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CAUSE RELATED MARKETING AS PERCEIVED

BY MALE BPO AGENTS IN DAVAO CITY

Undergraduate Thesis Presented to the Faculty of

College of Business Administration Education
University of Mindanao
Davao City

Prof. Joanna Lyn L. Mercado Mba

In Partial Fulfillment of the Requirements

For the Degree of Bachelor of Science in Business Administration
Major in Marketing

Submitted By:

Glenn T. Diampa

January 2017
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Chapter 1

THE PROBLEM AND ITS SETTING

Background of the Study

In the United sates, cause related marketing is a powerful marketing
tool that business that business and nonprofit organization are increasing
leveraging according to the Cone Millennial Cause Study in 2006, 89% of
Americans (aged 13 to 25 ) would switch from one brand to another brand of
a comparable product (and price) if the latter brand was associated with
good cause. The same study also indicated that a significant percentage
surveyed would prefer to work for a company that was considered socially
responsible. This can be linked to the increase in workplace giving programs.
Earlier studies by Cone indicate an upward trend in the number of Americans
who associate their own buying habits with cause marketing as well as an
expectation that those companies to be good corporate citizens. However,
seldom does Business Process Outsourcing companies involved in cause
related marketing considering that whether they get involve or not they are
having profit and clients are more concerned with their needs meet rather
than sympathizing with the recipients of the cause (Armstrong and Green,
2012).

In the Philippines, there are many companies who decided to partner

with cause-oriented groups, particularly non-government organizations to be
able to win the hearts of the consumers and encourage more customers to
patronize the product. Sadly though, no known BPO company expressed their
desire to partner with NGOs or cause oriented groups and entertain the ideas
of cause oriented marketing considering that their clients are more offshore or
nearshore than onshore, Which means whether they entertain the idea of
cause related marketing or not, their sales would not be affected.

In Davao City, BPO companies are operating to cater more on offshore

or nearshore clients and are not so concerned with the onshore clients, which
shows that they are less concern in joining the so called caused related
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marketing. In fact, most express their justification that they are donating
financial assistance whenever there are calamities hitting the Philippines other
than that, they dont get involve. There is research gap on the study on the
involvement of BPOs in cause related marketing, which can filled up by this
study and it is urgent that this study will be conducted to provide answers as
to why BPOs show little interest on cause related marketing. The study
therefore would investigate the cause related marketing as perceived by male
BPO agents in Davao City.

Statement of the Problem

The main objective of the study will be to determine the cause related
marketing as perceived by male BPO agents in Davao City.

Specifically, it will seek answers to the following questions:

1. What is the profile of the respondents in terms of:

1.1 Age
1.2 Marital status
1.3 Length of Employment
2. What is the extent of the cause related marketing as perceived by male
BPO agents in Davao City in terms of:
2.1 BPO participation
2.2 BPO contribution
2.3 BPO Benefit
3. Is the a significant difference on the related marketing as perceived by
male BPO agents in Davao City when are grouped by age, marital status
and length of employment?
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Hypothesis

Ho: There is no significant difference on the cause related marketing as

perceived by male BPO agents in Davao City whenthey are grouped by age,
marital status and length of employment?

Review of Related Literature

Presented in this section are the related literatures that provided

additional insights to the study quoted from various sources such as books,
magazines, journals, newspapers and reliable websites.

Business Process Outsourcing

Business process outsourcing (BPO) is the contracting of a specific

business task, such as payroll, to a third-party service provider. Usually,
business process outsourcing is implemented as a cost-saving measure for
tasks that a company requires but does not depend upon to maintain their
position in the marketplace. Business process outsourcing is often divided into
two categories: back office outsourcing which includes internal business
functions such as billing or purchasing, and front office outsourcing which
includes customer-related services such as marketing or tech support.
Process outsourcing that is contracted outside a companys own country is
sometimes called offshore outsourcing. BPO that is contracted to a
companys neighboring country is sometimes called neashore outsourcing,
and business process outsourcing that is contracted with the companys own
Country is sometimes called onshore outsourcing (Tas& sunder, 2006).

