Asked by Marie Monville on Jul 04, 2024

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MasterCard International links usage of its card with fund-raising for institutions that combat cancer, heart disease, child abuse, and muscular dystrophy. MasterCard gives a modest percentage of charges from its credit card charges to the institutions. What is this called and how does it affect cardholders' behavior?

Fund-Raising

The act of collecting monetary donations or resources for a cause, project, or organization.

MasterCard International

A multinational financial services corporation known for processing payments between the banks of merchants and the card-issuing banks or credit unions of purchasers.

  • Explain the concept of cause marketing and its impact on consumer behavior.
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KL
Kristy LippertJul 05, 2024
Final Answer :
This practice is called cause marketing, which occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of its products. It may have the effect of encouraging the cardholders to charge more on their MasterCards (rather than Visa or American Express)-especially if they respect the charity receiving the contribution.