Professional Documents
Culture Documents
K.D. NiroshaDamyanthi
(MF⁄2009⁄2504)
BBA 4201
Dissertation
Department of Marketing
University of Ruhuna
Matara
Sri Lanka
2014 February
IMPACT OF CAUSE RELATED MARKETING ON BRAND LOYALTY -2014
Declaration
I here certify that, this dissertation does not incorporate any material previously
submitted for degree ⁄diploma ect. In any University ⁄Institute to the best of my
knowledge and belies. This dissertation does not contain any material previously
Signature: ……………………………………
Name: K.D.NiroshaDamayanthi
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Letter of Authorization
I hereby certify that dissertation entitled “The impact of cause related marketing on
my supervisor.
…………………
Lecturer
Department of Marketing
University of Ruhuna
Matara
Dr.RohanLaksiri
Head
Department of Marketing
University of Ruhuna
Matara
2014 February
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Acknowledgment
in carrying out this project work. Also I sincere thanks to Dr.Samantha Kumara and
Mr. A.C karunarathna for their support as Academic lectures of the Research and all
the lectures of the Faculty of management and Finance in University of Ruhuna for
I also wish to express my gratitude to the officials and other staff members of “Lucky
Lanka Milk Processing Private Limited (LLMPPL)” who rendered their help during
Last but not least I wish to avail myself of this opportunity, express a sense of
gratitude and love all others who support me in various way to successfully complete
the Project , to my friends and to my beloved parents for their support, strength and
for everything.
Thanks
K.D.NiroshaDamayanthi
University of Ruhuna
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Abstract
Today is popular and most of trendy companies to get involved in and supported
social responsibility activity. So today most of companies use cause related marketing
not only increase sales but also to improve the consumer‟s brand loyalty on the
market to win the consumer hearts in their decision to support the charity
cause related marketing and brand loyalty. In order to reach this study‟s proposed the
researcher used population who buy lucky yoghurt the covering all over the SriLanka.
As the sample of this study 110 consumers were participated to survey and 110
questionnaires were selected to analyze data. This questions drown from E-mail,
Facebook and face to face covering the whole the Sri Lanka and randomly selected
questioners were use collect the data. To build the research questionnaires the
researcher study the relevant literature and also conceptual frame work use to guide
this study‟s data collection. this study confirms that cause-related marketing enhance
consumer‟s brand loyalty. However the results show that four dimensions of the
main components for “Cause Related Marketing” Based on the results show that, out
relationship between brand loyalty and cause related marketing but it‟s not
Key words: brand loyalty, cause related marketing, congruency. duration, resource
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List of Contents
Chapter Three....................................................................................................... 37
3.0.Methods............................................................................................................. 37
3.1. Research designs ........................................................................................... 37
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List of Tables
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List of Figures
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Abbreviations
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First Chapter
1.1.Introduction
Challenging globalization environment quality becomes the first for any product or
service but it is not the only factor to buy/select product/service. There are other
factors also involved when customers make decisions. Social and environmental
factors have made a major impactof customer decisions. Any organization is trying to
capture a number of customers and expand the market share. We see/feel hundreds of
brands per day…but how many brands can be remembered? Can we buy all
products may be price and quality will play equally. Therefore customers are willing
to buy the brand/product which that supported for the cause. In the present business
scenario some of the products that support for the charitable and it is creates a better
concept for the business community. Majority of the consumers buy the products to
support for the charity and in return customer feels that gets social responsibility as
brand loyalty” and finding why people are so much concern about cause related
matter.
The topic of this research is the impact of cause related marketing on brand loyalty.
Cause related and brand loyalty most important factors should consider. Mainly these
causes can be divided it into four categories. They Congruency, Duration, Resources
understand each sub variables and brand loyalty. So this research is most important
topic.
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product or service, their expenditures grow over time and they are a source of positive
contribution”.
company‟s financial performance. And also brand loyalty allows companies to charge
premium prices and to increase market share. Loyal customers are very important
factors which advertising the brand name by using world of mouth.So the brand
And also cause related marketing is new strategy in the business environmental.
Consumer gave the more contribute cause product. As well company can increase
“Cause Related Marketing” has successfully evolved in countries like Sri Lanka,
which is one of the developing countries. Cause related marketing is the best strategy
to gain the completive advantage for the product and service .This research gives
evidences that Cause related has emerged very successfully in developed countries
and proved as a strategic for the companies. CRM helped in increasing revenues, sales
buying behaviors of consumers and also brand loyalty. So cause related marketing
and brand loyalty most important for the business people. And also this research will
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help to use strategy to carry out their business. So research is selected this research
Most of researchers have done “cause related marketing concept with other factors
such as sales and purchasing intention and brand awareness. But when consider about
“Cause related marketing” concept and brand loyalty. There are no sufficient research
articles. As a examples I found few of articles such as the effect of strategic and
marketing and its impact on customer brand preferences, cause related marketing
thesis and cause-related marketing: The Influence of cause brand fit, firm motives and
Consumer Values so on. Some articles related to the only development countries. That
countries like Australia, Canada, USA, New Zealand and United Kingdom, which are
developed countries, along with dissimilar aspects. This research gives evidences that
CRM has emerged very successfully in developed countries and proved as a strategic
tool for the companies. CRM helped in increasing revenues, sales and maintaining
So I hope to fulfill this gap according to my research. The researcher is done this
research according to only for development countries. But it is not suitable for the
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The other gap in this research is not relevant to the topic like this. So I faced lot of
difficulties to found related to literature review for above research. So researcher can
strategic positioning and marketing tool which links a company or a brand to are
relevant social cause or issue for mutual benefit. It is the initiation and funding of
deserving causes. Cause related marketing is a strategic marketing activity a way for a
to a worthy cause. Other things being equal many consumers would do business with
marketing results in increased sales, visibility, and consumer loyalty and enhanced
company image along with positive media coverage”.He describe cause related
and company image.so cause related marketing impact for the sales as well brand
How does impact of cause related marketing on company sales and brand loyalty and
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According to Nilsson and Rahmani (2007,p3) cause related marketing are described
as “win, win situation for business ,good causes and customers. The customer is
offered an opportunity to contribute to specific cause. The cause gain publicity as well
as funding and business benefit through tangible reason such as increased sales as
well as various intangible reasons such as motivating staff, being considered a good
causerelated marketing concept important for the business as customer. And also he
descriedcause related marketing gain tangible and intangible benefit for the
marketing can be divided in to two separate types and are referred to as either
strategic or tactical”They described cause related marketing can divided two part.one
part is tactical and other part is strategic( Nilsson and Rahmani ,2007).
