The Effect of Corporate Social Responsibility on Consumers Emotional Reactions - Essay Example

? Marketing Research Introduction Marketing research has consistently supported the connection between commitment and an organization’s profitability. This recognition of the connection between customer commitment and organizational profitability led to the theoretical establishment of different types of commitment in marketing and different ways of measuring this commitment. This report considers the different forms of customer commitment. Additionally the report specifically considers the means of increasing customer commitment and product loyalty. Analysis Customer commitment has been established through a variety of specific constructs. Achrol, and Mentzer established three forms of customer commitment: affective, instrumental, and temporal commitment.1 Affective customer commitment occurs when a positive attitude towards the future existence of the relationship is demonstrated. A number of approaches have been established in constructing affective customer commitment. One of the most prominent approaches has been through the development of strong brand identity. It’s noted that, “Every organisation has an identity. It articulates the corporate ethos, aims and values and presents a sense of individuality that can help to differentiate the organisation within its competitive environment.”2 Large arrays of approaches to creating brand identity have been established. One perspective embraces corporate social responsibility as strongly contributing to brand identity.3 Such approaches have been embraced by organizations such as Ben & Jerry’s and Starbucks. The recognition being that through creating a socially responsible image, customers will increasingly express long-term satisfaction with the company. Another approach has been the establishment of emotional connections through advertising; this approach is witnessed in brands such as Nike and Coca-Cola.4 In either instance, “By effectively managing its corporate identity an organisation can build understanding and commitment among its diverse stakeholders.”5 In terms of measurement practices, qualitative methods of understanding have been implemented that use focus groups and semi-structured interviews as a means of better understanding customer perceptions. Ultimately, this specific organization could improve affective customer commitment through ensuring that the corporate brand is well maintained. Another of the major forms of customer commitment is ‘instrumental’. Instrumental customer commitment is demonstrated when investment through time or resources is made in the brand relationship. One prominent means of creating customer commitment has been through specific outreach measures referred to as community relationships. It’s noted that, “that marketers can strengthen brand communities by facilitating shared customer experiences in ways that alter those dynamic characteristics.”6 Perhaps the most prominent implementation of these techniques has been witnessed with Harley Davidson and their development of the Harley Owners Group (HOG). It’s noted that this is, "the granddaddy of all community-building efforts serving to promote not just a consumer product, but a lifestyle.”7 In this way, Harley Davidson sponsored its own motorcycle club to improve customer commitment. In terms of measurements, among approaches to customer commitment this approach is perhaps the most easily quantifiable as commitment is established through membership rates and sales of club merchandise. The establishment of this motorcycle club then improved customer commitment as the various Harley owners joined the club and increasingly purchased Harley products. There is the recognition then that as a means of facilitating customer commitment this organization could similarly sponsor outreach groups. The final form of customer commitment is temporal commitment. Garbarino and Johnson8 indicate that temporal commitment is the demonstration that the relationship occurs over an extended period of time. While customer relationships through communities are an important aspect of customer commitment, perhaps more fundamental is the recognition of customer value. Walker et al. notes that, “trust and commitment have become focal constructs in relationship marketing research.”9 Morgan and Hunt further argued that such trust and commitment is established through creating positive experience in past relationships that they contribute to future relationships.10 This perspective has been augmented by social exchange theory that argues that the commitment to stay with an exchange partner depends on how the partners perceive cost and rewards. The pervasive recognition then is that organizations must create positive customer experiences through creating value. Organizations have created value in a number of ways. One considers that in large-part, value is created through the comprehensive approach to organizational efficiency and customer experience. Still, specific inputs can be articulated. In recent years one of the most prominent technology companies, Apple, Inc., has been successful in creating customer value through the dual commitment to product innovation and quality. In this way the company provides cutting edge products, such as the iPod or iPad, with overall efficiency and stability of product design. Other organizations have created customer value through unique market orientations. In this context of understanding, Google, Inc. and Facebook have the unique competitive advantage