to endorse for their brands In a
group of students surveyed, 77% felt that celebrity
endorsement helps them to recognize the brand
quickly, and 53% felt that celebrities have the
ability to influence and change the consumer’s
perception and attitude (Vaghela, 2012).
Celebrities who are perceived to be highly credible
can alter consumer attitude and create behavioral
change. Credibility is dependent on three
elements. The first element is expertise, which is
the knowledge and skills the endorser has in a
specified area. The second element,
trustworthiness, is dependent on the reliability of
a product or service. The last element, likability, is
how attractive the source can be to the
consumers.
Creating an image that the consumers can easily
associate the celebrity with a product is a key
factor in achieving success. If there is no
correlation between the celebrity and the brand,
then the consumer is only remembering the
Josh is a student at Lander College studying business.

15. TAB Journal Page 15
celebrity and not the product or service. When this
transpires it defeats the purpose of using the
celebrity to create an image. Another risk for a
company is to have a multiple endorsement
strategy. Credibility is lost and consumer
confusion occurs when the celebrities are
endorsing multiple brands or products. In
addition, a celebrity endorsing a company does
not necessarily guarantee success. Companies
need to ensure that the celebrity they choose has
a positive image, is attractive, and has a high
credibility, because the behavior of celebrities
reflects back onto the company. Therefore,
companies attempt to ensure that the endorsers
do not have any behavioral or legal issues that
could cause the company a loss (Amos, Holmes, &
Strutton, 2008).
In today’s society, the most prevalent endorsers
are athletes, coaches, and other sports personnel
(Bush, 2004). In the last decade, companies have
paid roughly $17.2 billion to athletes, coaches and
teams to endorse their products or service. An
athlete’s current performance is the key for
companies or brands to determine what impact
celebrities have in advertising and on endorsed
brands. A study was conducted to examine the
influence athletic performance has on the
elements of source credibility and the impact of
consumers’ attitude toward the advertisements
and their purchase intentions (Koo, Ruihley, &
Dittmore, 2012). In the realm of sports,
performance and skills determine expertise. The
on-field performance of an athlete will alter the
consumers’ perception of the celebrity’s expertise,
which ultimately will lower the athlete’s source of
credibility. The better their performance, the more
publicity they will attract. The adverse relationship
is true; if the athlete performs at a low level, he
will reduce his publicity and source credibility; not
only the athletes’ credibility decreases, the
consumers’ attitude towards the associated brand
takes a direct fall (Till & Shimp, 1998).
Research by Till and Shimp (1998) suggests that a
match up between a non-famous or unknown
athlete and the brand is adequate enough to
provide positive responses. Further research
states that an unknown model, claimed to be an
athlete, might have a similar or greater effect than
an actual athlete when promoting sports related
products. Studies show that athletes who endorse
products will have a greater influence on the
consumer market if they are endorsing for sports
brands rather than for brands not associated with
sports.
Application and Analysis
Although source credibility has a critical effect on
celebrity advertisement, there are still other
factors that need to be discussed. A marketing
campaign that elects to go with celebrities as their
endorser must realize that they potentially can be
major competitors. When selecting a celebrity not
only does the company need to find someone one
with a high credibility, it needs to be aware of up-
and-coming celebrities and the competition. In
sports, major competitors select their endorser
and hope the endorser can influence the consumer
market. What distinguishes athletes from one
another is their performance level, which in result
changes the attitude and perception of the
consumers. Major competitors can look for
athletes who win and not ones with the highest
publicity.
Specific Organizations
Nike is one of the world’s largest suppliers of
athletic shoes and apparel. Bill Bowerman and Phil
Knight established the company in 1964. Bill and
Phil had a vision to revolutionize the footwear
industry. Bill Bowerman was a track and field head
coach at the University of Oregon. Bill Knight was

16. TAB Journal Page 16
a middle-distance runner from Portland, who
attended the University of Oregon. Bill, who is a
well-respected coach nation-wide, coached Phil
during his tenure in Oregon. Upon finishing
university, Phil composed a paper that proposed
an innovative design of a quality shoe that could
compete with German brands that would be
manufactured in Japan. With no response to his
paper, he contacted the manufactures of Tiger
shoes to make him a distributor in the United
States (Nike). Bill Bowerman then offered to
become Phil’s partner in result creating Blue
Ribbon Sports. Knight began to sell the shoes out
his trunk. Meanwhile, as Phil was selling shoes, Bill
was ripping apart the shoes trying to design a
faster, lighter, more efficient shoe. They had the
runners of the Oregon track and field team tests
the new and efficient shoe. While both Bill and Phil
had full time jobs, they needed to hire a manger
to run Blue Ribbon Sports. Jeff Johnson a
teammate of Phil’s, who was creative and artistic,
was hired. Without missing a beat, Johnson
immediately created product brochures, print ads
and marketing materials (Nike). Jeff opened up the
first Blue Ribbon Sports retailer store. After
parting ways with the manufacturers of Tiger, they
decided to design and manufacturer their own
brand of sports shoes. The brands name was
called Nike. In essence they created the design
“Swoosh” which emerged as Nike’s logo. Nike
ultimately became the nation’s leaders in the shoe
industry. What kept Nike above all its competitors
was their ability to attract young and talented
athletes to endorse for them. One of the earliest
endorsers for Nike was Michael Jordan with his
NBA rookie shoe.
Nike is well known for signing the hottest athletes
in the realm of sports (Nike). In 2001, Nike signed
rookie Quarterback Michael Vick of The Atlanta
Falcons for $2 million. Michael had a few great
seasons in Atlanta building up his credibility. In
the summer of 2007, Michael found himself
surrounded by off-the-field issues. Michael
admitted to his involvement in dogfighting. He
was convicted and imprisoned for 21 months.
Immediately after being convicted, Nike
suspended their contract with Michael and
ultimately stopped selling any merchandise related
to Vick (Duncan, 2007). Before his legal issues,
Michael was one of the best athletes on the field.
He had a great influence and impact on the
consumer market. Although he was a great
endorser, legal troubles caught up him and
eventually effected Nike. Despite his legal troubles
that kept him sidelined for two years, Michael
came back and had a pro bowl level season. Later
that year, Nike resigned him to another large
contract. Since returning to the NFL, Michael has
regain trust and likability across the nation. From
this specific incident, we really learn how off-the-
field issues can affect a brand or company in a
detrimental way. In addition, we see how his high
credibility played a role in influencing and
persuading the consumer market in his first
contract with Nike.
Synthesis
Electing to use celebrity endorsers may benefit a
company in various ways. Using a celebrity may
serve as an advantage to a company against their
competitors. Celebrities have the ability to
persuade and influence the consumers’ mind and
purchase intentions. Elite endorsers are more
likely to influence the consumers’ attitude and
mind as opposed to using ordinary athletes.
Choosing a celebrity who wins on a constant basis
also gives a company an advantage. When the
athlete wins, his/her victory gives over insurance
to the consumers that this athlete knows how to
win with high expertise. Companies tend to push
to use celebrities as endorsers because the
consumer market tends to emulate and admire