Business process outsourcing (BPO) is a subset of outsourcing that

involves the contracting of the operations and responsibilities of a specific
business process to a third-party service provider. Originally, this was
associated with manufacturing firms, such as Coca Cola that outsourced large
segments of its supply chain. It is typically categorized into back office
outsourcing, which includes internal business functions such as human
resources or finance and accounting, and front office outsourcing, which
includes customer related services such as contact centre services. Often
the business processes are information technology-based, and are referred to
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as ITES-BPO, where ITES stands for information Technology. Enable Service

(Nellis and Parker, 2006). Knowledge process outsourcing (KPO) and legal
process outsourcing (LPO) are some of the sub-segments of business
process outsourcing industry.

In 2010, the Philippines surpassed India as the largest business

process outsourcing industry in the world. After growing 20 percent in 2012,
the BPO industry of the Philippines is estimated to gross revenue of upwards
to $25 billion by 2016. By these estimates, the Philippines business process
outsourcing industry will account for approximately 10 percent of the nations
GDP (Calderon, 2013).

Most services provided by BPO vendors are offered on a fee for-

service basis, using business models such as Remote In-Sourcing or similar
software development and outsourcing models. This can help a company to
become more flexible by transforming fixed into variable costs. A variable cost
structure helps a company responding to changes in required capacity and
does not require a company to invest in assets, thereby making the company
more flexible (Gilley and Rasheed, 2008).

Another way in which business process outsourcing contributes to a

companys flexibility is that a company is able to focus on its core
competencies, without being burdened by the demands of bureaucratic
restraints. Key employees are herewith released from performing non-core or
administrative processes and can invest more time and energy in building
firms core business. The key lies in knowing which of the main value drivers
to focus on; customer intimacy, product leadership, or operational excellence;
focusing more on one of these drivers may help a company create a
competitive edge (Weerakkody et al., 2009).

Cause Related Marketing

Cause marketing or cause-related marketing refers to a type of

marketing involving the cooperative efforts of a for-profit business and a non-
profit organization for mutual benefit. The term is sometimes used more
broadly and generally to refer to any type of marketing effort for social and
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other charitable causes, includingin-house marketing efforts by non-profit

organizations. Cause marketing differs from corporate giving (philanthropy),
as the latter generally involves a specific donation that is tax-deductible, while
cause marketing is a marketing relationship not necessarily based on a
donation.

Numerous other studies have also been conducted to show that cause
related marketing has helped to increase a companys profits. For example, in
the cause marketing campaign by American Express (to which the term
cause marketing is attributed), the company saw a 17% increase in new
users and 28% increase in card usage. Evidence shows that CSR voluntarily
initiated by firms will result in more opportunities for profit than CRS
mandated by the government. The possible benefits of course marketing for
nonprofit organizations include an increased ability to promote the nonprofit
organizations cause via the greater financial resources of a business, and an
increased ability to reach possible supporters through a companys customer
base. The possible benefits of cause marketing for business include positive
public relations, improved customer relations, additional marketing
opportunities, and making more money.

Although originally a marketing strategy that occurred offline, cause

marketing has been conducted more and more through online channels in the
last decade. This is due in part to the increasing percentage of households
with internet connections. As with other types of marketing campaigns,
companies can leverage online marketing channels along with other offline
channels such as print and media. The advent of online cause marketing has
allowed consumers, for example, those who are loyalty program members, to
take a far , more active role in cause marketing. This is democratized
transactional giving. It means consumers, rather than companies, decide
which causes to support and advocate for an example of how this works
could be a company allowing its loyalty program members to convert
unredeemed rewards, such as points or miles, into cash donations to causes
of the customers own choosing, rather than have the company select the
charities. An online platform is necessary to connect the customers to a large
enough selection of charities.
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In recent years, online auctions have been used in cause marketing

