Impact of Strategic Cross-Sector Brand Alliances on Consumer Behavior in a Recession

Abstract

Like many organizations in an economic downturn, such as a recession, nonprofits have experienced a decrease in donations from individuals, corporations, and governmental funding sources. This loss of funding has resulted in a reduction of services offered and in some cases closure. Management at nonprofit organizations should study successful examples of cross sector marketing alliances and strategically replicate them with private sector organizations. This is achieved via cause-related marketing, a commercial partnership between a nonprofit organization and a private sector business. Seven fictional organizations were created for the current study to avoid preconceived notions. Comparisons were completed between private sector and nonprofit sector organizations. Additionally, comparisons were made between mixed strategic alliances of organizations with a positive image and those with a negative image which examine the impact of  strategic alliances between private and nonprofit organizations. The measurements were a respondent’s willingness to contribute to or purchase from the firms. Results indicate that a firm’s image influences the willingness of the respondents to support the organization through donations or purchases in both the individual firm and strategic alliance scenarios.