Dissertation on the Use of Cause Marketing

1,429 views
1,290 views

Published on

This is a dissertation on The Use of Cause Marketing and the Mediating Effect of Publicity on Customer Retention. Findings from the research conducted would be very useful to academics, marketing and marketing communication practitioners.

Published in: Marketing, Business, Technology
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,429
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
90
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Dissertation on the Use of Cause Marketing

  1. 1. THE USE OF CAUSE MARKETING & THE MEDIATING EFFECT OF PUBLICITY ON CUSTOMER RETENTION By EHIAGHE RITA OMOVBUDE PAU/SMC/PT3/110030 A dissertation submitted to the School of Media and Communication, Pan-Atlantic University in partial fulfillment of the requirements for the award of the degree of Master of Science of Pan-Atlantic University July 2013.
  2. 2. ABSTRACT The   overall   goal   of   this   research   is   to   find   out   how   Cause-­‐Related   Marketing   influences  Customer  Retention  of  a  highly  publicised  brand.  This  was  answered  both   conceptually   and   empirically.   Based   on   the   circuit   of   power   theory,   the   model   of   the   relationship   between   Cause   Marketing   and   Customer   Retention   was   developed   thereby   generating   seven   hypotheses.   A   semi-­‐inductive   approach   in   the   form   of   mixed   method   was   used   to   conduct   the   research.   Interviews   were   conducted   between   seven   Public   Relations   Managers   of   over   four   years   of   practice,   this   was   audio   recorded   and   analysed   manually.   Findings   from   the   interviews   therefore,   informed   the   design   of   the   questionnaire   for   quantitative   analysis   and   hypotheses   testing.   Out   of   one   hundred   and   twenty   questionnaires   distributed   between   Marketing   and   Marketing   Communications   Practitioners,   ninety-­‐two   responded   and   using   Chi-­‐square   to   test   each   of   the   seven   hypotheses   against   responses   from   the   questionnaire,   significant   levels   of   relationships   were   derived,   therefore   making   the   hypotheses   acceptable.   The   study   therefore,   resolved   that   the   use   of   Cause   Marketing   influences   customer   retention   of   a   highly   publicised   brand.   Findings   of   this  research  adds  to  the  body  of  knowledge  on  Cause  Marketing  and  is  beneficial  to   Marketing   and   Marketing   Communications   practitioners   across   various   industries,   as  well  as  Not-­‐for  Profit  organisations  who  seek  to  pitch  companies.     2  
  3. 3. ACKNOWLEDGMENT I would like to say a big thank you to GOD for every single day I was able to make it for classes despite my crazy work schedule and for supplying the funds necessary to complete my MSc programme. To my mother I say a big thank you for your earnest prayers, love and support. My sisters Omoye, Gladys and Margaret, my brothers Irabor and Eromosele and of course my little nephew Osareme whose unconditional love have kept me going. I also say a big thank to the SMC faculty most especially my supervisor Dr. Otubanjo for guiding me through the process of putting my dissertation together. Obianuju and Ndidi, thank you for effectively mediating between the students and faculty. Dr. Tam George, for making theories of communication easy to grasp therefore making application to this study seamless. I appreciate my best friend Obinali Okoli for encouraging and supporting my quest for knowledge. To Bridget and Eduvie I say a big thank you for your support in times of need. I love you all. I also acknowledge my past and present employers as well as my senior colleagues, Mr. Udeme Ufot, Funke Nwankwo, Kunle Shittu, Kaliko Olowole, Nnenna Onyeawuchi and Temitayo Adereti for supporting me in achieving my goal.   3  
  4. 4. DEDICATION I dedicate this study to my Late Father, Barrister David Osuan Omovbude, who throughout his lifetime etched in the walls of my heart the importance of education.   4  
  5. 5. CERTIFICATION I certify that this work was carried out by EHIAGHE RITA OMOVBUDE in the School of Media and Communication, Pan-Atlantic University, under my supervision Supervisor Dr. Tayo Otubanjo (Senior Lecturer, Marketing) School of Media and Communication Pan-Atlantic University Lagos, Nigeria.   5  
  6. 6. DECLARATION I hereby declare that all the work in this dissertation is entirely my own, unless referenced in the text as a specific source and included in the bibliography. Name: Ehiaghe Rita Omovbude Matric No: PAU/SMC/PT3/110030 Signed:       6  
  7. 7. Table of Contents   ABSTRACT ................................................................................................................................................2   ACKNOWLEDGMENT .............................................................................................................................3   DEDICATION ............................................................................................................................................4   CERTIFICATION ......................................................................................................................................5   CHAPTER  ONE:  INTRODUCTION........................................................................................................8   1.0   BACKGROUND..................................................................................................................................................8   1.1  STATEMENT  OF  THE  PROBLEM .....................................................................................................................13   1.2  OBJECTIVES  OF  THE  STUDY ............................................................................................................................14   1.3  SCOPE  OF  STUDY..............................................................................................................................................14   1.4  OPERATIONAL  DEFINITION  OF  TERMS .........................................................................................................15   1.5  SIGNIFICANCE  OF  THE  STUDY ........................................................................................................................16   1.6  RESEARCH  QUESTIONS ...................................................................................................................................17   CHAPTER  TWO:  LITERATURE  REVIEW........................................................................................ 18   2.0  INTRODUCTION ................................................................................................................................................18   2.1  THEORETICAL  FOUNDATION .........................................................................................................................18   2.2  STRENGTHS  AND  WEAKNESSES  INHERENT  IN  THE  USES  OF  CRM  LITERATURE ..................................24   2.3  CONCEPTUAL  FRAMEWORK ...........................................................................................................................25   CHAPTER  THREE:  METHODOLOGY ............................................................................................... 31   3.0  INTRODUCTION ................................................................................................................................................31   3.1  RESEARCH  DESIGN ..........................................................................................................................................31   3.2              TYPES  OF  SAMPLING .................................................................................................................................32   3.2.1  POPULATION  AND  SAMPLE  PROCEDURE ..................................................................................................34   3.2.2  DATA  ANALYSIS  PROCEDURE .....................................................................................................................34   CHAPTER  4:  PRESENTATION  OF  FINDINGS  AND  ANALYSIS .................................................. 36   4.1   QUALITATIVE  FINDINGS .............................................................................................................................36   4.2   QUANTITATIVE  FINDINGS ..........................................................................................................................41   4.2.1   HYPOTHESES  TESTING ............................................................................................................................58   CHAPTER  5:  CONCLUSION  AND  RECOMMENDATION .............................................................. 63   5.0  INTRODUCTION ................................................................................................................................................63   5.1  FINDINGS ..........................................................................................................................................................63   5.2  IMPLICATIONS ..................................................................................................................................................64   5.2.1  IMPLICATIONS  TO  THEORY .........................................................................................................................64   5.2.2  IMPLICATIONS  TO  PRACTITIONERS ..........................................................................................................65   5.3  RECOMMENDATIONS ......................................................................................................................................66   REFERENCES ......................................................................................................................................... 67   APPENDIX .............................................................................................................................................. 81       7  
  8. 8. CHAPTER ONE: INTRODUCTION 1.0 Background Cause-related marketing (CRM) is a type of marketing strategy that lends support to a charity through sales with the intent to portray a favourable brand image(Barone M. N., 2007)). Jerry Welsh of the American Express conceived CRM as a way of increasing awareness of the company card by linking it to a local arts programme in San Francisco. The results encouraged American Express to apply it on a national level, i.e. the restoration of the Statue of Liberty (Davidson, 1997) in which a 2% donation was made everytime a card was used and when new members were added. American Express, through the initiative, increased their sales by 28% (Demetriou M., 2009) (Demetriou, 2009)Demetriou, Papasolomou & Vrontis, 2009, p. 267). CRM has become more popular and is now considered as one of the fastest growing forms of marketing (Berglind & Nakata, 2005 p. 445). Researchers like Skory, Repka & McInst (2004) have referred to CRM as “marketing with a worthy cause” (p.2). Carringer (1994) defined it as:   8  