strategies using a number of different online auction platforms.
Companies.Have created programs to help sellers and corporations donate a
percentage of their sales to a nonprofit organization through the use of
auctions. Business and profit organizations can also use the program for
cause marketing and nonprofit fundraising programs. Companies and
charities can not only raise money through online auction bidders can view
photos, descriptions and suggested bids of items online, as opposed to items
in a showroom. Most online auctions use a style of bidding called proxy
bidding, in which the online system makes bids for the actual participant.
Alternatively, many online auctions are manual auctions, in which the
participant comments or posts their bid themselves before a particular ending
auction time. Sometimes, participants will call or email their bid to the online
auctioneer, with the auctioneer updating the auction in real time. This type of
charity auction works best auctions with fewer items, or auctions with an
expectation for fewer bids.

Cause marketing should never be a desperate attempt to achieve

social relevance. If you are just partnering with a non-profit organization to
achieve credibility, you might want to go back to the actual reasons why you
are lacking credibility. Invest in cause marketing because your entire team
believes in the cause and your customers are affected by it. When you fight
for something that your employees and clients truly believe in, end goals of
your cause marketing plans will be met (Lewkowics, 2015).

Cause Related BPO

In todays scenario, where corporate giants in the wake of financial

crisis and cost cutting are advising their employees and executives to join the
development sector and bring about a difference to the lives of those in need,
it is not surprising that these people are realizing that they need to do their
share of philanthropy. Entrepreneurs have also woken up to the fact that
business do not exist in isolation. Customers, employees, shareholders, the
general public-all form the existential network of industry and the business
class has to cater to social responsibilities as well.
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Many corporate organizations have come together with Smile

Foundation to join hands in its noble endeavor of making the country a better
place. For example, with the advent of harsh winters, employees of
RocSearch got together to give their unused clothing to the needy assuring a
warm winter for many. Population Foundation of India has held hands with
Smile Foundation and strengthened its girl child program, Swabhiman in
states of Delhi and Haryana. The plan is to replicate the programmed in other
parts of India. Well-known cosmetic player Lotus Herbals and biggies like
Microsoft, Tech Mahindra and Aegis BPO Ltd. Etc have joined roads with
Smile Foundation contributing their bit in the development process. The
unison of so many corporate with Smile Foundation and their enthusiasm
towards working with it makes Smiles feel very proud of the fact that it is
making a move towards setting an example of how the privileged citizens can
be instrumental in the development process and bring a difference in the live
of underprivileged.

Business Processing Outsourcing (BPO) and shared services have the

potential of reducing costs and increasing efficiency among organizations.
The First Outsourcing and share Services Forum for NGOs and development
partners form was organized in Nairobi, Kenya by AITEC Africa with a grant
from the Rockefeller Foundation. The event brought together over 250
representatives of NGOs and development agencies, as well as BPO service
providers. Over 70% of participants were from the NGO/development sector.
The theme of the conference was optimizing service delivery through shared
services.

The event was a capacity-building process aimed at educating NGOs

about outsourcing and shared services, and how it can apply in the
development sector. The main objective was to inform the target
organizations of the potential to reduce their costs and increase impact
through outsourcing their non-core activities. The forum was intended to ignite
new partnerships and networks between service providers and the NGOs.
The BPO sector has opportunities for economic growth. Outsourcing has the
potential to increase productivity in this sector.
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Qualfon, a people-driven business process outsourcing (BPO)

company and global provider of call center services, has entered into formal
partnerships with four non-Governmental Organizations (NGOs) in Guyana
South America to further help the company achieve its mission to be the best
BPO and make peoples lives better. Qualfon Partners with Four NGOs in
Guyana to help make peoples live better Qualfon executive and leaders from
the Guyana Red Cross Society, the Guyana Habitat for Humanity, St. Johns
Bosco Boys Orphanage, and St. Anns Girls Orphanage all signed
engagement letters at a ceremony held on May 29th at the Qualfon
headquarters in Georgetown (Warner, 2014).