Cause related marketing is exploding in the business world of today. Cause related
marketing grew rapidly and companies saw this as a meeting tool for success. Cause
related marketing help to increase brand loyalty and increase the sales. So there is a
direct relationship between cause related marketing and brand loyalty. And also cause
related marketing gain the publicity as well as the funding. Because of that reason
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When looking at the cause related marketing and brand loyalty the objective from
Based on above main objective the following sub objectives were developed,
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This study describes to find out relationship between cause related marketing and
brand loyalty. This research will help to find out the relationship between among
these variables. Most of company use cause related marketing and loyalty of the brand
to increase their sales. Cause related marketing is very important concept. Because by
using this cause concept company can attract the consumer. So that loyalty will be
increase. Finding of this research will help to academic understand and managerial
propose.
organization. Managers can identify that how “Cause Related Marketing” impact for
the brand loyalty. Managers can get an idea and make strategies what they want use.
Also they can identify what are the reasons impacts for the brand loyalty and can get
management decision regarding to the cause related marketing concept. And also we
know that cause-related marketing can help purchases, build brand image, and
strengthen the emotional connections and brand. However cause related marketing
factors that might lead one campaign to be more successful than another. It will help
for the managers to get paining for against competition. Though cause-related
marketing offers huge benefits to both for-profit organization and equally effective for
both parties.
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According to my research topic it is difficult to find articles and also not enough facts
to present. Therefore my research will help for most of university students and other
and brand loyalty.. They can get an idea about the “Cause Related Marketing”
concept and will help to find the literature review according to may research. And
also the findings of this research will hell to gain the relationship between brand
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Chapter two
2. Literature review and Conceptual framework
related marketing and brand loyalty. According to that the researcher included here
Brand loyalty is highly discussed in earlier research. Here the researcher presents a
literature review about dependent variables of the brand loyalty in this study. Nilsson
described definition of brand loyalty as “The relationship between the relative attitude
toward on entity and patronage behavior” (Nilsson, 2007, P 7).He described that brand
relative attitude and repeat patronage” .Therefore, conceptual models that theories
both attitudinal and behavioral components of brand loyalty gained strong precedence
cognitive component of brand loyalty as the attitudinal dimensions, while treat the
cognitive component as a proxy for the behavioral dimension of brand loyalty. This
emotions that consumers have toward the brand. The cognitive component refers to
particular knowledge about that brand. The conative component embeds consumers‟
behavioral disposition or an intention to buy the brand”. Brand has included three
dimensions. They are affective cognitive and conative. When considering affective
dimension gave the knowledge for the customer according to brand. Cognitive
dimension is behavioral deposition or intention for interaction to buy the brand (Brink
et al,2006).
“Behavior that can be observed is easier and cheaper to measure a attitudes towards
the brand loyalty may create different pictures as compared with behavior as attitudes
attributes refer to consumer‟s knowledge about the brand and effective attributes
(purchase) expressed over time by some decision-making unit with respect to one or
brand loyalty help to select brand from the alternative brands to get some decision
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approach approach
Baldinger *
and
Rubinson,
1996,1997
product
Hollis, 1997
Harrell and
Bennett,
Kyner,1973
McConnell, Beer *
1968
Rundle- Services *
1998
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Venkatesan,
1968
Bass, 1974 *
Shoemaker,
1987
Gupta, detergent
1992
Cooper and *
Nakanishi,
1988
Cooper and *
Nakanishi,
1988
Dall'olmoRil *
ey et al.,
1997
Donthu, 1994 *
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1996 crackers
Ehrenberg *
and
Uncles,1997
al., 1994
Schmittlein, products
1993
1984 categories
Frank,1965 stated
1985 coffee
hi, 1996
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department store
purchases
Fishbein,198 automobiles
Caldow, Services *
1998
Yao,1997
Gwinner et Services *
al., 1998
1998
shampoo
al., 1997
Ryan, 1976
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Ringham et Service *
al., 1994
toothpaste, food,
detergents
Dyer, 1981
Swinyard,
1983
Kendall,1986
and Oliver,
loyalty as follows,
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According to that Hunjra et al (2011,p5) says that “there are mainly two dimensions
of brand loyalty, loyalty with respect to behaviors and loyalty with respect to attitudes
of consumers. Behavioral brand loyalty results in patronage with the brand and
produces multiple purchases of the same brand over time, and hence contributes in
increasing graph of sales”. Brand loyalty has two dimensions. They are behaviors and
attitudes towards the consumer. Brand loyalty will help to purchase the one brand
more important for any organization. This topic present a literature review focusing
on the cause –related marketing. Cause related marketing has increasingly become the
by offer from the firm to contribute a specified amount to a designated cause when
individual objectives” (Brink et al, 2006,p15).It means that cause related marketing is
process of the to improve the marketing activities and also it can increase the revenue
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contributed the profit and non- profit organization. According to that cause related
According to Hunjara et al(2011,p2) he says that cause related marketing as “it can be
integrating marketing activities. These activities are associated with special cause that
customers and company focuses the mutually beneficial long-term relationship with
their customers “cause related marketing is generated the revenue for the company
and it built the log time relationship with the customer (Hunjara et al,2011).
which business assume the economic, legal, ethical and discretionary responsibilities
which the firm promises its consumers to donate company resource to a worthy cause
for each sold product or service”(Shabbir et al, 2009, P3).when consumer buy the
product the company resource donated to the found for consumers welfare and also
the perceived overall fit between a cause and a brand: 1) visibility of the relationship
(INVOLVEMENT)”.