17. TAB Journal Page 17
their characteristics, traits and their everyday
lifestyle.
Suggestions for Future Research
Vast areas of celebrity endorsements have gone
unstudied. There are a few suggestions that I can
make that should be looked into in the field of
celebrity endorsements. A question could be
asked: what is the extent to which negative
performance has an effect on a player’s credibility
and effect on the brand or company. Studies that
were discussed only discerned the off-field issues
that have a negative impact on the consumers’
attitude and purchase intentions rather than bad
play.
A possible detriment for companies using athlete
endorsement is the lack interest in sports.
Consumers may begin to realize how these
athletes do not really care about their fans. As
fans, we need to realize that these athletes are
making millions of dollars from us watching them.
Not to disregard their credibility or their talent,
these athletes play for the money and we support
them. Publicity is what is keeping the consumer
market engaged with these celebrities. These
studies discussed sources of credibility and how
they positively and negatively affected the
endorser, brand or company. Further research may
want to look at other characteristics of athletes.
The experiments conducted were based on a
selected group of college students. In the future,
when studies are performed there should be a
broader selection of respondents.
Despite the cost, companies right now are
spending a substantial amount of money on
endorsers. In the near future companies will begin
to realize that it is not necessary to sign
celebrities to massive contracts. Companies will
search and eventually find a way not to spend
millions of dollars on celebrity endorsers and still
be very effective. Marketers need to help in finding
the most effective ways to influence consumers’
mind and purchase intentions. Money is not
always the answer. Marketers need to be creative
and design a marketing scheme that will be
efficient and effective.
References
Amos, C., Holmes, G., & Strutton, D. (2008). Exploring the relationship between celebrity endorser effects
and advertising effectiveness. International Journal of Advertising, 27(2), 209–234.
Bush, A. M. (2004). Sports celebrity influence on the behavioral intentions of generation. Journal of
Advertising Research, 44(1), 108-118.
Duncan, A. (2007). Companies distance themselves from Michael Vick. Retrieved from
http://advertising.about.com/od/celebrityendorsements/a/vickendorsement.htm
Grede, R. (2002, March 29). Rising above the advertising clutter. Small Business Times, Retrieved July 7,
2008 from htt://www.thegredecompany.com/docs/Rising%20Above%20Advertising%20Clutter.pdf
Koo, G. Y., Ruihley, B. J., & Dittmore, S. W. (2012). Impact of perceived on-field performance on sport
celebrity source credibility. Sport Marketing Quarterly, 21(3), 147-158.
Nike (n.d.). History & heritage. Retrieved June 6, 2014 from http://nikeinc.com/pages/history-heritage
Till, B., & Shimp, T. (1998). Endorsers in advertising: The case of negative celebrity information. Journal of
Advertising, 27(1), 67-82.

18. TAB Journal Page 18
Vaghela, P. S. (2012). A study on consumer attitude perception about celebrity endorsement. International
Journal of Marketing and Technology, 2(12), 150-163.
Additional Bibliography
Atkin, C. & Block, M. (1983). Effectiveness of celebrity endorsers. Journal of Advertising Research, 23(1), 57-
61.
Friedman, H., & Friedman, L. (1979). Endorser effectiveness by product type. Journal of Advertising
Research,19(5), 63-71.
Hovland, C. I., Janis, I. L., & Kelley, H. H. (1953). Communication and persuasion; psychological studies of
opinion change. New Haven, CT: Yale University Press.
Kahle, L. R., & Homer, P. M. (1985). Physical attractiveness of the celebrity endorser: A social adaptation
perspective. Journal of Consumer Research,11(4), 954-961.
Kambitsis, C., Harahousou, Y., Theodorakis, N., & Chatzibeis, G. (2002). Sports advertising in print media:
the case of 2000 Olympic Games. Corporate Communications: An International Journal, 7(3), 155-161.
Koernig, S. K., & Boyd, T. C. (2009). To catch a tiger or let him go: The match-up effect and athlete
endorsers for sport and non-sport brands. Marketing Quarterly, 18 (1), 25-37.
Louie, T., Kulik, R., & Jacobson, R. (2001, February). . When bad things happen to the endorsers of good
products. Marketing Letters, 12(1), 13.
Ohanian, R. (1990). Construction and validation of a scale to measure celebrity endorsers' perceived
expertise, trustworthiness, and attractiveness. Journal of Advertising, 19(3), 39-52.