  9. 9. “...the joining together of a not-for-profit charity and a commercial company in an effort to raise funds and awareness for the cause while building the sales and awareness of the for-profit partner” (p.16) But the most comprehensive definition of CRM was given by Varadarajan & Menon (1988) as: “. . . the process of formulating and implementing marketing activities that are characterized by an offer from the firm to contribute a specified amount to a designated cause when customers engage in revenueproviding exchanges that satisfy organizational and individual objectives” (p.60) CSR, which means Corporate Social Responsibility, is a management concept that integrates social and environmental concerns into business operations. Mehegan (1995, p. 32) pointed out several factors that differentiate CRM from other CSR initiatives like philanthropy. . For instance, philanthropy would come from the company’s income and the company would expect nothing in return while CRM comes from the advertising or promotion budget and the company would expect its sales to improve. Whereas sponsorship is given before the purchase, in CRM the donation amount is sales-driven (Svensson & Wood, 2006). This, stated Chaney and Dolli (2001), is the most important part of the definition (p.157).   9  
  10. 10. Daw (2006) pointed out four characteristics in differentiating CRM from other kinds of interactions between profit and non-profit organisations: it is mutually beneficial to both parties, it creates awareness of the CRM program, it creates value for other stakeholders besides both parties and it involves the participation of employees and consumers in the process (p.21). Smith (1994) has referred to CRM as ‘strategic philanthropy’ (p.111) as it helps companies maintain competitiveness in the long run (Simon 1995). But Andreason (1996) concluded that if the public believes the positives of a non-profit are being used by a company to cover an inferior product then the CRM initiative is sabotaged (p. 59). Furthermore, Ross et al. (1991) stated that CRM may lose its effectiveness as more and more companies use it. Several factors like the favourable response to CRM have led to its rapid growth (Gupta & Pirsch, 2006; Lafferty & Goldsmith, 2005; Ross et al., 1992). Husted & Whitehouse (2002) pointed out that CRM started out with a short-term cooperation between profit and non-profit organizations, and then evolved as products were linked to non-profit causes, and is now regarded as a long-term cooperation between profit and non-profit organizations and implemented in profit organizations’ corporate strategy (p.6). On the other hand, Thorne McAlister & Ferell (2002) challenge this view and point out that long-term cooperation is an exception (p.693).   10  
  11. 11. Several CRM’s structural elements such as product type (Strahilevitz & Myers, 1998), cause-type (Cui et al. 2003;Ellen, Mohr, & Webb, 2000) cause-proximity (Grau & Folse, 2007) and fit between sponsoring company and the cause supported (Hou, Du & Li, 2008) have been postulated in the literature to influence consumers’ response to CRM. Past study (Ross et al., 1992) suggests that females show more favourable response towards CRM than males. There was also the issue of cause-proximity. Varadarajan and Menon (1988) suggested that cause-proximity refers to the distance between the donation activity and the potential consumers that would make the donation. Ross et al. (1992) showed that consumers hold a more favourable attitude towards a firm that supports a local cause than a firm that supports a national cause. It isn’t clear the influence of gender on the impact of causeproximity and how it affects consumers’ response to CRM. Ross et al. (1992) also found that women hold a more positive attitude towards the firm than men do towards CRM but the attitude is influenced by cause-proximity and so if companies want to target female consumers they should design a campaign that supports local cause. Overall, male have more favourable response towards CRM than female and for CRM campaigns targeted at male consumers cause-proximity is of less concern, hence companies may design CRM campaigns that support either local or international causes. Male respondents have high attitudes towards both local and international causes. Hou, Du & Li (2008) however concluded that local causes were preferred to national causes.   11  
  12. 12. Other factors that influence the purchase intention have been pointed out by further studies to include the size of the donation, gender, the fit between the cause and the company (Varadarajan & Menon, 1988; Ellen et al., 2000) and consumer’s connection to the cause (Farache et al, 2008). Broderick, Jogi & Garry (2003) and Grau & Folse (2007) also pointed out that the connectedness that the consumers feel to the cause was key in determining their response to the CRM campaign. Faracha et al (2008, p. 210) also supports this. If for instance there is no connection to the cause, then other elements like the importance of the cause and the length of the campaign (Trimble & Rifon, 2006) would help the consumers decide on purchase. Grau & Folse (2007) concluded in their research that the proximity of the cause can affect the attitude of consumers to products/services even if there was a personal connection to the cause. It is imperative that there should be a ‘fit’ between the company image and that of the cause which it is supporting (Varadarajan & Menon, 1988; Ellen et al., 2000; Speed & Thompson, 2000). The cause should be compatible with the corporate identity and perhaps the target market (Higgins, 1986; Shell, 1989; Larson, 1994). Lafferty, Goldsmith, & Hult, (2004) showed in their research, the negative impact of lack of fit on comsumers’ attitude to the cause. According to Grau & Folse (2007, p.19), the size of the donation to the cause also determine the benefits of the CRM campaign and Hajjat (2003, p.97) supported them in this in addition to the existence of personal connection to the cause. Grau, Garretson, &   12  
  13. 13. Pirsch, 2007) stated that a small-sized donation can lead consumers to believe that the company is just exploiting the non-profit organisation. A research done in some universities in Pakistan indicated that the consumers’ attitudes to products are indeed influenced by CRM. But also that awareness of brand and image of the company is also a deciding factor on that influence. (Shabbir, Kaufmann, Ahmad, & Qureshi, 2010). Samu & Wymer (2009) found that the fit between the cause and the company image worked with the dominance of the advertisement and made the brand favourable if they were high. 1.1 Statement of the problem A considerable amount of work has gone into the study of Cause Marketing but it appears that very limited work has been done to examine the relationship between the use of Cause-Related Marketing and customer retention. Due to this gap in literature, Marketing Communications practitioners are oblivious of the effect of Cause Marketing on brand loyalty, which is the ultimate goal of every brand custodian. Therefore, limiting its strategic use in the marketing process. In a research conducted by Basil, Runte, & Deshpande, (2012) it was found that 70% of non-profits sampled did not participate in CRM because they lacked the resources to do so and didn’t feel that they were the kind of non-profits that companies would want to partner with. This gap in literature therefore means that non-profits are not exposed and   13  
  14. 14. armed with the necessary knowledge required to approach companies that are most likely to partner with them, therefore reducing their chances of benefiting from Cause Marketing. The gap in literature also inhibits academics from expanding on the study of the ‘use of Cause Marketing’ as a result limiting the possibilities of adding to the body of knowledge in the use of this strategic marketing tool. 1.2 Objectives of the study 1. To find out if building a good brand image is a major rationale for the ‘use of CRM’ 2. To find out if achieving set sales target is a major rationale for 'use of CRM’ 3. To find out achieving brand equity is a major rationale for the 'use of CRM’ 4. To find out if reinforcing a brand’s positioning is a major rationale the 'use of CRM’ 5. To find out if Corporate Transformation is a major rationale for the 'use of CRM’ 6. To find out how the use of Cause Marketing influences customer retention of a highly publicized brand 7. To find out if the use of CRM contributes significantly to customer retention 1.3 Scope of Study This thesis examines the relationship that subsists within the framework of three dominant concepts within the field of marketing. These include Cause-Related Marketing, Publicity and Customer Retention. Cause-Related Marketing is a type of marketing strategy that lends support to a charity through sales with the intent to portray   14  
  15. 15. a favourable brand image (Barone, Norman, & Miyazaki, 2007). Publicity according to the Oxford American Dictionary is the notice or attention given to someone or something by the media. Customer retention is the processes of keeping your customers or ensuring that ones customers stay for the purpose of profitability and sustained revenue. This study is essentially focused on these three variables and will not go beyond these boundaries. 1.4 Operational definition of terms Cause-Related Marketing(CRM): A strategic marketing tool that is characterized by an offer from a firm to contribute a specified amount to a designated cause when a customer makes a purchase. Customer Retention: Keeping a customer or making a customer stay Publicity: Awareness about something or someone on any media Marketing Communications: Strategies, tactics and activities involved in getting desired marketing message to its intended target market. Corporate Transformation: Behavioural changes that occur within an organization to improve its performance. Branding: Branding is the process of making a product or service easily recognizable by customers through its intrinsic and extrinsic values. Brand Equity: The value premium a company realizes from having a recognizable brand image Brand Positioning: The process of creating a brand offer in such a manner that it occupies a distinctive place and value in the target customers mind   15  
  16. 16. 1.5 Significance of the study A number of studies on Cause Marketing have focused on the effect of donations on consumer purchase and Olsen, Pracejus, and Brown (2003) also pursued this research with a conclusion that people report higher attitudes toward a company and express stronger purchase intentions as a function of the percentage value of their donation. Attitude is as a result of perception and perception stems from how people view things and the fact that actions such as a company’s declaration of the value of their donation creates an effect on consumers purchase behaviour reflects that there is something that influences customers based on what they see the brand reflect. Thus the need to find out if CRM can significantly influence customer retention of a highly publicized brand. In general, CRM campaigns result in more positive consumer attitudes toward a company and greater purchase likelihood for its products.(Brown and Dacin 1997; Pracejus, Olsen, and Brown 2003; Strahilevitz and Meyers 1998). However, there is a dearth in literature on the relationship between Cause-Related Marketing and customer retention. This study is therefore significant because it is original and findings from this study will not only add to existing literature but also assist Brand Managers, Business Category Managers, Marketing Communications Practitioners and Marketing Directors in making informed decisions as regards the ‘use of CRM’ for customer retention. In addition, this will be a valuable resource material for non-profits seeking to pitch a partnership with for-profit organizations.   16  