According to Bhvet (2007,p220)found that“ cause related marketing and its impact on
The HLL announced a contribution of fifty paisa to a diarrhea project on sale of each
of its LIFEBUOY brand soap. It helped to improve market share for „lifebuoy‟
OBEROI Hotels had specially designed and printed envelopes placed in all Oberoi
organization and collected more than Rs. 6.50 lakhs in 18 months. CRY is a NGO
whose role is that of an enabler a catalyst between two groups of people (a)
marginalized children, their families and communities and people from all walks of
In India „whisper‟ a brand in the sanitary nappies market where the materialistic
NGO‟s) Gujarat rehabilitation operations. Total amount raised was approximate Rs.
40, 000
The HLL announced a Rs. 5/- contribution to SOS children‟s village, a social service
organization working for educating every little heart by inserting coupons in its Brook
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bond TajMahal tea powder packs. The customer has to tell the coupon number to the
Cause related marketing has been viewed as “from of horizontal cooperative sales
synonymous with corporate sponsorship of charitable causes and as the initiation and
and / or non- profit, is here to stay. Since it will not go away, we cannot bury our
heads in the sand so as not to deal with the issue. Fund raisers need to thoroughly
understand cause- related marketing from a corporate point of view and corporate
marks need to understand philanthropy from our point of view ( varadarajan and
menon,1988 ,P69).
for the companies to enhance the brand awareness”. He described cause related
marketing is one think to get opportunity to increase the brand awareness for every
most of the companies use CRM to increase brand awareness among the consumers
increase band awareness and also it increase from the customers of company (Hans et
attitude of consumers towards the company and its brands”.It means that most of
company most of time use cause related marketing to change the attitude about
company and brands. So cause related marketing most impact to change the
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CRM campaign aims at two objectives: to support a social cause, and to improve
marketing performance”. There are two objective in cause related marketing .They
are to support the social responsibility for the customer and improve the market
three stakeholders: the firm‟s consumers, its shareholders and one stakeholder not
related marketing take three responsibility about customers, shareholders and one
stakeholder(Brink et al ,2006).
5a
5b 2a Potential
customers
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According to Christoffer and Rahmani (2007, p8) he stat that overall benefits of cause
marketing.
⁄Arrow
1a Monetary donation
1b Monetary donation
2a Increased sales
3 Increased sales
motivation(company benefits)
the cause
According to the Christoffer and Rahmani(2007,p 8-9)he say that there are three main
activities. The free groups of stakeholders that can be influenced are firstly the current
and finally the general public which represent arrows 2b and 4 in the framework
above. The potential benefits for the company connected to these stakeholders
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The current and potential consumer: increased possibility of a sale and reduced b
The employees and investors: Lower cost in investor and personnel management due
to the higher possibility of long term commitment between the parties because of
better match between potential employees, investors and the company as the retention
The general public: Improving the relations with government regulators, local interest
According to Hunjra et al(2011,p4) found that “in the case of homogeneous goods,
the respective lengths of choice consumer marketing assets and the value of the
display object have been shown to rely on trade-offs affecting. CRM emerged to be
majority efficient as shortly as the consumer was needed to produce zero trade-offs in
exchange for choosing the brand activity and the CRM activities. However, many
citizens were motionless in the acceptation of lower performance or higher price rates
for the environmental and social concerns, regardless of the consumers loyalty to the
a particular retail store. The Tsunami disaster gave ample scope for hundreds of retail
outlets to say they will donate to Tsunami Relief Funds for purchases made at their
establishments.
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eradicating illiteracy) while building a positive association with the corporate sponsor
or its brands. MTV, being a youth channel, regularly created excellent public service
advertisements aimed at youth on issues which matter to the young of this country.
either with the organization‟s brand name or co-branded with both the company‟s and
nonprofit‟s name for a fixed number of products produced or for a fixed time period.
When considering the cause related marketing concept, The researcher measured the
four dimensions of a cause related marketing design. In order to that cause related
marketing can classify strategic Cause Related Marketing and tactical Cause Related
Marketing. Cause related marketing included four dimension in this study. It was
(1) The congruency between the cause and a company‟s core competency
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use of cause related as a strategic tool include top managements‟ involvement in key
decisions about the program ,a long- term commitment to the program and
Cause Related Marketing can take on money forms. They are product, service,
strategic cause related marketing and to investigate the effect of these two types on
Nilsson discussed the Cause Related marketing program as “Strategic or tactical but
company. The management involvement dimensions of approach deal with the degree
of the senior level management support and involvement in the Cause Related
Marketing approach. The congruence dimensions of the approach deal with the
level of correspondence between the cause and the company. Duration dimensions of
the approach deals with how long time the Cause Related Marketing Company runs.
The timeframe is that there are two main typologies of Cause Related Marketing
2.1.2.1.Congruency
described cause and cause fit .There are three variables are the degree of company –
cause fit in the minds of the consumer, the level of consumer identification with the
selected cause. These three variables grouped together is called the company–cause-
identify with the company and the cause and whether the congruence between
customers and either the company or cause improves the success of cause related
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campaigns with a social dimensions are more likely to be successful if there is degree
2007,P14). There are three types of time frame programs. It was described as “long
term, medium term and short term. Short term focus is the most dominating choice
even though companies desire to focus on medium- term or long- term. According to
case histories of successful programs, short term has proven itself to have an impact
in firms marketing programs. Longer term programs are more effective than the short
term programs when it comes to create good public relations. In medium –term
programs the company can make a contribution from the beginning to an end product
and thereby create awareness about their company. ”( Nilsson et al,2007 ,P11).
2.1.2.3.Resouce investment
specifically, high fit cause related marketing program programs have an impact that
is five to ten times greater than the impact of low fit campaigns .Furthermore
which aligns philanthropic effects with companies‟ mission , vision and resources”(D
Brink et al,2006,P18).
