This study employs a key concept by Salop (1979), Reitzes (1992), and Clemenz (2010): circ1e market with unit circumference to construct the spatial mode1. After the theoretic model development and empirical study, this study obtains several useful conc1usions: First, consumers tend to buy products with CRM because the companies support the disadvantaged.
Second, other things being equal, retailer implementing NTCRM strategy could raise the price of his product and increase his sales; the rival retailer wi1l reduce the price and sales, and profit will decrease. However, the profit of the retailer may increase or decrease. This result is consistent with previous studies (Smith andAlcorn, 1991; Barone et al., 2007; Varadarajan and Menon, 1988).
Third, other things being equal, retailer implements TCRM could raise his product price. However, the effects of his sale, profit, rival retailer's price, profit, and sales depend on the marginal utility of TCRM strategies. As suggested by
132 Analysis of Cause-Related 11也rketing 珈cts:
The Case of Duopoly Retailing Store
Barone et al. (2000), if the price of the product with TCRM is higher, then the advantage of TCRM will be 0宜記tby the disadvantage of price increase.
F orth, in general, the retailer could increase his product price no matter he implements NTCRM or TCRM strategies. Moreover, the purchase-switch effect does exist with the NTCRM s仕ategies but has ambiguous e宜ect under TCRM
S仕ategles.
The managerial implications of this study are: first, retailer could use CRM strategies to differentiate his product to increase the product price. Therefore, CRM could be regarded as the useful marketing promotion tool.
Second, as NTCRM strategies could increase his own product price and let rivals to reduce their prices, and the purchase-switch efIect is expected to exist.
Therefore, the company could select NTCRM as the marketing promotion strategles.
T趾rd， as the TCRM s仕ategiesmay not give rise to the purchase-switch and profit-shifting e宜ects. The purchase-switch exists only when the TCRM is lower than the optimal donation per sales. Therefore, in order to ca汀Y out the s仕ategy，
the company implementing TCRM strategy should consider the unit amount of the donation and the price increments, so as not to cause the reverse efIect.
This study has shortcomings in research design, which may limit the generalization ofthe findings. The shortcomings inc1ude (1) a limited number of store types examined; (2) the method of survey uses convenient sampling; (3) the CRM-related issue could center on the negative perception of the CR孔1: to consumers which in turn may damage company's brand equity.
Chiao Da Management Review Vol. 33 No.2, 2013 133
AppendixA
Basic Data of NTCRM Case
Variables Level Number (%) Variables Level Number (~色)
Male 20 24.7 non 5 6.0
Sex Female 61 75.3 Students 14 16.7
Total 81 100 Representative of the people, the chief 5 6.0
executives and managers
Below 19 1.2 Professionals 16 19.0
20~24 15 17.4 Occupation staff 20 23.8
25~29 10 11.6 Service staff and sales clerks 7 8.3
30~34 19 22.1 A伊culture，forestry and fisher 湖ff 1.2
35~39 8 9.3 Technical workers and related workers 1.2
Age 40日44 10 11.6 Others 15 17.9
45~9 2 2.3 Total 86 100
50~54 10 11.6 Below 15,000 19 23.5
55~59 8 9.3 15 ，001~25 ，000 7 8.6
Over60 3 3.5 25 ，001~35 ，000 15 18.5
Total 86 100 Income/ 35 ，001~5 ，000 9 11.1
Higher school 2 2.4 per month 45,001 ~55 ，000 14 17.3
Senior high school 8 9.4 55,001 ~65 ，000 4 4.9
Education College and university 37 43.5 Above 65,001 13 16
Master 38 44.7 Total 81 100
Total 85 100 Everyday 30 35.3
The northern region 75 90.4 2-3 days 24 28.2
The central region 2 2.4 4-7 days 16 18.8
Location The south region 4 4.8 Frequency Every two weeks 5 5.9
Other region 2 2.4 Monthly 9 10.6
Total 83 100 Never 1.2
Total 85 100
134 Analysis 01 Cause-Related Marketing Effects:
The Case 01 Duopoly Retailing Store
Appendix B
Basic Data of TCRM Case
Variables Level Number (%) Variables Level Number (~色)
Male 44 46.3 non 4 4.2
Sex Female 51 53.7 Students 4 4.2
Total 95 100 Representative of the people, the chief
Below 19 1.0 executives and managers 4 4.2
Professionals
20~24 2 2.1 stafI 23 24.0
25~29 25 26.0
Occupation Service stafI and sales 5 5.2
30~34 34 35.4 A伊culture，forest可阻dfisher stafI 12 12.5
35~39 17 17.7 Technical workers and related workers
22 22.9
Age 40~ 7 7.3 Others
45~9 5 5.2 Total 1.0
50~54 4 4.2 non 21 21.9
55~59 1.0 Students 96 100.0
Over 60 96 100.0 Below 15,000 12 12.5
15，001~25，000 2 2.1
Higher school 1.0 25 ，001~35 ，000 33 34.4
Senior high school 12 12.4 Income/per 35，001~5 ，000 26 27.1
College and university 44 45.4 month 45 ，001~55 ，000 4 4.2
Education 此i[aster 40 41.2 55，001~65 ，000 6 6.3
Total 97 100 Above 65,001 l3 13.5
Total 96 100.0
The northem region 92 97.9 Every day 34 35.4
The central region 1.1 2-3 days 42 43.8
The south region 1.1 4-7 days 17 17.7
Location Frequency Every two weeks 3 3.1
Other regions 94 100
扎i[onthly 96 100
Chiao Da Management Review Vol. 33 No.2, 2013 135
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