  17. 17. 1.6 Research questions This study aims at interrogating one overall question firmly supported by seven interrelated sub questions. Overall question How does the use of cause related Marketing influence customer retention of a highly publicized brand? Sub questions 1. Is building a good brand image a major rationale for the ‘use of CRM’? 2. Is achieving set sales target a major rationale for 'use of CRM’? 3. Is achieving brand equity a major rationale for the 'use of CRM’? 4. Is reinforcing a brand’s positioning a major rationale the 'use of CRM’? 5. Is Corporate Transformation a major rationale for the 'use of CRM’? 6. How does the use of Cause Marketing influence customer retention of a highly publicized brand? 7. Does the use of CRM contribute significantly to customer retention?                   17  
  18. 18. CHAPTER TWO: LITERATURE REVIEW 2.0 Introduction This chapter seeks to examine existing literature on the use of Cause-Related Marketing and it will identify the gaps in literature on the relationship between Cause Marketing and Customer Retention. In addition, a research question is developed and answered using a conceptual model of the relationship between CRM and Customer Retention backed by the Circuits of Power Theory postulated by Stewart Clegg (1989) and the hypotheses generated from this model is discussed. 2.1 Theoretical foundation The review of literature indicates that CRM is used to take advantage of a variety of strategic marketing and business benefits. These are discussed in the paragraphs below; CRM for image building: Business in the Community, defines CRM as “a commercial activity by which businesses and charities or causes form a partnership with each other to market an image, product, or service for mutual benefit.” The business enhances its public image by being associated with a "worthy cause" and increases its sales in the process (Caesar, 1986). In recent years, CRM has helped re-image companies hurt by corporate scandals, ad clutter, globalization, and new technologies (Adler, 2006). Today, most of the companies are using Cause Related Marketing as a strategic tool (Till and Nowak, 2000) to build a positive corporate image in the minds of consumers   18  
  19. 19. (Chattananon et al., 2008) which results in enhancing the sales of a company’s products (Varadarajan and Menon, 1988) and profits as well (Adkins, 2004). In 1983, American Express Company began a campaign entitled, "When Did You First Fall in Love With Her?" which became one of the most heralded CRM campaigns to date (Caesar 1986; Higgins 1986; Kinsley 1985; Mescon and Tifson 1987; Schiller 1988; Smith and Alcorn 1991; Varadarajan and Menon 1988; Wiegner 1985). The campaign "made people feel good about American Express" and left the impression of a responsible, public-minded, even patriotic corporation (Mescon and Tilson 1987). To be more specific, the long-term gain from a CRM program is in terms of enhanced corporate identity and image. In contrast, CRM program is normally conceptualized as a promotional tool that has stronger effects on short-term sales, and that can also favourably impact on image and attitudes (File and Prince, 1998; Stipp and Schiavone, 1996). Even though studies indicate that consumers believe it is important for marketers to seek out ways for their firms to become good corporate citizens (R&S Worldwide, 1996), that cause related marketing is "a good way to solve social problems" (Ptacek & Salazar, 1997), and that consumers have a more positive image of a company if it is doing something to make the world a better place. Another reason for CRM’s growth is that public opinion research has shown that effective cause programs can enhance a company’s reputation and brand image and increase the credibility of its marketing effort while giving customers a convenient way to contribute to nonprofit organizations through their purchasing decisions. One result is that cause-related marketing in many companies has moved from being a short-term, one-time campaign to build sales, to a longer-term strategic effort to build brand and reputation. (Rains 2003) In the first case CEOs that authorize CRM earn   19  
  20. 20. social recognition, prestige and popularity and enjoy warm-glow, magnified by the large scale of corporate donations (Polishchuk, Firsov 2007) CRM for brand equity: Cause marketing uses the equity of a charity brand to create a link between a company and consumers (Kylander. 2006). CRM is a "dramatic way to build brand equity. It creates the most added value and most directly enhances financial performance" (Mullen, 1997). If price and quality are equal, customers are likely to switch to a brand with cause related marketing benefit (R&S Worldwide, 1993; 1996). CRM for sales: CRM, in contrast, has a very strong link with sales, since the level of ``giving’’ is tied directly to sales outcomes. To undertake CRM successfully a firm is therefore required to identify the expected sales level without the program and how the program will increase sales, since this will form the basis for the payment to the recipient combining CRM and sponsorship has the advantage of introducing a more direct evaluation framework, which is based on identifying incremental sales (Polonsky, Speed 2000). CRM campaign is designed for changing the consumers’ opinion, or for eventually altering the consumers’ behaviour in a way that generates income for both the company and the cause (Pracejus & Olsen, 2004). Although companies and causes may view CRM as a tool to achieve economic and social objectives, consumers may view CRM as a combination of a purchase decision and some form of altruistic or donor behaviour. If so, a number of streams of research converge to facilitate the conceptualization and prediction of CRM consumer behaviour. (Varadarajan, Menon 1988). Company-cause fit does influence the customer’s attitude toward the fit, which in turn   20  
  21. 21. influences the customer’s intent to purchase the cause-related marketing product. The framework in this study makes several theoretical contributions by enhancing knowledge about the nature and structure of cause-related marketing. It confirms the results of (Lafferty et al. 2004) suggesting that the customer’s overall attitude toward the sponsoring company plays an important role in influencing purchase intent of the sponsored product. In the context of CRM, the same logic can also be applied; CRM campaign that supports a local cause is more likely to be evaluated more favorably by the consumers than CRM that supports an international cause. Signaling theory (Spence, 1974) suggested that cues provide employers with tangible information that are often necessary to evaluate unobservable factor. Several factors such as price, warranties and advertising expenditures have been used by consumers as signals or cues that assist them in evaluating a company’s product and help them in their decision making.. CRM campaigns that support a local cause might signal greater or better offer for the consumers compared to support of national and international cause. (Anuar, Mohamad 2011) One theory that explains this is Social exchange theory, which looks at human interaction in terms of a dynamic social process in which parties exchange commodities, resources or skills in an attempt to maximize their rewards and minimize their costs (Burnett and Wood, 1988;Foa&Foa, 1980)   21  
  22. 22. Another is Equity theory, which is similar to exchange theory in that individuals are assumed to attempt to maximize their resources. However, equity theory postulates that cognitive dissonance will occur when one party in the exchange receives either too much or too little in the exchange. (Burnett and wood, 1988;Bar-Tal1976) An individual might engage in a CRM purchase if; (1) in the past they have perceived the purchase and to be inequitable and the donation by the firm themselves and the recipient of the donation, or (2) both perceptions may occur. Cause Related Marketing appears to be a good way to raise funds for charity organizations. Women are significantly more likely than men to try a new brand as a result of a CRM promotion if they regularly used the product category (K.Ross, Stutts,Patterson) Commodity fetishism is useful in understanding how CRM campaigns like Product RED can reconcile the tensions between capitalism and social activism, two historically separate, if not oppositional, spheres (Banet-Weiser and Lapsansky 2008). While it would be probable for a CRM campaign to donate money to a particular cause without tuning the beneficiaries of that cause into a commodity itself. Product RED situates Africa directly into the symbolic order of consumption. RED remains consistent with the social politics of individualization (Bauman 2001) and a neoliberal approach to welfare that celebrates privatization, personal responsibility, and consumer choice. (kuehn 2009). However, there are several variations on this theme and not all CRM campaigns channel money to nonprofits; some engage principally in educational or awareness-building activities. (Rains 2003)   22  
  23. 23. CRM for brand positioning: “The key in positioning your brand,” said Lipsky, “is tapping into the right frame.” It’s therefore not so much about the content of the communication, but the frame you are evoking (Kylander. 2006). In all the CRM campaigns the emphasis is placed on positioning the brand at the heart of the partnership and not on straightforward philanthropy (Papasolomou, Demetriou). Cause related marketing, when implemented correctly, can provide a means to differentiate a particular brand or an entire corporation from its respective competition because of its socially responsible overtones and positive effect on the corporate image. CRM can help companies distinguish themselves from their peers by offering the consumer the opportunity to contribute to something more. A firm that introduces CRM on a competitive market can increase its market share than the company’s bottom line (Anuar, Mohamad 2011). Market differentiation and market segmentation is easier to accomplish when a company uses CRM (Rucker & Petty, 2006; Zuckerman & Chaiken, 1998). The continued emergence of this area of marketing will most certainly be facilitated by the attention given to the strategic value of focusing on the long-term benefits of enhancing corporate image as a means of gaining competitive advantage. The argument in this concept is that CRM efforts can be traced to the fact that they have been initiated without considering their overall relationship to the company’s vision and mission. Mission marketing, on the other hand, has more believability than cause related marketing because it is a long-term and strategic organizational objective. It is bound to the mission of the organization and according to Duncan, the first thing a company needs   23  
