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Abstract
The following report is a study done to ascertain the impact of cause related marketing on brand
awareness with special reference to Cargills Agriculture and Commercial Bank, Colombo, Sri
Lanka. Initially, from an exploratory research, the researcher understood that the brand
awareness of Cargills Agriculture and Commercial Bank is not at a satisfactory level compared
to the competitors. Additionally, the exploratory research found lack of strategic marketing
initiatives as the route cause for weaker brand awareness of Cargills Agriculture and
Commercial Bank. Therefore, the aim of this study is to determine whether Cargills Agriculture
and Commercial Bank could strengthen its brand awareness through cause related marketing.
The researcher constructed three objectives for this study with reference to the research
problem. In the first two objectives, the researcher focused on obtaining a deeper theoretical
and empirical understanding on the concepts of cause related marketing and brand awareness.
The third objective aims to analyse the relationship between the two concepts. Through the
literature review, the researcher constructed a hypothesis stating that “there is a positive
relationship between cause related marketing and brand awareness.” Together with the
literature review, the research is implemented on the mixed approach where both quantitative
and qualitative analysis are been conducted. The population of this study is determined as the
customers of Cargills Agriculture and Commercial Bank. Thereby, in order to collect the data,
the researcher randomly distributed questionnaires to 60 customers taken from the bank’s head
office in Colombo. Additionally, the qualitative analysis was based on interviews where the
researcher interviewed 10 customers of the same sample, in order to obtain the customers’
perspective about the relationship between cause related marketing and brand awareness with
regard to Cargills Agriculture and Commercial Bank. In the qualitative analysis, the researcher
identified that when the customers believe that cause related marketing initiatives could
enhance the brand awareness of Cargills Agriculture and Commercial Bank. As a result of this
the competitiveness and the stability of the bank will be improved.
This study has been carried out to find the relationship and the impact made by Cause Related
Marketing activities on the brand awareness of a business. The researcher has identified the
relationship that exists between the Cause Related Marketing activities and initiatives and the
brand awareness. Through qualitative and quantitative analysis, the researcher has thus been
able to ascertain that there is a positive relationship between these two concepts which will lead
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to an increase or betterment of business performance when they are performed combined with
the Corporate Social Responsibility initiatives that would therefore contribute to the
enhancement of the performance of a business in terms of it’s improvement in market share and
financial profitability as well. From this outcome it can be understood that Cause Related
Marketing (CRM) could be considered as a factor in determining how well a business can
perform and how well it will survive in the industry. Therefore based on the quantitative and
qualitative analysis, the researcher has arrived at the conclusion that cause related marketing
has a positive impact on brand awareness.
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List of figures
Figure 1 , Source: Author developed............................................................................................ 11
Figure 2 , Source: Author developed............................................................................................ 20
Figure 3 , Source: Author developed............................................................................................ 22
Figure 4 , Chart 1 .......................................................................................................................... 32
Figure 5 , Chart 2 .......................................................................................................................... 33
Figure 6 , Chart 3 .......................................................................................................................... 37
List of Tables
Table 1 , Source: Author developed............................................................................................. 21
Table 2 .......................................................................................................................................... 34
Table 3 .......................................................................................................................................... 35
Table 4 .......................................................................................................................................... 36
Table 5 .......................................................................................................................................... 37
Table 6 .......................................................................................................................................... 38
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Table of Contents
1.0 Introduction............................................................................................................................ 8
1.1 Background ........................................................................................................................... 8
1.2 Problem formulation............................................................................................................ 10
1.3 Research Objectives........................................................................................................... 10
1.4 Research Questions............................................................................................................ 10
1.5 Significance of the study..................................................................................................... 10
1.6 The Structure....................................................................................................................... 11
2.0 Literature Review.................................................................................................................. 12
2.1 Introduction.......................................................................................................................... 12
2.2 What is “Cause Related Marketing” (CRM)?...................................................................... 12
2.3 What is Brand Awareness?................................................................................................. 15
2.4 The relationship between Cause Related Marketing and Brand Awareness .................... 15
2.5 Gap Analysis ....................................................................................................................... 16
3.0 Methodology.......................................................................................................................... 20
3.1 Introduction.......................................................................................................................... 20
3.2 Conceptual Framework....................................................................................................... 20
Hypothesis................................................................................................................................. 21
3.3 Data variables ..................................................................................................................... 21
3.3.1 Operationalisation Table .............................................................................................. 21
3.4 Identifying the layers of the research - “Research Onion” model ...................................... 22
3.4.1 Philosophical stance – Critical Realism ....................................................................... 22
3.4.2 Approach - Deductive................................................................................................... 23
3.4.3 Research Strategy........................................................................................................ 23
3.4.4 Research method – Mixed ........................................................................................... 23
3.4.5 Time Horizons – Cross Sectional................................................................................. 24
3.5 Data Collection and analytical techniques.......................................................................... 24
3.5.1 Questionnaire ............................................................................................................... 25
3.5.2 Interviews...................................................................................................................... 26
3.6 Ethical Issues...................................................................................................................... 24
3.7 Chapter Summary............................................................................................................... 24
4.0 Data collection and field work............................................................................................. 26
4.1 Introduction.......................................................................................................................... 26
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4.2 Sample ................................................................................................................................ 26
4.3 Rational ............................................................................................................................... 26
4.3 Area / Region – Field work.................................................................................................. 27
4.4 Piloting the questionnaire.................................................................................................... 27
4.5 The rate of response........................................................................................................... 28
4.6 Chapter Summary............................................................................................................... 31
5.0 Data Analysis and interpretation........................................................................................ 32
5.1 Introduction.......................................................................................................................... 32
5.2 Demographic Analysis........................................................................................................ 32
5.3 Descriptive Analysis............................................................................................................ 35
5.4 Reliability and Validity test.................................................................................................. 33
5.5 Correlations ......................................................................................................................... 34
5.6 Linear Regression............................................................................................................... 35
5.7 Coefficients.......................................................................................................................... 36
5.8 Analysis of the interviews.................................................................................................... 40
5.9 Chapter Summary............................................................................................................... 42
6.0 Findings and the discussion............................................................................................... 43
6.1 Chapter Introduction............................................................................................................ 43
6.2 Testing the hypothesis ........................................................................................................ 43
6.3 Demographic analysis......................................................................................................... 44
6.4 Chapter conclusion ............................................................................................................. 43
7.0 Conclusion and Recommendations................................................................................... 44
7.1 Conclusion........................................................................................................................... 44
7.2 Recommendations .............................................................................................................. 44
8.0 Future opportunities for research ...................................................................................... 46
9.0 Individual reflective report................................................................................................... 47
10.0 References........................................................................................................................... 51
11.0 Appendix.............................................................................................................................. 57
11.1 Questionnaire.................................................................................................................... 57
11.2 Consent Letter – Interviews .............................................................................................. 58
11.3 Interview Questions........................................................................................................... 64
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The impact of “Cause Related Marketing” (CRM) on “Brand Awareness”.
(Special reference to “Cargills Agriculture and Commercial Bank Pvt. Ltd.”, Sri Lanka)
1.0 Introduction
1.1 Background
It could be argued and more likely be observed as well; that the actions of a corporation for
which it is responsible, could be segregated mainly into four different forms or levels based on
their level or the degree of their engagement with the wider society and the civic. At the basic
level, firms would practice the strategy recognised and termed as the “Responsible Corporate
Citizenship” (RCC) which would be focused on championing a social cause and would be built
on the concept of social giving. The next level of strategy to be followed in the process is termed
as the “Cause Related Marketing” (CRM), where the corporation; whilst getting engaged in
worthy causes that would serve and nourish the enrichment of the standards of the society,
would focus on building and or improving it’s reputation and brand awareness during the
process. At the third level, strategic “Corporate Social Responsibility” (CSR) attempts to go
beyond raising the profile of the corporation, and improves the competitive context in which it
operates. Finally at it’s peak of engagement with the society, the corporation attempts to create
a market space in which people who are socially and economically disadvantaged are located.
This strategy is termed as “Socially Responsible Business” (SRB) with CSR being the very
purpose on which it is built on and reason for it’s existence (Liyanage, 2005).
Cargills Agriculture and Commercial Bank Private Limited, Sri Lanka; is the newest addition to
the Cargills group of companies and to the list of licensed commercialized banks of Sri Lanka,
which has being the only bank to be licensed by the Central Bank after a laps of decades in the
banking and finance sector. “Cargills Ceylon Plc” was founded by the two British entrepreneurs
“William Miller” and “David Sime Cargill” back in 1844, during the colonial ruling era of Sri Lanka
and was established in the land mark building known to date as the “House of Cargills” in the
“Colombo Fort” area. In 1981 the company went into the hands of two reputed local business
typhoons, the “Page” brothers and got incorporated into their parent company known as the
“Ceylon Theaters Plc”. Cargills group became the pioneers of retail supermarket business in Sri
Lanka by establishing the first supermarket chain back in the year 1983 and took the pride of
introducing the supermarket shopping concept to Sri Lanka. The group today engages in a
range of businesses within the food and beverages sector and has been expanding their
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operations venturing into related areas of business such as meat processing, dairy products
such as ice cream manufacturing, agriculture processing with a range of products such as jam
and cordial and also acquired the franchise license for KFC (Kentucky Fried Chicken). The
company has also ventured into biscuit manufacturing and has entered into soft alcohol industry
as well, practicing strategic horizontal integration.
Cargills Agriculture and Commercial Bank being newly established (opened on April 2014), has
ventured into a highly competitive and an aggressively expanding arena which consist of a
number of both local and multinational banks and finance companies, all engaged in a heavily
raged battle to acquire more market share and expand in order to play significant role in the
quest of making the Asia’s next growth story in Sri Lanka, defined as the miracle of Asia, a
success. The bank being newly set up with only one branch along with the head office, is being
challenged with the quest of getting itself established as a commercialised bank in Sri Lanka
and carving it’s market share amidst heavy competition by winning over the confidence of the
potential clientele both retail and institutional.
Cargills super market chain which operates under the brand “Cargills Food City”, the prime
jewel of Cargills group has being able to successfully stay ahead of the heavy competition by
implementing a unique and an innovative “Corporate Social Responsibility” strategy which has
created a mutually beneficial partnership for both the farmers and the company. “Cargills Food
City” supermarket chain has initiated a backward integration strategy where the company has
implemented a process of reaching the farmers at their door step and purchasing fruits,
vegetables rice and milk directly from the farmers thus eliminating the costly intervention of the
intermediaries. The supermarket chain has therefore being able to provide the fruits,
vegetables, rice and dairy products at the best possible price to the consumers and pays around
20% more to the farmers for their products than the market does. Moreover it underwrites the
loans granted by the banks and facilitates collaborative arrangements that a number of NGO s
(Non Governmental Organisations) has with farmers in setting up cleaning and packaging
centers.
1.2 Problem formulation
Therefore in considering the current strategies and processes followed by the prime subsidiaries
of the group; in order to successfully establish itself in the minds of the target clientele and also
to successfully survive and operate sustainably amidst of the heavy competition, facing a very
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strong set of local and multinational competitors; this research intend to study the possibilities of
improving the “Brand Awareness” of the emerging subsidiary, “Cargills Agriculture and
Commercial Bank” through setting up a strategic “Cause Related Marketing” campaign which
could be successfully linked to the current strategies and operations of the rest of the
subsidiaries in the group such as the “Cargills Food City”. In order to further analyse and
examine the impact that could be created by a CRM process, the concepts of “Cause Related
Marketing” and “Brand Awareness” will be analysed in detail through the next chapter.
1.3 Research Objectives
1. To examine the concept of “Cause Related Marketing”.
2. To examine the concept of “Brand Awareness”.
3. To analyse the relationship between “Cause Related Marketing” and “Brand
Awareness”.
1.4 Research Questions
1. What is “Cause Related Marketing”?
2. What is “Brand Awareness”?
3. What is the relationship between “Cause Related Marketing” and “Brand Awareness”?
1.5 Significance of the study
At the basic level this study will enable the researcher to obtain academic knowledge about the
concepts of “Cause Related Marketing” and “Brand Awareness” and their link to other corporate
strategies such as “Corporate Social Responsibility”. Also this study will also provide an
understanding on how to apply these concepts in practice in order to implement them and
obtain successful results whilst facing heavy competition, for a newly established and an
emerging entity such as the “Cargills Agriculture and Commercial Bank”. The study will enable
the researcher to explore into new knowledge horizons and to understand impact that could be
made to the society and to improve the awareness in the society on the importance of
performing CRM activities. By increasing the social and corporate awareness on CRM, it is
expected to create changes, made in policies at organizational level.
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The researcher also seek to improve the stakeholder awareness levels towards the level of
improvement in brand awareness, that will be created by CRM activities which would ultimately
contribute towards improving an organisation’s performance, thus trying to establish a link;
between the strategy CRM and the brand awareness of an organization; through CRM
practices.
1.6 The Structure
The structure of this research is formulated as follows,
Figure: 1 Source: Author developed.
CHAPTER ONE: INTRODUCTION
CHAPTER TWO: LITERATURE REVIEW
CHAPTER THREE: RESEARCH DESIGN AND
METHODOLOGY
CHAPTER FOUR: DATA ANALYSIS
CHAPTER FIVE: DATA COLLECTION
CHAPTER SIX: DATA INTERPRETATION
CHAPTER SEVEN: CONCLUSION AND
RECCOMMENDATIONS
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2.0 LiteratureReview
2.1 Introduction
In chapter two, the researcher intends to discuss the theoretical aspect of the variables and
subsequently analyse the research questions and ascertain the relationships that exist among
each of the concepts mentioned above in the previous chapter, by using the recommended and
accepted literature from different scholars and authors.
2.2 What is “Cause Related Marketing” (CRM)?
The emergence of the concept of “Cause Related Marketing” could be traced back to the early
1980s where it emerged as an effective tool of marketing communication, which was based on
the idea of shifting a corporation’s focus from consumer needs to consumer interests. The
concept was initially practiced by “American Express” campaign which was aimed to raise funds
for the restoration of the “Statue of Liberty”. Every time the credit cards were used, the company
made a donation of two cents to the Statue of Liberty. Subsequent to this campaign eventually
the number of card holders grew by 45% and the card holders grew up by 28% (Liyanage
2014). In this case the “Cause Related Marketing” campaign was based on the idea that
involved with the promise to donate a certain amount of money to a non profit organisation or a
social cause when the customers purchased it’s products or services (Nan and Heo, 2007).
“Cause-Related Marketing” (CRM) could also be defined the public association of a profit
oriented company with a non-profit organization or a cause, intended to promote the company’s
product or service and to raise money for the non-profit. “Business in the Community”, a UK
based business-led charity focused on promoting responsible business practice, more popularly
defines CRM as ‘a commercial activity by which businesses and charities or good causes form a
partnership with each other to market an image, product or service for mutual benefit’.
Vardarajan and Menon (1998) as cited by Nan and Heo (2007), categorised CRM among the
CSR strategies that “Do Better By Doing Good”.