19. TAB Journal Page 19
The Impact of Culture on Advertising
Adina Linn
As a result of the recent economic recession,
many multinational corporations face the question
of whether or not to globally standardize their
advertisements. In addition to cost savings, there
is also a possible disadvantage of standardization.
Multinational corporations deal with a large
marketing mix, composed of different countries
that contain different cultures. Each culture has
their own set of values, ideals, and religious
beliefs (Walle 1997). Culture greatly influences the
success of company’s advertising efforts. If
advertisers wish to attract customers from a
specific region, it is important to take into account
the individual cultures of that region and alter the
advertising techniques to accommodate each one
(Gregory & Munch, 1997).
This paper analyzes the unique role that culture
plays in advertising, and how the relationship
between the two is imperative to attracting
customers, worldwide, and cross-culture. This
subject is intersting because there is an ongoing
debate about whether it is necessary to alter
advertising messages to appeal to different
cultures.
Background Statement
The controversy regarding standardization of
advertising is not a new one; it dates back to the
Roman Empire. The Catholic Church participated
in a bitter debate which showed the controversies
and lack of clarity on this issue. They debated the
view of modern globalizers versus those who felt
that products or advertising messages need to be
adjusted to cater to the needs and beliefs of
diverse markets (Walle, 1997). Later, in the early
1980s, the world was going through a period
known as “globalization”, diffusion of the world’s
cultures. Based on that, people thought that only
one message was sufficient to target different
markets around the world. In current times, it is
still an ongoing debate that multinational
corporations face when creating their advertising
campaigns. Extensive research is needed to
determine if different cultures and other factors
have an effect on consumer behavior and if
companies can rely on “westernization” to
standardize advertisements (Walle).
Literature Review
The reason many multinational advertising
companies do not usually accommodate different
cultures is because they try to appeal to a variety
of consumers using the same standardized
message, thus reducing their costs. However,
many argue that cultural differences must be
taken into consideration when advertising
products around the world. If a company’s
advertisements show similar values and beliefs
that are consistent with those of society, the
consumers’ reactions will be more positive, and
their desires to purchase will increase (Gregory &
Munch, 1997). Problems occur with standardizing
advertisements. When companies attempt to
translate their message into numerous languages,
there is often improper translation. Additionally,
ads display certain images that can be offensive to
some cultures (Gregory & Munch). When people
feel that their values and norms are being
“attacked” or challenged, it diminishes their
willingness to buy that product. Besides values
and beliefs, roles are a big part in collectivist
Adina Linn is a student at Lander College studying Business.

20. TAB Journal Page 20
cultures, such as Mexico. In Mexican culture, the
role of the family has a big influence on the
individual, and interactions between family
members can change one’s attitudes and
opinions. Therefore, advertisements that present
norms consistent with family values will be more
persuasive and positively affect consumer
reactions in Mexico.
Another dominant orientation in the Mexican
culture is the concept of “Machismo” masculinity,
where the husband is a more dominant spouse
than the wife. The man in Mexican culture is a
symbol of authority, toughness, and a strong
sense of respect. The concept of “Marianismo" or
femininity symbolizes submissiveness,
tenderness, and the responsibility of caring for the
family (Gregory & Munch, 1997). Advertisements
whose content is consistent with collectivist values
such as family and familial roles will attract buyers
from that culture. Conversely, these same ads will
not have the same impact on individualistic
cultures that place emphasis and priority on
individual values.
Even when a company can succeed in
homogenizing a certain product across many
cultural markets, the interpretation of its
advertising message may have an entirely different
meaning to members of different cultures. For
instance, the familiar icon of the Marlboro Man is
an ambiguous figure, which has proven to have
different meanings to different people (Walle,
1997). To a North American, this man is a
reference to ‘the American Cowboy’ and life on the
frontier. He represents strength, independence,
and superiority. To an East German woman, the
same image of the Marlboro Man can mean
something totally different. In one advertisement,
a female store clerk in East Germany noted the
fact that the man lived without fences and
contrasted it to her own life behind the iron
curtain, (Walle).
While working for the Medical Care Development
in West Africa, a third world country, David Sokal
engaged in conversation with a young African man
about an advertisement for Marlboro cigars. The
young man commented on the impressiveness of
the Marlboro Man. He was in awe of the tanned
cowboy rounding up fat, robust cattle. To him, a
rural African, this meant wealth and prosperity
(Walle). Marlboro, a multinational corporation,
chose to market its tobacco across different
cultures, using the same advertisement, depicting
the Marlboro Man. While this one product,
tobacco, is sold throughout different countries, its
symbolic message is interpreted differently based
on the customer’s culture and background.
Walle (1997) claims that this interpretation was
not intended. Rather, the creators of this icon
were seeking to conjure up the image of the
cowboy, representing the American vision. Without
even realizing, they succeeded in reaching the
hearts of people in different cultures, as they
created their own interpretations based on what
was meaningful to them. Although many argue
that messages targeting mixed cultural markets
prove to be ineffective, this unintended ambiguity
of the Marlboro Man proved to have greatly
benefitted the company (Walle). Culture has an
effect on advertising because of its impact on the
interpretation of messages.
In their article about controversial advertising, Li
and Shooshtari (2007) brought to light an
important case where major multinational
corporations did not take into account Chinese
culture when advertising their products. It spurred
an offensive reaction from the Chinese people.
One case discussed Toyota’s 2003 ad campaign.
When analyzing the history of Toyota’s
advertisements in China, one sees that, in general,
their advertisements generated positive feedback
and were well-accepted. They showed that as
international businesses, they understood and