  24. 24. to do is to determine a realistic, applicable mission that reflects a corporate social responsibility and then be willing to ‘walk the talk’. The notion of “espoused theory” – what one says – and “theory in use” – what one actually does – is well known in cognitive psychology. It is relevant in explaining human behavior as a function of wellestablished mental models and behavioral routines that are culturally downloaded and reinforced through everyday interactions. The ideas of espoused and in-use theories have clear parallels with situations that organizations frequently struggle with (Broon, 2001) …as more and more companies begin promoting their products with CRM the practice may become commonplace and may no longer become unique or effective. Causes that have a local or regional identification may result in greater success for both the firm and the cause than national or international causes (Ross, Stutts, Patterson, 1991) 2.2 Strengths and weaknesses inherent in the uses of CRM literature The literature on CRM so far has successfully given insight to its different uses from Sales, Image building, strategic positioning, influencing consumer purchase decision and brand equity. However, there’s room to expand the literature on the use of CRM for brand equity. CRM has also constantly been defined as a strategic promotional tool that is mutually beneficial to both profit organizations and not-for-profit organizations thereby skewing studies on the relationship between CRM and sales or donation size but (Rains 2003) states that there are several variations on this theme and not all CRM campaigns channel money to nonprofits; some engage principally in educational or awarenessbuilding activities. This variation has not been studied adequately as such confirming   24  
  25. 25. Papasolomou and Demetriou’s statement that the current literature on CRM is limited as to what CRM is or how it is implemented. In addition, a lot of research has focused on the positive influence of CRM on sales and donations but there is a dearth in literature on how the use of CRM is used to boost brand loyalty. Pracejus & Olsen (2004) highlighted amongst the benefits of CRM, customer loyalty. However does not state how. Not many researchers have focused on how important brand personality is to brand loyalty (Plummer, 1985). It is on this premise that this question is asked; how does the use of Cause Marketing influence customer retention of a highly publicized brand? This question will be answered conceptually in the next paragraph. 2.3 Conceptual framework The social science theory that best explains this framework is the Circuit of Power Theory as postulated by Stewart Clegg (1989). He sees power as a circular process that flows in three channels which he calls circuits of power. Each of these three circuits of power has a dynamic form of its own. 1. Overt Circuit of Power: In simple terms this states that A activates resources and means, and influences B in a way in which B would not have acted were it not for his relations with A. ‘A’ being the use of CRM and ‘B’ being customer retention. This means that the ‘use of CRM’ influences customer retention but that this is only possible because of the way and manner CRM is used. As such depending on how CRM is used, it can have a negative or positive influence on customer retention.   25  
  26. 26. 2. The Social Circuit of Power: This is also called the circuit of social integration or dispositional circuit. This circuit creates a movement from obscurity to mainstream of society. This is actualized when a brand that uses CRM through techniques of production, publicize a brand in a way that customers have a sense of meaning and belonging. This is the movement from ‘A’ to ‘C’. ‘A’ being CRM and ‘C’ being publicity. 3. The systemic-economic circuit of power: This states that both material and nonmaterial resources are created. It is also called the facilitative circuit of power, which in the context of the subject matter refers to the movement from publicity to customer retention. The movement from publicity creates a belief system or presents physical rewards that customers can relate with and causes them to be loyal to the brand being publicized. In addition, this circuit could be negative or positive as it relates with customer retention. This entire movement is called an obligatory passage point that mediates all interactions. In this case what facilitates the passage points is Publicity, which is the mediating variable between CRM, which is the antecedent variable, and Customer Retention, which is the consequential variable.   26  
  27. 27. Figure 2. 1: Model of the relationship between CRM and customer retention H1: Building a good brand image is a major rationale for the 'use of CRM' H2: Achieving set sales target is a major rationale for the 'use of CRM' H3: The desire to achieve brand equity is a major rationale for the 'use of CRM' H4: The desire to reinforce a brand’s positioning is a major rationale for the 'use of CRM' H5: Corporate Transformation is a major rationale for the ‘use of CRM’ H6: The use of CRM contributes significantly to customer retention at a time publicity is used to make a brand visible H7: The use of CRM contributes significantly to customer retention   27  
  28. 28. H1- Building a good brand image is a major rationale for the 'use of CRM'. Corporate identity deals with the impressions, image, and personality that an organization presents to its stakeholders (Schmitt & Pan, 1994). Pracejus & Olsen (2004) highlighted amongst the benefits of CRM, customer loyalty and improved brand image, which can improve sales as well (Ross, Patterson & Stutts, 1992; Kropp, Holden & Lavack, 1999) A research done in some universities in Pakistan indicated that the consumers’ attitude to products is indeed influenced by CRM. But also that awareness of brand and image of the company is also a deciding factor on that influence (Shabbir, Kaufmann, Ahmad, & Qureshi, 2010). Bergami and Bagozzi 2000 state that an individual’s ability to identify with an organization has both an emotional (attitude toward the company) and a cognitive (company-customer fit) component (Gupta, Pirsch 2006). This therefore informs the quest to find out if building a good brand image is a major factor for the ‘use of CRM’ by corporate organizations? Considering the fact that an improved brand image can boost sales. H2: Achieving set sales target is a major rationale for the 'use of CRM' The need to examine if the desire to meet or exceed a sales target is a major reason for when CRM is used and how it is used informs this hypothesis. (Polonsky, Speed 2000) states that CRM, in contrast, has a very strong link with sales, since the level of ``giving’’ is tied directly to sales outcomes. To undertake CRM successfully a firm is therefore required to identify the expected sales level without the program and how the program will increase sales, since this will form the basis for the payment to the recipient. However before a company embarks on CRM, is sale the number one reason for using CRM or the eventual outcome of a different objective entirely?   28  
  29. 29. H3: The desire to achieve brand equity is a major rationale for the 'use of CRM' CRM is a "dramatic way to build brand equity . . . as it creates the most added value and most directly enhances financial performance" (Mullen, 1997). Achieving the Brand equity can be thought of as the "added value" endowed to a product in the thoughts, words, and actions of consumers. Thus investigations will be carried out to find out if Brand equity is the major reason for the use of CRM. H4: The desire to reinforce a brand’s positioning is a major rationale for the 'use of CRM' Several CRM’s structural elements such as product type (Strahilevitz & Myers, 1998), cause-type (Cui et al. 2003;Ellen, Mohr, & Webb, 2000) cause-proximity (Grau & Folse, 2007) and fit between sponsoring company and the cause supported (Hou, Du & Li, 2008) have been postulated in the literature to influence consumers’ response to CRM. As such is a brand’s positioning influenced by different factors of CRM or the need to reinforce a brand’s position the major reason for CRM? H5: Corporate Transformation is a major rationale for the ‘use of CRM’: A new contribution to literature by author Existing literature consistently refers to CRM as a strategic promotional tool, as such ongoing research has been about the impact of CRM on sales and the relationship between donation size and cause fit in consumer purchase decisions. However, this construct states that CRM is used for Corporate Transformation and as such brings about change to   29  
  30. 30. a brand’s image, personality, market share, value share and emotional connections with the consumer based on the cause fit. This concept allows for CRM analysis of both profit making and not-for profit-making organizations. In recent years, CRM has helped reimage companies hurt by corporate scandals, ad clutter, globalization, and new technologies (Adler, 2006) and at a time when countries, companies and small businesses are faced with a down turn and growing social issues, it is imperative to find out if the need for Corporate Transformation is a major reason for the use of CRM. H6: The use of CRM contributes significantly to customer retention at a time publicity is used to make a brand visible This seeks to investigate if publicity has a moderating effect in the relationship between CRM and customer retention. It also investigates if the use of CRM contributes significantly to customer loyalty considering the moderating effect of the publicity of a brand. It’s therefore not so much about the content of the communication, but the frame you are evoking. (Kylander, 2006) As such, it is imperative to understand the extent the moderating effect of publicity would influence the contribution of CRM to customer retention. H7: The use of CRM contributes significantly to customer retention Not many researchers have focused on how important brand personality is to brand loyalty (Plummer, 1985). As such this will seek to find out the relationship between CRM and brand personality and how this translates to retention of customers.   30  
  31. 31. CHAPTER THREE: METHODOLOGY 3.0 Introduction The previous chapter attempted to answer the research question; how does the use of Cause-Related Marketing influence customer retention of a highly publicized brand? This question was answered conceptually using the circuits of power theory, out of which seven hypotheses were derived. This chapter however, seeks to build on the findings of chapter 2 and serves as the beginning of the process of answering the research question empirically. The objectives will therefore be to: 1. Identify a methodological framework that can be used to answer the question 2. Identify the most suitable research design 3.1 Research design Research design has been defined as: “the logic that links the data to be collected (and the conclusions to be drawn) to the initial questions of study” (Yin, 2003, p.19). Research design is the basic framework of the various activities required in the study to provide answers to the research questions. It addresses the purpose of the study, the unit being studied, the time cross-section of the study, the data collection methods to be used, data analysis procedures and presentation to be used. It is important to note that the more complex the research design, the greater the amount of resources that will be required in doing the research.   31  
  32. 32. The purpose of this study is to find out how the use of Cause Marketing influences customer retention of a highly publicized brand as it will provide guidance to practitioners on the strategic and effective ‘use of CRM’. This study has been designed to answer these questions;(1) Is building a good brand image a major rationale for the ‘use of CRM’? (2) Is achieving set sales target a major rationale for the 'use of CRM’? (3) Is achieving brand equity a major rationale for the 'use of CRM’? (4) Is reinforcing a brand’s positioning a major rationale for the 'use of CRM’? (5) Is Corporate Transformation a major rationale for the 'use of CRM’? (6) Does the use of Cause Marketing influence customer retention of a highly publicized brand? (7) Does the use of CRM contribute significantly to customer retention? 3.2 Types of sampling A simple random sample: - A simple random sample is obtained by choosing elementary units in such a way that each unit in the population has an equal chance of being selected. A simple random sample is free from sampling bias. However, using a random number table to choose the elementary units can be cumbersome. If the sample is to be collected by a person untrained in statistics, then instructions may be misinterpreted and selections may be made improperly. A stratified sample: A stratified sample is obtained by independently selecting a simple random sample from each population stratum. A population can be divided into different groups and may be based on some characteristics. E.g education, age, gender etc.   32  