Cause-related marketing is a marketing-driven activity. Parties, be they businesses, charities or
good causes, enter a cause - related marketing relationship in order to meet their objectives and
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to receive a return on their investment, where that investment may be in cash, time or other
resources, or a combination of all. Vardarajan and Menon (1988) defined CRM as “the process
of formulating and implementing marketing activities that are categorised by an offer from the
firm to contribute a specified amount to a designated cause when customers engage in revenue
providing exchanges that satisfy organizational and individual objectives”. As a type of CSR,
Cause Related Marketing has received particular corporate interest. This is due to the fact that
especially CRM might have positive effects on consumer behaviour (Zen and Bhattacharya,
2001). There has been numerous studies and research done on the impact of CRM on a variety
factors such as the consumer choice (Baron et al. , 2000), consumer purchase decisions (Webb
and Mohr, 1998), consumer attitudes towards CRM ( Barnes, 1992) and the impact made by
CRM towards companies that engage in such marketing initiatives (Webb and Mohr, 1998).
However Cause Related Marketing initiatives of a corporate could carry multiple messages
which could lead to the generation of different contradictory perceptions in customer’s mind on
whether the effects of CRM campaign could be beneficial or exploitative in terms of the cause.
There can be skepticism arising towards the initiatives in a consumer’s mind questioning the
fact that whether a company’s support of a social cause is genuinely designed to benefit the
cause or the company (“Report: Consumers Swayed” 1997; Smith and Stodghill 1994; Webb
and Mohr 1998) as cited by Barone et al.(2000). Therefore it could be ascertained that the
perception that the consumer hold in their minds about the genuineness of purpose, could
directly affect the effectiveness of the CRM strategies that are designed in order to influence the
consumer choice.
Scholars such as Drumwright (1996); Strahilevitz and Myres (1998), as cited by Nan and Heo
(2007), have suggested the existence of a relationship between the sponsoring brand and the
social cause involved in the CRM campaign. The level of success in coining this brand/cause fit
has proven to have a significant impact on improving the consumer perception towards the
company, brand and or product. By trying to influence the perception and attitudes that is held
by a consumer towards a company, brand or a product CRM could be identified as a strategy
which focuses more on stimulating the consumer interests rather than the needs. Thus it could
be argued that CRM tries to deviate the consumer’s mind from the needs that the person has
towards the interests that a person would have on the factors such as the well being of both the
person and/ or the society. Therefore through an effective CRM strategy, consumer loyalty
could be generated which would make the consumer spend more sometimes by giving
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preference to the CRM related brand over other similar competing brands which would offer the
same product at a lesser cost, thus placing his or her interest ahead of their needs.
In employing the company resources to a worthy cause by utilising the funds raised through the
sales of each product or service. According to Vardarajan and Menon (1988), as cited by van
den Brink et al. (2006) a CRM campaign aims at two objectives i:e; to support a social cause
and to improve the marketing performance. Therefore CRM programs are made responsible for
at least three key stake holder parties as the firm’s consumers, it’s shareholders and one
stakeholder not directly related to the commercial activity of the firm. CRM can be categorised
into two types as tactical CRM and Strategic CRM.
Strategic CRM is characterized by high senior management involvement, higher amount of
invested resources and a long term commitment towards the CRM campaign which will increase
the duration of the campaign comparatively. Tactical CRM on the other hand lasts for a short
period of time (Till and Nowak, 2000 and Drumwright and Murphy, 2001, cited in van den Brink
et al. 2006). Also the congruency between the cause and a company’s core competency is high
in Strategic CRM in comparison to Tactical CRM. Tactical and Strategic CRM differ from each
other mainly on the following four dimensions,
01. The congruency between the cause and a company’s core competency (Pracejus and
Olsen, 2004 as cited in van den Brink et al. 2006).
02. The duration of a campaign (Till and Nowak, 2000 as cited in van den Brink et al. 2006).
03. The amount of invested resources (Macleod, 2001; and Welsh, 1999 as cited in van den
Brink et al. 2006).
04. The degree of senior management involvement (Macleod, 2001; Miller, 2002 as cited in
van den Brink et al. 2006).
However CRM programmes can have mixed characteristics of both strategic and tactical CRM
with high and low correspondence of afore stated dimensions and therefore the CRM
campaigns do not necessarily has to be classified as tactile or strategic ( van den Brink et al.
2006).
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According to Ellen et al. (2000) corporate can be characterised as either extrinsically or
intrinsically motivated in their CRM campaigns, where, intrinsically motivated companies
considers the CRM programmes to be rewarding in itself, while the extrinsically motivated
companies will be looking for rewards from the environment for their effort.
2.3 What is Brand Awareness?
It is still debatable as to how industrial brand equity which comprises of brand loyalty, perceived
quality, brand awareness, brand association and brand satisfaction; could arise or originate.
Numerous studies have been done to ascertain the components of brand equity and aspects
which would lead to the creation of a competitive advantage to the business. Brand awareness
is considered to be the first dimension distinguishing the brand knowledge in consumer’s mind
and is related to strength of the brand node or trace in memory, as reflected by the consumer’s
ability to identify the brand under different conditions (Rossiter and Percy 1987, cited in Keller
1993).
Jones (2005) in his “Daisy – Wheel” model of brand equities has suggested that brand equity
forms by generating creative interactions between the brand and it’s stake holders. Therefore
social responsibility initiatives originated by companies, forms an important linkage between the
brand recognition and customer expectations. Cause – related marketing (Vardarajan and
Menon, 1988) concept was built on the idea of creating socially responsible attributes infused
into the brand and through that to differentiate the products in order to enhance sales. Brand
awareness could be defined as the basic level of knowledge that a consumer would have on a
particular brand involving at least of knowing the brand name. It could range from the
customer’s simple recognition of the brand name to a developed cognitive structure based on
detailed information (Hoyer and Brown 1990). Rossiter and Percy (1987) describe brand
awareness as being essential for the communications process to occur as it precedes all other
steps in the process. Without brand awareness occurring, no other communication effects can
occur. For a consumer to buy a brand they must first be made aware of it. Brand attitude cannot
be formed, and intention to buy cannot occur unless brand awareness has occurred (Rossiter &
Percy 1987; Rossiter et al. 1991, cited in Macdonald and Sharp 1996). When a customer
purchases a product, if a particular brand drive to the mind of the customer first, then it implies
that the particular brand has higher brand awareness (Malik et al. 2013). Therefore, it is evident
that and organisation could effectively crave it’s share and establish itself successfully in a
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favorable position in the target market through creating effective brand awareness for it’s
products or services.
According to Macdonald and Sharp (1996), the purchase decision of the consumers is
influenced by brand awareness, despite whether the consumers are the familiar and willing to
buy the product. Brand awareness can be referred to as the probability that the consumers are
familiar about the accessibility and the availability of a particular brand (Aaker, 1991). According
to Keller (1993), brand awareness refers to the likelihood that a particular brand name will
derive to the minds of the consumers easily and suggests that brand awareness consists of
brand recognition and brand recall performance of the customers. Brand awareness is
considered to be the first dimension distinguishing brand knowledge (Keller, 1993, p: 3).
Brand awareness is been considered to play a crucial role in determining the consideration set
i:e; the small set of brands onto which a consumer would give serious attention when making a
purchase decision (Macdonald and Sharp 1996, p:1). It is ascertained through many
researchers, the fact that, when the brand awareness is higher for an organisation, it will enable
the organisation to attract more consumers, as the normal behavior of consumers is that they
react for familiar, more aware and reliable brands rather than testing new brands which is a risk
(Kayaman and Arasli, 2007). Wilson (1981) as cited by Macdonald and Sharp (1996)
ascertained the fact that higher the brand positioning in consumer’s mind which could be
measured by unaided recall, stronger will be the intention to select and purchase a particular
brand over the others.
It is argued that the awareness on a brand has a significant impact on the first purchase of a
product by a customer. The model of Ray et al (1973) suggested that the first purchase of the
product should be followed by trial and evaluation and subsequent purchases will be based on
the result of the trial and error purchase (Smith and Swinyard 1983, as cited by Hoyer ad Brown
1990). Brand awareness will eventually reduce the consideration on the choices available in
consumer’s mind and will encourage the consumer to select the particular brand that he or she
is familiar repeatedly.
Therefore it is ascertained that the Brand Awareness is an important factor in consumer
decision making for three main reasons. Firstly it will make the brand included into the
consideration list in customer’s mind when making a purchase, secondly it will affect the
customer’s purchase decision even if there are no other brand associations with the brand for
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the customer and finally it’ll affect the decision making by influencing the formation and strength
of brand associations in the brand image.
2.4 The relationship between Cause Related Marketing and Brand Awareness
The consumer’s perception on the ethical existence and corporate citizenship on which there
may be an impact created by the “Cause Related Marketing” (CRM) activities and strategies
carried out by the business, would in turn create positive brand awareness or brand association
that would lead to brand loyalty and brand satisfaction based on the perceived quality of the
products.
It is still debatable as to how industrial brand equity which comprises of brand loyalty, perceived
quality, brand awareness, brand association and brand satisfaction; could arise or originate.
Numerous studies have been done to ascertain the components of brand equity and aspects
which would lead to the creation of a competitive advantage to the business. It is evident that
there are very few researches done to ascertain the relationship between “Brand Awareness”,
CRM activities and customer perception.
Jones (2005) in his “daisy – wheel” model of brand equities has suggested that brand equity
forms by generating creative interactions between the brand and it’s stake holders. Therefore
social responsibility initiatives originated by companies, forms an important linkage between the
brand awareness and customer expectations. “Cause Related Marketing” (Vardarajan and
Menon, 1988) concept was built on the idea of creating socially responsible attributes infused
into the brand and through that to differentiate the products in order to enhance sales. Brickely
et al. (2002) as cited by Lai et al. (2010), acknowledged that a company’s reputation for socially
responsible behaviour contributes significantly to the improvement of it’s brand capital.
In building the brand awareness of a product via CRM, it is considered to be important that the
promoters correctly matches the brand and cause fit, i:e; a brand to be fixed with a social cause
which would serve a similar consumer base (Nan and Heo, 2007). For example an infant milk
powder producer could organise a free medical clinic for pregnant ladies in particular area.
Higher the brand/cause fit, the success of the CRM campaign will be more which will lead to the
enhancement of brand awareness.
A customer to ignore the physical factors of a product such as the performance and the price
which are prioritised in purchase decision making, than the CRM campaigns, there should be
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strong moral attributes that the customer will pay his attention on (Baron and Spranca 1997;
Tversky et al.1998, cited in Baron et al. 2009), where customers will use all available
information in order to consider switching from a product which is better in performance and/or
price; to a product with positive CRM associations (Keeney and Raifa 1976; Von Neumann and
Morgenstern 1947, cited in Baron et al. 2009). Therefore it is evident that positive CRM
campaigns could effectively enhance the level of brand awareness of a product enabling the
product to overcome even crucial physical attributes such as performance and price, building a
sustainable competitive advantage, ensuring the existence of a business amidst strong
competition.
2.5 Gap Analysis
It is evident that there are very few researches done to ascertain the relationship between brand
awareness, CRM campaigns and the customer perception. Therefore when going through the
definitions and analysis suggested by various scholars and researchers on brand awareness
and the impact created on it by CRM activities, it is evident that many has tried to link the impact
made by CRM activities to the corporate reputation only through which the brand awareness of
the products of a company is been enhanced. While agreeing to this school of thought I would
disagree on the fact that this would be considered as the most effective way of enhancing the
brand awareness of the products. Even though theories such as “Cause Related Marketing”
suggests the differentiation of products by infusing CSR attributes into the brands it is evident
that there have not been a considerable effort taken to examine the process being carried out
other way round i:e; trying to create and enhance brand awareness of the company’s products
or product category via performing related specific CRM activities or campaigns which could
eventually lead to the improvement of the reputation of the corporation, taking the “brand and
cause fit” into consideration, as discussed in the early section.
However there can also be negative effects created on building a brand’s awareness and an
organisation’s reputation due to the fact that the companies trying to initiate CRM campaigns
largely based on the intention of maximising the corporate earnings and share holder wealth
and thus deviate from the core values of the concept of ensuring the ethical existence and
positive contributions towards improving the standards of the existence of a society in which
they operate. Therefore focusing heavily on CRM activities as a means of enhancing corporate
wealth could jeopardize the corporate reputation. However as discussed earlier in the beginning
of the chapter (“What is CRM” section), such problems may appear in visible CRM as part of
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CSR initiatives that are connected to benefit salience (Yoon et al. 2006), in which firms are
believed to use CSR only for their own self - interest (Prout, 2006) as cited by Torres (2012).
“Cargills Agriculture and Commercial Bank”, the company which the researcher has employed
for this research needs to analyse it’s competitors, in practicing this strategy in the Banking and
finance sector in Sri Lanka and has should focus on developing creative and mutually beneficial
CSR projects that go in line with different product lines of the bank. Therefore in identifying the
gap of the need of analysing the impact that could be made by related CRM activities on
building product specific brand awareness, the researcher intends to study the impact to the
bank using data being gathered by sample of customers of the bank.
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3.0 Methodology
3.1 Introduction
This section contains the conceptual framework constructed based on the objectives and
explained according to the findings in the literature review section. The data and variables will
then be explained and their use to achieve the objective of the research will be justified. The
methods used to measure the variables will also be mentioned. Empirical model will be given
followed by a description of the sample used to gather primary and secondary data. The
rationale behind composition of the sample and it’s size and also the area from which the
sample was selected will be described. The data collection methods will then be stated and will
be justified along with the description about the questionnaire in terms of the questions included
and the reasoning behind the composition of the questionnaire will also be elaborated.
3.2 Conceptual Framework
The impact of “Cause Related Marketing” (CRM) on “Brand Awareness” with special
reference to “Cargills Agriculture and Commercial Bank” Private Limited.
Figure 2, Source: Author developed.
Hypothesis
 There is a positive relationship between “Cause Related Marketing” and “Brand
Awareness”.
Cause Related
Marketing
Brand Awareness of
“Cargills Agriculture and
Commercial Bank”
Independent Variable Dependent Variable
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As indicated the conceptual framework provides the logic on how the end goal of the research
will be achieved i:e; to ascertain the impact made by Cause Related Marketing campaigns on
improving the brand awareness which would eventually lead to the improvement of the
company’s performance. The factors affecting the decision of the management of the business
to perform Cause Related Marketing activities, would be the need to improve the brand
awareness and to ensure the sustainable existence of the business through which the customer
perception towards the products and the services offered by a company would improve, which
would create customer loyalty which could also be considered as a sustainable competitive
advantage.
3.3 Data variables
In this research the researcher has taken the independent variable that would affect the need to
perform initiatives by companies as, the Cause Related Marketing strategy which would lead to
the improvement and successful performance of the dependent variable which is the brand
awareness of the “Cargills Agriculture and Commercial Bank”. The dependent variable is
measured using secondary data sources such as the company’s publications and also other
related publications.
3.3.1 Operationalisation Table
Variable Variable Type Measurement
Cause Related Marketing
 Relevance to the operations.
 Importance to the operations.
Independent
Questionnaire
(from Q7 to Q12)
(from Q 13 to Q18)
Brand Awareness
 Relevance to the operations.
 Importance to the operations.
Dependent
Questionnaire
(from Q 19 to Q23)
(from Q 24 to Q29)
Table 1 , Source: Author developed
20
3.4 Identifying the layers of the research - “Research Onion” model
Figure 3, Source: Author developed.
3.4.1 Philosophical stance – Critical Realism
According to the model “Research Onion”, the researcher has undertaken this research based
on the research philosophy “Realism” where both quantitative and qualitative data gathering
techniques are used and argues the point that what is acknowledged through the senses of the
researcher is subsequently processed subjectively by the mind (Critical Realism). In this
research, the researcher tries to acknowledge the fact that there is a relationship between CRM
and Brand Awareness by his senses, the world view and own experience. The researcher
needs to find out what is immediately experienced and the structures and relationships that lie
beneath this (Saunders and Tosey 2012/2013).
