Promoting Brands across Categories with a Social Cause: Implementing Effective Embedded Premium Programs

Embedded premium (EP) promotions promise purchase-contingent donations to a social cause and are typically studied within a single category. However, EP programs spanning multiple product categories and brands are widespread. This research investigates fundamental questions regarding where and to what extent an EP promotion should be used in multicategory contexts. Using experimental choice data from more than 3500 people in two studies, the authors examine multicategory EP programs in two distinct branding environments: spanning a diverse house-of-brands portfolio or covering a multicategory product line that shares a common corporate brand name. For the corporate brand context, the results show that EP effects in one category carry over to adjacent categories that do not have an EP association. Greater multicategory EP prevalence does not enhance brand attractiveness beyond the effect of a single EP exposure. For the house-of-brands context, there is an inverse relationship between brand strength and incremental gain from EP. From a return-on-investment standpoint, EP promotions are more efficient than price promotions because they enhance brand preference and are relatively cheaper to deploy. The results make a strong case for a more discriminating implementation of EP programs across brands and categories.

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