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Session 13, Planken, Nickerson & Sahu
1. CSR across the globe: Dutch and Indian consumers’ response to CSR CSR Communication Conference Amsterdam, the Netherlands 28 October 2011 Brigitte Planken (Radboud University, the Netherlands) Catherine Nickerson (Zayed University, United Arab Emirates) Subrat Sahu (Pandit Deendayal Petroleum University, India)
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11. Results: response to CSR-based strategies (company image) Mean attitude to the company (sd) Strategy type Dutch (n = 95) Indians (n = 95) 1.Cause promotion 4.06 (1.51) 4.85 (1.31) 2.Cause-related marketing 5.47 (1.06) 5.51 (1.09) 3.Corporate social marketing 5.33 (1.16) 5.48 (1.12) 4.Corporate philanthropy 5.25 (1.30) 5.18 (1.38) 5.Volunteerism 5.18 (1.34) 5.49 (1.32) 6.Socially responsible business 5.67 (0.97) 6.06 (0.94) Within nationality: 1 < 2, 3, 4, 5, & 6*** 1 < 2, 5 & 6* 6 > 1, 3, 4 & 5* 6 > 1, 2, 3, 4 & 5***; 3 > 4* Between nationalities: Cause promotion (1): Indians > Dutch*** Socially responsible business (6): Indians > Dutch**
12. Results: response to CSR-based strategies (intent to buy) Mean intent to buy from company (sd) Strategy type Dutch (n = 95) Indians (n = 95) 1.Cause promotion 3.58 (1.56) 4.21 (1.38) 2.Cause-related marketing 5.02 (1.41) 4.85 (1.45) 3.Corporate social marketing 4.68 (1.35) 4.71 (1.39) 4.Corporate philanthropy 4.69 (1.49) 4.24 (1.52) 5.Volunteerism 4.37 (1.53) 4.42 (1.56) 6.Socially responsible business 4.96 (1.25) 5.35 (1.34) Within nationality : 1 < 2 & 6*** 6 > 1, 2, 3, 4, & 5* 2 & 6 > 5* 2 & 3 > 4* Between nationalities : Cause promotion (1): Indians > Dutch** Socially responsible business (6): Indians > Dutch*
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20. CSR-based marketing strategies (Kotler & Lee, 2005) Strategy Description Aim(s) 1.Cause promotion corporation promotes awareness of a societal cause as part of its CSR policy in an advertising campaign raise awareness of the cause; influence consumer attitudes/behaviour by combining corporate/ product promotion with cause promotion 2.Cause-related marketing corporation is seen to be actively involved with a particular societal cause as part of its combined CSR and marketing policies; specific product(s) explicitly associated with the cause raise awareness of the cause; actively involve consumer in supporting cause by purchasing company’s product (i.e. % of purchasing price is donated to cause) 3.Corporate social marketing corporation combines product/ service advertising with awareness-raising specifically targeted at changing consumer behaviour in a sustainable way persuade consumer to purchase; bring about structural change in stakeholder behavior beyond purchase 4.Corporate philanthropy corporation refers to its corporate giving policy as a marketing communication strategy which may be unrelated to specific product promotion raise awareness about CSR policy with regard to corporate giving; promote corporate reputation 5.Community volunteering corporation refers to its community volunteering policy as a marketing communication strategy which may be unrelated to specific product promotion raise awareness about CSR policy/activities with regard to community volunteering; promote corporate reputation 6.Socially responsible business practice corporation emphasizes its behaviour as a good corporate citizen in general and its overall commitment to sustainable business as a ‘blanket’ marketing strategy (essentially subsuming 1 to 5) promote corporate reputation as a responsible citizen
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Editor's Notes
By the way, the Indians in this study assigned significantly greater importance to all 4 responsibilities than the Dutch.
The second set of results relates to the relative importance the Dutch and Indians attached to specific CSR initiatives. This table reflects the findings for each of the two nationalities, with CSR initiatives ranked from relatively most to least important. Note that CSR initiatives reflecting ethical (planet & people) concerns end up in the top two for both nationalities, and that some of the philanthropic (discretionary) CSR initiatives (for example, sponsoring and donating to causes) end op nearer the bottom of the list in both groups. Overall, findings for both groups are fairly similar: as was the case for the social responsibilities/ CSR platforms, the Indians seemed to hold similar views to the Dutch with regard to which types of CSR initiatives they see as relatively less or more important.
Let’s move to the third set of findings, relating to the respondents’ reaction to different CSR-based marketing strategies (with a philanthropic focus). -This table shows the results with respect to the extent to which each of the 6 csr-based marketing strategies distinguished by Kotler and Lee (2005) affected the two groups’ attitude to the company, that is their evaluations of corporate image. -The table shows means on a 7 point scale, where 1 is least positive and 7 most positive. -The strategies are described in shorthand, and their numbering does not reflect a hierarchy of any kind. 1. Most of the strategies led to relatively POSITIVE evaluations of corporate image, by both nationalities (that is higher than 5 on a 7-point scale) with one exception, the Cause promotion strategy (number 1). 2. WITHIN each of the nationalities (the yellow rows), the influence of at least some of the 6 marketing differences can be seen to differ significantly. For example, in the Indian group, Socially responsible business (6) led to a significantly more positive evaluation of the company than ANY of the other strategies (1 to 5). 3. The last two –orange coloured- rows in the table are perhaps most relevant as they show whether any of the marketing strategies led to significant differences BETWEEN nationalities and their evaluation of the company. -This is the case for two of the strategies, Cause promotion (1) and Socially responsible business (6), which both led to a significantly more positive evaluation of the company by the Indians than by the Dutch.