21
3.4.2 Approach - Deductive
The research is done based on a “Deductive” approach where the past information is gathered
and analysed to identify the gaps that exist. In this researcher the researcher aims to determine
the impact of CRM on the Brand Awareness. Here, both CRM and Brand Awareness are
existing concepts in the subject of marketing and it’s related literature. Therefore the researcher
will be collecting and analysing the data in order to prove the relationship between these
variables. Therefore, the researcher is adopting the deductive strategy for this research.
3.4.3 Research Strategy
The third layer of the research onion is the research strategy. In this stage, the researcher
determines the way in which the he or she will collect the information to satisfy the research
objectives. In this research the research strategy which is the “survey” method where the
researcher collects data through a questionnaire and interview. In the survey the researcher will
distribute the questionnaire to 60 (sixty) customers of the “Cargills Agriculture and Commercial
Bank” and interview 10 (ten) customers in order to gain deeper insights of information about the
customer perception.
3.4.4 Research method – Mixed
The researcher uses “mixed” method as methodical choice, where both a questionnaire and a
set of interviews are conducted in order to gather and anlyse the data. The two main methods of
collecting data for a research are the quantitative method and the qualitative method. The
qualitative method is the way of gathering qualitative data that aids in which the researcher
discusses research questions and gathers the relevant information. However in this study, the
researcher will be using both qualitative and quantitative method which is known as the mixed
method. There are several advantages for a researcher in utilising the mixed method as the
mode of gathering data in his or her study. Firstly, the mixed method enables the researcher to
understand the contradictions and make comparisons between the qualitative findings and
quantitative findings. Secondly, the mixed method would provide more meaning about the
findings to the readers, the researcher will be able to more effectively present the findings as the
data analysis and interpretation is combination of words and numbers,. Furthermore, the mixed
method enables the researcher to collect rich and comprehensive data by integrating both
qualitative and quantitative data (Saunders et al., 2009).
22
3.4.5 Time Horizons – Cross Sectional
The researcher uses “Cross - sectional” time strategy where the research is undertaken to
answer a question or address a problem at a particular time. Time horizon consists of two parts
which are cross sectional and longitudinal. In cross sectional time strategy, the researcher
collects data and analyses in order to fulfill the research objectives and answer the research
questions at one point in time (Burns and Bush, 2014). On the other hand, the longitude method
is where the researcher’s objective is “to repeatedly measure the same sample units of the
populations over time” (Burns and Bush, 2014). In this study, the researcher implements cross
sectional time horizon as this study gathers data for the research on answering the research
questions at only one point in time by collecting data from the selected sample units of the
population.
3.5 Data Collection and analytical techniques
The data collection techniques are categorized into two categories; they are secondary data
sources and primary data sources. Initially, secondary data refers to the data which already
exist. Primary data refers to raw or firsthand data which is directly collected from people
(Saunders et al., 2009). In this research the researcher focuses only on gathering primary data
and both qualitative and quantitative methods are being used to gather data. The primary data
are being gathered using a questionnaire which was designed to gather data from sixty
correspondents and also a through a series of interviews conducted using ten correspondents.
According to Burns and Bush (2014), firstly the researcher should start collecting secondary
data before moving onto primary data as it is cost effective and time effective. Burns and Bush
(2014) further stated that, if the necessary information can be gathered through secondary data
sources, then the need for primary research is irrelevant. Since the core objective of the
researcher in this research is to analyse the impact of “Cause Related Marketing” on the brand
awareness of “Cargills Agriculture and Commercial Bank”; in order to analyse this objective, the
researcher will require the responses of the customers of the bank and therefore the secondary
data sources would not be helpful in obtaining the required information. Therefore, the
researcher will be using primary data sources to collect information in order to conduct the
research. The following are the primary data collection techniques used in this study.
23
3.5.1 Questionnaire
The questionnaire was designed as mentioned earlier, to be given to sixty respondents involved
with the bank’s operations. The questionnaire comprised of twenty nine questions and the first
six questions were to gather data on the demographic factors related to the respondent. The
questionnaire was limited to only twenty nine questions in order to get the banking officers,
especially the management level respondents, convinced to respond and fill it with their busy
schedules. The questionnaire is categorised into mainly two parts with each part being designed
to obtain response regarding each variable in the framework.
The first four questions are generic questions which are aimed at obtaining the demographic
details of the respondent such as the name and age group. The next two questions (five and
six) inquired about the number of banks that the correspondent is currently dealing with and
how long have been dealing with a financial institution, in order to ascertain whether he or she is
a seasoned customer in the banking business and to know whether he or she has experienced
different types of service levels from different banks. From question seven onwards the
questions were structured in form of a Likert Scale where the responses were give scores
ranging from one to five with one being the lowest and five being the highest given to the
answer “strongly agree”.
The questionnaire was structured according to the sub categories which were formulated under
the two variables. Under “Cause Related Marketing” The questions from question seven (7) to
question twelve (12) focused on obtaining the respondent’s idea and impression on the
relevance of the concept to the banks operations. The questions from question thirteen (13) to
question eighteen (18) were designed to assess the perceived level of importance of practicing
“Cause Related Marketing” activities by the bank, according to it’s customers.
The next set of questions i:e; from question nineteen to twenty nine (19- 29) were focused on
obtaining and analysing the customer’s knowledge on brand awareness and customer
perception towards the level of improvement required on the corporate reputation and the brand
identity of “Cargills Agriculture and Commercial Bank” . The response of the managers and the
officials of the bank would be considered as their perceived level of perception towards the
recognition of their corporate brand and the level of service provided to the customers.
This set of questions were again broken down to two sections as to assess the customer
opinion on the relevance of improving brand awareness to the bank’s business (from question
24
nineteen, 19 to twenty three, 23) and to obtain the opinion on the importance of the
improvement of brand awareness to the business through questions given from twenty four (24)
to twenty nine (29). Please refer appendix 1 for the questionnaire.
3.5.2 Interviews
The researcher has also conducted a series of interviews in order to obtain qualitative data that
will further improve the research findings. The researcher interviewed ten (10) customers who
had already filled the questionnaire. Using the interview, it was the intension of the researcher,
to gain deeper insights and an understanding about the customer perceptions and preferences
which will in turn enhance the accuracy and the reliability of the data as well. Therefore, the
researcher had conducted a structured interview to gather information to carry out this research
(Please refer appendix 2 for the structured interview questions)
3.6 Ethical Issues
The researcher has collected the literature from journals and books published and which are
available to be referred in the world wide web (the internet) and do hereby stipulates the fact
that the researcher has not changed the original meaning of the literature. The literature was
properly acknowledged through citation and referencing. The researcher directly approached
the respondents in order to obtain primary data.
In order to get the participation of the correspondents for the survey and especially the
interviews certified, the researcher provided each participant with a letter of consent (the
interviewees only). In order to satisfy the ethics of researcher, the researcher will provide a
formal letter to the respondents to get their consent to participate in the survey. Further, the
researcher will keep the responses collected from the respondents private and confidential. This
means responses collected from one respondent will not be passed to any other respondent or
to public in large (Refer appendix 3 for the consent letter).
3.7 Chapter Summary
This chapter contains the details of the data gathering sources, the types of data gathered for
the research, methods followed and the tools and techniques employed in collecting and
analysing the data, in order to justify the research objectives and hypothesis constructed in
chapter one and to provide answers to the gap between the existing study and the objectives of
25
the researcher identified in section 2.5 – Gap Analysis, in chapter one: The Literature Review.
Finally, the ethics of research that the research is obliged to satisfy were discussed.
26
4.0 Data collection and field work
4.1 Introduction
The chapter four discusses the basis on which the study was conducted and the technique and
the process used by the researcher to collect the data through the questionnaire and the
interview from the chosen sample size.
4.2 Sample
The sample comprised of total sixty respondents with a composition of five respondents from
the senior and middle management of Cargills Agriculture and Commercial Bank Private
Limited, Sri Lanka and another ten respondents who are serving as executives (senior and
middle level) and the rest of the forty five respondents were customers of Cargills Agriculture
and Commercial Bank Private Limited, Sri Lanka.
4.3 Rational
The sample comprises of senior and middle level managers and another senior and middle level
executives of Cargills Agriculture and Commercial Bank Private Limited. It should be noted that
the respondents to the questionnaire, from the bank (the officials), were asked to assume
themselves as the customers of the bank when filling the first five questions of the
questionnaire. These questions were aimed at obtaining the respondent’s view on the level of
brand awareness and the importance of implementing marketing strategies such as CRM
campaigns and the officials were asked to assume themselves as customers in order to obtain
their perception on the level brand awareness of the bank and the importance and relevance of
marketing strategies such as CRM to improve the business and operations of the bank. The
insights of the officials for the questions which focused on the importance of both CRM and
Brand Awareness to the bank’s operations provided an idea on the level of support and
commitment that could be obtained from the staff of the bank towards such activities.
The rest of the correspondents who banked with the Cargills Agriculture and Commercial Bank
Private Limited, were randomly selected and the researcher in order to obtain the brand
recognition and customer perception on the importance and effectiveness of practicing CRM
27
campaigns, selected the respondents who were banking with at least another bank other than
Cargills Agriculture and Commercial Bank Private Limited.
4.3 Area / Region – Field work
The middle and the senior management of the bank were selected from the head office of the
bank situated in the Galle Road, Colombo 3, Sri Lanka. The bank still has only two branches,
which are also situated within the city limits of Colombo, as it’s been merely around one year
since the inception of the business. Therefore the staff of the bank could only be chosen from
the head office. The senior and middle level officials were also selected from the head office.
However in order for the bank to get on with the operations in full swing immediately, the staff
that has been recruited comprises of a set of banking professionals who have been carefully
head hunted and who are equipped with extensive experience in banking and finance field.
They were more experienced in servicing a more educated and seasoned clientele who have
demanding requirements. Through these officials, thirty five respondents (customers / account
holders of the bank) were selected from the suburbs as they were more sophisticated and
concerned about the social and ethical conduct of businesses and corporate citizenship. These
respondents therefore were from the suburbs of Colombo, Sri Lanka and were taken again from
the clientele of the head office situated in Colombo 3.
4.4 Piloting the questionnaire
The researcher must test the relevance and the accuracy of the questionnaire before presenting
it to the respondents. The pilot test enabled the researcher to identify several shortcomings and
improvements which were rectified. The purpose of the pilot test was to clarify the following
aspects in the questionnaire.
1) Are the questions applicable to measure the research objectives?
2) Are the questions understandable?
3) Does the number of questions in the questionnaire are appropriate?
4) Does the questionnaire take a long time to be filled?
5) Do the questions support the statistical data analysis which is intended to be done after data
collection?
28
In case of this research, the pilot testing has helped the researcher to ensure the accuracy and
the relevance of the questionnaire by rectifying several errors which were indentified in the
questionnaire before distributing it to the respondents. For the pilot testing, initially the
researcher distributed the questionnaire to five seasoned banking professionals. With their
expertise on the subject, the objective of the researcher was to determine whether there are any
shortcomings in the questionnaire. It was their opinion that two questions could be presented in
a less complicated manner for the consumers to understand as they concentrates more on
theoretical aspects of the subjects discussed in the research. The experts advised the
researcher to express these three questions in a more practical manner so that the consumers
will not have any issues in answering the questions. The respondents were able to correctly
understand the intentions of the questions and responded easily who might have otherwise got
confused without being able to understand the questions. The experts who were consulted
through the pilot test provided advise in order to enhance the efficiency and the effectiveness of
the questionnaire.
4.5 The rate of response
It is imperative for the researcher to increase the response rate of the survey in order to obtain
an effective data set. The consumers could become reluctant to fill the questionnaires.
Therefore, the researcher must prepare the questionnaire in a manner which is easy for the
consumer to respond. All of the questions of the questionnaire are close ended and directed in a
five point Likert scale which also provides a range of choice to the respondents. The
respondents were given the chance to be neutral in their opinions as well (Neutral =3). The
questionnaire had close ended questions with the idea that the majority of the respondents
wouldn’t have a positive mentality to answer open ended questions and ultimately the
researcher will get several incomplete questionnaires. The researcher obtained the permission
from the management of Cargills Bank to carry out the survey within the head office premises.
The purpose of the research was clearly communicated to the respondents and the
management before distributing the questionnaire. Due to the interest shown in doing the
research subjected to the bank, the management facilitated the researcher to conduct the
survey and courteously provided their insights for the study as well.
29
4.6 Chapter Summary
Chapter four concentrates on the steps taken prior to conducting the actual survey. The
researcher conducted the study using sixty respondents who were the customers of the bank.
The questionnaire was tested for it’s accuracy and relevance, before distributing it amongst the
respondents, by consulting five experts chosen from related backgrounds in banking.
30
5.0 Data Analysis and interpretation.
5.1 Introduction
Chapter five focuses on analysing the data which were collected through the questionnaire and
the structured interview, from the sample set of correspondents. The data analysis is considered
as the most important section of the research as this section will enable the researcher to
analyse and identify the relationship and the level of impact between the dependent and
independent variable and also to ascertain whether the hypothesis that was constructed under
conceptual framework, could be satisfied. Chapter five therefore consists of the descriptive
analysis, quantitative analysis, and qualitative analysis.
5.2 Demographic Analysis.
The sample of correspondents that was utilised in order to obtain the data required for the
analysis consisted of a total of sixty correspondents, out of which 29 (twenty nine) respondents
were females while the rest being males, i:e; a number of 31 (thirty one) respondents. The
sample of correspondents which comprised of a set of 45 (forty five) customers of the “Cargills
Agriculture and Commercial Bank Private Limited”, Sri Lanka; and 10 (ten) senior and middle
level executives were randomly selected. The rest of the five respondents who represented the
senior management of the bank were picked from different departments such as Marketing,
Risk Management and Consumer Banking.
Chart 1: Author developed
52%
48%
Gender Distribution - Sample
Male Female
31
Therefore as given above in the graphical representation of the gender distribution of the
sample, 52% (fifty two) of the correspondents were males whilst 48% (forty eight) of the sample
comprised of female correspondents.
Chart 2: Author developed.
According to age and gender analysis done for the sample set of respondents of the research,
the fourteen (14) respondents who were in the age range of 18 to 24 years, included eight (8)
male respondents and six (6) female respondents. Eight (8) respondents were between the age
range of 25 to 29 years, out of which three (3) respondents were males and the rest (5) were
females. Twelve respondents were between 30 to 35 and ten (10) of them were males whilst the
rest of the two (2) were females. Nine respondents were in the age range of 36 to 40 years out
of which five (5) were males and four (4) were females. The age range of 41 to 45 years had
18-24 25-29 30-35 36-40 41-45 46-49 50-54
55
and
above
Respondents 14 8 12 9 8 4 4 1
Male 8 3 10 5 4 1 4 1
Female 6 5 2 4 4 3 0 0
0
2
4
6
8
10
12
14
16
Numberofrespondents
Gender and Age Analysis
Respondents Male Female
32
eight (8) respondents and the males and females were equal in numbers, and four (4)
respondents were in the age range of 46 to 49 out of which one (1) was a male respondent and
the others were females. 50 to 54 age range had four males and no females in it’s category and
there was only one (1) respondent in the 55 and above category, which was a male.
