(PRODUCT) RED (A)

Youngme E. Moon; Michael I. Norton; David  Chen

Case | HBS Case Collection | July 2008 (Revised February 2009)

(PRODUCT) RED (A)

by Youngme E. Moon, Michael I. Norton and David Chen

Abstract

Describes the launch and initial results of the (PRODUCT) RED campaign, a social marketing initiative conceived by U2's Bono and Bobby Shriver to combat AIDS in sub-Saharan Africa. The company licensed the (RED) brand to partner companies, which initially included Gap, Apple, Motorola, Armani, and American Express. The business model was structured to benefit partner companies by increasing consumer purchases—of (RED)-branded products such as red iPods and phones—while also resulting in increased donations to the Global Fund.

Keywords: Investment Funds; Philanthropy and Charitable Giving; Brands and Branding; Marketing Strategy; Social Marketing; Social Enterprise; Africa;

Language: English

Format: Print

16 pages

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Citation:

Moon, Youngme E., Michael I. Norton, and David Chen. "(PRODUCT) RED (A)." Harvard Business School Case 509-013, July 2008. (Revised February 2009.)

Working Paper | HBS Working Paper Series | 2019

Communicating Resource Scarcity

Grant E. Donnelly, Anne Wilson, A.V. Whillans and Michael I. Norton

The development and maintenance of interpersonal relationships require investments of both money and time—resources that are often limited in supply, but in great demand. Indeed, consumers are regularly asked to dedicate their money and time to social engagements, and need to manage these resources efficiently. Therefore, consumers often choose to cite insufficient time or money as an excuse for rejecting social invitations. But how does using the excuse of financial versus time scarcity influence interpersonal relationships? Across eight experiments, we demonstrate that using financial scarcity as an excuse (e.g., “I don’t have money”) increases perceptions of interpersonal closeness and helping behavior compared to using time scarcity as an excuse (e.g., “I don’t have time”). This effect is explained by the fact that time is perceived as a more personally controllable resource than money, resulting in consumers who cite financial (vs. temporal) constraints as being perceived as more trustworthy. However, excuse-givers do not correctly predict this difference in interpersonal outcomes. These findings advance our theoretical understanding of how excuses revolving around resource constraints affect interpersonal perceptions and behaviors and provides practical insights for consumers desiring to minimize social repercussions when turning down social invitations.

Keywords: interpersonal relationships; time; Communication; Relationships; Money; Perception;

Citation:

Donnelly, Grant E., Anne Wilson, A.V. Whillans, and Michael I. Norton. "Communicating Resource Scarcity." Harvard Business School Working Paper, No. 19-066, January 2019. View Details

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