21. TAB Journal Page 21
respected Chinese core values (Li & Shooshtari).
For example, Toyota incorporated a well-known
Chinese proverb “che dao shan qian bi yo lu” in
one of their advertisements “Where there is a road,
there's a Toyota”. However, in 2003, when they
advertised Toyota’s 2004 SUV model, the overall
negative reaction was surprising, and these
commercials were banned. The content of these
commercials included Toyota Land Cruiser with a
headline that can be translated into “ba dao [The
rule by force], you cannot but respect” (p.7). The
brand name “Prado” is on the SUV’s front bumper.
The Chinese characters chosen to represent this
brand were pronounced as “ba dao.” Although it
sounds similar to “Prado” its literal translation is
“taking the road in one’s own hand”. This phrase
can have multiple meanings, depending on the
context, including “the mighty rule”, “rule by
force”, “tyranny” or “overbearing”. The ad was
interpreted as “You can't help but be ruled by
Prado's power,” “The Prado's power will take you
over,” or “You have to admire and respect Prado's
supreme quality” (Li & Shooshtari, p. 10). This
unintended error in translation resulted in a
message that was offensive to many Chinese
consumers. Immediately after the ad’s release,
consumer calls came flooding into the Toyota
office in Beijing, China, protesting their negative
feelings towards the ad. It was described this as a
‘cultural pitfall’.
The image that Toyota hoped to portray to its
potential consumers consisted of “This car lives up
to its name—no matter who you are or where you
are, there's no escaping Toyota's powerful bao
dao" (Prado). The makers of the car wanted it to
appeal to and attract the upper-class nobility,
displaying “high social status and character of a
road warrior.” The literal meaning is neutral and
acceptable to Chinese readers, however in context
the ad seems to be controversial and disrespectful
to the socially-stratified Chinese culture. Toyota’s
interests were solely creativity and innovation, but
became a threat to Chinese identity, especially
when considering past tension between the two
countries. Although Toyota gained their respect
from the Chinese through past advertisements,
that were consistent with Chinese values, this faux
pas, due to the inaccuracy and inability to
translate their message into Chinese, greatly
offended their culture.
Another multinational company that offended the
Chinese culture through their advertising efforts
was Nike, in its 2004 ad campaign. They released
the same million-dollar, 90-second TV
commercial, “Chamber of Fear,” in China, Hong
Kong, Singapore and the United States. Nike used
one message to target these culturally diverse
markets. China’s response to it was disastrous (Li
& Shooshtari, 2007). Filmed and produced in the
U.S., the clip featured basketball star LeBron
James, sporting a pair of Nike sneakers, fighting
and defeating an elderly Chinese martial arts
master, as well as dragons and goddesses. A few
different scenes unfolded, where LeBron was
shown battling and overcoming different
obstacles. A lot of Chinese concepts were
incorporated, including Chinese stone lions and
kung fu warriors (Li & Shooshtari). The forces that
LeBron was overpowering, in order to shoot into
the basket, were fear, hype, temptation, hatred,
complacency, and self-doubt. While this concept
was acceptable and non-threatening to Chinese
culture, the imagery that accompanied the text
was insensitive and offensive to them.
Analysis
When a multinational corporation considers
standardizing its message across cultures, there
are critical factors to consider. Since the
advertising industry is highly competitive, in order
to attract consumers to their product versus their
competitors, advertisers should appeal to the

22. TAB Journal Page 22
culture of the consumer. A major one is whether
the cultures in their marketing mix are collectivist,
individualist, or a mixture of both. These cultures
contain very different values and priorities. A
collectivist culture places emphasis on the
“group,” while an individualistic culture is focused
on the individual person (Gregory & Munch, 1997).
This seemingly small detail makes a big difference
when creating an advertising message intended to
appeal to multiple cultures. Although having
respect for all cultures shows social responsibility
and often generates more sales, there are also
legal implications. When advertising in China,
Nike, and Toyota did not comply with cultural
standards and as a result, their ads were banned
(Li & Shooshtari, 2007). Article XX of the WTO,
GATT’s Provisions, allows for regulations
necessary to protect public morals in China.
Chinese regulatory institutions banned Nike’s
2004 commercial, claiming that it “violates
regulations that mandate that all advertisements
in China should uphold national dignity and
interest, and respect the motherland’s culture” (p.
12).
Specific Organization
In 1969, Don Fisher, a wealthy Californian real
estate developer, was frustrated with his inability
to find a pair of jeans that fit right. Together with
his wife Doris, Don decided to open his own retail
store, to ‘bridge the gap’ between the boomers
and the current ‘silent generation.’ This is how
Gap began. The first store was opened in San
Francisco, California. In 1987, Gap’s first
international store opened in London. This was the
beginning of their fusion into a multinational
corporation. By 1992, Gap was recognized as the
second largest apparel brand in the world (Joslin
et al., 2009). Gap’s annual report in 2009 stated
one of Gap’s challenges as an international
company, is “maintaining favorable brand
recognition and effectively marketing products to
consumers in several diverse market segments”
(Joslin et al., p. 17).
Synthesis
Since its inception, Gap has shown their ability to
accommodate and reach their culturally diverse
markets. Recently, they found themselves in a
situation where they were subject to public
protests against their advertisement. In 2013, Gap
released a holiday advertising campaign titled
“Make Love”. One of their advertisements featured
a popular Sikh actor and jewelry designer, Waris
Ahluwalia. Shortly after the release of this ad,
vandalism appeared on one of the billboards
displayed in a subway station. Racist comments,
such as, “please stop driving taxis” were scribbled
all over, and the picture of Ahluwalia was defaced.
The words “make love” were changed to “make
bombs.” When evidence of this graffiti appeared
online, Journalist Arsalan Iftikhar tweeted, to
inform the world about this through social media
(Kuruvilla, 2013). Gap instantly tweeted back,
asking for the location of this ad so they can fix
the situation. In an interview, Gap (2013) told the
Daily News, “Gap is a brand that celebrates
inclusion and diversity. Our customers and
employees are of many different ethnicities, faiths,
and lifestyles and we support them all”. Gap was
praised for its immediate response to these racist
comments, and for supporting and backing their
campaign.
Shortly after the prejudiced remarks were exposed
to the world via the Internet, Gap immediately
placed Ahluwalia front and center of their home
page. They showed respect for the Sikh culture
and religion and stuck to their beliefs in
advertising. Using Ahluwalia as a model was a
brave move on Gap’s part and the company was
willing to sacrifice potential public attack to show
their diversity and acceptance of different cultures