It is evident from the age analysis that the majority of the customers were within the age range
of eighteen (18) to thirty forty (40). This indicates the fact that the newly established bank has
attracted more young and middle aged customers than the older ones. It could be calculated as
around 72% of the total sample population. This may be due to the fact that the young
customers are more of risk takers and they have kept their trust in a newly established financial
institution which is facing a heavy competition from much larger and established competitors.
The older customers being having a risk averse attitude and having had strong brand loyalty to
other established banks, have not got much attracted to the new “Cargills Agriculture and
Commercial Bank”.
The gender distribution can be seen more or less equal from age eighteen (18) to twenty nine
(29) age range and thirty six (36) to forty (40) as well. However there is a significant drop in
female customers from age forty one (41) onwards which, as stated earlier, could be largely
owing to, the risk averse nature and the brand loyalty of the more seasoned customers.
5.3 Descriptive Analysis
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation Varianc
e
BA 60 32 54 47.12 4.974 12.368
CRM 60 30 60 50.98 7.382 20.242
Valid N (listwise) 60
Table: 2
The table above indicates how the respondents rated the questions of the questionnaire. The
questionnaire consisted of twenty nine (29) questions out of which twenty two (22) questions
were aimed to gather data on the independent and dependent variables. The respondents had
to rate in a scale of 1 to 5 (1=strongly disagree and 5= strongly agree) in a Likert scale. The
33
consumers have rated minimum value of 16 for the “Brand Awareness” concentrated questions.
Based on the above table, the mean value of 47 (rounding 47.12). This is out of eleven
questions set to assess the customer perception. Therefore the average score is 4 which states
that majority of the respondents rated the relationship marketing questions as “Agree”. The
maximum rating for CRM questions is given as 60. Whereas the minimum value for brand equity
questions is given as 30 and the mean value of CRM related questions is 50.98 which is divided
by eleven questions given on the topic to reach an average of around 4.6 which could be
ascertained as close to the category of “Strongly Agree” in the questionnaire responses.
5.4 Reliability and Validity test
Variable name Cronbach's Alpha N.O of Items Valid
Cause Related Marketing .741 60
Brand Awareness .775 60
Table: 3
The reliability of data is extremely important in order to ascertain the b trustworthiness of the
research. In the reliability test, the major concern should be made for understanding the
Cronbach’s Alpha in order to measure the internal consistency of the data. According to Walsh
(1995), the Cronbach’s Alpha should be greater than 70 percent. Walsh (1995) argued that if
the Cronbach’s Alpha is greater 70 percent, it explains that the internal consistency of the
variables is reliable. The Cronbach’s Alpha of “Cause Related Marketing” is 0.741 which means
that the internal consistency of the “Cause Related Marketing” variable is 74.1 percent reliable.
According to the table, the dependent variable “Brand Awareness” has a Cronbach’s Alpha
value of 0.775 indicating that the internal consistency of the “Brand Awareness” variable is 77.5
percent reliable. Further, the validity test suggests that the data collected to measure the
variables of “Cause Related Marketing” and “Brand Awareness” is 100 percent valid.
34
5.5 Correlations
BA CRM
Brand Awareness Pearson Correlation 1 .509**
Sig. (2-tailed) .000
N 60 60
Cause Related
Marketing
Pearson Correlation .509**
1
Sig. (2-tailed) .000
N 60 60
**. Correlation is significant at the 0.01 level (2-tailed).
Table: 4
The Correlations table explains how well the two variables relate to each other and whether the
relationship between the independent and dependent variable is significant. The Pearson
correlation analyses the relationship between Cause Related Marketing and Brand Awareness.
In the above table, the Pearson correlation is indicated as 0.509 which is a positive value. This
means that the Cause Related Marketing and Brand Awareness has a positive relationship.
Additionally, this also states that when the value of Cause Related Marketing increases by 1,
Brand Awareness will be increased by 0.509. The two tailed significance between the variables
should then be analysed. According to the SPSS tutorial, if the significance is less than 0.005,
then it can be stated that the relationship between two variables is significant. Based on the
above table, the significance is calculated as 0.000 which is less than 0.005. Therefore, it is
evident that there is a significant positive relationship between Cause Related Marketing and
Brand Awareness. The positive relationship could also be shown through a scatter diagram,
which is given below. In the scatter diagram, the X axis represents the “Cause Related
Marketing” (independent variable) and the Y axis represents “Brand Awareness” (dependent
variable). Therefore, the scatter diagram shows that when “Cause Related Marketing” of the X
axis increases, it leads to the increase of the “Brand Awareness” which is the Y axis, which
indicates that there is a positive relationship between “Cause Related Marketing” and “Brand
Awareness”.
35
Chart 3: Author developed.
5.6 Linear Regression
Model Summary
Model R R Square Adjusted R Square
Std. Error of
the Estimate
1 .718a
.558 .552 .2460917
Table: 5
a. Predictors: (Constant), Cause Related Marketing
b. Dependent Variable : Brand Awareness
The data obtained through the questionnaire were processed to obtain the linear regression and
the outcome is as given above. In this study, since the IBM SPSS statistics (ver. 20) software is
used to analyse the data, the model fit of the study will be analysed by taking the adjusted R-
square value in to account. According to the table, the Adjusted R Square value is 0.558 which
is also expressed as 55.8 percent. Therefore, in the case of this study, the Adjusted R Square
indicates that 55.8 percent of the total variance of “Brand Awareness” is explained by “Cause
0
5
10
15
20
25
30
0 10 20 30 40
BrandAwareness(BA)
Cause Related Marketing (CRM)
BA
Linear
(BA)
36
Related Marketing” activities. This implies that “Cause Related Marketing” has a positive impact
on “Brand Awareness”.
5.7 Coefficients
Coefficientsa
Model
Unstandardised
Coefficients
Standardised
Coefficients
T Sig.
Confidence
levelB
Std.
Error Beta F
1 (Constant) 14.815 1.945 5.618 .000
“Cause
Related
Marketing”
.343 .072 .509 8.542 60.628 .000
***
Table: 6
Dependent Variable: Brand Awareness
*** 99 percentage of confidence interval, ** 95 percentage of confidence interval, * 90
percentage of confidence interval.
According to the table the coefficients of the variables are shown. Thus, the above figures are
used to analyse the relationship between “Cause Related Marketing” and “Brand Awareness”.
The standard error indicates the percentage of error in the research. Based on the analysis, the
standard error of this study is 7.2 percent which is acceptable. The Beta value shows the impact
of one variable on another. Therefore, it is the same as the Pearson Correlation and as a result
the value of Pearson Correlation and Beta has the same value of 0.509 which indicates that
when “Cause Related Marketing” increases by 1, the “Brand Awareness” will tend to increase by
0.509.
The T value also highlights the relationship strength of the two variables. It is indicated that
when the T value is positive and when it’s higher, it implies that the relationship of the two
variables is positive and the significance of the relationship is higher. Thus, according to the
above table, the T value is 8.5 which indicate that there is a positive relationship between
“Cause Related Marketing and “Brand Awareness”. The F value indicated in the table is 60.628
37
and according to the statisticians, when the F value is positive and higher, it implies that “Cause
Related Marketing has a significant positive impact on “Brand Awareness”.
The most important section in the data analysis is the statistical significance. According to the
SPSS tutorial, in order to state that relationship of two variables is significant, statistical
significance should be less than 0.005 (less than 0.01). Thereby, according to the above table,
the statistical significance is 0.000 which is less than 0.005. Thus, since the significance is
0.000, it implies that the independent variable; “Cause Related Marketing” (CRM) provides a
99% significance for the dependent variable “Brand Awareness”. It indicates the fact that CRM
proves to be a significant factor for the improvement of “Brand Awareness” of a business.
5.8 Analysis of the interviews.
In addition to the questionnaire, the researcher was also involved in conducting interviews in
order to gain deeper insights about the customer’s perception on “Cause Related Marketing”
activities and it’s impact to “Brand Awareness”. The objective of the researcher in the interview
was to obtain the customer’s views and opinions on how to improve the brand awareness of the
bank via “Cause Related Marketing” activities. The researcher interviewed ten (10) customer’s
of the bank and analysed their responses with reference to the research objectives. The
interviewer asked only fifteen (15) questions from each interviewee due to time constraints and
the analysis was based on the way the interviewee responds to the questions. The following are
responses given by two interviewees. In order to analyse the difference in perceptions the
responses are of one male and one female respondent, selected on the basis of prudence, the
validity and the relevance of the responses provided.
Male interviewee’s response – (Occupation – A Business Analyst of an IT firm, Age group 25-
29)
“I have learned the basics about what “Cause Related Marketing” is in the basic level of my
degree course. I have been banking with this bank for now about a year now. The reason I
selected this bank was due to attractive savings account product that they are promoting
through advertising. I think for a developing country like Sri Lanka it is imperative that the
corporate follow their strategies in line with ethical conduct best practices and thus I would like
to see more companies engage in initiatives such as “Cause Related Marketing” campaigns.
However the public awareness or the appreciation for these initiatives would depend largely on
their education levels as well in my opinion. Nevertheless I guess it effectively creates some sort
38
of a brand awareness amongst the target clientele and would be good if Cargills Agriculture and
Commercial Bank to focus on in order to build their reputation. I don’t know of any initiatives
taken by the bank on CRM strategy yet and if they haven’t in my opinion they should
immediately think about doing something of that sort as it will be good way to improve their
reputation. They should promote the campaigns well too so that people like us who does not
notice the banks initiatives more often would get to know about them. I would generally have a
better regard for a brand or a corporate which engages in such initiatives and would try to
appreciate their effort by purchasing the product.”
In analysing this response which largely represents the rest of the five (5) responses of the
young male clients within the age group of 18 to 36, it is evident that they have got attracted to
the bank due to it’s competitive product range and through advertising. According to Macdonald
and Sharp (1996), the purchase decision of the consumers is influenced by brand awareness,
despite whether the consumers are the familiar and willing to buy the product. There is a
significant lack of customers who have got attracted by recommendations and any other
marketing or promotional campaign. This may be due to the comparatively small clientele that
the bank is servicing for currently. It was indicated that they had a positive attitude towards the
corporate which practices CRM initiatives and would also tend to go for the products based on
appreciation and gratitude towards the brand. They also mentioned the fact that there could be
an impact made by these type of CRM campaigns on the improvement of the Brand Awareness
of a company. However they also pointed out an important fact that the education or awareness
levels and ability to think and interpret information in the minds of the customers would also
have an impact on the success of the CRM campaigns. They agreed that they could become
loyal to the brand or product o an extent due to these types of initiatives.
Female interviewee’s response – (Occupation – Chartered Architect, Age group 30 - 35)
“I have only been banking with Cargills for like six months now. Overall I cannot complain about
their service. The reason I chose it was their attractive interest rates given for the savings
accounts and it is close to my office as well. I’m currently discussing with them to obtain a loan
for my higher studies as well. I had no idea of what “Cause Related Marketing” is actually until I
was approached by you (the interviewer). According to the definition I think it is a very important
subject and a very mutually beneficial strategy to be practiced by modern day businesses. It is
actually a risk to select a newly established financial institute but I just thought of the stability of
the group in making my move. I guess it would be very beneficial to the bank to practice CRM
39
strategies and they would need to promote them more in order to create awareness. I would
prefer to do business with such a company as well. I do try to purchase products which are
produced in an ethical background and do appreciate the brands which acts in a socially
responsible manner. I became aware of their (bank’s) services by the billboard set up in front of
their head office. I think the bank should really try to implement this kind of campaigns (CRM) to
build their reputation. I would even tend to recommend the bank to others apart from the fact
that they have a better offering of products than others, out of the liking and admiration that
would be developed due to their contribution to the society through initiatives such as CRM.”
Unlike the male correspondents the female correspondents had considered the risk factors that
could be involved with the establishment of the bank but however have got more or less
convinced by the corporate reputation and the stability of it’s parent company the “Cargills
Ceylon PLC”. According to Brickely et al. (2002) as cited by Lai et al. (2010), acknowledged that
a company’s reputation for socially responsible behaviour contributes significantly to the
improvement of it’s brand capital. It is evident from these respondents’ statements that they do
tend to regard the ethical stance and the socially responsible manner in which the companies
act upon. This was specially noted amongst female correspondents who had a sound
educational background. Also they exhibited more of an emotional attachment to certain brands
which were brought up as examples during the discussions such as the “Embark” initiative
carried on by a cloth shop named ODEL in Sri Lanka which sells a range of t – shirts with the
“Embark” brand which contributes to a fund set up for the well being of stray dogs.
Other than the remarks above the opinions and ideas of both the genders were similar to a large
extent. The three interviewees who represented the age categories of 41 to 54 were very much
concerned on the brand loyalty and the reason for them to bank with the new bank purely lied
on the recommendations by their children and close relatives. Therefore it indicates the
imperativeness for the bank to make their full effort in building it’s brand awareness.
5.9 Chapter Summary
In conclusion, the chapter four contains the analysis and interpretation of data obtained in this
research in order to analyse the relationship between “Cause Related Marketing” and “Brand
Awareness”. The correlation between the two variables indicated that when “Cause Related
Marketing” increases by 1, then “Brand Awareness” increases by 0.509. In addition, the
regression analysis states that the adjusted R square is 55.8 percent which means that the total
40
variance of “Brand Awareness” is explained by 55.8 percent of “Cause Related Marketing”. In
addition, to the quantitative analysis, the qualitative analysis was conducted through interviews
and it was revealed that majority of the customers would recommend the practice of “Cause
Related Marketing” campaigns in order to improve the brand awareness of the bank.
41
6.0 Findings and the discussion
6.1 Chapter Introduction
This chapter discusses about the outcomes of the questionnaire and the interviews and thereby
tests the research hypothesis. The researcher in this research conducted both quantitative and
qualitative research in order to analyse the relationship between “Cause Related Marketing” and
“Brand Awareness”.
6.2 Testing the hypothesis
According to Vardarajan and Menon (1988), as cited by van den Brink et al. (2006) a CRM
campaign aims at two objectives i:e; to support a social cause and to improve the marketing
performance. “Cause Related Marketing” concept was built on the idea of creating socially
responsible attributes infused into the brand and through that to differentiate the products in
order to enhance sales. Brickely et al. (2002) as cited by Lai et al. (2010), acknowledged that a
company’s reputation for socially responsible behaviour contributes significantly to the
improvement of it’s brand capital. Jones (2005) in his “daisy – wheel” model of brand equities
has suggested that brand equity forms by generating creative interactions between the brand
and it’s stake holders. Therefore social responsibility initiatives originated by companies, forms
an important linkage between the brand awareness and customer expectations.
Thus going in line with the afore stated schools of thought, the researcher was committed to
determine the nature of the relationship between the two variables of “Cause Related
Marketing” and “Brand Awareness”. Therefore the hypothesis of the research was that “There is
a positive relationship between “Cause Related Marketing” and “Brand Awareness” which was
tested via questionnaire and interviews.
According to the results of the questionnaire, processed using the SPSS analysis, the
Correlation Analysis indicated that when “Cause Related Marketing” increases by 1, the “Brand
Awareness” will increase by 0.509. In addition, the two tailed significance is 0.000 which is less
than 0.005 which indicates that the positive relationship between “Cause Related Marketing”
and “Brand Awareness” is significant at 99 percentage of confidence interval. The adjusted R
Square indicated a value of 55.2 percent which states that total variance of “Brand Awareness”
is explained by 55.2 percent of “Cause Related Marketing”. Therefore based on the quantitative
42
analysis, it can be stated that there is a significant positive relationship between “Cause Related
Marketing” and “Brand Awareness”. The researcher also conducted the interview in order to
support the findings of the quantitative analysis.