  33. 33. A cluster sample: A cluster sample is obtained by selecting clusters from the population on the basis of simple random sampling. The sample comprises a census of each random cluster selected. For example, a cluster can be made up of a village or a school or a state. Non-Probability Sampling Methods Convenience sampling: Here the researcher questions anyone who is available. This method is quick and cheap. However we do not know how representative the sample is and how reliable the result would be. Quota Sampling: Using this method the sample audience is made up of potential purchasers of your product. For example if the typical customers will be male between 18-23, female between 26-30, then some of the respondents interviewed is expected to be made up of this group. The judgment sample: A judgment sample is obtained according to the discretion of someone who is familiar with the relevant characteristics of the population. The sampling method suitable for this study is the Judgment sample because the researcher is familiar with the population in the marketing communications industry in Nigeria, especially as most of the cluster in the industry is centred in Lagos. In addition, this method is the most suitable given the time required to complete this study.   33  
  34. 34. 3.2.1 Population and sample procedure Managers of twelve public relations firms in Nigeria will be interviewed. There are 40 registered PR firms in Nigeria; as such interacting with 12 managers in the different firms will generate objective judgment or inference. Judgmental sampling will be used to make the selection of firms and managers to be interviewed. Managers interviewed must have over 3years experience in a Public Relations Firm and worked on at least two brands. Managers of PR firms have been selected because they are exposed to many brands, as such the possibility for exposure to Cause-related Marketing projects across various industries is higher. Thus, share more depth of knowledge on the subject matter than a brand manager working for a corporate organization. After the interview is conducted and analyzed, inferences would be made and used as a parameter for preparing and administering the questionnaires to Marketing and Marketing Communications Practitioners. Judgmental sampling will also be used to make the selection. Practitioners must at least have three years experience in managing brands and a total of 100 questionnaires will be distributed. 3.2.2 Data analysis procedure The deductive method: deductive method begins with a theory from which hypotheses are derived (Wallace, 1971), then the variables are defined and the methods for measuring them are then established. Using these variables, the hypotheses are then tested. The hypotheses will be acceptable if it matches with the observation. This method starts from generalisation to specifics and is used in applying a theory to a particular scenario.   34  
  35. 35. The inductive method: This method is more like the opposite of the deductive method in that we start with observations and develop general principles that explain relationships between variables under observation. The construction of these general principles or theories was referred to by Glaser and Strauss (1967) as “Grounded Theory” because they are grounded in data derived from observation. Semi-inductive method: Semi-inductive analysis (Golden-Biddle & Locke, 2006) is similar to the inductive method in trying to derive the variables which are connected to a particular scenario but differs in the fact that whereas the researcher has no idea of the variables in inductive method, semi-inductive method states that the researcher possesses some idea about the phenomenon and other concepts could emerge during the course of the study. In reality, there is no ending to scientific research, as more study will reveal more variables, which help develop new theories; this would therefore involve alternating between the deductive and inductive methods. Thus this study would use the deductive method for data analysis. Through interviews conducted, it derives variables, which are relevant to the study and after this is done, the hypotheses are tested and results deducted from data collated and analysed. Chi-Square will therefore be used to test the hypotheses because it helps to identify significant variable.   35  
  36. 36. CHAPTER 4: PRESENTATION OF FINDINGS AND ANALYSIS 4.0 Background An extensive breakdown of the methodology employed in this research has been treated in the previous chapter. Using the mixed methodology required that interviews were conducted amongst experienced Public Relations Practitioners and based on qualitative analysis, a questionnaire was designed to find quantitative answers to the seven hypothetical questions and concepts identified during the interviews. 4.1 Qualitative findings Figure 2.2 Lists of Respondents NO RESPONDENTS PROFILE 1 Mr. Cornel Onwoha Chief Operating Officer Redgekko Communications 2 Mr. Ayodeji Ayopo Managing Director Shortlist PR 3 Mrs. Chizendu Achikwu Head of Client Relations JSP Consult 4 Mr. Ayo Adegbesan PR Manager JSP Consult 5 Mrs. Amaka Olukoya Experienced PR Manager 6 Mr. Tobi Oluseye PR Manager Reputation Raise Limited 7 Mr. Abiona Babarinde PR Manager Soulcomms Publicis   36  
  37. 37. -TWO-PRONGED STRATEGY: Cause Marketing was referred to as both a CSR and Marketing tool. One of the respondents stated “It is a two edged sword it is a form of CSR and a marketing tool” “Cause marketing has two dimensions” - TEETHING STAGE: Two of the respondents stated categorically that CRM is in its developmental stage in Nigeria as such still trying to find a foot into its uses and benefits. Ayo a PR Manager in JSP consulting stated “Cause Marketing is still in its teething stage.” and Amaka a PR Manager of over four years experience also reiterated saying “We haven’t really gotten to the point of Cause Marketing so to speak. It’s more of CSR. We are still trying to find our footing with the CSR thing and from there, I think we can actually evolve to cause marketing but I think we are going to get there in a couple of years time” - CSR VERSUS CRM: When respondents were asked if they would proffer CRM to their client one phenomenon was made clear that in Nigeria, there is no clear cut distinction between CSR and CRM as such would rather proffer CSR. Comment captured below. “I’ll go for CSR as opposed to Cause Marketing. In the society today there’s no clear-cut distinction and everyone is looking for what’s in it for them. It is going to be hard to convince a client to give out a part of their profit to orphans and I think Cause Marketing is not a one off thing it should be a yearly, quarterly thing and I don’t see them doing it,   37  
  38. 38. they’ll rather push it back to their business, marketing, advertising, empower their own people for better productivity. “ - PERCEPTION: A good perception was highlighted, as one of the reasons why building a good brand image would be a major reason for the use of CRM. Mr. Cornel Nwoha the Chief Operating Officer of Redgekko had this to say “Yes. Because when you talk about social responsibility it creates an impression that there is a concern for the immediate environment and the issues in the environment “ Mr. Ayodeji Ayopo the Managing Director of Shortlist PR also stated “That is what PR is all about, the client must be positively perceived” Even as regards the use of Cause Marketing for Corporate Transformation one of the respondents also mentioned the importance to perception. “When you have a bad image you will want to align yourself with things that are of public interest so that you can be viewed or change public perception. “ Also when respondents were asked about the influence of CRM on customer retention of a highly publicized brand one of the respondents stated “Everything comes down to perception” - LONG-TERM SALES RESULT There were varying views on the use of CRM for sales. Some of the respondents stated that sales is a function of a lot of things and CRM is just a minor part of the mix and would only impact significantly on sales in the long term.   38  
  39. 39. “If your sales target be that in the next five years you want to achieve this and for that reason you are doing this, it might not add up like that at the end of the day. But give it a longer period and you may be able to surpass your target but if you tie it to a target you have for a period of one or two years you may not achieve that.“ - PRODUCT QUALITY On the subject of the use of CRM for Brand Image Chizendu, the Head of Client Service at JSP consulting stated “First your brand has to be top notch” and this was further reiterated in the subject of the use of CRM for Brand Equity by Tobi a PR manager of Reputation raise “I won’t say 100% other things are involved like the quality of your product and service. CRM is just an addition but not a sole reason” As regards the influence of CRM on customer retention, a respondent also made mention of product quality stating “The use of Cause Marketing could or would induce a higher level of trial purchase. It can turn people to your brand because you’re aligning yourself to a particular cause and be more interested in a brand because of what they are doing but if the brand is not up to standard it can’t”   39  
  40. 40. “For it to work. The organization must have a good product to sell. You cannot attach a bad product to a cause. Take time to select the cause and the selection of the cause must be about the people. “ The point stated here is that for CRM to be effective the product or brand in question has to be of top quality. EMOTIONAL CONNECTION One of the reasons for the use of CRM for brand positioning stated by one of the respondents is to create emotional connections. “Yes. Because there are other brands so you have to reinforce brand positioning so that the consumers know what I stand for and ultimately have an emotional connection with my brand and they know what you support despite the fact a bit of profit will come in.” The COO of Redgekko also stated when asked if CRM influences brand retention significantly “Yes. The how is driven by emotion and sentiment.   40  
  41. 41. 4.2 Quantitative Findings Questionnaires were distributed among Marketing and Marketing Communications practitioners who provide solutions for customer engagement and retention. Out of 120 questionnaires distributed, 92 responded. The analyses of the questionnaire have been done and findings presented using pie chart and bar chart. Chi-square has also been used to test the hypotheses. Age Distribution It is important that the respondents are people of experience in the area of Marketing and Marketing Communications. As a result, finding out the age distribution would ensure a clear understanding of the demographics of the respondents.   41  
  42. 42. Gender Distribution Gender is another important aspect of this study thus the need to understand the distribution of both male and female respondents of this research. Industry Distribution The population of this survey is majorly Marketing or Marketing Communication practitioners working in different sectors of the economy, hence the need to understand the distribution. Sourced from Survey Monkey 2013.   42  