23. TAB Journal Page 23
(Kuruvilla, 2013). Gap’s promotion of cultural
acceptance increased their sales, as one customer
tweeted to Gap, “I just holiday shopped w/you
because of yr anti-racist support of #Sikh model
Waris Ahluwalia!” (Kuruvilla). If Gap continues to
implement models from different cultures which
have different religions and beliefs, their
advertisements can potentially increase revenue.
Although some prejudiced individuals may
continue to show opposition to this, hopefully,
many people will embrace their cultural
acceptance, and respect it.
Suggestions for Future Research
The corporate world is changing rapidly. As great
technological breakthroughs and new innovations
come out all the time, competition within each
industry continually increases. As a result,
businesses need to improve their advertising
efforts to gain more consumers. One way to
attract more consumers across the world is by
appealing to specific cultures and beliefs.
Although in the past international businesses have
succeeded in doing so, further research is needed
to keep up with the fast-changing industrial and
advertising world. Advertisements can include
models from minorities, and have their slogans in
multiple languages. A small step like this shows
consumers that their culture and way of life means
something to the company. Another important
detail to remember is that America itself is a large
melting pot of many different religions and
cultures. Businesses have to realize that although
other ethnicities become “westernized,” and may
start dressing like an “American,” their core values
and beliefs are still present.
Multinational corporations put a tremendous
emphasis on the creativity and originality of their
advertisements. However, it is equally, if not more
important, to invest more time, effort, and money
in extensive research of their culturally diverse
target markets. The members of the advertising
agencies should be educated and aware about
what each culture values the most. Additionally,
there should be more accurate translation and
interpretation into other languages. When a
phrase cannot be translated properly, it should be
eliminated, rather than causing a potential racial
blunder. By implementing these tactics and
conducting further research, companies can
maximize the success of their advertising efforts.
References
Gregory, G. D., & Munch J. M. (1997). Cultural values in international advertising: An examination of familial norms and
roles in Mexico. Psychology and Marketing, 14(2), 99-120.
Joslin, R., Lueck, P., Martino, C., Rhoads, M., Wachter, B., Chapman R., & Christian, G. (2009). Gap, Inc.: Has the retailer
lost its style? In R. D. Ireland, R. E. Hoskisson, and M. A. Hitt (Eds.), Understanding Business Strategy: Concepts and
Cases. Retrieved from http://www.cengage.com/management/webtutor/ireland3e/cases/gap
Kuruvilla, C. (2013, November 27). Gap praised for quick response to racist graffiti against Sikh model, as more evidence
of vandalism pops up. New York Daily News. Retrieved from: http://www.nydailynews.com/new-york/gap-ads-
featuring-sikh-model-waris-ahl
Li, F., & Shooshtari, N. H. (2007). Multinational corporations' controversial ad campaigns in China - Lessons from Nike
and Toyota. Advertising and Society Review, 8(1), 1-18.
Walle, A. H. (1997). Global behaviour, unique responses: Consumption within cultural frameworks. Management
Decisions, 35(10), 700-708.

24. TAB Journal Page 24
The Result of Cause-Related Marketing on Consumers'
Attitude and Brand Loyalty
Elisheva Florence
Cause-related marketing (CRM) is a powerful
marketing tool which brings success to many
companies. CRM is the process of implementing
marketing techniques characterized by an offer
from a company or firm to contribute a specified
amount of resources to a designated charitable
cause when customers engage in revenue-
providing exchanges that satisfy organizational
and individual objectives (Van, Odekerken-
Schröder & Pauwels, 2006).
This paper will discuss how CRM has developed
throughout the past decade. It will also explore
the different categories of cause-related
marketing and demonstrate how it can lead to
positive consumer attitude and an increase in
brand loyalty. Furthermore, this paper will
differentiate between strategic CRM and tactical
CRM and explore the relationship between
customer passion for a particular cause and
customer purchasing. This marketing tool is
beneficial to three distinct groups, as it feeds the
needs of a corporation, supplies the needs of a
non-profit organization, and satisfies for the
emotional and altruistic desires of an individual
consumer. CRM can improve corporate image,
increase customer purchasing, and create a strong
relationship between a company and its
customers.
Background Statement
Since the late 1900s, many companies have felt
pressure to increase their corporate social
responsibility (CSR) to prove their corporate care
for society. Van den Brink, Odekerken-Schroder,
and Pauwels (2006), define CSR as the extent to
which businesses assume the economic, legal,
ethical, and discretionary responsibilities imposed
on them by their various stakeholders. Lantos
(2001) states that in the past 50 years businesses
were assessed not only by their honesty and
economic performance but also by their
contributions to the public.
CRM is an effective tool to attract consumer
spending while also maintaining the company’s
CSR. For example, in 1984, credit card company
American Express guaranteed to donate a penny
to the Statue of Liberty restoration project for each
card member’s transaction. It increased
cardholder transactions by a booming 28%. CRM
then immediately caught the attention of
companies who wanted to boost their profit and
improve their company image (Rozensher, 2013).
CRM quickly came to be known as the most
popular method of marketing by the early 1990s.
During this time, many companies were using
CRM programs and spending an exuberant
amount of money on their campaigns. Likewise, at
the end of the 1990s many companies foresaw
continued growth in their promotions of CRM.
Since then, CRM has become a topic of scientific
research, not only one of corporate interest. These
studies suggest a positive relationship between
CRM and consumer loyalty, as the consumers may
feel a sense of morality and benevolence when
contributing to a certain cause, therefore creating
a positive consumer attitude towards the
company.
Elisheva Florence is a student at Lander College majoring in accounting.