The interviews conducted by the researcher indicated that many customers identified “Cause
Related Marketing” as an important and an effective strategy of building corporate reputation.
The respondents also pointed out the fact that the “Cargills Agriculture and Commercial Bank”
lacks a proper advertising and a marketing campaign and it is imperative for the bank therefore
to implement an effective strategy to promote it’s policies and values amongst the target
clientele. Majority also mentioned that they will be made to consider purchasing a product or be
loyal to a brand which would carry out a corporate ethical stance in it’s promotions and thus a
strategy such as “Cause Related Marketing” would be ideal for the bank to create “Brand
Awareness” which could eventually be converted into brand loyalty.
Therefore through a qualitative analysis, the researcher was able to determine that that there is
a positive relationship between “Cause Related Marketing” and “Brand Awareness”. Therefore,
it is stated that the hypothesis of this researcher has been satisfied through both quantitative
and qualitative analysis.
6.3 Demographic analysis.
In processing the demographic data of the respondents who were involved in the survey the
researcher was able to make certain observations. The first demographic factor which the
researcher analysed was the gender distribution of the respondents. As indicated in the chart 1
in chapter 5, there were almost equal number of respondents participated in this survey from
both genders. However the age analysis indicated the fact that the majority of the customers
belonged to the age groups below 35 as indicated in chart 2 in chapter 5. The responses
gathered from the questionnaire and especially through the interviews indicated the fact that the
young customers are constantly exploring the better options that are on offer by different
financial institutions and that they do not give much consideration about the stability or the
reputation of the particular institution as long as it offers a better deal for them than the rest. The
researcher therefore concluded the fact that the bank has attracted more young customers who
are willing to take a risk and go for a new experience. The older customers would prefer to stick
to their loyal brands which are more stable despite the attractiveness of the product range on
offer.
43
6.4 Chapter conclusion
The chapter five focuses on discussing the findings from the research. Firstly, the researcher
tested the hypothesis which was constructed in this study. Through the quantitative and
qualitative analysis, the researcher ascertained that there is a significantly positive relationship
between “Cause Related Marketing” and “Brand Awareness”. The researcher also found out
that demographically the bank has so far been able to largely attract only the young customers
who are willing to take risks for a higher return.
44
7.0 Conclusion and Recommendations
7.1 Conclusion
In conclusion, the research undertaken proves that there is a significant positive impact created
by “Cause Related Marketing” on “Brand Awareness”. The “Cargills Agriculture and Commercial
Bank” being the new comer into the banking and finance sector in Sri Lanka; which is seen to
be a highly competitive battle ground with a constantly evolving target market, dominated by a
set of long standing, reputed and well established set of financial institutes; needs to carve their
mark by promoting it’s presence aggressively. In order to attract the sophisticated set of
customers and to create awareness on the brand and it’s products, the bank needs to ensure
the ethical existence of the business which would intern create goodwill towards the bank and
it’s operations amongst both the relevant sector authorities and governing bodies and the
amongst the community and public in large.
The study done through an exploratory research, enabled the researcher to conclude the fact
that the bank currently do not have a strong brand awareness created within it’ target market. In
addition, the exploratory research also helped the researcher to determine the fact that “Cause
Related Marketing” strategy could be used as an effective channel in order to create brand
awareness of the bank and it’s products.
7.2 Recommendations
Therefore in analysing the data gathered and processed through the research conducted, the
following recommendations could be made for the Cargills bank in line with their corporate
motto which is “Banking on the Human Spirit” [online] http://www.cargillsbank.com. According to
the bank’s policy of empowering aspiring entrepreneurs and farming community alike, it is
recommended for the bank to implement “Cause Related Marketing” strategies which would
enable to sell it’s products such as the loan schemes to the farmers of the rural areas who have
already established a lasting connection with the Cargills super market chain.
The Cargills super market chain has successfully implemented the firm’s strategy on downward
integration, which has resulted in elimination of intermediaries who are the whole sale dealers,
enabling them to create a mutually beneficial and a strong and long lasting, loyal relationship
with it’s group of suppliers, the farmers and small holder entrepreneurs. The company has been
45
able to get it firmly positioned in the minds of the consumers and thus create an undisputed
goodwill and brand loyalty so far by being able to provide the consumers mainly with essential
day to day basic food items, through adopting a unique strategy of downward vertical
integration. This has produced the company with several benefits which have been then turned
onto become a sustainable competitive advantage.
Also this have been proved to become one of the best implemented Corporate Social
Responsibility (CSR) strategies, so far in the Sri Lankan corporate arena, which has been
praised and recognised by the local authorities and the consumer community, thus increasing
the sense of belongingness and the goodwill in the society towards the company and it’s
business and has been saluted as one of the most sustainable business models produced in the
world so far (Annual report, Cargills Ceylon Plc, 2009/2010).
Therefore it is recommended for the “Cargills Agriculture and Commercial Bank” to design and
implement cause related marketing campaigns, integrating the corporate group policies of
supporting the farmers and vertically integrating the business process and promote it’s products
such as the loan schemes, savings accounts and fixed deposit schemes etc; which would
enable the bank to successfully approach a wider clientele and establish it’s presence strongly
across the country through the super market chain, creating a mutually beneficial and socially
responsible conduct of business which would in turn result in the increase of brand awareness
and eventually brand loyalty as well as the creation of goodwill towards the bank within the
society and governing authorities, that would enhance the stability and the growth of the Cargills
Agriculture and Commercial Bank Private Limited of Sri Lanka.
46
8.0 Future opportunities for research
It is evident that even though there had been many researches done on ascertaining the
relationship between the concepts of “Cause Related Marketing (CRM)” and “Brand
Awareness”, there is still the opportunity to study the level of impact created on the consumer
perception by Cause Related Marketing campaigns and to which extent would it create the
brand awareness for the products making the customer loyal to the product and the brand. With
time constrains that applied to this research, the researcher could not analyse the level of
impact that a cause related marketing campaign would make on improving the brand awareness
which could have been ascertained by calculating the improvement of the market share of
similar brands and products of the competitors subsequent to some cause related marketing
campaigns which are being conducted by them. Also there is the possibility of ascertaining the
impact that a CRM campaign would make on the company’s profitability as well.
It is very relevant and important for a corporate functioning in a developing country such as Sri
Lanka to understand it’s role in nourishing the society that it operates in while promoting it’s
business and operations, creating a mutually beneficial partnership. Activities such as CRM
would provide an ideal platform specially for new businesses to implant goodwill and it’s ethical
conduct and existence, in the minds of the customers.
Therefore the researcher would suggest the academia to explore the possibility of doing further
research on analysing the “level of impact” made by “Cause Related Marketing” campaigns on a
company, in terms of improving it’s brand awareness, market share and profitability.
Also, in processing the demographic data gathered by the survey the researcher was able to
understand that the risk appetite of the target customer groups would change based on age.
Thus it would be beneficial to research on the possibility of impacting the risk averse nature of
customers through a CRM campaign, which would be highly beneficial for a newly established
financial institute in a country such as Sri Lanka.
47
9.0 Individualreflective report
Having missed the initial two lectures on the subject due to work, I had to have a strategic
discussion with the lecturer Dr. Nalin Abeysekara on how to approach the coursework
immediately as by then the rest of my colleagues had already completed their proposals. Initially
I was bombarded with a set of questions by the lecturer in order for him to identify my
background as an employed mature part time student and to enable me to identify and decide
on the subject area on which I would like to pursue my research on. I always had an interest
towards the concept of Corporate Social Responsibility and it’s related concepts that could be
used to create a strategy that would both enhance the growth of the business and uplift the
standards of living amongst the communities.
Therefore in identifying my interest in the concept of “Cause Related Marketing” and the
knowledge I had on the particular sector of business (banking and finance) which was focused
on for the research and also the ability for me to obtain information based on my previous work
experience as an Investment Advisor in the Colombo Stock Exchange, attached to a leading
brokerage in another bank, I was able to identify my strengths in this particular subject area and
sources of obtaining information, thus being able to successfully select the topic for the research
and the sector in focus for the research.
My initial weaknesses included the inability to understand and construct the proper conceptual
framework and the difficulties I had in reviewing and critiquing the literature published on the
related subject areas of research. This was a challenging learning experience for me and I got it
reviewed by the lecturer several times in order to make sure I was on the right track and was
doing the task accordingly and appropriately. Also the use of the SPSS system and the
interpretation of data using the particular system were also entirely new, learning experience. I
acquired the knowledge on how to feed the data into the system and process the data and
interpret it sensibly in order to come into conclusions.
Overall it could be concluded that this module provided an entirely new learning experience and
a wealth of knowledge pertaining to the areas of conducting a full scale business research which
I have not obtained so far either from the my past studies done on several professional courses
or through my experience acquired so far in my professional career. Therefore I do hereby state
the fact that I myself as a student am fully satisfied with the standard of this module and it’s
48
content, the course work and more importantly it’s professional relevance for the students who
pursue graduate level studies and for the modern day practical operations of an organistaion.
The knowledge I have gathered in conducting this small scale research will undoubtedly be
immensely useful for me currently as an executive and as a prospective manager in future.
 Word count – 13,050 (Thirteen thousand fifty) words.
49
10.0 References
Aupperle. K.E, Carroll. A.B and Hatfield. J.D (1985) An empirical examination of the relationship
between corporate social responsibility and profitability, The Academy of Management Journal,
28, (2) pp. 446-463. [Online]. Available from:
http://www.jstor.org/stable/pdfplus/256210.pdf?acceptTC=true&jpdConfirm=true. [Accessed 25
December 2014]
Baker M.J, and Adkins S. (2003) The Marketing Book. Oxford: Butterworth - Heinemann. [Fifth
Edition] pp. 669 - 692.
Barone M.J, Miyazaki A.D and Taylor K.A (2000) The Influence of Cause-Related Marketing on
Consumer Choice: Does One Good Turn Deserve Another? , Journal of the Academy of
Marketing Science, 28, (2), pp. 248 – 262. [Online]. Available from:
http://www.uk.sagepub.com/clow/study/articles/PDFs/11_Barone.pdf. [Accessed 05 January
2015]
Barone M.J, Norman A.T and Miyazaki A.D (2007) Consumer response to retailer use of cause-
related marketing: Is more fit better? , Journal of Retailing, 83, (4), pp. 437 – 445. [Online].
Available from: https://datapro.fiu.edu/campusedge/files/articles/miyazakia2380.pdf. [Accessed
19 January 2015]
Bronn P.S and Vrioni A.B (2001) Corporate social responsibility and cause-related marketing:
an overview, International Journal of Advertising, 20, (2), pp. 207–222 [Online]. Available from:
file:///C:/Users/Toshiba/Downloads/corporate-social-responsibility-and-cause-related-
marketing.pdf [Accessed 04 January 2015]
Cargills Agriculture and Commercial Bank Private Limited, Sri Lanka, official web site. [Online]
Available from: http://www.cargillsbank.com/#our-journey. [Accessed 19 March 2014].
Dissertation - The impact of CRM on Brand Awareness - T11400989
Dissertation - The impact of CRM on Brand Awareness - T11400989
Dissertation - The impact of CRM on Brand Awareness - T11400989
Dissertation - The impact of CRM on Brand Awareness - T11400989
Dissertation - The impact of CRM on Brand Awareness - T11400989
Dissertation - The impact of CRM on Brand Awareness - T11400989
Dissertation - The impact of CRM on Brand Awareness - T11400989
Dissertation - The impact of CRM on Brand Awareness - T11400989
Dissertation - The impact of CRM on Brand Awareness - T11400989
Dissertation - The impact of CRM on Brand Awareness - T11400989
Dissertation - The impact of CRM on Brand Awareness - T11400989
Dissertation - The impact of CRM on Brand Awareness - T11400989
Dissertation - The impact of CRM on Brand Awareness - T11400989
Dissertation - The impact of CRM on Brand Awareness - T11400989
Dissertation - The impact of CRM on Brand Awareness - T11400989
Dissertation - The impact of CRM on Brand Awareness - T11400989

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Dissertation - The impact of CRM on Brand Awareness - T11400989

  • 1. Abstract The following report is a study done to ascertain the impact of cause related marketing on brand awareness with special reference to Cargills Agriculture and Commercial Bank, Colombo, Sri Lanka. Initially, from an exploratory research, the researcher understood that the brand awareness of Cargills Agriculture and Commercial Bank is not at a satisfactory level compared to the competitors. Additionally, the exploratory research found lack of strategic marketing initiatives as the route cause for weaker brand awareness of Cargills Agriculture and Commercial Bank. Therefore, the aim of this study is to determine whether Cargills Agriculture and Commercial Bank could strengthen its brand awareness through cause related marketing. The researcher constructed three objectives for this study with reference to the research problem. In the first two objectives, the researcher focused on obtaining a deeper theoretical and empirical understanding on the concepts of cause related marketing and brand awareness. The third objective aims to analyse the relationship between the two concepts. Through the literature review, the researcher constructed a hypothesis stating that “there is a positive relationship between cause related marketing and brand awareness.” Together with the literature review, the research is implemented on the mixed approach where both quantitative and qualitative analysis are been conducted. The population of this study is determined as the customers of Cargills Agriculture and Commercial Bank. Thereby, in order to collect the data, the researcher randomly distributed questionnaires to 60 customers taken from the bank’s head office in Colombo. Additionally, the qualitative analysis was based on interviews where the researcher interviewed 10 customers of the same sample, in order to obtain the customers’ perspective about the relationship between cause related marketing and brand awareness with regard to Cargills Agriculture and Commercial Bank. In the qualitative analysis, the researcher identified that when the customers believe that cause related marketing initiatives could enhance the brand awareness of Cargills Agriculture and Commercial Bank. As a result of this the competitiveness and the stability of the bank will be improved. This study has been carried out to find the relationship and the impact made by Cause Related Marketing activities on the brand awareness of a business. The researcher has identified the relationship that exists between the Cause Related Marketing activities and initiatives and the brand awareness. Through qualitative and quantitative analysis, the researcher has thus been able to ascertain that there is a positive relationship between these two concepts which will lead
  • 2. 1 to an increase or betterment of business performance when they are performed combined with the Corporate Social Responsibility initiatives that would therefore contribute to the enhancement of the performance of a business in terms of it’s improvement in market share and financial profitability as well. From this outcome it can be understood that Cause Related Marketing (CRM) could be considered as a factor in determining how well a business can perform and how well it will survive in the industry. Therefore based on the quantitative and qualitative analysis, the researcher has arrived at the conclusion that cause related marketing has a positive impact on brand awareness.
