Simposium Riset Ekonomi IISurabaya, 23-24 November 2005
The importance of cause related marketing to solve social problems
. The increasedattention of CSR has influenced corporate to involve in the environment in which theyoperate. Thus there is a change in the application of the marketing concept. Themarketing concept then include more than just the profit goals of marketing program butalso the awareness of social needs. That is, social problems can be coped with marketingprogram (Maignan & Ferrell, 2004; Adkins, 1999; Lazer & Kelley, 1973).The corporate concern on social issues has increased the practice of CRM. In otherwords, corporate concern on their communities, whilst at the same time promoting theirproducts and brands, based on mutual benefit relationships (Adkins, 1999). For example,American Express card campaigned ‘Share Our Strength’ in 1993 to 1996. The companydonated 3 cents per card purchase and other transactions to reduce hunger. Anotherexample is Coca-Cola, which donated 15 cents to Mothers Against Drunk Driving forevery case of Coca-Cola bought during a 6-week promotion in more than 400 Walt-Martstores in 1997. Similarly, Persil, a great Britain’s leading laundry detergent created an on-pack promotion to fight poverty and injustice in 2001 (onPhylanthropy.com, 2005:Adkins, 1999). In short, CRM activities can solve social problems.
Potential outcomes for marketers and corporate
CRM is a commercial activity bywhich corporate and charities form a partnership for mutual benefit (Suter, 1995; Adkins,1999). Furthermore, CRM is a strategic not tactical (Pringle & Thompson, 1999). Theimplementation of CRM give benefits for corporate such as positive corporate reputation,brand image, and positive consumer attitude toward brands (Skory & Repka, 2004;Adkins, 1999). However, marketers’ responses to CRM appear to have neglected tounderstand consumer attitudes (Endacott, 2004). Moreover, limited empirical works hasbeen conducted to examine CRM and its effects on buyer decision-making (Suter, 1995;Maignan & Ferrel, 2004), especially in Indonesia. On the other hand, information aboutconsumers is a powerful tool in any business (Kardes, 1999). Therefore, this researchaims to testing the influences of CRM on several factors (i.e., corporate reputation, brandimage, buyer attitude, and purchase intention) in Indonesia. The result of this study maycontribute to the increase of CRM practices in Indonesia.
Literature Review & HypothesesCorporate Social Responsibility
Corporate Social Responsibility (CSR) is defined as defined as companies’responsibility to range of stakeholder groups that include: customers, employees,suppliers, shareholders, the political arena, the broader community, and the environment(Adkins, 1999). The CSR concept can be considered as a company’s willingness to not just fulfill stakeholder obligations but to do more (Commission 2001, cited by Cronin2001). In other words, CSR also can be considered as “putting something back into thecommunity” (Worthington, Ram, & Jones, 2003).The awareness of social responsibility has been recognized in marketing context. Inparticular, Kotler and Levy (1969) and Lazer and Kelley (1973) pointed out social rolesin marketing concept. Thus, the field of social marketing has emerged and has focused in
Ikatan Sarjana Ekonomi Indonesia (ISEI)Cabang Surabaya Koordinator Jawa Timur 3