  43. 43. Industry Experience Distribution This study requires that respondents are experienced in the Marketing Field. It is for this reason that this question was asked. Sourced from Survey Monkey 2013.   43  
  44. 44. CRM is good for brand image Sourced from Survey Monkey 2013.   44  
  45. 45. CRM is good for achieving set sales target Sourced from Survey Monkey 2013.   45  
  46. 46. CRM is good for achieving brand equity Sourced from Survey Monkey 2013.   46  
  47. 47. CRM is good for reinforcing a brand’s positioning Sourced from Survey Monkey 2013.   47  
  48. 48. CRM is good for achieving Corporate Transformation Sourced from Survey Monkey 2013.   48  
  49. 49. There is a clear-cut difference between CRM and CSR Sourced from Survey Monkey 2013.   49  
  50. 50. Cause Marketing is in its teething stage in Nigeria Sourced from Survey Monkey 2013.   50  
  51. 51. Publicity of a brand that supports a cause is very important Sourced from Survey Monkey 2013.   51  
  52. 52. Publicity of a brand that supports a cause is not necessary Sourced from Survey Monkey 2013.   52  
  53. 53. Publicity of a brand that supports a cause is neither important nor necessary Sourced from Survey Monkey 2013.   53  
  54. 54. I will stick to a brand that supports a cause Sourced from Survey Monkey 2013.   54  
  55. 55. I will stick to a brand that supports a cause I am emotionally connected to Sourced from Survey Monkey 2013.   55  
  56. 56. I will stick to a brand that supports a cause only if the brand of good quality Sourced from Survey Monkey 2013.   56  
  57. 57. I will only stick to a brand that I perceive to be good or stand for something good Sourced from Survey Monkey 2013.   57  
  58. 58. 4.2.1 Hypotheses Testing H1: Building a good brand image is a major rationale for the 'use of CRM' This hypothesis seeks to find out if building a good brand image is a major reason for the use of Cause-Related Marketing. Chi-square test was run using responses from Cause Marketing is good for building brand image, I will only stick to a brand I perceive to be good or stand for something against the question publicity of a brand that supports a cause is very important. See the result below Table 1: Hypothesis test Customer Retention Df P(α=0.025) Comment CRM for Brand 12 0.109 Significant Image Publicity Df P(α=0.025) Comment 12 0.006 Significant The result of the variables tested is significant. Therefore, the hypothesis Building a good brand image is a major rationale for the ‘use of CRM’ is accepted. H2: Achieving set sales target is a major rationale for the 'use of CRM' This hypothesis seeks to find out if achieving a set sales target is a major reason for the use of Cause-Related Marketing. Chi-square test was run using responses from -Cause Marketing is good for achieving set sales target, I will stick to a brand that supports a cause only if the brand is of good quality against the question publicity of a brand that supports a cause is not necessary. See the result below   58  
  59. 59. Table 2: Hypothesis test Customer Retention Publicity Df P(α=0.025) Comment Df P(α=0.025) Comment CRM for Sales 12 0.106 Significant 12 0.107 Significant The result of the variables tested is significant. Therefore, the hypothesis Achieving set sales target is a major rationale for the ‘use of CRM’ is accepted. H3: The desire to achieve brand equity is a major rationale for the 'use of CRM' This hypothesis seeks to find out if achieving brand equity is a major reason for the use Cause-Related Marketing. Chi-square was run using responses from Cause Marketing is good for achieving brand equity, I will stick to a brand that supports a cause I am emotionally connected to against responses for publicity of a brand that supports a cause is neither important nor necessary. See the result below Table 3: Hypothesis test Customer Retention Df P(α=0.025) Comment CRM for Brand 9 0.269 Significant Equity Publicity Df P(α=0.025) Comment 9 0.050 Significant The result of the variables tested is significant. Therefore, the hypothesis Brand equity is a major rationale for the ‘use of CRM’ is accepted. H4: The desire to reinforce a brand’s positioning is a major rationale for the 'use of CRM' This hypothesis seeks to find out if achieving a brand’s positioning is a major reason for the use Cause-Related Marketing. Chi-square was run using responses from Cause Marketing is good for reinforcing a brand’s positioning, I will stick to a brand that   59  
  60. 60. supports a cause against responses from publicity of a brand that supports a cause is very important. See the result below Table 4: Hypothesis test Customer Retention Df P(α=0.025) Comment CRM for Brand 12 0.092 Significant Positioning Df 12 Publicity P(α=0.025) Comment 0.604 Significant The result of the variables tested is significant. Therefore, the hypothesis Reinforcing a brand’s Positioning is a major rationale for the ‘use of CRM’ is accepted. H5: Corporate Transformation is a major rationale for the ‘use of CRM’: A new contribution to literature by author This hypothesis, which is a new contribution to literature, seeks to find out if Corporate Transformation is a major reason for the use of Cause-Related Marketing. Chi-square was run using responses from Cause Marketing is good for Corporate Transformation, I will stick to a brand that supports a cause against responses from publicity of a brand that supports a good cause is very important. See result below Table 5: Hypothesis test CRMfor Corporate Transformation   Customer Retention Df P(α=0.025) Comment 12 0.005 Significant 60   Publicity Df P(α=0.025) Comment 12 0.050 Significant
  61. 61. The result of the variables tested is significant. Therefore, the hypothesis Corporate Transformation is a major rationale for the ‘use of CRM’ is accepted. - H6: The use of CRM contributes significantly to customer retention at a time publicity is used to make a brand visible This hypothesis seeks to find out if the use of Cause Marketing significantly contributes to customer retention at a time when publicity is used for brand awareness of visibility. Chi-square was run using responses from Cause Marketing is good for brand image, Cause Marketing is good for achieving set sales target, Cause Marketing is good for achieving brand equity, Cause Marketing is good for reinforcing a brand’s positioning, Cause Marketing is good for Corporate Transformation against responses from Publicity of a brand that supports a cause is very important and I will stick to a brand that supports a cause. See the results below Table 6: Hypothesis test Customer Retention Df P(α=0.025) Comment CRM for Brand 12 0.000 Significant Image CRM Sales 12 0.000 Significant Target CRM for Brand 9 0.002 Significant Equity CRM for Brand 12 0.092 Significant Positioning CRM 12 0.005 Significant Corporate Transformation Df 12 Publicity P(α=0.025) Comment 0.006 Significant 12 0.030 Significant 9 0.012 Significant 12 0.604 Significant 12 0.050 Significant The result of the variables tested is significant. Therefore, the hypothesis is accepted.   61  
  62. 62. Cause Related Marketing contributes significantly to customer retention at a time publicity is used to make a brand visible. H7: The use of CRM contributes significantly to customer retention This hypothesis seeks to find out if the use of Cause Marketing significantly contributes to customer retention. Chi-square was run using responses from Cause Marketing is good for brand image, Cause Marketing is good for achieving set sales target, Cause Marketing is good for achieving brand equity, Cause Marketing is good for reinforcing a brand’s positioning, Cause Marketing is good for Corporate Transformation against responses from I will stick to a brand that supports a cause. See the results below Table 7: Hypothesis test Customer Retention Df P(α=0.025) CRM for Brand 12 0.000 Image CRM Sales 12 0.000 Target CRM for Brand 9 0.002 Equity CRM for Brand 12 0.092 Positioning CRM 12 0.005 Corporate Transformation Comment Significant Significant Significant Significant Significant The result of the variables tested is significant. Therefore, the hypothesis Cause Marketing significantly influences customer retention is accepted.   62  
  63. 63. CHAPTER 5: CONCLUSION AND RECOMMENDATION 5.0 Introduction The objective this research is to find out if building a good brand image is a major rationale for the ‘use of CRM”, if achieving set sales target is a major rationale for the 'use of CRM’, if achieving brand equity is a major rationale for the 'use of CRM’, if reinforcing a brand’s positioning is a major rationale the 'use of CRM’, if Corporate Transformation which is a new addition to literature by the author is a major rationale for the 'use of CRM’, how the use of Cause Marketing influences customer retention of a highly publicized brand and if the use of CRM contributes significantly to customer retention. After an extensive presentation of findings in the previous chapter, it is only sacrosanct that this chapter analyzes the implications of these findings to theory and to practice. 5.1 Findings It was proposed that findings from this study will not only add to existing literature but also assist Brand Managers, Business Category Managers, Marketing Communications Practitioners and Marketing Directors in making informed decisions as regards the ‘use of CRM’ for customer retention. In addition, this will be a valuable resource material for non-profits seeking to pitch a partnership with for-profit organizations. Findings from this study therefore is very relevant to Marketing Communications Practitioners and Marketing Directors saddled with the responsibility of developing   63  
  64. 64. solutions to recruit and retain customers. It confirms findings from previous literature which are CRM for building brand image, CRM for sales, CRM for brand equity, CRM for brand positioning and contributes a new literature to knowledge which is CRM for Corporate Transformation. The answers sort out for the seven hypotheses generated were found and conclusions drawn from the findings and results. From the results, all seven hypotheses were accepted therefore adding to existing literature on Cause-Related Marketing. 5.2 Implications This section seeks to specifically analyze the consequence of findings of this study to theory and practice. 5.2.1 Implications to theory The research question this study sort to answer is how the use of CRM influences customer retention of a highly publicised brand. Based on findings from this research, it is clear that Cause-Related marketing is a powerful tool for influencing consumer’s decisions to stick to a brand. The influence of Cause Marketing on Customer retention is high and the influence of Cause Marketing on a brand that enjoys publicity is positively significant too. We therefore cannot over emphasize the power of Cause Marketing as an effective strategic marketing tool. There are however customers who will stick to a brand   64  