  • 3. 2
  • 4. 3 List of figures Figure 1 , Source: Author developed............................................................................................ 11 Figure 2 , Source: Author developed............................................................................................ 20 Figure 3 , Source: Author developed............................................................................................ 22 Figure 4 , Chart 1 .......................................................................................................................... 32 Figure 5 , Chart 2 .......................................................................................................................... 33 Figure 6 , Chart 3 .......................................................................................................................... 37 List of Tables Table 1 , Source: Author developed............................................................................................. 21 Table 2 .......................................................................................................................................... 34 Table 3 .......................................................................................................................................... 35 Table 4 .......................................................................................................................................... 36 Table 5 .......................................................................................................................................... 37 Table 6 .......................................................................................................................................... 38
  • 5. 4 Table of Contents 1.0 Introduction............................................................................................................................ 8 1.1 Background ........................................................................................................................... 8 1.2 Problem formulation............................................................................................................ 10 1.3 Research Objectives........................................................................................................... 10 1.4 Research Questions............................................................................................................ 10 1.5 Significance of the study..................................................................................................... 10 1.6 The Structure....................................................................................................................... 11 2.0 Literature Review.................................................................................................................. 12 2.1 Introduction.......................................................................................................................... 12 2.2 What is “Cause Related Marketing” (CRM)?...................................................................... 12 2.3 What is Brand Awareness?................................................................................................. 15 2.4 The relationship between Cause Related Marketing and Brand Awareness .................... 15 2.5 Gap Analysis ....................................................................................................................... 16 3.0 Methodology.......................................................................................................................... 20 3.1 Introduction.......................................................................................................................... 20 3.2 Conceptual Framework....................................................................................................... 20 Hypothesis................................................................................................................................. 21 3.3 Data variables ..................................................................................................................... 21 3.3.1 Operationalisation Table .............................................................................................. 21 3.4 Identifying the layers of the research - “Research Onion” model ...................................... 22 3.4.1 Philosophical stance – Critical Realism ....................................................................... 22 3.4.2 Approach - Deductive................................................................................................... 23 3.4.3 Research Strategy........................................................................................................ 23 3.4.4 Research method – Mixed ........................................................................................... 23 3.4.5 Time Horizons – Cross Sectional................................................................................. 24 3.5 Data Collection and analytical techniques.......................................................................... 24 3.5.1 Questionnaire ............................................................................................................... 25 3.5.2 Interviews...................................................................................................................... 26 3.6 Ethical Issues...................................................................................................................... 24 3.7 Chapter Summary............................................................................................................... 24 4.0 Data collection and field work............................................................................................. 26 4.1 Introduction.......................................................................................................................... 26
  • 6. 5 4.2 Sample ................................................................................................................................ 26 4.3 Rational ............................................................................................................................... 26 4.3 Area / Region – Field work.................................................................................................. 27 4.4 Piloting the questionnaire.................................................................................................... 27 4.5 The rate of response........................................................................................................... 28 4.6 Chapter Summary............................................................................................................... 31 5.0 Data Analysis and interpretation........................................................................................ 32 5.1 Introduction.......................................................................................................................... 32 5.2 Demographic Analysis........................................................................................................ 32 5.3 Descriptive Analysis............................................................................................................ 35 5.4 Reliability and Validity test.................................................................................................. 33 5.5 Correlations ......................................................................................................................... 34 5.6 Linear Regression............................................................................................................... 35 5.7 Coefficients.......................................................................................................................... 36 5.8 Analysis of the interviews.................................................................................................... 40 5.9 Chapter Summary............................................................................................................... 42 6.0 Findings and the discussion............................................................................................... 43 6.1 Chapter Introduction............................................................................................................ 43 6.2 Testing the hypothesis ........................................................................................................ 43 6.3 Demographic analysis......................................................................................................... 44 6.4 Chapter conclusion ............................................................................................................. 43 7.0 Conclusion and Recommendations................................................................................... 44 7.1 Conclusion........................................................................................................................... 44 7.2 Recommendations .............................................................................................................. 44 8.0 Future opportunities for research ...................................................................................... 46 9.0 Individual reflective report................................................................................................... 47 10.0 References........................................................................................................................... 51 11.0 Appendix.............................................................................................................................. 57 11.1 Questionnaire.................................................................................................................... 57 11.2 Consent Letter – Interviews .............................................................................................. 58 11.3 Interview Questions........................................................................................................... 64
  • 7. 6 The impact of “Cause Related Marketing” (CRM) on “Brand Awareness”. (Special reference to “Cargills Agriculture and Commercial Bank Pvt. Ltd.”, Sri Lanka) 1.0 Introduction 1.1 Background It could be argued and more likely be observed as well; that the actions of a corporation for which it is responsible, could be segregated mainly into four different forms or levels based on their level or the degree of their engagement with the wider society and the civic. At the basic level, firms would practice the strategy recognised and termed as the “Responsible Corporate Citizenship” (RCC) which would be focused on championing a social cause and would be built on the concept of social giving. The next level of strategy to be followed in the process is termed as the “Cause Related Marketing” (CRM), where the corporation; whilst getting engaged in worthy causes that would serve and nourish the enrichment of the standards of the society, would focus on building and or improving it’s reputation and brand awareness during the process. At the third level, strategic “Corporate Social Responsibility” (CSR) attempts to go beyond raising the profile of the corporation, and improves the competitive context in which it operates. Finally at it’s peak of engagement with the society, the corporation attempts to create a market space in which people who are socially and economically disadvantaged are located. This strategy is termed as “Socially Responsible Business” (SRB) with CSR being the very purpose on which it is built on and reason for it’s existence (Liyanage, 2005). Cargills Agriculture and Commercial Bank Private Limited, Sri Lanka; is the newest addition to the Cargills group of companies and to the list of licensed commercialized banks of Sri Lanka, which has being the only bank to be licensed by the Central Bank after a laps of decades in the banking and finance sector. “Cargills Ceylon Plc” was founded by the two British entrepreneurs “William Miller” and “David Sime Cargill” back in 1844, during the colonial ruling era of Sri Lanka and was established in the land mark building known to date as the “House of Cargills” in the “Colombo Fort” area. In 1981 the company went into the hands of two reputed local business typhoons, the “Page” brothers and got incorporated into their parent company known as the “Ceylon Theaters Plc”. Cargills group became the pioneers of retail supermarket business in Sri Lanka by establishing the first supermarket chain back in the year 1983 and took the pride of introducing the supermarket shopping concept to Sri Lanka. The group today engages in a range of businesses within the food and beverages sector and has been expanding their
  • 8. 7 operations venturing into related areas of business such as meat processing, dairy products such as ice cream manufacturing, agriculture processing with a range of products such as jam and cordial and also acquired the franchise license for KFC (Kentucky Fried Chicken). The company has also ventured into biscuit manufacturing and has entered into soft alcohol industry as well, practicing strategic horizontal integration. Cargills Agriculture and Commercial Bank being newly established (opened on April 2014), has ventured into a highly competitive and an aggressively expanding arena which consist of a number of both local and multinational banks and finance companies, all engaged in a heavily raged battle to acquire more market share and expand in order to play significant role in the quest of making the Asia’s next growth story in Sri Lanka, defined as the miracle of Asia, a success. The bank being newly set up with only one branch along with the head office, is being challenged with the quest of getting itself established as a commercialised bank in Sri Lanka and carving it’s market share amidst heavy competition by winning over the confidence of the potential clientele both retail and institutional. Cargills super market chain which operates under the brand “Cargills Food City”, the prime jewel of Cargills group has being able to successfully stay ahead of the heavy competition by implementing a unique and an innovative “Corporate Social Responsibility” strategy which has created a mutually beneficial partnership for both the farmers and the company. “Cargills Food City” supermarket chain has initiated a backward integration strategy where the company has implemented a process of reaching the farmers at their door step and purchasing fruits, vegetables rice and milk directly from the farmers thus eliminating the costly intervention of the intermediaries. The supermarket chain has therefore being able to provide the fruits, vegetables, rice and dairy products at the best possible price to the consumers and pays around 20% more to the farmers for their products than the market does. Moreover it underwrites the loans granted by the banks and facilitates collaborative arrangements that a number of NGO s (Non Governmental Organisations) has with farmers in setting up cleaning and packaging centers. 1.2 Problem formulation Therefore in considering the current strategies and processes followed by the prime subsidiaries of the group; in order to successfully establish itself in the minds of the target clientele and also to successfully survive and operate sustainably amidst of the heavy competition, facing a very
  • 9. 8 strong set of local and multinational competitors; this research intend to study the possibilities of improving the “Brand Awareness” of the emerging subsidiary, “Cargills Agriculture and Commercial Bank” through setting up a strategic “Cause Related Marketing” campaign which could be successfully linked to the current strategies and operations of the rest of the subsidiaries in the group such as the “Cargills Food City”. In order to further analyse and examine the impact that could be created by a CRM process, the concepts of “Cause Related Marketing” and “Brand Awareness” will be analysed in detail through the next chapter. 1.3 Research Objectives 1. To examine the concept of “Cause Related Marketing”. 2. To examine the concept of “Brand Awareness”. 3. To analyse the relationship between “Cause Related Marketing” and “Brand Awareness”. 1.4 Research Questions 1. What is “Cause Related Marketing”? 2. What is “Brand Awareness”? 3. What is the relationship between “Cause Related Marketing” and “Brand Awareness”? 1.5 Significance of the study At the basic level this study will enable the researcher to obtain academic knowledge about the concepts of “Cause Related Marketing” and “Brand Awareness” and their link to other corporate strategies such as “Corporate Social Responsibility”. Also this study will also provide an understanding on how to apply these concepts in practice in order to implement them and obtain successful results whilst facing heavy competition, for a newly established and an emerging entity such as the “Cargills Agriculture and Commercial Bank”. The study will enable the researcher to explore into new knowledge horizons and to understand impact that could be made to the society and to improve the awareness in the society on the importance of performing CRM activities. By increasing the social and corporate awareness on CRM, it is expected to create changes, made in policies at organizational level.
  • 10. 9 The researcher also seek to improve the stakeholder awareness levels towards the level of improvement in brand awareness, that will be created by CRM activities which would ultimately contribute towards improving an organisation’s performance, thus trying to establish a link; between the strategy CRM and the brand awareness of an organization; through CRM practices. 1.6 The Structure The structure of this research is formulated as follows, Figure: 1 Source: Author developed. CHAPTER ONE: INTRODUCTION CHAPTER TWO: LITERATURE REVIEW CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY CHAPTER FOUR: DATA ANALYSIS CHAPTER FIVE: DATA COLLECTION CHAPTER SIX: DATA INTERPRETATION CHAPTER SEVEN: CONCLUSION AND RECCOMMENDATIONS
  • 11. 10 2.0 LiteratureReview 2.1 Introduction In chapter two, the researcher intends to discuss the theoretical aspect of the variables and subsequently analyse the research questions and ascertain the relationships that exist among each of the concepts mentioned above in the previous chapter, by using the recommended and accepted literature from different scholars and authors. 2.2 What is “Cause Related Marketing” (CRM)? The emergence of the concept of “Cause Related Marketing” could be traced back to the early 1980s where it emerged as an effective tool of marketing communication, which was based on the idea of shifting a corporation’s focus from consumer needs to consumer interests. The concept was initially practiced by “American Express” campaign which was aimed to raise funds for the restoration of the “Statue of Liberty”. Every time the credit cards were used, the company made a donation of two cents to the Statue of Liberty. Subsequent to this campaign eventually the number of card holders grew by 45% and the card holders grew up by 28% (Liyanage 2014). In this case the “Cause Related Marketing” campaign was based on the idea that involved with the promise to donate a certain amount of money to a non profit organisation or a social cause when the customers purchased it’s products or services (Nan and Heo, 2007). “Cause-Related Marketing” (CRM) could also be defined the public association of a profit oriented company with a non-profit organization or a cause, intended to promote the company’s product or service and to raise money for the non-profit. “Business in the Community”, a UK based business-led charity focused on promoting responsible business practice, more popularly defines CRM as ‘a commercial activity by which businesses and charities or good causes form a partnership with each other to market an image, product or service for mutual benefit’. Vardarajan and Menon (1998) as cited by Nan and Heo (2007), categorised CRM among the CSR strategies that “Do Better By Doing Good”. Cause-related marketing is a marketing-driven activity. Parties, be they businesses, charities or good causes, enter a cause - related marketing relationship in order to meet their objectives and
  • 12. 11 to receive a return on their investment, where that investment may be in cash, time or other resources, or a combination of all. Vardarajan and Menon (1988) defined CRM as “the process of formulating and implementing marketing activities that are categorised by an offer from the firm to contribute a specified amount to a designated cause when customers engage in revenue providing exchanges that satisfy organizational and individual objectives”. As a type of CSR, Cause Related Marketing has received particular corporate interest. This is due to the fact that especially CRM might have positive effects on consumer behaviour (Zen and Bhattacharya, 2001). There has been numerous studies and research done on the impact of CRM on a variety factors such as the consumer choice (Baron et al. , 2000), consumer purchase decisions (Webb and Mohr, 1998), consumer attitudes towards CRM ( Barnes, 1992) and the impact made by CRM towards companies that engage in such marketing initiatives (Webb and Mohr, 1998). However Cause Related Marketing initiatives of a corporate could carry multiple messages which could lead to the generation of different contradictory perceptions in customer’s mind on whether the effects of CRM campaign could be beneficial or exploitative in terms of the cause. There can be skepticism arising towards the initiatives in a consumer’s mind questioning the fact that whether a company’s support of a social cause is genuinely designed to benefit the cause or the company (“Report: Consumers Swayed” 1997; Smith and Stodghill 1994; Webb and Mohr 1998) as cited by Barone et al.(2000). Therefore it could be ascertained that the perception that the consumer hold in their minds about the genuineness of purpose, could directly affect the effectiveness of the CRM strategies that are designed in order to influence the consumer choice. Scholars such as Drumwright (1996); Strahilevitz and Myres (1998), as cited by Nan and Heo (2007), have suggested the existence of a relationship between the sponsoring brand and the social cause involved in the CRM campaign. The level of success in coining this brand/cause fit has proven to have a significant impact on improving the consumer perception towards the company, brand and or product. By trying to influence the perception and attitudes that is held by a consumer towards a company, brand or a product CRM could be identified as a strategy which focuses more on stimulating the consumer interests rather than the needs. Thus it could be argued that CRM tries to deviate the consumer’s mind from the needs that the person has towards the interests that a person would have on the factors such as the well being of both the person and/ or the society. Therefore through an effective CRM strategy, consumer loyalty could be generated which would make the consumer spend more sometimes by giving
  • 13. 12 preference to the CRM related brand over other similar competing brands which would offer the same product at a lesser cost, thus placing his or her interest ahead of their needs. In employing the company resources to a worthy cause by utilising the funds raised through the sales of each product or service. According to Vardarajan and Menon (1988), as cited by van den Brink et al. (2006) a CRM campaign aims at two objectives i:e; to support a social cause and to improve the marketing performance. Therefore CRM programs are made responsible for at least three key stake holder parties as the firm’s consumers, it’s shareholders and one stakeholder not directly related to the commercial activity of the firm. CRM can be categorised into two types as tactical CRM and Strategic CRM. Strategic CRM is characterized by high senior management involvement, higher amount of invested resources and a long term commitment towards the CRM campaign which will increase the duration of the campaign comparatively. Tactical CRM on the other hand lasts for a short period of time (Till and Nowak, 2000 and Drumwright and Murphy, 2001, cited in van den Brink et al. 2006). Also the congruency between the cause and a company’s core competency is high in Strategic CRM in comparison to Tactical CRM. Tactical and Strategic CRM differ from each other mainly on the following four dimensions, 01. The congruency between the cause and a company’s core competency (Pracejus and Olsen, 2004 as cited in van den Brink et al. 2006). 02. The duration of a campaign (Till and Nowak, 2000 as cited in van den Brink et al. 2006). 03. The amount of invested resources (Macleod, 2001; and Welsh, 1999 as cited in van den Brink et al. 2006). 04. The degree of senior management involvement (Macleod, 2001; Miller, 2002 as cited in van den Brink et al. 2006). However CRM programmes can have mixed characteristics of both strategic and tactical CRM with high and low correspondence of afore stated dimensions and therefore the CRM campaigns do not necessarily has to be classified as tactile or strategic ( van den Brink et al. 2006).