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The present study examines the impact of CRM on brand loyalty. Moreover, examine
brand loyalty. The independent variable of this study is cause related marketing. The
Management involvement. The dependent variable of this study is brand loyalty. The
conceptual framework point of view number of 2.2.1 in this research .And also
and Rahmani(2007,P15 ) the framework explains as “The main things to be studied the
key factors , constructs or variables and the presumed relationship among them”. It
means is as the relationship between each of sub variables and dependent variable. In
used to provide improved orientation in the literature reviewed for the area studied”.
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Congruency
H1(+)
Duration
H2(+)
Brand
loyalty
H3(+)
Resource
investment
H4(+)
Management
involvement
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2.2.2. Hypothesis
Four hypotheses were developed according conceptual framework of this study. The
summarized results are presented below. Following hypothesis can be drawn based on
According Brink et al (2006,P17) suggest that “ a fit between the cause and the main
business of the company is important for cause related success”. It means congruency
very important for success of cause related marketing activity in the company. And
also Brink et al (2006) defined “recently demonstrated that the degree of brand cause
According (Brink et al,2006,P17) defined as “more specially, high fit cause related
marketing program have an impact that is five to ten times greater than the impact of
low- fit Campaigns”(Brink et al,2006,P17). It means high fit cause related marketing
program impact greater than low- fit program on brand loyalty (Brink et al,
vision and reason.it means the company can increase their performance by using the
strategy”(Brink et al,2006). And also Brink et al(2006,P 18) notes “ that advertising
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congruency between company and the cause”(2006,P18 ).it means company can use
According to Adiwijaya and Fauzan( 2012,P50) say that “cause-brand fit may have a
direct impact on the perception of CSR in the CRM campaign” (Adiwijaya and
Fauzan, 2012,P50). It means congruency direct impact for the perception of cause
related marketing program (Adiwijaya and Fauzan,2012). “As the perception of the
compatibility between social causes and brand increases, consumers are more likely to
see the brand has more ability and experience (having more expertise) when
assessment so that these variables can be used directly as an indicator to evaluate the
means when using the cause related marketing it can impact direct and indirect for the
brand.
brand loyalty
degree of (behavioral) commitment toward the CRM campaign, which can eventually
lead to brand loyalty” (Brink et al, 2006,P18). In order to that if organization can to
al,2006) Future they defined “One of the factors that can demonstrate a company‟s
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commitment is the duration of the CRM program”(Brink et al, 2006,P 18). As well they
“suggest that the effectiveness of a CRM program increases with its duration” (Brink
“Therefore” can increase because of time frame (Brink et al, 2006,P18). Some cause
related marketing program is short term though other marketing program extended the
long period. Duration is impact for the cause related marketing program (Brink et al,
(Brink et al, 2006, P18). However Brink et al further stated that “CRM campaigns with
perceptions of company image”(Brink et al, 2006,P18). The long period and medium
cause related marketing program can increase consumers image of that company than
H2: There is a positive relationship between duration of a CRM campaign and brand
loyalty.
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donations instead of monetary contributions” (Brink et al, 2006,P 18) .it means
investment for the monetary for cause related marketing program company can
suggests that “companies should set up a special CSR team with grass-roots
employees in order to build credibility for the respective CSR initiative” (Brink et al,
2006,P18) . When company set the specific CSR term, employees believe and
respective for the company (Brink et al, 2006). “Consumers evaluated CRM offerings
company‟s products. Larger donations to social causes increased the appeal of the
According to Hoeffler and keller “ adequate financial resources are important, the
timing, execution, themes, and other qualitative factors will also play an important
role in the ultimate success of a CSM program”(Hoffer and Keller, 2002,P85). Apart
from financial resources, other resources are very important for the cause related
marketing program. Because of that reason the positive impact on the brand may be
the credibility of a CRM campaign”(Brink et al, 2006,P 18) . It means that the top
management involvement is high the credibility is high for the cause related
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marketing program (Brink et al, 2006). And also they argues that” a noted decrease in
According to Nilsson and Rahmani state “ one important think when it comes to
applying a cause related marketing campaign is to have the chief executive committed
2007,P12).in addition to states “support from the executive is not the idea to get a
involvement is high on cause related marketing program the company can get the
Hence, hypothesis:
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Nilsson and How can the objectives of cause There are several type of
involvement product.
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Peter et al,2010 Dimensions of fit between a Result indicate fit sub dimensions
Sina et al,2012 How impact of cause related Cause related marketing has a
consumer in CRM
coverage.
Adiwijaya and Cause related marketing: The There is a need for firm to
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values. loyalty.
corporation.
market types
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Chapter Three
3.0.Methods
The formulate of research questions in this study is how impact cause related
between cause related marketing and brand loyalty. To measure the dependent and
independent variables researcher found the sub items from literature review. In this
chapter is going to present tools to study the problems of this research. Here
researcher includes research design number of 3.1 research context number of 3.2,
population and sample number of 3.3, data collection methods number of 3.4,
measurements number of 3.5, data collection number of 3.6 and data analysis methods
number of 3.7.