of being the only companies with the specific technology for their portals. Of course, other organizations have established value through efficient supply chain management practices. In all of these instances, customer value can be understood as strong in that other organizations are not able to compete with the end-line product. Such forms of customer value are necessarily measured through customer perspectives. While qualitative interviews have been implemented, the large-scale empirical nature of quantitative survey data has been more effectively implemented in gauging customer perspectives.11 It’s clear then that the organization can create customer value and subsequently temporal commitment through focusing on creating competitive advantage and carefully attenuating overall business strategy to customer perspectives. Conclusion In conclusion, this essay has examined customer commitment. In this context of understanding it’s revealed that the three main forms of customer commitment are affective, instrumental, and temporal. These forms of customer commitment have been established through a variety of inputs, including brand identity, customer community relationships, and value relationships. Specific means of measuring these elements are established. Additionally, specific examples of real-work examples are provided. Finally, recommendations for achieving these aims are established. Ultimately, these divergent forms of customer commitment then must be considered as a comprehensive approach to business strategy. References Achrol, David and Mentzer, John. “The Structure of Commitment in Exchange,” Journal of Marketing, 59 (1995): p. 78 Balmer, Andew. ‘Corporate Identity as Value Model’ Corporate Strategy and Innovation Management. Vol. 54, 1 (1998). 5 Denove, Chris. Satisfaction: How Every Great Company Listens to the Voice of the Customer, Portfolio Management. Vol. 30, (2), (2007): 10-12 Garbarino, Ellen; Johnson, Mark S. , “The Different Roles of Satisfaction, Trust, and Commitment in Customer Relationships,” Journal of Marketing, 63 (2). (1999): 70-87. Homans, George. “Social Behavior as Exchange,” The American Journal of Sociology, 63 (1958), 597-608. Isabella, Tzara. Alliance Competence: Maximizing the Value of Your Partnerships, Industrial Marketing Management, 26 (2), (1997): 91. McAlexander, Jason., Schouten, John. & Koening, Henry. Building Brand Community. Journal of Marketing: Vol. 66, No. 1. (2002) pp. 38-54. Morgan, Robert M. and Shelby D. Hunt, “The Commitment-Trust Theory of Relationship Marketing,” Journal of Marketing, 58 (1994), 20-38. Thomas, Richard. “Corporate Social Responsibility: Theoretical Considerations and Empirical Results from a Supplier's Perspective”, Industrial Marketing Management, 30 (4), (2001): 365-377. Walter, Charles., et al. ‘Delivering Relationship Value: Key Determinant for Customers' Commitment.’ Corporate Strategy and Innovation Management. Vol. 24, No. 2. (2001). 5-12. 2. Introduction A marketing professor claimed: “Customer satisfaction isn’t good enough anymore... we need to account for the customer’s emotions… how they feel about us deep inside their hearts”. Within the marketing industry this perspective has taken hold as organization’s shift from the traditional approach that implemented product-positioning statements, to the new emotional branding approach. This is the recognition, as the marketing professor indicated, that emotions are perhaps the primary determinant in purchasing patterns. This essay examines the role of emotions in marketing, and provides examples of how emotions can help sell Starbuck’s coffee. Analysis In understanding the role emotions plays in marketing there is the recognition that marketing theorists have established a number of models. Nyer considered emotions in terms of specific physiological divisions.12 In this way there is the differentiation between outcome-desire fulfillment and outcome-desire conflicts. In the first instance, the consumer’s beliefs in purchasing the product would be fulfilled through the creation of the value of inputs. In the later -- outcome-desire conflicts -- the consumer’s purchase enacts a negative response. Within this mode of understanding there is the consideration that consumer emotions are oftentimes embedded in a relationship with the specific product. In establishing a positive emotional response in the consumer, it is then necessary to create a positive emotional experience. The role of establishing this out-come desire fulfillment then can be partly understood to occur in value creation. Within Starbucks one of main tenants of ensuring outcome-desire fulfillment would be through product consistency. Beverly notes that this even involves ensuring the noise of the coffee making machines are kept to a minimum.13 While Starbucks already implements a franchise model that places great emphasis on uniformity throughout each store environment, the organization could work to further establish these practices as a means of ensuring positive emotions. This approach to outcome-desire fulfillment can also be established through retaining high quality products and ensuring they are delivered to the customer in a fast and efficient way that is attenuated to their expectations. One prominent way emotions have been implemented in marketing practices is through branding practices. Branding is recognized as, “fundamental strategic process that involves all parts of the firm in its delivery.”14 While branding necessarily involves consumer relationships and other various forms of