  • 14. 13 According to Ellen et al. (2000) corporate can be characterised as either extrinsically or intrinsically motivated in their CRM campaigns, where, intrinsically motivated companies considers the CRM programmes to be rewarding in itself, while the extrinsically motivated companies will be looking for rewards from the environment for their effort. 2.3 What is Brand Awareness? It is still debatable as to how industrial brand equity which comprises of brand loyalty, perceived quality, brand awareness, brand association and brand satisfaction; could arise or originate. Numerous studies have been done to ascertain the components of brand equity and aspects which would lead to the creation of a competitive advantage to the business. Brand awareness is considered to be the first dimension distinguishing the brand knowledge in consumer’s mind and is related to strength of the brand node or trace in memory, as reflected by the consumer’s ability to identify the brand under different conditions (Rossiter and Percy 1987, cited in Keller 1993). Jones (2005) in his “Daisy – Wheel” model of brand equities has suggested that brand equity forms by generating creative interactions between the brand and it’s stake holders. Therefore social responsibility initiatives originated by companies, forms an important linkage between the brand recognition and customer expectations. Cause – related marketing (Vardarajan and Menon, 1988) concept was built on the idea of creating socially responsible attributes infused into the brand and through that to differentiate the products in order to enhance sales. Brand awareness could be defined as the basic level of knowledge that a consumer would have on a particular brand involving at least of knowing the brand name. It could range from the customer’s simple recognition of the brand name to a developed cognitive structure based on detailed information (Hoyer and Brown 1990). Rossiter and Percy (1987) describe brand awareness as being essential for the communications process to occur as it precedes all other steps in the process. Without brand awareness occurring, no other communication effects can occur. For a consumer to buy a brand they must first be made aware of it. Brand attitude cannot be formed, and intention to buy cannot occur unless brand awareness has occurred (Rossiter & Percy 1987; Rossiter et al. 1991, cited in Macdonald and Sharp 1996). When a customer purchases a product, if a particular brand drive to the mind of the customer first, then it implies that the particular brand has higher brand awareness (Malik et al. 2013). Therefore, it is evident that and organisation could effectively crave it’s share and establish itself successfully in a
  • 15. 14 favorable position in the target market through creating effective brand awareness for it’s products or services. According to Macdonald and Sharp (1996), the purchase decision of the consumers is influenced by brand awareness, despite whether the consumers are the familiar and willing to buy the product. Brand awareness can be referred to as the probability that the consumers are familiar about the accessibility and the availability of a particular brand (Aaker, 1991). According to Keller (1993), brand awareness refers to the likelihood that a particular brand name will derive to the minds of the consumers easily and suggests that brand awareness consists of brand recognition and brand recall performance of the customers. Brand awareness is considered to be the first dimension distinguishing brand knowledge (Keller, 1993, p: 3). Brand awareness is been considered to play a crucial role in determining the consideration set i:e; the small set of brands onto which a consumer would give serious attention when making a purchase decision (Macdonald and Sharp 1996, p:1). It is ascertained through many researchers, the fact that, when the brand awareness is higher for an organisation, it will enable the organisation to attract more consumers, as the normal behavior of consumers is that they react for familiar, more aware and reliable brands rather than testing new brands which is a risk (Kayaman and Arasli, 2007). Wilson (1981) as cited by Macdonald and Sharp (1996) ascertained the fact that higher the brand positioning in consumer’s mind which could be measured by unaided recall, stronger will be the intention to select and purchase a particular brand over the others. It is argued that the awareness on a brand has a significant impact on the first purchase of a product by a customer. The model of Ray et al (1973) suggested that the first purchase of the product should be followed by trial and evaluation and subsequent purchases will be based on the result of the trial and error purchase (Smith and Swinyard 1983, as cited by Hoyer ad Brown 1990). Brand awareness will eventually reduce the consideration on the choices available in consumer’s mind and will encourage the consumer to select the particular brand that he or she is familiar repeatedly. Therefore it is ascertained that the Brand Awareness is an important factor in consumer decision making for three main reasons. Firstly it will make the brand included into the consideration list in customer’s mind when making a purchase, secondly it will affect the customer’s purchase decision even if there are no other brand associations with the brand for
  • 16. 15 the customer and finally it’ll affect the decision making by influencing the formation and strength of brand associations in the brand image. 2.4 The relationship between Cause Related Marketing and Brand Awareness The consumer’s perception on the ethical existence and corporate citizenship on which there may be an impact created by the “Cause Related Marketing” (CRM) activities and strategies carried out by the business, would in turn create positive brand awareness or brand association that would lead to brand loyalty and brand satisfaction based on the perceived quality of the products. It is still debatable as to how industrial brand equity which comprises of brand loyalty, perceived quality, brand awareness, brand association and brand satisfaction; could arise or originate. Numerous studies have been done to ascertain the components of brand equity and aspects which would lead to the creation of a competitive advantage to the business. It is evident that there are very few researches done to ascertain the relationship between “Brand Awareness”, CRM activities and customer perception. Jones (2005) in his “daisy – wheel” model of brand equities has suggested that brand equity forms by generating creative interactions between the brand and it’s stake holders. Therefore social responsibility initiatives originated by companies, forms an important linkage between the brand awareness and customer expectations. “Cause Related Marketing” (Vardarajan and Menon, 1988) concept was built on the idea of creating socially responsible attributes infused into the brand and through that to differentiate the products in order to enhance sales. Brickely et al. (2002) as cited by Lai et al. (2010), acknowledged that a company’s reputation for socially responsible behaviour contributes significantly to the improvement of it’s brand capital. In building the brand awareness of a product via CRM, it is considered to be important that the promoters correctly matches the brand and cause fit, i:e; a brand to be fixed with a social cause which would serve a similar consumer base (Nan and Heo, 2007). For example an infant milk powder producer could organise a free medical clinic for pregnant ladies in particular area. Higher the brand/cause fit, the success of the CRM campaign will be more which will lead to the enhancement of brand awareness. A customer to ignore the physical factors of a product such as the performance and the price which are prioritised in purchase decision making, than the CRM campaigns, there should be
  • 17. 16 strong moral attributes that the customer will pay his attention on (Baron and Spranca 1997; Tversky et al.1998, cited in Baron et al. 2009), where customers will use all available information in order to consider switching from a product which is better in performance and/or price; to a product with positive CRM associations (Keeney and Raifa 1976; Von Neumann and Morgenstern 1947, cited in Baron et al. 2009). Therefore it is evident that positive CRM campaigns could effectively enhance the level of brand awareness of a product enabling the product to overcome even crucial physical attributes such as performance and price, building a sustainable competitive advantage, ensuring the existence of a business amidst strong competition. 2.5 Gap Analysis It is evident that there are very few researches done to ascertain the relationship between brand awareness, CRM campaigns and the customer perception. Therefore when going through the definitions and analysis suggested by various scholars and researchers on brand awareness and the impact created on it by CRM activities, it is evident that many has tried to link the impact made by CRM activities to the corporate reputation only through which the brand awareness of the products of a company is been enhanced. While agreeing to this school of thought I would disagree on the fact that this would be considered as the most effective way of enhancing the brand awareness of the products. Even though theories such as “Cause Related Marketing” suggests the differentiation of products by infusing CSR attributes into the brands it is evident that there have not been a considerable effort taken to examine the process being carried out other way round i:e; trying to create and enhance brand awareness of the company’s products or product category via performing related specific CRM activities or campaigns which could eventually lead to the improvement of the reputation of the corporation, taking the “brand and cause fit” into consideration, as discussed in the early section. However there can also be negative effects created on building a brand’s awareness and an organisation’s reputation due to the fact that the companies trying to initiate CRM campaigns largely based on the intention of maximising the corporate earnings and share holder wealth and thus deviate from the core values of the concept of ensuring the ethical existence and positive contributions towards improving the standards of the existence of a society in which they operate. Therefore focusing heavily on CRM activities as a means of enhancing corporate wealth could jeopardize the corporate reputation. However as discussed earlier in the beginning of the chapter (“What is CRM” section), such problems may appear in visible CRM as part of
  • 18. 17 CSR initiatives that are connected to benefit salience (Yoon et al. 2006), in which firms are believed to use CSR only for their own self - interest (Prout, 2006) as cited by Torres (2012). “Cargills Agriculture and Commercial Bank”, the company which the researcher has employed for this research needs to analyse it’s competitors, in practicing this strategy in the Banking and finance sector in Sri Lanka and has should focus on developing creative and mutually beneficial CSR projects that go in line with different product lines of the bank. Therefore in identifying the gap of the need of analysing the impact that could be made by related CRM activities on building product specific brand awareness, the researcher intends to study the impact to the bank using data being gathered by sample of customers of the bank.
  • 19. 18 3.0 Methodology 3.1 Introduction This section contains the conceptual framework constructed based on the objectives and explained according to the findings in the literature review section. The data and variables will then be explained and their use to achieve the objective of the research will be justified. The methods used to measure the variables will also be mentioned. Empirical model will be given followed by a description of the sample used to gather primary and secondary data. The rationale behind composition of the sample and it’s size and also the area from which the sample was selected will be described. The data collection methods will then be stated and will be justified along with the description about the questionnaire in terms of the questions included and the reasoning behind the composition of the questionnaire will also be elaborated. 3.2 Conceptual Framework The impact of “Cause Related Marketing” (CRM) on “Brand Awareness” with special reference to “Cargills Agriculture and Commercial Bank” Private Limited. Figure 2, Source: Author developed. Hypothesis  There is a positive relationship between “Cause Related Marketing” and “Brand Awareness”. Cause Related Marketing Brand Awareness of “Cargills Agriculture and Commercial Bank” Independent Variable Dependent Variable
  • 20. 19 As indicated the conceptual framework provides the logic on how the end goal of the research will be achieved i:e; to ascertain the impact made by Cause Related Marketing campaigns on improving the brand awareness which would eventually lead to the improvement of the company’s performance. The factors affecting the decision of the management of the business to perform Cause Related Marketing activities, would be the need to improve the brand awareness and to ensure the sustainable existence of the business through which the customer perception towards the products and the services offered by a company would improve, which would create customer loyalty which could also be considered as a sustainable competitive advantage. 3.3 Data variables In this research the researcher has taken the independent variable that would affect the need to perform initiatives by companies as, the Cause Related Marketing strategy which would lead to the improvement and successful performance of the dependent variable which is the brand awareness of the “Cargills Agriculture and Commercial Bank”. The dependent variable is measured using secondary data sources such as the company’s publications and also other related publications. 3.3.1 Operationalisation Table Variable Variable Type Measurement Cause Related Marketing  Relevance to the operations.  Importance to the operations. Independent Questionnaire (from Q7 to Q12) (from Q 13 to Q18) Brand Awareness  Relevance to the operations.  Importance to the operations. Dependent Questionnaire (from Q 19 to Q23) (from Q 24 to Q29) Table 1 , Source: Author developed
  • 21. 20 3.4 Identifying the layers of the research - “Research Onion” model Figure 3, Source: Author developed. 3.4.1 Philosophical stance – Critical Realism According to the model “Research Onion”, the researcher has undertaken this research based on the research philosophy “Realism” where both quantitative and qualitative data gathering techniques are used and argues the point that what is acknowledged through the senses of the researcher is subsequently processed subjectively by the mind (Critical Realism). In this research, the researcher tries to acknowledge the fact that there is a relationship between CRM and Brand Awareness by his senses, the world view and own experience. The researcher needs to find out what is immediately experienced and the structures and relationships that lie beneath this (Saunders and Tosey 2012/2013).
  • 22. 21 3.4.2 Approach - Deductive The research is done based on a “Deductive” approach where the past information is gathered and analysed to identify the gaps that exist. In this researcher the researcher aims to determine the impact of CRM on the Brand Awareness. Here, both CRM and Brand Awareness are existing concepts in the subject of marketing and it’s related literature. Therefore the researcher will be collecting and analysing the data in order to prove the relationship between these variables. Therefore, the researcher is adopting the deductive strategy for this research. 3.4.3 Research Strategy The third layer of the research onion is the research strategy. In this stage, the researcher determines the way in which the he or she will collect the information to satisfy the research objectives. In this research the research strategy which is the “survey” method where the researcher collects data through a questionnaire and interview. In the survey the researcher will distribute the questionnaire to 60 (sixty) customers of the “Cargills Agriculture and Commercial Bank” and interview 10 (ten) customers in order to gain deeper insights of information about the customer perception. 3.4.4 Research method – Mixed The researcher uses “mixed” method as methodical choice, where both a questionnaire and a set of interviews are conducted in order to gather and anlyse the data. The two main methods of collecting data for a research are the quantitative method and the qualitative method. The qualitative method is the way of gathering qualitative data that aids in which the researcher discusses research questions and gathers the relevant information. However in this study, the researcher will be using both qualitative and quantitative method which is known as the mixed method. There are several advantages for a researcher in utilising the mixed method as the mode of gathering data in his or her study. Firstly, the mixed method enables the researcher to understand the contradictions and make comparisons between the qualitative findings and quantitative findings. Secondly, the mixed method would provide more meaning about the findings to the readers, the researcher will be able to more effectively present the findings as the data analysis and interpretation is combination of words and numbers,. Furthermore, the mixed method enables the researcher to collect rich and comprehensive data by integrating both qualitative and quantitative data (Saunders et al., 2009).
  • 23. 22 3.4.5 Time Horizons – Cross Sectional The researcher uses “Cross - sectional” time strategy where the research is undertaken to answer a question or address a problem at a particular time. Time horizon consists of two parts which are cross sectional and longitudinal. In cross sectional time strategy, the researcher collects data and analyses in order to fulfill the research objectives and answer the research questions at one point in time (Burns and Bush, 2014). On the other hand, the longitude method is where the researcher’s objective is “to repeatedly measure the same sample units of the populations over time” (Burns and Bush, 2014). In this study, the researcher implements cross sectional time horizon as this study gathers data for the research on answering the research questions at only one point in time by collecting data from the selected sample units of the population. 3.5 Data Collection and analytical techniques The data collection techniques are categorized into two categories; they are secondary data sources and primary data sources. Initially, secondary data refers to the data which already exist. Primary data refers to raw or firsthand data which is directly collected from people (Saunders et al., 2009). In this research the researcher focuses only on gathering primary data and both qualitative and quantitative methods are being used to gather data. The primary data are being gathered using a questionnaire which was designed to gather data from sixty correspondents and also a through a series of interviews conducted using ten correspondents. According to Burns and Bush (2014), firstly the researcher should start collecting secondary data before moving onto primary data as it is cost effective and time effective. Burns and Bush (2014) further stated that, if the necessary information can be gathered through secondary data sources, then the need for primary research is irrelevant. Since the core objective of the researcher in this research is to analyse the impact of “Cause Related Marketing” on the brand awareness of “Cargills Agriculture and Commercial Bank”; in order to analyse this objective, the researcher will require the responses of the customers of the bank and therefore the secondary data sources would not be helpful in obtaining the required information. Therefore, the researcher will be using primary data sources to collect information in order to conduct the research. The following are the primary data collection techniques used in this study.