There are two research type uses for this study. They are Explanatory and descriptive
research. The current research is descriptive nature. The study can be descriptive
when the focus is on cause- impact relationships, explaining what causes produce
phenomenon being studied. It does not answer questions about how/when/why the
other statistical. Often the best approach, prior to writing descriptive research is to
conduct a survey investigation. Qualitative research often has the aim of description
and researchers may follow-up with examinations of why the observations exist and
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The researcher identifies the problem as “how cause related marketing impact on
brand loyalty. To identify the research questions researcher study previous research
„brand loyalty, Cause related marketing campaigns and consumer purchase intentions:
The mediating role of brand awareness and corporate image and Social cause related
The researcher found the independent variables and dependent variables and also sub
variables from previous research. The dependent variable is brand loyalty and
independent variable is “Cause related marketing”. In this study researcher use closed
predetermined alternatives. To build the questions researcher follower the liked scale
structure. As follows
In this study was used cross sectional studies. Cross sectional studies are a positivistic
the same time. Normally different organizations or groups of people are selected and a
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3.2.Research Context
Lucky Lanka Milk Processing Company Ltd was started in 1991 as a domestic
business with the excess milk of the household cow. The founder of the business was
20 year old LalKeerthi who is the present company Managing Director & Chairman
of the company along with his four sisters. At the beginning production capacity was
300 cups per day and delivery channel had consisted only one delivery bicycle. The
Today the small business started with the single house hold cow has been developed
The company is engaged in the process of collection of locally produced fresh milk
from rural village farmers and processed in to yoghurt and other milk products under
the brand names of „LUCKY‟ and „KIRI KIRI‟. The product range comprises of
Fruit Jelly Yoghurt and Fresh Fruit Yoghurt, Curd, Pasteurized Milk, Sterilized Milk,
Flavored Milk, Fruit Drink Bottles, Drinking Yoghurt etc. Lucky Yoghurt is the one
and only yoghurt with SLS certification for the first time in Sri Lanka. From the
incoming raw material up to finished good delivery to the consumer quality is assured
through the best practices of the quality management system by a competent Quality
Assurance Team according to ISO 22000 & HACCP international standards. Lucky
microorganisms in yoghurt. The company owns the Sri Lanka‟s strongest cold
distribution network with 120 delivery vehicles covering the entire Island.
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The target population is the all of Lucky customers who buy the Lucky product in Sri
Lanka. The researcher is wishing to cover all the population according to the sample
of this study.
A sample frame is a representation of the elements of the target population. Also the
researcher selects 110 samples according to population. The researcher wish to use
simple Random sample .The simple random sample is the straight forward method of
sampling that assigns each element of the target population an equal probability of
being selected. When using the simple random sampling bias will occur if sample
The researcher collection the primary data, researcher specifically addresses the
research problem. On the other hand, original data which are collected for the purpose
of the research study being conducted. The data collection method of this study is
Questionnaires. The researcher wish to collect data form questionnaires trough email
The researcher designed question as three parts. First part included the eleven
questions about dependent variables of the brand loyalty. Here researcher hope to
measure the brand loyalty by using these eleven questions to response for the sample
researcher used five liked scale for this study. The researcher used only the closed
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Second part have been included four dimensions to measure the cause related
marketing to measure the congruency, it has include three questions. To measure the
duration it has been included three items. To measure the resource investment it has
been include two items also to measure the management involvement it has included
three items. Therefore the researcher used only the ten questions to measure the
The third part has been included six demographic factors by the researcher. Such as
Ruhuna. The researcher includes name, address, email, fax number. The purpose of
this covering letter is considering the ethics. Because Ethics very important for this
study.
All and any documents and papers, when in a foreign language, need to be translated
by public sworn translators if they are to be used for any official purposes. Such
documents will normally, range from school papers need of for student translator
from one country to another, birth, and marriage or death certificates for
such text, for any reason by the courts. Thus, for instance, a love letter may well have
divorce suit a translation of a play may give lies to a suit for copyright infringement
and as a consequence even a literary text may have to be dealt with by a sworn
conforming to a certain number of rules. Upon their retirement or death these boots
are turned in to the board of trade of the state in and for which they are nullified (the
Junla commercial)
The researcher is use to sworn translation to translate the questioner from sworn
translators. Firstly the researcher prepared questioner by English language then that
To cross check English and Sinhala both questions were translator into vice versa.
3.5 Measurements
the respondent‟s score on each of the four dimensions of Cause related marketing in
These story boards built upon fictitious situations it was not possible to measure
component and cognitive components of brand loyalty. So brand loyalty was adapted
from Brink Schroder and paywels (2006) of that study. Five point liked scale are used
by researcher.
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brands
brands
brands
other brands
Statro
The researcher found four variables of cause related marketing concept previous
Congruency
Resource investment was adapted from Brink Schroder and paywels (2006) of that
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Duration
Duration was adapted from Brink Schroder and paywels (2006) of that study. Five
etal(2006)
campaign
Amount of resources investment was adapted from Brink Schroder and paywels
(2006) of that study. Five point liked scale are used by researcher.
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investment
Management involvement
Management involvement was adapted from Brink Schroder and paywels (2006) of
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When collecting the data, the researcher faced lot of barriers and also gained vast field
experience. However, most of the people do not like to fill the questionnaires due to
lack of time and amount takes to fill the questionnaires. The researcher collated the
data (simple random sample) covering entire Sri Lankan people represent various
geographical area. Some of respondents were not response for the email.
The researcher use SPSS & Smart PLS to make the database. SPSS Statistics is a
software package used for statistical analysis. SPSS is among the most widely used
marketing organizations, and others. The original SPSS manual has been described as
their own statistical analysis. In addition to statistical analysis, data management and
The SPSS An effective presentation not only to analyze the data but also helps to user
of dissertation to understand the data. The SPSS helps to make number of different
statistical tools like t- text, chi-squire test, and exploratory factor analysis and so on.
Smart PLS is one of the software applications for PLS path modeling analyses. This
model is an easy, yet powerful, estimation technique for structural equation models.
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technology management, media management. These models can be measured with the
manifest variables in the model. This software was created in a project at the Institute
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Chapter Four
4.0 Introduction
Before analyzing the results of the experiment, the researcher per tested the data
analysis. In this study is presented the dimensions of “Cause related marketing” how
impact on brand loyalty.110 respondents participated for this study in whole the Sri
Lanka. Here the researcher presented sub topic according to analysis this experiment.
number of 4.5 and summery of the hypothesis testing presented number of 4.6 sub
topics.
Age Frequency %
18-27 68 61.8
28-37 27 24.5
38-47 10 9.1
48-57 5 4.5
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Most of our responses are within 18 -27 age group. It is 68 of frequency from the total
Sample. Also it shows 61.8% of our sample. Range of 28 -37 age group responded 27
from total sample. It percentage were 24.5 % from the total percentage of sample.