  65. 65. with a cause that they are emotionally connected to and customers who will stick to a brand that is of good quality and supports a cause at the same time. 5.2.2 Implications to Practitioners Marketing and Marketing Communications practitioners are constantly saddled with the responsibility of developing ideas that will not only recruit new customers but retain as well. This study shows therefore that there are various uses of Cause Marketing, thus if you seek to build image, hit sales target, reinforce a brand’s positioning, achieve brand equity or bring about corporate transformation that Cause Marketing can my used as a strategic tool to achieve customer loyalty or retention. However, there are two things to put into consideration, ensure that the cause is one that connects emotionally to target consumers and that the brand in question is of good quality. In addition, for brands that require long-term solutions, CRM is a powerful tool. Coordinators of Not-for-profit organisations are also constantly saddled with the responsibility of raising funds for charity causes and faced with opportunities to pitch their cause to corporate organisations without a truly mutually beneficial offer to the organization or brand in question. It is therefore clear that Cause Marketing is a powerful tool and is used to a large extent in developed countries, however based on findings in this research, Cause Marketing is in its teething stage in Nigeria. Therefore Not-for-profit organisations can use these findings for the mutual benefit of both their charity cause and the goal of the brand at hand.   65  
  66. 66. 5.3 Recommendations Further research that can evolve from this dissertation is the effect of the conceptual model of the relationship between CRM and Customer Retention on specific industries. In addition, the model of the relationship between CRM and Customer Retention could be studied and further developed.               66  
  67. 67. REFERENCES Aaker, D. (1996). Building Strong Brands. New York: Free Press. Aaker, J. (1997). Dimensions of brand personality. Journal of Marketing , 34 (3), 347356. Aaker, J., & Fournier, S. (1995). A brand as a character, a partner and a person: three perspectives on the question of brand personality. Advances in consumer research , 22. Andreasen, A. (1996). Profits for Nonprofits: Find a Corporate Partner. Harvard Business Review , November-December, 3-10. Anghel, L., Grigore, G., & Roşca, M. (2011). Cause-related marketing, part of corporate social responsibility and its influence upon consumers’ attitude . Amfiteatru Economic , 13 (29), 72-85. Anselmsson, J., & Johansson, U. (2007). Corporate social responsibility and the positioning of grocery brands. An exploratory study of retailer and manufacturer brands at point of purchase. International Journal of Retail Distribution Management , 35 (10), 835-856. Arendt, S., & Brettel, M. (2010). Understanding the influence of corporate social responsibility on corporate identity, image, and firm performance . Management Decision , 48 (10), 1469-1492. Babin, L., Burns, A., & Biswas, A. (1992). A Framework Providing Direction for Research on Communications Effects of Mental Imagery-Evoking Advertising Strategies. Advances in Consumer Research , 19, 621-628.   67  
  68. 68. Balmer, J. (1995). Corporate branding and connoisseurship. Journal of General Management , 21, 24-46. Balmer, J., & Gray, E. (2003). Corporate brands: what are they? What of them? European Journal of Marketing , 37 (7-8), 972-997. Barone, M. J., Miyazaki, A., & Taylor, K. (2000). The Influence of Cause-Related Marketing on Consumer Choice: Does One Good Turn Deserve Another? Journal of the Academy of Marketing Science , 28 (2), 248-262. Barone, M. J., Norman, A., & Miyazaki, A. (2007). Consumer Response to Retailer Use of Cause-Related Marketing: Is More Fit Better? Journal of Retailing , 83 (4), 437-445. Basil, D., Runte, M., & Deshpande, S. (2012). Cause-Related Marketing-Why Not? A North American Survey Of Nonparticipating Nonprofits . The Clute Institute (pp. 763-766). Nevada USA: Las Vegas International Academic Conference . Batra, R., & Sinha, I. (2000). Consumer-level factors moderating the success of private labels. Journal of Retailing , 76 (2), 175-191. Batra, R., Lehmann, D., & Singh, D. (1993). Brand equity and advertising. Hillsdale, NJ: Lawrence Erlbaum Associates. Bennett, R. (1997). Corporate philanthropy in the United Kingdom: Altruistic giving or marketing communications weapon. Journal of Marketing Communications , 3, 87-110.   68  
  69. 69. Berglind, C., & Nakata, M. (2005). Cause- related marketing: More buck than bang? Business Horizons , 48, 443-453. Berry, T., & Suer, O. (2008). Trust and Investments Across Cultures. International Business & Economics Research Journal , 7 (3), 21-28. Bhattacharya, C., Korschun, D., & Sen, S. (2009). Strengthening stakeholder company relationships through mutually beneficial corporate social responsibility initiatives. Journal of Business Ethics , 85, 257-272. Biel, A. (1993). Brand Equity & Advertising's Role in Building Strong Brands. Hilldale, NJ: Lawrence Erlbaum Associates. Bloom, P., Hussein, P., & Szykman, L. (1995). Benefiting society and the bottom line . Marketing Management , 4 (3), 8-18. Brakus, J., Schmitt, B., & Zarantonello, L. (2009). Brand experience: What is it? How is it measured? Does it affect loyalty? Journal of Marketing , 73, 52-68. Broderick, A., Jogi, A., & Garry, T. (2003). Tickled Pink: The Personal Meaning of Cause-Related Marketing for Customers. Journal of Marketing Management , 19, 583-610. Brown, T., & Dacin, P. (1997). The Company and the Product: Corporate Associations and Consumer Product Responses. Journal of Marketing , 61 (1), 68-84. Burns, A., Biswas, A., & Babin, L. (1993). The Operation of Visual Imagery as a Mediator of Advertising Effects . Journal of Advertising , 22 (2), 71-84.   69  
  70. 70. Caesar, P. (1986). Cause related marketing: the new face of corporate philanthropy. Business and Society Review , 59, 15-20. Chaney, I., & Dolli, N. (2001). Cause related marketing in New Zealand . International Journal of Nonprofit and Voluntary Sector Marketing , 6 (2), 156-­‐163. Chattananon, A., Lawley, M., Supparerkchaisakul, N., & Leelayouthayothin, L. (2008). Impacts of a Thai cause-related marketing program on corporate image. International Journal of Emerging Markets , 3 (4), 348-363. Cornelius, N., Wallace, J., & Tassabehji, R. (2007). An analysis of corporate social responsibility, corporate identity and ethics teaching in business schools. Journal of Business Ethics , 76, 117-135. Cui, Y., Trent, E., Sullivan, P., & Matiru, G. (2003). Cause-related marketing: how generation Y responds. International Journal of Retail & Distribution Management , 31 (6), 310-320. Das, J., Prakash, O., & Khattri, V. (2012). Brand Personality Mapping: A study on Colas. Asian Journal of Management Research , 3 (1), 193-200. Das, N., & Kerr, A. (2009 ). Improving The Impact Of Cause-Related Donation Exchanges Through Message Framing: A Conceptual Perspective. The Journal of Applied Business Research , 25 (2), 70-78. Davidson, J. (1997). Cancer sells . Working woman , 22 (5), 36-39.   70  
  71. 71. Daw, J. (2006). Cause Marketing for Non-profits: Partner for Purpose, Passion and Profits. New Jersey: Wiley. Demetriou, M., Papasolomou, I., & Vrontis, D. (2009). Cause- related marketing: Building the corporate image while supporting worthwhile causes. Brand Management , 17 (4), 266-278. Deshpande´, S. (1996). The impact of ethical climate types on facets of job satisfaction: an empirical investigation. Journal of Business Ethics , 15 (6), 655-660. Dolatabadi, H., Kazemi, A., & Rad, N. (2012). The Impact of Brand Personality on Product Sale through Brand Equity (Case Study: Cosmetic Products Retailers). International Journal of Academic Research in Business and Social Sciences , 2 (11), 294-309. Drumwright, M. (1996). Company advertising with a social dimension: The role of noneconomic criteria . Journal of Marketing , 60 (October), 71-87. Drumwright, M., & Murphy, P. (2001). Corporate Societal Marketing . In P. N. Gundlach, Handbook of Marketing and Society (pp. 162–183). Thousand Oaks, CA: Sage Publications. Ekinci, Y., & Hosany, S. (2006). Destination personality: An application of brand personality to tourism destinations. Journal of Travel Research , 45 (6), 127-139. Ellen, P., Mohr, L., & Webb, D. (2000). Charitable programs and the retailer: do they mix? Journal of Retailing , 76 (3), 393-406.   71  
  72. 72. Epstein, E. (1987). The Corporate Social Policy Process: Beyond Busness Ethics, Corporate Social Responsibility, and Corporate Social Responsiveness. California management review , Spring , 99-114. Farache, F., Perks, K., Wanderley, L., & Filho, J. (2008). Cause-Related Marketing: Consumer’s Perceptions and Benefits for Profit and Non-Profit Organizations . Brazilian Administration Review, Curitiba , 5 (3), 210-224. File, K. M., & Prince, R. A. (1998). Cause related marketing and corporate philanthropy in the privately held enterprise. Journal of Business Ethics , 17, 1529-1539. Freling, T., & Forbes, L. (2005). An empirical analysis of the brand personality effect. Journal of Product and Brand Management , 14 (7), 404-413. Grau, S., & Folse, J. (2007). Cause-related marketing (CRM) The influence of donation proximity and message framing cues on the less-involved consumer. Journal of Advertising , 36 (4), 19-33. Grau, S., Garretson, J., & Pirsch, J. (2007). Cause-Related Marketing: An Exploratory Study of Campaign Donation Structures Issues. Journal of Nonprofit & Public Sector Marketing , 18 (2), 69-91. Gupta, S., & Pirsch, J. (2006). The company-cause-customer fit decision in cause-related marketing. Journal of Consumer Marketing , 23 (6), 314–326. Gurin, M. (1987). Cause-Related Marketing in Question. Advertising age , 58, S-16.   72  
  73. 73. Ha, H., & Perks, H. (2005). Effects of consumer perceptions of brand experience on the web: Brand familiarity, satisfaction and brand trust. Journal of Consumer Behaviour , 4, 438-452. Hajjat, M. (2003). Effect of Cause-Related Marketing on Attitudes and Purchase Intentions: The Moderating Role of Cause and Donation Size . Journal of Public & Nonprofit Sector Marketing , 11 (1), 93-109. Hebb, T. (2002). Mutual Interest: Options for Cause-Related Marketing with the Mutual Fund Industry: An Interactive Template for the Voluntary Sector . Ontario: Canadian Council for International Co-operation. Higgins, K. (1986). Cause related marketing: does it pass the bottom line test? Marketing News , 20 (10), 1-4. Hoeffler, S., & Keller, K. (2002). Building Brand Equity Through Corporate Societal Marketing. Journal of Public Policy & Marketing , 21 (1), 78–89. Hou, J., Du, L., & Li, J. (2008). Causes attribute influencing consumer’s purchase intention:empirical evidence from China. Asia Pacific Journal of Marketing and Logistic , 20 (4), 363-380. Husted, S., & Whitehouse, F. (2002). Cause-Related Marketing via World Wide Web: A Relationship Marketing Strategy. Journal of Nonprofit & Public Sector Marketing , 10 (1), 3-22. Jahdi, K., & Acikdilli, G. (2009). Marketing communications and corporate social   73  
  74. 74. responsibility (CSR): marriage of convenience or shotgun wedding? . Journal of Business Ethics , 88, 103-113. Keller. (1998). Strategic Brand Management. Upper Saddle River: Prentice Hall. Keller, K. (2003). Strategic brand management. New Jersey: Pearson Education. Keller, K., & Richey, K. (2006). The importance of corporate brand personality traits to a successful 21st century business . Brand Management , 14 (1/2), 74–81. Koh, H., & Boo, E. (2004). Organisational ethics and employee satisfaction and commitment. Management Decision , 42 (5), 677-693. Kropp, F., Holden, S. J., & Lavack, A. M. (1999). Cause related marketing and values in Australia. International Journal of Nonprofit and Voluntary Sector Marketing , 4, 69-80. Lafferty, B. A., & Goldsmith, R. (2005). Cause-brand alliances: does the cause help the brand or does the brand help the cause? Journal of Business Research , 58 (4), 423-429. Lafferty, B., Goldsmith, R., & Hult, G. (2004). The impact of the alliance on the partners: a look at causebrand alliances. Psychology & Marketing , 21 (7), 509-531. Lantos, G. (2001). The boundaries of strategic corporate social responsibility . Journal of Consumer Marketing , 18 (7), 595-632. Larson, J. (1994). If you’re not committed, don’t bother. American Demographics , 16 (12), 16-18.   74  