This table shows the results with respect to the extent to which each of the 6 CSR-based marketing strategies affected the two nationalities’ intent to support the company, that is purchasing intent. The table shows means on a 7 point scale, where 1 is least positive and 7 most positive. Again, the strategies are described in shorthand and their numbering does not reflect a hierarchy Overall, the first thing to notice is that intent to support the company as a reaction to each of the six strategies is reflected in LOWER means than was the case for ‘evaluation of the company’ reported in the previous slide/table In fact, with respect to all six CSR-based strategies, means for purchasing intent were found to be significantly lower than the corresponding means for corporate image (p < .001). This was the case for both nationalities. Again, WITHIN each of the nationalities (the yellow rows), the influence of at least some of the 6 marketing differences can be seen to differ. For example, in the Dutch group, Cause promotion (1) led to a significantly lower intent to purchase than cause-related marketing and Socially responsible business (2 and 6). The last –orange coloured- rows of the table show whether any of the six CSR-based marketing strategies led to significant differences BETWEEN nationalities, and their intent to support the company. As was the case for evaluation of the company, two of the strategies -Cause promotion and Socially responsible business- led to significantly higher intent to purchase from the company in the Indian than the Dutch group.
-1 The findings with respect to attitudes to the four CSR platforms were similar across the two nationalities Contrary to our expectations, the Indians in this study did NOT rank philanthropic responsibility as more important than legal and ethical responsibilities In fact, ethical and legal platforms were seen as significantly more important by BOTH the Dutch and Indians than the philanthropic and economic platforms (Findings for Dutch mirror Maignan, 2001 for Dutch & French consumers). -2 With regard to attitudes to different CSR initiatives, the Dutch and Indians AGAIN held largely similar opinions. Contrary to expectations, the Indians in this study did NOT rank philanthropic initiatives as relatively more important than initiatives reflecting legal and ethical concerns In fact, Environmental projects and initiatives to improve employees’ working conditions, both reflecting ethical (‘planet and people’) concerns, were ranked as relatively more important by a majority of both Dutch and Indians. -While Donating to causes and Sponsoring initiatives, reflecting a philanthropic platform, were assigned relatively less importance by a majority of Dutch and Indians. ++> The findings that the Indians assigned relatively low importance to companies’ philanthropic responsibility and to CSR initiatives with a philanthropic orientation seem noteworthy given that Indian corporations tend to prioritize philanthopry, no doubt ALSO to appeal to their local stakeholders.
Finally, with respect to response to the CSr-based marketing strategies, the findings were only partially in line with expectations. Only two of the six CSR-based marketing strategies led to significantly different response across the two nationalities. Both the corporate social marketing and Socially responsible business strategies led to more positive evaluations of the company and higher purchasing intent, in the Indian than in the Dutch group. ******************************** Within: With respect to consumers’ response to Kotler and Lee’s six CSR-based marketing strategies, the inferential statistics showed that the ‘blanket’ strategy Socially responsible business led to a significantly more positive attitude to the company in the Indian group than any of the other marketing strategies, and to a significantly more positive attitude to the company by the Dutch than four of the (five) other strategies. The Socially responsible business strategy led to a significantly higher purchasing intent than any other strategy in the Indian group. Again, it seems noteworthy that the Corporate philanthropy strategy led to a significantly less positive response from the Indian group with regard to both attitude to the company and purchasing intent, at least in comparison to how they responded to (some) of the other marketing strategies.
Finally, let’s move to the potential implications (which are highly tentative, because this was an exploratory study, and samples were small & restricted to name but two limitations) the findings seem to suggest that stakeholders in developed and developing countries are perhaps more similar in the importance they attach to CSR platforms and CSR initiatives than might be expected on the basis of earlier studies and case-based accounts (e.g. Arora and Puranik, 2004; Sagar and Singla, 2004; Jamali and Mirschak, 2007). the findings seem to provide at least some indication that the CSR platform and CSR initiatives generally pursued and emphasized by Indian businesses might not ‘match’ (local) consumer concerns and expectations. This could have implications for the effectiveness of Indian businesses’ CSR policy and CSR-based communications. With respect to how CSR-based marketing strategies influence stakeholder outcomes across the two nationalities studied, it would seem that such marketing strategies may influence outcomes within nationalities differently, and across nationalities to a DIFFERENT EXTENT Overall, the findings underline the importance of analyzing stakeholder attitudes in different countries in the interests of creating effective CSR policy (communication) that orients to CSR issues stakeholders regard as important and that meets their CSR expectations (see also Maignan, 2001). In terms of further research, what is still needed is: READ OUT.