Consumers And Brands: The Influence Of Perceived Corporate Social Responsibility On Brand Loyalty And Trust By: Vesna Zabkar Sabina Suler.

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Presentation transcript:

Consumers And Brands: The Influence Of Perceived Corporate Social Responsibility On Brand Loyalty And Trust By: Vesna Zabkar Sabina Suler

Agenda 1. Purpose 2. Approach 3. Main Findings 4. Limitations and Future Research 5. Recommendations

Source: Willmott, 2003, pg.367 Citizenship and Loyalty Model

Qualitative Analysis: product recall consequences  Recalled over 21m toys  Stock has ↓ roughly 7%  Mattel’s executive VP has admitted  that the company’s reputation  has been damaged  June 14 th 2007, press release about counterfeit toothpaste incorrectly packaged as “Colgate” has been found  On press release date, Colgate shares ↓ 0.9% to $66.85  Warning from the FDA  Sales ↓ 3% from a year earlier  Faced approx. 486 lawsuits

Quantitative Analysis H1:H2:H3:H4: The more positive a person’s perception of CSR, the higher is the brand loyalty Trust in a company will worsen after a recall People will be less likely to trust brands that have been recalled North Americans are differently affected by product recalls than Europeans

Research design to on-line questionnaire A convenience sample of 150 individuals in two continents (Europe and North America), December 2007 Measures of perceptions of CSR (Sankar, Bhattacharya, 2001)Brand loyalty and trust (Tax, Brown, Chandrashekaran, 1998)Digital negative publicity messageOne group pre-test-post test experimental design

Product recalls Scale: 1= strongly dissagree, 5= strongly agree

H1: Perception of CSR Issues

H2: Trust in the Organization

Scale: 1= strongly dissagree, 5= strongly agree

H3: Trust in Brand

Scale: 1= strongly dissagree, 5= strongly agree

H4: Difference Between Groups North AmericansEuropeans

Convenient, non-random sample Sample size Multiple products on a larger, random sample Two-group pre-test post-test experimental design Other media Limitations and Future Research

Recommendations Foster CSR Within its Corporate Culture Public Trust Ahead of Profit Higher Rather then Lower Standards Consistency of Practices Media & Websites Government Consumers’ Sensitivity To Damaging CSR info