25. TAB Journal Page 25
Literature Review
There are two categories within cause-related
marketing; strategic CRM and tactical CRM.
Strategic CRM is more effective than tactical CRM,
according to Ellen et al. (2000), as strategic CRM
involves high senior management, a substantial
amount of resources, and most importantly, a
long–term commitment to whichever organization
the company is endorsing. Tactical CRM, however,
is limited involvement of employees and short-
term commitments to whichever cause the
corporation is donating; this allows a company to
make a reduce donation and risk, but may result
in a lesser reward. Consumers admire a company’s
long-term commitment to the cause, because the
extended provision for the organization is seen as
an altruistic intention, as in strategic CRM. Short
term commitment to a cause as used in tactical
CRM may portray a message to the consumer that
the company focuses largely on self-interest and
purely wants to boost sales with publicity. While
most companies usually use one strategy, there
are cases in which companies use both strategic
and tactical CRM (Van den Brink et al., 2006).
In researching CRM, 240 subjects from a European
university took an unbiased survey in which the
subjects were provided fictional examples of CRM
being implemented. The result showed that
strategic long-term CRM does have a greater
effect on customer brand loyalty (Van den Brink et
al., 2006).
Often, curious consumers will question the
motives behind a company’s CRM campaign. A
company’s intentions are classified as either
intrinsically motivated or extrinsically motivated.
Intrinsic motivation stem from the company’s self-
actualizing feeling of helping society, whereas
extrinsic motivations are expressed as self-
interest desires focused on a response from the
environment. Customers purchase a larger volume
of goods and services from a company whose
motives are intrinsic. Some, however, disagree and
argue that there is a lack of information to prove
the correspondence between corporate social
responsibility and consumer purchasing (Van den
Brink et. al, 2006).
Another aspect of CRM is the connection created
between the company and the cause. Thus, any
customer who has a particular association to a
cause to which the company is donating, the
consumer will be more likely purchase from that
company. This occurs when a company has cause
specificity.
A successful example of cause specificity was
shown in a survey given to a spectrum of people
who varied from highly religious to less religious
backgrounds. The study found that highly
religious people are more favorable to a company
whose cause is religious, whereas, less religious
subjects look more favorably upon a company who
supports a more secular cause. From here, one
can derive that “cause affinity” has a strong effect
on consumer attitude (Sheikh & Beise-Zee, 2011).
However, many believe that cause specificity is a
poor marketing strategy, as it may cause people
who feel unfavorably towards that specific cause
to refrain from buying from the company.
Application and Analysis
An issue of competing forces can surface with
CSR. A publicly-owned company often receives
pressure from investors and shareholders in the
company regarding most decisions, which may
induce conflict in the situation of restricted profit;
the company’s interest to increase CSR may
conflict with the investors’ interest of maximizing
profits (Lantos, 2001). Such a problem does not
arise in the case of a privately-owned company, as
the proprietors may do as they seem fit and do
not need to answer to a board of directors.

26. TAB Journal Page 26
CRM, however, also has the potential to damage
society. Consumers may invest too much into a
company as a result of being too committed to its
associated cause, which may be a detriment to the
consumers’ personal finances. This could also be
dangerous to an organization that is not
associated with a particular company, as they may
lose publicity and resources, and therefore
supporters (Rozensher, 2013). CRM may also hurt
the company itself, as the prices of the goods
produced by the company will rise to cover
donative costs, which eventually will lead to less
consumer spending and a backlash to the
economy (Rozensher, 2013).
Another inference discovered by researchers is
intensified customer demands to be involved in
CRM decisions. Many customers who purchase
products in connection to CRM campaigns have
commented that they would like to know the
impact of their purchase. Consumers have stated
that they wish the companies would elaborate on
the effect of the cause-related product, which is
not something that all companies would prefer to
do (Rozensher, 2013).
Specific Organization
ConAgra, the nation’s second to largest food
company, began in 1919 when Alva Kinney
combined four grain mill companies together in
Nebraska (“Congra Food, Inc. History”, 2013). It
was first called Nebraska Consolidated Mills
Company, and was then renamed ConAgra, Inc. 70
years later. ConAgra is an international company
that produces many agricultural supplies like
fertilizer, pesticides, and feeds.
During World War II, sales soared because of the
high demand for grain and milling. ConAgra
constantly competed with rival milling companies
General Mills and Pillsbury, so to get ahead
ConAgra expanded and opened a flour mill and
animal feed mill in Alabama. When that was not
enough, further research was put into processed
foods like using flour for cake mix, which became
known as Duncan Hines. Since ConAgra had only
about ten percent of the prepared cake market, it
was not worth their continuous efforts to gain a
foothold, and they soon sold Duncan Hines to
Proctor and Gamble. ConAgra used the money
from this deal to invest even more with basic
commodities, like grains and feeds. At this point
they moved beyond the U.S. borders and opened
up grain processing plants in Puerto Rico through
its second child company, Caribe Company.
In the 1950s and 1960s people began to recover
from World War II and were able to afford more
expensive foods. Therefore, people had less of a
need for flour consumption; this caused the
number of sales in ConAgra to decrease, since
their main resource was flour and feed. To fight
off the loss, ConAgra’s competitors, General Mills
and Pillsbury were quick to introduce new types of
foods that were not purely flour. Instead of
experimenting, ConAgra took the easier way out
and turned back to focus mainly on animal feed as
well as another commodity: chicken. They
partnered with a Spanish producer of animal feed
and breeder of pigs, chickens, and trout, known as
BioterBiona. In 1971, ConAgra became the official
name of Nebraska Consolidated Mills. In 1973,
ConAgra was listed on the New York Stock
Exchange. Unfortunately, losses were realized the
following year and the company had to suspend
dividends. In 1975, ConAgra almost filed
bankruptcy due to heavy losses in commodity
speculations.
In 1975, the former CEO of Pillsbury, Charles
Harper, was hired as the President of ConAgra to
reshape the company. He had strict goals that
were to broaden the ConAgra sales base. Harper
sold unnecessary operations to ease debt. He
purchased Banquet Foods, Corp. which resulted in
a chicken production increase of one-third. Harper