Range of 38-47 age group responded 10 from total sample. Percentage is 9.1 % from
the total. Range of 48-57 age group responded 5from the total sample. It percentageis
4.5 % from the total percentage of the total sample. The researcher shows above age
Figure 4.1.Age
18-27
28-37
38-47
48-57
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FACULTY OF MANAGEMENT & FINANCE DEPARTMENT OF MARKETING
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Gender Frequency %
male 56 50.9
female 54 49.1
Here Male responded is more than Female. It is 56 from the total sample. Percentage
is 50.9% from the total sample. Female responded 54 from the total sample and
percentage is 49.1% from the sample. The researcher shows above genderresponses
male
female
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Income Frequency %
5000-10000 30 27.3
10000-15000 18 16.4
15000-20000 31 28.2
20000-25000 23 20.9
Most of income groups are within under theRs: 15000- 20000 income range.It is 31
from the total responses and percentage is 28.2% from the total percentage. When
above 25000 are respectively 30, 23,18,8 from the sample of this study and
percentages are 27.3%, 20.9%, 16.4%, 7.3% from the total percentage. Its data can be
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5000-10000
10000-15000
15000-20000
20000-25000
above 25000
Religion Frequency %
In this research study has been responded only the Buddhist responses from the
sample of this study. Above data can be shown from the pie chart as follows.
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Buddhist
married 36 32.7
unmarried 74 67.3
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Most of unmarried people have responded than married people from the total sample.
It is 74 responses from the total sample and percentage is 67.3% from the total
percentage. Above data can be shown from the pie chart as follows,
unmarried
Married
Table 4.6.Educationresponse
Education Frequency %
Primary 03 2.7
secondary 46 41.8
Tertiary 61 55.5
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When considering the response of the education of this study, Most of thursary
responses have responded number of 61 from the total sample of this study. Its
percentage is 55.5% from the total sample. Primary and secondary responses have
responded respectively 03and 46 from the total sample. And also its percentages are
respectively 2.7% and 55.5% from the total percentage from the total sample.it can be
primary
secondary
tertiary
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The researcher has collected the data from the face to face, mail and facebook in
whole the Sri Lanka. According to that response rate of this study as follows,
Delivered questionnaires 50 40 30
Rejected questionnaires 05 03 02
Useable questionnaires 45 37 28
Total 50 40 30
When look at the above table response rate is high for the E-mail responses‟ more
than others. It is 93% response rate.Responserate are 92.5%, 90% respectively for
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loadings Reliability
Congruency 0.83⁄0.63
business
Duration 0.81⁄0.68
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campaign
campaign is high
supports
supports
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brands
other brands
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lucky yoghurt
another brand
Cause related marketing: Based on the result of the confirmatory factor analysis the
analyzing the value identified for the one by one dimension as follows,
Composite Reliability and Validity are respectively 0.83 and 0.63.Based on the
analysis, researcher has founded t value and Standardize coding for items of
congruency. Therefor its values were the type of cause that is supported by lucky
yoghurt is very much in line with its core business (β= 0.66; t= 3.13),Taking into
account lucky yoghurt’ core business, it is very logical for lucky company to support
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“fits” very well with lucky company’ core business(β= 0.86; t= 4.70) .
Duration:When considering the Duration, its Composite reliability and validity were
respectively 0.81 and 0.68.And also t- value and Standardized loadings were the
duration of lucky company’ campaign is long (β= 0.78; t= 6.20), Lucky company’
investment‟s composite reliability and validity were respectively 0.82 and 0.70.And
also items its t- vale and Standardized loadings werelucky company invests a large
amount of resources (e.g. time, money, expertise) in the campaign (β= 0.92; t= 6.75),
The amount of resources (e.g. time, money, expertise) that lucky company invests in
reliability and validity (0.89⁄0.73), Lucky company’ senior management seems to find
it important what kind of cause the company supports(β= 0.86; t= 6.57), lucky
company’ senior management seems to be interested in the kind of cause the company
Brand loyalty: Based on the analysis on brand loyalty value were reliability and
validity(0.78 ⁄0.39), I would always think of lucky yoghurt over other brands when I
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consider buying yoghurt(β= 0.61; t= 4.33), I would pay a lot of attention to Lucky
yoghurt over other brands(β= 0.60; t= 4.34),I would be upset if I had to buy another
brand of yoghurts if lucky yoghurt was not available(β= 0.48; t= 4.45), I would be
excited about getting lucky yoghurt over other brands(β= 0.53; t= 3.95), I would feel
good about lucky yoghurt over other brands(β= 0.64; t= 5.40), I would feel very
attached to lucky yoghurt over other brands(β= 0.60; t= 4.28),I would be interested
in lucky yoghurt over other brands(β= 0.73; t= 7.64),It would be very important for
brand is on sale, I would buy lucky yoghurt(β= 0.68; t= 7.67),I would always find
myself consistently buying lucky yoghurt over other brands(β= 0.76; t= 11.03), If
lucky yoghurt were not available at the store, I would rather not buy at all if I have to
Based on the results of the confirmatory factor analysis it was decided to delete three
items. The itemsthatdeleted were the following because they had factor loadings
I would be upset if I had to buy another brand of yoghurts if lucky yoghurt was not
If lucky yoghurt were not available at the store, I would rather not buy at all if I have
Would be excited about getting lucky yoghurt over other brands (β= 0.53; t= 3.95).
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loadings Reliability
Congruency 0.84⁄0.63
Duration 0.80⁄0.67
campaign
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0.72(2.67)
0.83(14.03)
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brands
I would feel good about lucky yoghurt over other brands 0.68(6.04)
brands
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After deleted the three items of brand loyaltydidn‟t have the change of reliability and
But brand loyalty‟s reliability and validity are changed .It was .0.88(0.46)
The type of cause that is supported by lucky yoghurt is very much in line with its core
Taking into account lucky yoghurt’ core business, it is very logical for lucky company
are changed.