The objective of these partnerships is to collaborate more effectively

with well-rocognized in the local Georgetown community and to expand the
capability to create a positive and meaningful impact on the people of
Guyana. The signed engagement letters outline principles for partnership, a
framework for collaboration and relationship building, as well as common
objectives and commitments that hold Qualfon accountable for regularly
contributing personnel and financial resources to each organization.

Theoretical and Conceptual Framework

The study is anchored to Social exchange theory adapted by Zafirevski

(20015). It is defined as the exchange of activity, intangible, and more or less
rewarding or costly, between at least two persons. It is a social psychological
and sociological perspective that explains social change and stability as a
process of negotiated exchanges between parties. Social exchange theory
posits that human relationships are formed by the use of a subjective cost-
benefit analysis and the comparison of alternatives. The theory has roots in
economics, psychology and sociology. Social exchange theory features many
of the main assumptions found in rational choice theory and structuralism. It is
also used quite frequently in the business world to imply a two-sided, mutually
contingent and rewarding process involving transactions or simply exchange.
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Variable

CAUSE RELATED ca
MARKETING
AS PERCEIVED BY MALE BPO
AGENTS IN DAVAO CITY

- BPO participation
- BPO Contribution
- BPO Benefit

Moderator Variable

Profile of the
Respondent

- Status
- Year Level

Figure 1 .conceptual Framework Showing Variables of the Study

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Significance of the Study

The findings of the study will benefit the following:

BPO Company Managers/Owners. The finding of the study will serve

as the basis of the BPO Company Managers/Owners to deft involved in cause
oriented marketing by partnering with NGOs and may use the resources
offered by the NGOs such as volunteers and manpower resources to come up
with higher profit margin and at the same time be able to help the recipients of
the NGOs.

NGOs Administrators. The finding of the study will serve as the basis
of the NGO administrators to pursue partnering with BPOs and be able to
contribute and gain at the same time to raise more funds and be able to help
mankind, particularly the direct recipients of the organization.

BPO Agents. The findings of the study will serve as the basis of the
BPO agents to be enthusiastic all the more in their job and perform their best
knowing that their endeavor contributes to the alleviation of some needy
people under the NGO organization partnering with the BPO Company.

Marketing Students. The findings of the study will serve as the basis
of the marketing students to consider cause related marketing regardless of
the company they will be connected later on knowing that it is most noble
thing to do.

Future Researchers. The findings of the study will serve as the basis
of the future researchers to conduct another study, particularlyoffshore
partnership on cause related marketing by the Philippines BPOs.

Definition of Terms

The terms used in the study are defined operationally as follows:

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Cause Related Marketing: This refers to a type of marketing

involving the cooperative efforts of BPO business and non-profit organization
for mutual benefit.

Davao City. This refers to the fourth-most-populous city in the

Philippines and the most populous in Mindanao; it serves as the main trade,
commerce, and industry hub of Mindanao and the regional center of Davao
Region.

Male BPO Agents. This refers to the male employees of BPO

companies who are also referred to as call-center agents catering to the
needs of the calling clients.

Perceive. This refers to the awareness and observation of male BPO

agents on cause related marketing in Davao City.
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Chapter 2

METHOD

This chapter presents the methods and procedures used in the study
specifically, it is discussed the following: research design, research subject,
research instruments, data gathering procedure and the statistical treatment
of data.

Research Design

The study is a quantitative research using the descriptive survey

design, wherein the respondents will be categorized and their assessment
compared to determined whether there is a significant difference or no
significant difference. Descriptive survey applies to univariate analysis, which
is not only simple descriptive analysis, but it also describes the differences
between two or more different variables ( Babbie, 2009). This design was
appropriate in determining the cause related marketing as perceived by male
BPO agents in Davao City.