  75. 75. Lawrence, E. (1993). Doing Well While Doing Good. Englewood Cliffs, NJ: PrenticeHall. Lee, Y., Back, K., & Kim, J. (2009). Family restaurant brand personality and its impact on customer’s emotion, satisfaction, and brand loyalty. Journal of Hospitality & Tourism Research , 33 (3), 305-328. Lewis, S. (2003). Reputation and Corporate Responsibility . Journal of Communication Management , 7 (4), 356-394. Luo, X., & Bhattacharya, C. B. (2006). Corporate social responsibility, customer satisfaction, and market value. Journal of Marketing , 70 (4), 1-18. Maheswaran, D., & Meyers-Levy, J. (1990). The Influence of Message Framing and Issue Involvement. Journal of Marketing Research , August (27), 361-367. Mahoney, L., & Roberts, R. (2007). Corporate social performance, financial performance and institutional ownership in Canadian firms. Accounting Forum , 31 (3), 233253. Markwick, N., Fill, C. (1997). Towards a framework for managing corporate identity. European Journal of Marketing , 31 (5-6), 396-409. Mehegan, S. (1995). Sweet charity. Restaurant Business , 94 (12), 32-­‐34. Meyer, H. (1999). When The Cause Is Just. Journal of Business Strategy , 6, 27-31. Mohr, L., Webb, D., & Harris, K. (2001). Do consumers expect companies to be socially   75  
  76. 76. responsible? The impact of corporate social responsibility on buying behavior. The Journal of Consumer Affairs , 35 (1), 47-72. Morsing, M. (2006). CSR as strategic auto-communication – on the role of external stakeholders for member identification. Business Ethics: A European Review , 15 (2), 171-182. Nan, X., & Heo, K. (2007). Consumer responses to corporate social responsibility (CSR) initiatives: examining the role of brand-cause fit in cause-related marketing. Journal of Advertising , 36 (2), 63-74. Netemeyer, R. G., Krishan, B., Pullig, C., Wang, G., Yagci, M., Dean, D., et al. (2004). Developing and validating measures of facets of customer-based brand equity. Journal of Business Research , 57, 209-224. Plummer, J. (1985). How Personality makes a difference. Journal of Advertising Research , 24 (December-January), 27-31. Polonsky, M., & Wood, G. (2001). Can the over commercialization of cause related marketing harm society? Journal of Macromarketing , 21 (1), 8-22. Pracejus, J. W., & Olsen, D. (2004). The role of brand/cause fit in the effectiveness of cause-related marketing campaigns. Journal of Business Research , 57, 635-640. Radder, L., & Huang, W. (2008). High-involvement and low-involvement products. A comparison of brand awareness among students at a South African university. Journal of Fashion Marketing Management , 12 (2), 232-243. Ross, J., Patterson, L., & Stutts, M. (1992). Consumer perceptions of organizations that   76  
  77. 77. use cause related marketing. Journal of the Academy of Marketing Science , 20 (1), 93-97. Ross, J., Stutts, M., & Patterson, L. (1990-1991). Tactical considerations for the effectiveness of cause related marketing. The Journal of Applied Business Research , 7 (2), 58-65. Rucker, D., & Petty, R. (2006). Increasing the effectiveness of communications to consumers: Recommendations based on elaboration likelihood and attitude certainty perspectives. Journal of Public Policy & Marketing , 25, 39-52. Saleh, M., Zulkifli, N., & Muhamad, R. (2011). Looking for evidence of the relationship between corporate social responsibility and corporate financial performance in an emerging market . Asia-Pacific Journal of Business Administration , 3 (2), 165190. Samu, S., & Wymer, W. (2009). The effect of fit and dominance in cause marketing communications. Journal of Business Research , 62, 432-440. Schmitt, B., & Pan, Y. (1994). Managing corporate and brand identities in the AsiaPacific region. California Management Review , 36, 32-48. Sen, S., & Bhattacharya, C. (2001). Does doing good always lead to doing better? Consumer reactions to corporate social responsibility. Journal of Marketing Research , 38, 225-245. Shabbir, S., Kaufmann, H., Ahmad, I., & Qureshi, I. (2010). Cause related marketing   77  
  78. 78. campaigns and consumer purchase intentions: The mediating role of brand awareness and corporate image. African Journal of Business Management , 4 (6), 1229-1235. Sheikh, S., & Beise-Zee, R. (2011). Corporate social responsibility or cause-related marketing? The role of cause specificity of CSR . Journal of Consumer Marketing , 28 (1), 27–39. Shell, A. (1989). Cause related marketing: big risks, big potential. Public Relations Journal , 45 (7), 8-13. Sheth, J., & Sisodia, R. (2005). A dangerous divergence: marketing and society. Journal of Public Policy and Marketing , 24 (1), 160-162. Shimp, T., Stuart, E., & Engle, R. (1991). A program of classical conditioning experiments testing variations in the conditioned stimulus and context Vol. 18, June, pp. Journal of Consumer Research , 18, 1-12. Skory, M., Repka, S., & MCInst, M. (2004). The Description of Social, Cause-Related Marketing and Corporate Social Responsibility. Journal of the Canadian Institute of Marketing , 7 (2), 1-27. Smith, G. (1996). Framing in Advertising and the Moderating Impact of Consumer Education . Journal of Advertising Research , September/October, 49-64. Smith, G., & Berger, P. (1995). The Impact of Framing, Anchorpoints, and Frames of Reference on Direct Mail Charitable Contributions. Advances in Consumer Research , 22, 705-712.   78  
  79. 79. Smith, M., & Brynjolfsson, E. (2001). Consumer decision making at an internet shopbot: Brand still matters. The Journal of Industrial Economics , 49 (4), 541-558. Smith, W., & Higgins, M. (2000). Cause-Related Marketing: Ethics and the Ecstatic. Business and Society , 39 (31), 304-322. Speed, R., & Thompson, P. (2000). Determinants of sports sponsorship response . Academy of Marketing Science Journal , 28 (2), 226. Staples, C. (2004). What does corporate social responsibility mean for charitable fundraising in the UK? . International Journal of Nonprofit and Voluntary Sector Marketing , 9 (2), 154-158. Strahilevitz, M., & Myers, J. (1998). Donations to charity as purchase incentives: How well they work may depend on what you are trying to sell . Journal of Consumer Research , 24, 434-446. Strugatch, W. (2011). Turning values into valuation: Can corporate social responsibility survive hard times and emerge intact? Journal of Management Development , 30 (1), 44-48. Sung, Y., & Kim, J. (2010). Effects of brand personality on brand trust and brand affect. Psychology & Marketing , 27 (7), 639-661. Svensson, G., & Wood, G. (2006). Cause related marketing: reflections on the first twenty years. In Cause related marketing: An Introduction (pp. 19-31). Hyderabad, India: ICFAI (Davidson, 1997)University Press.   79  
  80. 80. Thorne McAlister, D., & Ferell, L. (2002). The role of strategic philanthropy in marketing strategy. European Journal of Marketing , 36 (5-6), 689-705. Trimble, C., & Rifon, N. (2006). Consumer perceptions of compatibility in cause-related marketing messages. International Journal of Nonprofit and Voluntary Sector Marketing , 11, 29-47. Tversky, A., & Kahneman, D. (1974). Judgment Under Uncertainty: Heuristics and Biases. Science , 185, 1124-1131. Varadarajan, P., & Menon, A. (1988). Cause related marketing: a coalignment of marketing strategy and corporate philanthropy. Journal of Marketing , 52 (3), 5874. Webb, D., & Mohr, L. (1998). A typology of consumer responses to cause related marketing: from skeptics to socially concerned. Journal of Public Policy and Marketing , 17 (2), 226-238. Worcester, R. (2009). Reflections on corporate reputations. Management Decision , 47, 573-589.   80  
  81. 81. APPENDIX INTERVIEW SCHEDULE Opening My name is Rita Omovbude, I’m conducting a research on ‘how the use of Cause Marketing influences customer retention of a highly publicized brand’ and since you interact constantly with clients of companies who require CSR interventions like Cause Marketing, I’d like to know what clients you work for, your opinion about Cause Marketing in Nigeria and its significance to customer retention. I hope to use the information to understand CRM in Nigeria better. This interview will only take 15minutes. 1. What PR Company do you work for and what clients do you manage? 2. What do you consider to be Cause Marketing? 3. Can you tell me about a Cause Related Marketing Campaign or Activity you’ve been involved in, experienced or observed? 4. Would you proffer ‘the use of CRM’ to you clients? a) If yes or no why? 5. Is building a good brand image a major reason you would ‘use of CRM’? If yes how, if no why? 6. Is achieving set sales target a major reason you would use CRM? If yes how, if no why? 7. Is achieving brand equity a major reason you would 'use of CRM’? If yes how, if no why?   81  
  82. 82. 8. Is reinforcing a brand’s positioning a major reason you would 'use of CRM’? If yes or no why is this so? 9. Is Corporate Transformation a major reason you would 'use of CRM’? If yes or no please explain the reason. 10. Does the use of CRM contribute significantly to customer retention? If yes or no please state why this is the case? 11. In what way does the use of CRM especially during company publicity activities, contribute or influence customer retention? Conclusion 12. Is there anything else you would like to add? i) Summary of the points made ii) Thank you for your time.   82  
  83. 83. A QUESTIONNAIRE SEEKING TO UNDERSTAND HOW THE USE OF CAUSE MARKETING INFLUENCES CUSTOMER RETENTION OF A HIGHLY PUBLICISED BRAND. Thank you for choosing to take part in this survey. This research is a partial fulfillment of academic work at the School of Media and Communication, Pan Atlantic University. The aim of this project is to find out if Cause marketing, which is a strategic marketing tool influences customer retention of a highly publicised brand. Your sincere opinion will help various stakeholders in more effective communication, thereby affecting society positively. Section A: Background Information 1. AGE 18-24 2. GENDER: 3 25-34 Male 35-44 Telecommunications Food/Beverages 3. How many years have you been in this industry? 2-3 3-4 4-5 5 and over   55-64 Female INDUSTRY: Advertising & Marketing Financial Sector 45-54 83   others
  84. 84. Section B: This rating should guide your responses. Please tick appropriately. 5=Strongly agree 4=Agree 3=I don’t know 2= I disagree 1=I strongly disagree S/N Question 1 Cause Marketing is good for building brand image 2 Cause Marketing is good for achieving set sales target 3 Cause Marketing is good for achieving brand equity 4 Cause Marketing is good for reinforcing a brand’s positioning 5 7 Cause Marketing is good for achieving corporate transformation There is a clear cut difference between Cause Marketing and Corporate Social Responsibility Cause Marketing is in its teething stage in Nigeria 8 Publicity of a brand that supports a cause is very important 9 Publicity of a brand that supports a cause is not necessary 10 Publicity of a brand that supports a cause is neither important nor necessary I will stick to a brand that supports a cause 6 11 5 12 I will stick to a brand that supports a cause I am emotionally connected to 13 I will stick to a brand that supports a cause only if the brand is of good quality I will only stick to a brand I perceive to be good or stand for something good 14   84   4 3 2 1

×