Supporting this cause is very appropriate as it “fits” very well with lucky company’
When considering the duration its t – value and standardized can be shown as follows,
Lucky company invests a large amount of resources (e.g. time, money, expertise) in
The amount of resources (e.g. time, money, expertise) that lucky company investment
Lucky company’ senior management seems to find it important what kind of cause the
company supports (β= 0.86; t= 18.20).In here standardized loadings is not the
Lucky company’ senior management seems to be interested in the kind of cause the
For lucky company’ senior management it seems to mean a lot what cause the
I would always think of lucky yoghurt over other brands when I consider buying
increased.
I would pay a lot of attention to Lucky yoghurt over other brands (β= 0.62; t=
I would feel good about lucky yoghurt over other brands (β= 0.68; t= 6.04).Here both
I would feel much attached to lucky yoghurt over other brands (β= 0.61; t= 4.82).
I would be interested in lucky yoghurt over other brands (β= 0.75; t= 8.88).Here also
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It would be very important for me to buy lucky yoghurt over other brands (β= 0.78;
Although another brand is on sale, I would buy lucky yoghurt (β= 0.73; t=
10.62).Here also both of values are increased when comparing earlier before
I would always find myself consistently buying lucky yoghurt over other brands (β=
The below conceptual model shows the relationship and measure the impact of four
on brand loyalty. Considering thisvariables it‟s both impact on brand loyalty any
product of organization. After analyzing the Smart PLS the final structural model can
be shown as follows,
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Congruency
0.23(2.14)
Duration 0.46(1.20)
Brand
loyalty
0.081(0.74)
Resource
investestment
0.17(1.78)
Management
involvement
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Dependent variable
Ca 0.23(2.14)
Da 0.46(1.20)
RIa 0.08(0.74)
MIa o.17(1.78)
a= Independent variable
c= Dependent variable
To test the hypotheses, the researcher simultaneously regressed the four design
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Constant T- value
Congruency 2.14
Duration 1.20
To test H1, The researcher applied t - value to measure the relationship between cause
related marketing and brand loyalty. As the analysis, correlationand t- value are
respectively (β= o.23; t= 2.14). So table IV indicates that congruency of cause related
To test H2, The researcher applied correlation to measure the relationship between
duration of a cause related marketing and brand loyalty. Considering the above
related marketing and brand loyalty. As well its t- value is 1.20.H2 is there for
brand loyalty
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To test H3, The researcher applied correlation to measure the relationship between
resource investment ofacause related marketing and brand loyalty. It‟s have a positive
relationship because its value is positive. But it supported in partially for above
To test H3, The researcher applied correlation to measure the relationship between
about the correlation, it is0.17. It means that it has positive relationship between
management involvement and brand loyalty. But it partially supported for the
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Hypothesis Result
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Chapter Five
The final chapter will contain the main findings and discussions based on the previous
fourth chapters study. According to the topic, Summery has been included as 5.1,
Contribute of the study included as 5.2and limitation and future research included as
The researcher clearly identified results of the impact of “Cause Related Marketing”
program of the Lucky yoghurt products brand loyalty has been increased. An
experimental study with 110 participants, this study confirms that cause-related
marketing enhance consumer‟s brand loyalty. However the results show that four
Congruence often used by firm‟s core business with the cause, the duration, resource
investments and management‟s involvement will not be highly involved. Based on the
results show that, out of four dimensions Congruency is only proved dimension
such as duration, resource investments and management involvement also had shown
positive relationship between brand loyalty and cause related marketing but it‟s not
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The researcher has included the five chapters for the study. They are following as
and analyzing of the study. As fifth chapter is discussion and conclusion. Hereafter
As per the first chapter it‟s included the sub topics as introduction number 1.1,
Research questions number as 1.2 and significant of the study number as 1.3.
Introduction chapter has been included the “Reason for the researcher has select of
this research area and briefly written the research gaps. Second, third and fourth
sections included about the why the researcher select like this research area. Also the
researcher identifies that three research gaps according to the topic. Considering the
research questions the researcher clearly found that problem identification. According
to that the main problem is “how cause related marketing impact on brand loyalty?”
Based on the main topic are developed four sub questions as how congruency of cause
impact on brand loyalty? How duration of cause impact on brand loyalty? How
observe the relationship between causes related marketing and brand loyalty, to
examine congruency of cause and band brand loyalty, to examine duration of cause
and brand loyalty, to examine resource investment of cause and brand loyalty, to
examine involvement of cause and brand loyalty. Significant impacts of the above
included three parts as literature review, conceptual framework and hypothesis. When
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considering literature review has two parts .There is independent variable of “Cause
number as 2.1.2. Conceptual framework and hypothesis discussed has two parts.
The researcher built the conceptual framework the relationship between cause related
included under the hypothesis the researcher has summarized four results. They
CRM campaign and brand loyalty, there is a positive relationship between the degree
Under the third chapter of methodology researcher has included sub topics. These are
research designs number as 3.1, research context number as 3.1, population and
Sample number as 3.3, data collection methods number as 3.4, Measurements number
as 3.5, Data collection procedure number as 3.6. Data analysis method number of
3.7.Under the research designs its included definitions of the descriptive research,
cross sectional study, problem identification questions structure so on. Under the
research context it has about organizations of Lucky Lanka Milk Processing Company
Ltd. Under the population and sample it‟s included about sample, about population
and sampling technology.Considering the data collection method it has included three
sub topics.
They are questions design number as 3.4.1, cover letter number as 3.4.2 and
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measurement of brand loyalty and cause related marketing. Under the data collection
procedure it has field work experience when collecting data from the sample of this
study.Under the data analysis method the researcher has used SPSS and Smart PLS
.Here researcher use to analyze the demographic variables. Also researcher use to
analyze the other measurements of cause related marketing and brand loyalty.