Research Subject

The respondents of the study will be the male BPO agents of the
respective BPO companies operating in Davao City, wherein 30 male BPO
agents will be chosen as respondents of the study. Quota sampling technique
will be employed in the study. The said sampling technique will be employed
for the simple reason that only those males BPO agents who are willing to
answer the survey questionnaire will be chosen as respondents of the study
the study will be conducted during the month of August, 2015.
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Research Instrument

A self-made questionnaire will be constructed by the researchers

based on their researches and readings from books and internet. The
researchers will draft a preliminary questionnaire and will submit it to the
research adviser for comments and suggestions. To assure of the
questionnaires reliability and validity, panel of experts will be consulted as
well. The questionnaire will be consisted of two parts as follows. The first part
is the profile of the respondents comprises of age, marital status, civil status
and length of employment, the second part is the main variable, which is the
cause related marketing as perceived by male BPO agents in Davao City
with indicators BPO participation, BPO Contribution and BPO benefit.

The variable of the study will be scaled as follows:

Range Description Interpretation

4.50-5.00 Very High The perception of male BPO

Agent on cause related marketing

Is very positive

3.50-4.49 High The perception of male BPO agent

On cause related marketing is

positive

2.50-3.49 Moderate The perception of male BPO agent

On cause related marketing is fairly

positive

1.50-2.49 Low The perception of male BPO agent

On cause related marketing is less

positive

1.00-1.49 Very Low The perception of male BPO agent

On cause related marketing is not

positive

Data Gathering Procedure

The researchers will observe the following steps in the conduct of the
study.
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1. Letters asking permission will be forwarded to the respective

managers/owners of the BPO Companies in Davao City duly noted by
the research coordinator and Dean of the Marketing Department
seeking approval to conduct a survey among the male BPO agents.

2. Upon Approval, the researchers will administered the questionnaires to

the respondents.

3. The questionnaires will then be retrieved by the researchers after the

respondents have answered it.

4. Data collected will be collated, tallied and tabulated for presentation.

Statistical Treatment of Data

The researchers will use the following statistical tools in analyzing the
data.

Frequency. The will used to determine the exact number of

respondents taken for the study.

Percentage. This will be used to determined the percentile of the

respondents based on their profile.

Mean. This will be used to determined the extent of the cause related
marketing as perceived by male BPO agents in Davao City.

T-test. This will be used to determine the significant difference on the

cause related marketing as perceived by male BPO agents in Davao City
when analyzed by marital status.

ANOVA. This will be used to determined the significant difference on

the cause related marketing as perceived by male BPO agents in Davao City
when analyzed by age and marital status.

References

Babbie E.R. (2009). The practice of social research (12th edition). Wadsworth
Publishing p. 439.

Armstrong. J. Scott; Green Kesten C. (2012). Effects of corporate social

responsibility and irresponsibility policies. Guide to Corporate / Nonprofit
Relationships.
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Tas, J & Sunder, S. 2006, Financial Services Business Process Outsourcing,

Communications of the ACM, Vol 47,. No. 5

Nellis, J. G. and Parker, D. (2006).Principles of Business Economics.

Financial Times Prentice Hall.p. 213. ISBN 978-0273-69306-2.

Calderon, Justin (23 May 2013). Philippine BPO industry to hit $25b.inside
Investor. Retrieved 23 May 2013.

Gilley, K.K., Rasheed, A. 2008. Making More by Doing Less: An Analysis of

Outsourcing and its Effects on firm Performance. Journal of Management, 26
(4): 763-790.

Weerakkody, Vishanth, Currie, L. Wendy and Ekanayake, Yamaya. 2009

Reengineering business process through application service providers
challenges, issues and complexities. Business Management Journal Vol. 9
No. 6:p.794

Lewkowicz, A. (2015). Three qualities you need in a marketing process

outsourcing partner. Retrieved on July 27, 2015 from
http://www/businessdictionary.com/definition/cause-related-marketing
html#xzz3h9rRyRC4

zafirovski, Milan (2005). Exchange Theory under Scrutiny: A Positive Critique

of its Economic-Behaviorist Formulations. Electronic Journal of Sociology.