27. TAB Journal Page 27
also bought Peavey Company to augment wheat
milling. In 1978, ConAgra bought a distributor of
herbicides and pesticides, known as United Agri
Products. The acquisition was supported by
Harper’s hypothesis that if there were higher grain
prices it would cause a larger demand for these
chemicals. Harper also knew not to rely on
commodities, which only prosper at certain times
in the economy. Thus, he bought into
miscellaneous areas such as pet accessories,
Mexican chain restaurants, and fabric chains.
ConAgra began acquiring prepared food
manufacturers in order to meet their financial
goals. Return on equity was 20%, annual earnings
were over 14%, and long term debt was less than
35% of capitalization. Due to financial stability,
ConAgra decided to obtain more businesses. They
bought some seafood processing plants in 1981;
companies acquired included Singleton Seafood,
Sea-Alaska Products, Trident Seafoods, and
O’Donnell-Usen Fisheries. In 1982, ConAgra took
first place in the chicken industry by creating
Country Poultry. Soon afterwards, the creation of
ConAgra Turkey Company and the acquisition of
Longmont Foods took place. No longer was
ConAgra just focused on plain chickens, but they
were also concentrating on more exciting
variations like marinated chicken breast, hot dogs,
and processed chicken for fast food restaurants.
ConAgra then moved to the red meat market. They
acquired Armour Food Company, a processer of
hot dogs, sausage, bacon, ham, and lunch meats.
Along with meats, Armour also had a line of
frozen dinner classics. ConAgra was not hasty in
making this purchase; they waited until Armour
closed some plants and went down in book value
before making the purchase. They made their way
further by buying out Morton, Patio and Chun King
Brands. In 1987, ConAgra became the third largest
beef packer in American after buying E.A Miller
and Monfort of Colorado. However, soon after,
there was a steady decline in beef product sales
when consumers began to become more heath
aware. As a result, ConAgra moved into a healthier
beef product industry and bought 50% of Swift
Independent Packing Company.
At this point in time, if a consumer would go into
a grocery store looking for ConAgra foods, most
of it could be found in the frozen food section. To
further diversify, Harper purchased Beatrice Co,
which distributed dry goods. ConAgra Company
expanded and acquired different projects in Japan,
Thailand, France, Canada, Chile, and Australia. In
America, ConAgra catered to a different market by
buying National Foods, a kosher food business. In
the 1990s, ConAgra introduced Healthy Choice, a
low fat, low sodium line of frozen dinner foods.
Advertising Age named this as the most
flourishing new food brand in the two decades. In
1992, Harper resigned and Phil Fletcher took over.
Fletcher cut operating expenses by establishing
cost-control measures and creating better
communication between the companies many
branches. He spread out globally in China,
Australia, Denmark and Mexico. In 1994, the
company’s 75th anniversary, sales were over 23
billion dollars, with earnings of $437 million. To
celebrate, ConAgra donated $200,000 to a
museum in Nebraska for the creation of a model
of the original Glade Mill (one of the original four
flour mills). ConAgra, once a small flour milling
company, rose up to be a great international food
corporation with over $20 billion in sales.
Synthesis
ConAgra used many marketing techniques to
develop is CRM. As stated earlier, CRM can be
beneficial to both the corporation and the non-
profit organization. According to Cone and Phares,
a CRM program will not be beneficial if it is not
backed by the executives. ConAgra had the
backing of Bruce Rhode in creating their project