Under the fourth chapter of analyzing the researcher has included brief introduction of
the chapter. Also it has include sub topics about demographic data analyze number of
4.1, response rate number as 4.2, confirmatory factor analysis number as 4.2,
structural model number as 4.4, hypothesis testing number as 4.5 and summery of the
hypothesis testing number as 4.6 .demographic data has been analyzed of age, gender,
civil status, income, religion and education .the researcher found the response rate for
the mail, face book and face to face. It was 93%, 92.5% and 90%.Under the
confirmatory factor analyzed it has two table about original and final model .And also
it has validity .reliability, standardized loadings and t- value about items. After
analyzing these items by the Smart PLS the researcher included conceptual
framework.it named was structural model.it has included the correlations and t –vale
of four dimensions of cause related marketing. Under the hypothesis testing the
between duration of a cause related marketing and brand loyalty, H 3 there is a positive
cause related marketing and brand loyalty. Under the summery of the test the
researcher has include “how supported t- vale and correlation about four hypothesis.
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Here researcher clearly identify according to t-vale and correlations, only congruency
The research topic of the cause related marketing on brand loyaltyhas been
significantly impact for academic and managerial function. Here the researcher has
number as 5.2.2.
5.2.1 Academic
The purpose of this study was providing a deeper understanding about “Cause Related
involvement and brand loyalty. Outcome of this study overall strengthens the theories
for the academic.As a result of that most of university students and other students can
get an idea about cause relations marketing definition and brand loyalty definition.
Also the students can get an idea about relationship between cause related marketing‟s
But when the management involvement it‟s somewhat significantly impact for brand
loyalty. Resource investment and duration has been low impact for brand
loyalty.When researcher using thesedimensions they can get an idea about how its
impact forthe brand loyalty. Finally it‟s very useful for academic purpose.
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IMPACT OF CAUSE RELATED MARKETING ON BRAND LOYALTY -2014
5.2.2 Managerial
The findings from this experimental study can be used by managers to optimize the
the brand loyalty through cause related marketing they should follow of congruency,
To avoid the negative publicity deliver by the customer groups (word of mouth) when
Congruency is the essential values of your company and when dealing with “Cause
Related Marketing” and it creates more values for the customers. When using “Cause
considered. Also when using the cause related marketing of duration in order to build
the trust among you and your company. It helps for the managers to get paining for
against competition. Though cause-related marketing offers huge benefits to both for-
profit organization and equally effective for both parties. So managers can get an idea
about benefits, image, loyalty, sales and positive publicity by using relationship
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Some important limitations of the present study are essential. First, most of
the report results would be still hold in a more representative sample for the Sothern
province. So when doing the future research sample will be more representatives from
other parts of the Sri Lanka. Although we simultaneously tested the effects of the four
design dimensions of a cause related marketing campaign, we did not manipulate each
dimension separately. By doing so, one would be able to assess the relative impact of
The researcher collected the data from the 110 respondents. But that sample size is
The researcher used only yoghurt products. But “Cause Related Marketing” is can use
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List of Reference
Adiwijaya, & Fauzan. (2012). Cause related marketing:The influence of cause - brand
fit,firm motives and attibute altraistic to consumer inferences and loyalty and
Brink, D. V., -schroder, G. O., & Pauwels, P. (2006). The effect of strategic and
Marketing, 25.
Gary, B. (2007). Cause related marketing and its impact on coporate brand image and
Hoeffler, S., & Keller, K. L. (2002). Building Brand Equity Through corporate
societal marketing. Journal of Policy & Marketing.
Hunjara, A. I., Azam, R. I., & Humgyoyn, A. A. (2011). Cause related marketing and
Rajput, S., Tuagi, N., & Bhakar, S. (2013). Social Cause related marketing and its
Rundle, S., & Bennett, R. (2001). A brand for all seasons?A discussion of brand
loyaltya approaches and their appliability for different markets. Product &
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FACULTY OF MANAGEMENT & FINANCE DEPARTMENT OF MARKETING
IMPACT OF CAUSE RELATED MARKETING ON BRAND LOYALTY -2014
Shabbir, s., Kaufmann, H. R., Ahmad, I., & Quieshi, I. (2009). Cause related
Management(BIM), 214.
Zdravkovi, S., Stanely, S., & Magnasson, P. (2010). Dimensions of fit between a
brand and social cause and their influence on attitudes. Research in Marketing,
159.
Zenal, S., Safaring, H., & Mollahosseini, A. (2012). A survey on the impact of cause
Zenali, S., Safarnig, H., & Mollahosseini, A. (n.d.). A survey on the impact of cause
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Appendices
02-10-2013
K.D.NiroshaDamayanthi,
No.528,
Tissapura,
Weerawilla.
Dear Dr.
On behalf of all the authors, I would like to ask you to consider our manuscript
relationship between cause related marketing and brand loyalty. All study participants
provided informed consent, and the study design was approved by an ethics review
Based on the research topic it result was there is positive relationship between cause
related marketing and brand loyalty. It means that the cause related marketing impact
to increase the brand loyalty. We feel that findings from this study will be of special
mail:tslw2013@gmail.com
FACULTY OF MANAGEMENT & FINANCEDEPARTMENT OF MARKETING
A
IMPACT OF CAUSE RELATED MARKETING ON BRAND LOYALTY -2014
This manuscript has not been published and is not under consideration for publication
elsewhere. All the authors have read the manuscript and have approved this
Sincerely,
Department of Marketing
University of Ruhuna
Matara
Sri Lanka
2014 February
Impact cause related marketing on brand loyalty (with special reference to lucky
This questionnaire is developed to gather data to study the Cause related marketing
strategy with special reference to lucky “Dana SithSamajaya “ program .The data
you will be provide will be used only for this research purpose and will be fully
confidential and anonymous. I would appreciate it if you could take a few minutes to
Part I
Strongly
disagree
disagree
neutral
agree
agree
01.I would always think of lucky yoghurt over other
other brands
other brands
brands
brands
brands
yoghurt
brand
Part II
Strongly
Strongly
disagree
disagree
neutral
agree
agree
12.The type of cause that is supported by lucky yoghurt is
cause
term campaign
Part III
18-27
28-37
38-47
48-57
Above58
23. Gender
Male
Female
Rs.5000-10000
Rs.10000-15000
Rs.15000-20000
Rs.20000-25000
Above 25000
Buddhists
Catholics
Christians
Muslims
Hindus
Married
Unmarried
27. Education
Primary
Secondary
Tertiary
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