organization-consumer interaction, the pure nature of advertising and marketing has often been strategically undertaken with emotions in mind. Edell and Burke established one of the landmark studies viewers’ emotional responses to advertisements.15 This study established 52 means of gauging emotion response towards advertisements. Holbrook and Batra similarly implemented this approach; however, their study concluded that advertisements should target please, arousal, and domination categories.16 For Starbucks then it’s necessary for advertisements to target pleasure and arousal emotions. In terms of arousal emotions advertisements could highlight the act on consuming Starbucks coffee or could film shots of the beans being prepared or even food assortments that are sold in stores. In terms of pleasure emotions, the advertisements would be effective if they highlighted the enjoyment individuals gain from attending Starbucks coffee stores and drinking coffee, socializing, and meeting new people. In gaining a deeper recognition of the ways that consumers directly interact with brands, Fournier argues researchers should identity, “the phenomenological significance of consumer-brand bonds.”17 In this way emotions in marketing can be understood in terms of the bonds established between the customer and the specific product. Muniz and O’Guinn recognize that in terms of a branding community involves “a specialized, non-geographically bound community, based on a structured set of social relations among admirers of a brand.”18 There is the recognition then that companies that have successfully implemented this strategy have done so through creating unique communities based on established ideals.19 Apple, Inc. established a loyal community of Macintosh users that opposed the then mainstream PC status quo. Harley Davidson created a community emotionally attached to its motorcycles based on the ideals of personal freedom and rugged individualism. Starbucks in many ways has been successful in establishing an emotional community connection through its specific store environments. In addition to the well-established decor, these store environments implement specifically chosen music as a means of heightening the atmosphere. Further considerations are given to the name of the coffee sizes. Rather than using traditional small, medium, large sizes, Starbucks implemented the Italian venti and tall sizes. The cumulative impact of these elements allows the company to create a community connection with the consumer that extends the emotional involvement beyond the simple consumption of the product. Another prominent consideration in terms of emotion is the consumer’s emotional connection to the brand itself. One of the prominent methods of establishing positive consumer emotions has been through corporate social responsibility measures. Assiouras, argue that in this way the brand itself is viewed as embodying many of the qualities of the practices they participate.20 Stayman and Aaker further considered the way that informative advertisements often enact an emotional response in the viewer’s mind.21 In this context of understanding, they argued that advertising repetition containing specific information eventually results in a shift in attitude and emotion towards the specific brand. In successfully implementing these emotional practices then it is necessary for Starbucks to engage in a targeted social responsibility plan that is in-line with the specific image they are trying to convey. This positive image then should be established through repetition in advertising and marketing campaigns. Conclusion In conclusion, this essay has examined the way emotion is implemented in marketing. In this context of understanding it’s demonstrated that emotions have been considered in terms of outcome-desire fulfillment. Another prominent method is pleasure or arousal in advertising. Community-brand relationships are examined as embodying consumer emotions. Finally, corporate social responsibility and emotions are examined as they contribute to consumer emotion perceptions and connections. These considerations then are articulated in terms of how Starbucks can use them to increase profitability. References Assiouras, Issous.. The Effect of Corporate Social Responsibility on Consumers’ Emotional Reactions. American Marketing Association. 27 (2) (2011): 232 Beverly, Williams. ‘What Should Starbucks do to ‘better survive and prosper’?’. Harvard Business Review. 79, 1. p. 1-8 (2007): 6 Edell, Jason. Burke, Mark. ‘the Power of Feelings in Understanding Advertising Effects’ Journal of Consumer Research 14. (1987) p. 421-433 Fournier, Steven. Consumers and Their Brands: Developing Relationship Theory in Consumer Research. Journal of Consumer Research. Vol. 20, No. 3. (1998): 1 Geoffery. Richard. Branding: A practical guide to planning your strategy. Journal of Marketing. 43, 2. (2000): 32 Holbrook, Mark. Batra, Ricardo. Assessing the Role of Emotions as Mediators of Consumer Responses to Advertising.’ Journal of Consumer Research. 14. (1987): 404-420. McAlexander, Jason., ‘Building Brand Community’, Journal of Marketing: Vol. 66, No. 1, (2002): pp. 38-54. Muniz, A. M. Jr. & O’Guinn, Todd. Brand Community. Journal of Consumer Research, 27 (2001), 412-32. Nyer, Prashanth. The Role of Emotions in Branding. Journal of the Academy of Marketing Science Spring 1999 vol. 27 no. 2. (1999): 184-206 Stayman, David, AAker, Douglas. ‘Are All the Effects of Ad-Induced Feelings Mediated by Aad?’ Journal of Consumer Research. 15. (1988): 368 Read More