28. TAB Journal Page 28
called, “Feeding Children Better”. The program had
a focus to end childhood hunger in America (PR
News, 2003). ConAgra had the intrinsic and
altruistic characteristics and motives in creating
the connection between the company and the
cause.
When ConAgra Foods Foundation heard about the
concept of “heat vs. eat”, a decision poverty
stricken families have to make between paying
electric bills and grocery bills, they spread
awareness about the childhood hunger in the
United States (PR News, 2003).
ConAgra then created “Feeding Children Better
Program” to combat childhood hunger. ConAgra
combined this program with America’s Second
Harvest, one of the country’s largest hunger-relief
organizations. ConAgra would give financial
funding to food banks, which would then give out
food to Kids’ Cafes, where children received a free
hot meal (PR News, 2003).
ConAgra’s altruistic actions made them winner of
the Platinum PR for CRM. The enormous amount
of money spent on the Feeding Children Better
program was worth for ConAgra as they made
society aware of the outbreak of hunger and
attracted attention to their own company (PR
News, 2003).
Suggestions for Future Research
There are a number of changes that can occur in
business or environment that may shape the role
of CRM in the future. One assumed change is an
increasing pressure on companies to be
associated with a cause. One can predict that in
the future CRM will no longer be a suggestion but
rather an obligation. The Lantos’ (2001) article
includes a statement:
There are increasing pressures and rising
expectations for such altruistic CSR
because there has been a decline in the
social institutions that have traditionally
tied communities together, namely,
families, religious organizations and
neighborhoods, along with higher mobility,
and so it many people believe that it is
business' obligation to help fill the void (p.
605).
Another aspect is the change in cause interest or
attraction amongst the company’s target market.
The organizations which the target market is
supporting now may shift as a result of
environmental changes. The cause-affinity of
consumers is crucial in CRM, as that will attract
the customers to buy from the corporation
associated with the cause (Sheikh & Beise-Zee,
2011). Therefore, it is important that a company
stay up-to-date on the causes which are
significant and stay relevant for their target
market. The company can then associate itself
with a cause that is popular amongst the target
market to ensure brand loyalty and positive
consumer attitude.
A vital change to expect in the future is an end to
corporate philanthropy. Companies will refrain
from donating to a cause out of mere kindness;
instead they will give to a cause as a marketing
benefit. Corporations will expect to derive more
benefit and have more control over the money that
they donate, as opposed practicing the traditional
corporate philanthropy of donating to nonprofits
with no strings attached and for unrestricted use
(Rozensher, 2013).

29. TAB Journal Page 29
References
ConAgra Food, Inc. history. (2013). Retrieved December 22, 2013, from
http://www.fundinguniverse.com/company-histories/conagra-inc-history
Lantos, G. P. (2001). The boundaries of strategic corporate social responsibility. Journal of Consumer
Marketing, 18(7), 595-630.
PR News. (2003, October 13). Platinum PR award winner: Cause-related marketing. Retrieved from
http://www.prnewsonline.com/subscription/2003/10/13/platinum-pr-award-winner-cause-related-
marketing/
Rozensher, S. (2013). The growth of cause marketing: Past, current, and future trends. Journal of Business
and Economics Research, 11(4), 181.
Sheikh, S. R. & Beise-Zee, R. (2011). Corporate social responsibility or cause-related marketing? the role of
cause specificity of CSR. The Journal of Consumer Marketing, 28(1), 27-39.
Van den Brink, D., Odekerken-Schroder, G., & Pauwels, P. (2006). The effect of strategic and tactical cause-
related marketing on consumers' brand loyalty. Journal of Consumer Marketing, 23(1), 15-25.

30. TAB Journal Page 30
Sweet Manipulation
Danielle Reifer
Have you ever wondered why the fast food
industry is doing so well? How the bags of chips,
soda, and ice cream are constantly being sold in
vast quantities? Fast food restaurants are
everywhere, marketing their cheap and available
products to everyone. These fast food restaurants’
products can be very unhealthy; filled with fat,
sugar, and salt. Unfortunately, families can only
afford a one-dollar hamburger or a bag of potato
chips over fresh fruits and vegetables. Therefore,
many people have very unhealthy diets.
However, there is another reason fast food
restaurants and the junk food industry are doing
so well. The secret lies in the products themselves.
Research shows that fat, sugar and salt may be as
addictive as drugs and can cause similar effects in
the brain.
When in a state of depression, a giant tub of
sugary ice cream, a big bag of salty potato chips,
and a large cheese pizza usually help people deal
with their intense emotions. This is because fat,
sugar, and salt cause the body to release
dopamine. Dopamine is a chemical in the brain
that is associated with pleasure and reward. When
released, dopamine causes people to feel good.
This process also occurs in the brain while taking
drugs, smoking cigarettes, and drinking alcohol
(Hockenbury & Hockenbury, 2010).
Since dopamine gives a pleasurable feeling, the
brain believes it is being rewarded. The feeling is
very pleasurable, yet very addicting, causing the
body to crave the same sensation again. Overtime,
a human body will stop releasing as much
dopamine as it used to, and more food is needed
to achieve the same result. “Over time, the brain’s
circuitry might become rewired to produce less
dopamine in response to high-calorie, flavor-
enhanced foods” (Consumers Union of the United
States, 2013, p.1). They also add, “As a result -
and possibly in combination with genetics and
environmental factors - some people will eat
more, attempting to stimulate dopamine
production to feel good” (p.1). Frequent
overeating starts an addiction.
There have been many studies done on food
addiction. One of these studies involves seeing the
differences between the brains of obese girls and
thinner girls. “A team led by investigators at the
Oregon Research Institute in Eugene noticed that
MRI scans of the regions of the brain related to
reward and the senses lighted up more in obese
girls anticipating a chocolate milkshake than when
they were actually drinking it, compared with brain
MRIs of leaner girls” (Consumers Union of United
States, 2013, p.1). This study showed that people
who find food more exciting are likely to overeat.
Eric Stice of the Oregon Research Institute added,
“And the more you eat high-fat or high-sugar
foods, the less your brain regions are activated by
actual intake of these foods” (p.1).
In an interview with Monica Eng (Eng, 2013), when
asked what surprised him the most, Michael Moss,
the author of Salt Sugar Fat, answered, “On a
personal level it was how many food-company
executives I met [who] are health conscious and
do not eat their own products, especially when
they get injured” (p.1). Moss describes a scientist
at Kraft, who had stopped having liquid calories
due to an injury. Moss also added, “He has also
stopped eating salty chips, because he was among
the many of us who cannot stop at one tiny
serving” (p.1).
Danielle is a student at Lander College for Women and is studying business.