  • 24. 23 3.5.1 Questionnaire The questionnaire was designed as mentioned earlier, to be given to sixty respondents involved with the bank’s operations. The questionnaire comprised of twenty nine questions and the first six questions were to gather data on the demographic factors related to the respondent. The questionnaire was limited to only twenty nine questions in order to get the banking officers, especially the management level respondents, convinced to respond and fill it with their busy schedules. The questionnaire is categorised into mainly two parts with each part being designed to obtain response regarding each variable in the framework. The first four questions are generic questions which are aimed at obtaining the demographic details of the respondent such as the name and age group. The next two questions (five and six) inquired about the number of banks that the correspondent is currently dealing with and how long have been dealing with a financial institution, in order to ascertain whether he or she is a seasoned customer in the banking business and to know whether he or she has experienced different types of service levels from different banks. From question seven onwards the questions were structured in form of a Likert Scale where the responses were give scores ranging from one to five with one being the lowest and five being the highest given to the answer “strongly agree”. The questionnaire was structured according to the sub categories which were formulated under the two variables. Under “Cause Related Marketing” The questions from question seven (7) to question twelve (12) focused on obtaining the respondent’s idea and impression on the relevance of the concept to the banks operations. The questions from question thirteen (13) to question eighteen (18) were designed to assess the perceived level of importance of practicing “Cause Related Marketing” activities by the bank, according to it’s customers. The next set of questions i:e; from question nineteen to twenty nine (19- 29) were focused on obtaining and analysing the customer’s knowledge on brand awareness and customer perception towards the level of improvement required on the corporate reputation and the brand identity of “Cargills Agriculture and Commercial Bank” . The response of the managers and the officials of the bank would be considered as their perceived level of perception towards the recognition of their corporate brand and the level of service provided to the customers. This set of questions were again broken down to two sections as to assess the customer opinion on the relevance of improving brand awareness to the bank’s business (from question
  • 25. 24 nineteen, 19 to twenty three, 23) and to obtain the opinion on the importance of the improvement of brand awareness to the business through questions given from twenty four (24) to twenty nine (29). Please refer appendix 1 for the questionnaire. 3.5.2 Interviews The researcher has also conducted a series of interviews in order to obtain qualitative data that will further improve the research findings. The researcher interviewed ten (10) customers who had already filled the questionnaire. Using the interview, it was the intension of the researcher, to gain deeper insights and an understanding about the customer perceptions and preferences which will in turn enhance the accuracy and the reliability of the data as well. Therefore, the researcher had conducted a structured interview to gather information to carry out this research (Please refer appendix 2 for the structured interview questions) 3.6 Ethical Issues The researcher has collected the literature from journals and books published and which are available to be referred in the world wide web (the internet) and do hereby stipulates the fact that the researcher has not changed the original meaning of the literature. The literature was properly acknowledged through citation and referencing. The researcher directly approached the respondents in order to obtain primary data. In order to get the participation of the correspondents for the survey and especially the interviews certified, the researcher provided each participant with a letter of consent (the interviewees only). In order to satisfy the ethics of researcher, the researcher will provide a formal letter to the respondents to get their consent to participate in the survey. Further, the researcher will keep the responses collected from the respondents private and confidential. This means responses collected from one respondent will not be passed to any other respondent or to public in large (Refer appendix 3 for the consent letter). 3.7 Chapter Summary This chapter contains the details of the data gathering sources, the types of data gathered for the research, methods followed and the tools and techniques employed in collecting and analysing the data, in order to justify the research objectives and hypothesis constructed in chapter one and to provide answers to the gap between the existing study and the objectives of
  • 26. 25 the researcher identified in section 2.5 – Gap Analysis, in chapter one: The Literature Review. Finally, the ethics of research that the research is obliged to satisfy were discussed.
  • 27. 26 4.0 Data collection and field work 4.1 Introduction The chapter four discusses the basis on which the study was conducted and the technique and the process used by the researcher to collect the data through the questionnaire and the interview from the chosen sample size. 4.2 Sample The sample comprised of total sixty respondents with a composition of five respondents from the senior and middle management of Cargills Agriculture and Commercial Bank Private Limited, Sri Lanka and another ten respondents who are serving as executives (senior and middle level) and the rest of the forty five respondents were customers of Cargills Agriculture and Commercial Bank Private Limited, Sri Lanka. 4.3 Rational The sample comprises of senior and middle level managers and another senior and middle level executives of Cargills Agriculture and Commercial Bank Private Limited. It should be noted that the respondents to the questionnaire, from the bank (the officials), were asked to assume themselves as the customers of the bank when filling the first five questions of the questionnaire. These questions were aimed at obtaining the respondent’s view on the level of brand awareness and the importance of implementing marketing strategies such as CRM campaigns and the officials were asked to assume themselves as customers in order to obtain their perception on the level brand awareness of the bank and the importance and relevance of marketing strategies such as CRM to improve the business and operations of the bank. The insights of the officials for the questions which focused on the importance of both CRM and Brand Awareness to the bank’s operations provided an idea on the level of support and commitment that could be obtained from the staff of the bank towards such activities. The rest of the correspondents who banked with the Cargills Agriculture and Commercial Bank Private Limited, were randomly selected and the researcher in order to obtain the brand recognition and customer perception on the importance and effectiveness of practicing CRM
  • 28. 27 campaigns, selected the respondents who were banking with at least another bank other than Cargills Agriculture and Commercial Bank Private Limited. 4.3 Area / Region – Field work The middle and the senior management of the bank were selected from the head office of the bank situated in the Galle Road, Colombo 3, Sri Lanka. The bank still has only two branches, which are also situated within the city limits of Colombo, as it’s been merely around one year since the inception of the business. Therefore the staff of the bank could only be chosen from the head office. The senior and middle level officials were also selected from the head office. However in order for the bank to get on with the operations in full swing immediately, the staff that has been recruited comprises of a set of banking professionals who have been carefully head hunted and who are equipped with extensive experience in banking and finance field. They were more experienced in servicing a more educated and seasoned clientele who have demanding requirements. Through these officials, thirty five respondents (customers / account holders of the bank) were selected from the suburbs as they were more sophisticated and concerned about the social and ethical conduct of businesses and corporate citizenship. These respondents therefore were from the suburbs of Colombo, Sri Lanka and were taken again from the clientele of the head office situated in Colombo 3. 4.4 Piloting the questionnaire The researcher must test the relevance and the accuracy of the questionnaire before presenting it to the respondents. The pilot test enabled the researcher to identify several shortcomings and improvements which were rectified. The purpose of the pilot test was to clarify the following aspects in the questionnaire. 1) Are the questions applicable to measure the research objectives? 2) Are the questions understandable? 3) Does the number of questions in the questionnaire are appropriate? 4) Does the questionnaire take a long time to be filled? 5) Do the questions support the statistical data analysis which is intended to be done after data collection?
  • 29. 28 In case of this research, the pilot testing has helped the researcher to ensure the accuracy and the relevance of the questionnaire by rectifying several errors which were indentified in the questionnaire before distributing it to the respondents. For the pilot testing, initially the researcher distributed the questionnaire to five seasoned banking professionals. With their expertise on the subject, the objective of the researcher was to determine whether there are any shortcomings in the questionnaire. It was their opinion that two questions could be presented in a less complicated manner for the consumers to understand as they concentrates more on theoretical aspects of the subjects discussed in the research. The experts advised the researcher to express these three questions in a more practical manner so that the consumers will not have any issues in answering the questions. The respondents were able to correctly understand the intentions of the questions and responded easily who might have otherwise got confused without being able to understand the questions. The experts who were consulted through the pilot test provided advise in order to enhance the efficiency and the effectiveness of the questionnaire. 4.5 The rate of response It is imperative for the researcher to increase the response rate of the survey in order to obtain an effective data set. The consumers could become reluctant to fill the questionnaires. Therefore, the researcher must prepare the questionnaire in a manner which is easy for the consumer to respond. All of the questions of the questionnaire are close ended and directed in a five point Likert scale which also provides a range of choice to the respondents. The respondents were given the chance to be neutral in their opinions as well (Neutral =3). The questionnaire had close ended questions with the idea that the majority of the respondents wouldn’t have a positive mentality to answer open ended questions and ultimately the researcher will get several incomplete questionnaires. The researcher obtained the permission from the management of Cargills Bank to carry out the survey within the head office premises. The purpose of the research was clearly communicated to the respondents and the management before distributing the questionnaire. Due to the interest shown in doing the research subjected to the bank, the management facilitated the researcher to conduct the survey and courteously provided their insights for the study as well.
  • 30. 29 4.6 Chapter Summary Chapter four concentrates on the steps taken prior to conducting the actual survey. The researcher conducted the study using sixty respondents who were the customers of the bank. The questionnaire was tested for it’s accuracy and relevance, before distributing it amongst the respondents, by consulting five experts chosen from related backgrounds in banking.
  • 31. 30 5.0 Data Analysis and interpretation. 5.1 Introduction Chapter five focuses on analysing the data which were collected through the questionnaire and the structured interview, from the sample set of correspondents. The data analysis is considered as the most important section of the research as this section will enable the researcher to analyse and identify the relationship and the level of impact between the dependent and independent variable and also to ascertain whether the hypothesis that was constructed under conceptual framework, could be satisfied. Chapter five therefore consists of the descriptive analysis, quantitative analysis, and qualitative analysis. 5.2 Demographic Analysis. The sample of correspondents that was utilised in order to obtain the data required for the analysis consisted of a total of sixty correspondents, out of which 29 (twenty nine) respondents were females while the rest being males, i:e; a number of 31 (thirty one) respondents. The sample of correspondents which comprised of a set of 45 (forty five) customers of the “Cargills Agriculture and Commercial Bank Private Limited”, Sri Lanka; and 10 (ten) senior and middle level executives were randomly selected. The rest of the five respondents who represented the senior management of the bank were picked from different departments such as Marketing, Risk Management and Consumer Banking. Chart 1: Author developed 52% 48% Gender Distribution - Sample Male Female
  • 32. 31 Therefore as given above in the graphical representation of the gender distribution of the sample, 52% (fifty two) of the correspondents were males whilst 48% (forty eight) of the sample comprised of female correspondents. Chart 2: Author developed. According to age and gender analysis done for the sample set of respondents of the research, the fourteen (14) respondents who were in the age range of 18 to 24 years, included eight (8) male respondents and six (6) female respondents. Eight (8) respondents were between the age range of 25 to 29 years, out of which three (3) respondents were males and the rest (5) were females. Twelve respondents were between 30 to 35 and ten (10) of them were males whilst the rest of the two (2) were females. Nine respondents were in the age range of 36 to 40 years out of which five (5) were males and four (4) were females. The age range of 41 to 45 years had 18-24 25-29 30-35 36-40 41-45 46-49 50-54 55 and above Respondents 14 8 12 9 8 4 4 1 Male 8 3 10 5 4 1 4 1 Female 6 5 2 4 4 3 0 0 0 2 4 6 8 10 12 14 16 Numberofrespondents Gender and Age Analysis Respondents Male Female
  • 33. 32 eight (8) respondents and the males and females were equal in numbers, and four (4) respondents were in the age range of 46 to 49 out of which one (1) was a male respondent and the others were females. 50 to 54 age range had four males and no females in it’s category and there was only one (1) respondent in the 55 and above category, which was a male. It is evident from the age analysis that the majority of the customers were within the age range of eighteen (18) to thirty forty (40). This indicates the fact that the newly established bank has attracted more young and middle aged customers than the older ones. It could be calculated as around 72% of the total sample population. This may be due to the fact that the young customers are more of risk takers and they have kept their trust in a newly established financial institution which is facing a heavy competition from much larger and established competitors. The older customers being having a risk averse attitude and having had strong brand loyalty to other established banks, have not got much attracted to the new “Cargills Agriculture and Commercial Bank”. The gender distribution can be seen more or less equal from age eighteen (18) to twenty nine (29) age range and thirty six (36) to forty (40) as well. However there is a significant drop in female customers from age forty one (41) onwards which, as stated earlier, could be largely owing to, the risk averse nature and the brand loyalty of the more seasoned customers. 5.3 Descriptive Analysis Descriptive Statistics N Minimum Maximum Mean Std. Deviation Varianc e BA 60 32 54 47.12 4.974 12.368 CRM 60 30 60 50.98 7.382 20.242 Valid N (listwise) 60 Table: 2 The table above indicates how the respondents rated the questions of the questionnaire. The questionnaire consisted of twenty nine (29) questions out of which twenty two (22) questions were aimed to gather data on the independent and dependent variables. The respondents had to rate in a scale of 1 to 5 (1=strongly disagree and 5= strongly agree) in a Likert scale. The
  • 34. 33 consumers have rated minimum value of 16 for the “Brand Awareness” concentrated questions. Based on the above table, the mean value of 47 (rounding 47.12). This is out of eleven questions set to assess the customer perception. Therefore the average score is 4 which states that majority of the respondents rated the relationship marketing questions as “Agree”. The maximum rating for CRM questions is given as 60. Whereas the minimum value for brand equity questions is given as 30 and the mean value of CRM related questions is 50.98 which is divided by eleven questions given on the topic to reach an average of around 4.6 which could be ascertained as close to the category of “Strongly Agree” in the questionnaire responses. 5.4 Reliability and Validity test Variable name Cronbach's Alpha N.O of Items Valid Cause Related Marketing .741 60 Brand Awareness .775 60 Table: 3 The reliability of data is extremely important in order to ascertain the b trustworthiness of the research. In the reliability test, the major concern should be made for understanding the Cronbach’s Alpha in order to measure the internal consistency of the data. According to Walsh (1995), the Cronbach’s Alpha should be greater than 70 percent. Walsh (1995) argued that if the Cronbach’s Alpha is greater 70 percent, it explains that the internal consistency of the variables is reliable. The Cronbach’s Alpha of “Cause Related Marketing” is 0.741 which means that the internal consistency of the “Cause Related Marketing” variable is 74.1 percent reliable. According to the table, the dependent variable “Brand Awareness” has a Cronbach’s Alpha value of 0.775 indicating that the internal consistency of the “Brand Awareness” variable is 77.5 percent reliable. Further, the validity test suggests that the data collected to measure the variables of “Cause Related Marketing” and “Brand Awareness” is 100 percent valid.
  • 35. 34 5.5 Correlations BA CRM Brand Awareness Pearson Correlation 1 .509** Sig. (2-tailed) .000 N 60 60 Cause Related Marketing Pearson Correlation .509** 1 Sig. (2-tailed) .000 N 60 60 **. Correlation is significant at the 0.01 level (2-tailed). Table: 4 The Correlations table explains how well the two variables relate to each other and whether the relationship between the independent and dependent variable is significant. The Pearson correlation analyses the relationship between Cause Related Marketing and Brand Awareness. In the above table, the Pearson correlation is indicated as 0.509 which is a positive value. This means that the Cause Related Marketing and Brand Awareness has a positive relationship. Additionally, this also states that when the value of Cause Related Marketing increases by 1, Brand Awareness will be increased by 0.509. The two tailed significance between the variables should then be analysed. According to the SPSS tutorial, if the significance is less than 0.005, then it can be stated that the relationship between two variables is significant. Based on the above table, the significance is calculated as 0.000 which is less than 0.005. Therefore, it is evident that there is a significant positive relationship between Cause Related Marketing and Brand Awareness. The positive relationship could also be shown through a scatter diagram, which is given below. In the scatter diagram, the X axis represents the “Cause Related Marketing” (independent variable) and the Y axis represents “Brand Awareness” (dependent variable). Therefore, the scatter diagram shows that when “Cause Related Marketing” of the X axis increases, it leads to the increase of the “Brand Awareness” which is the Y axis, which indicates that there is a positive relationship between “Cause Related Marketing” and “Brand Awareness”.
  • 36. 35 Chart 3: Author developed. 5.6 Linear Regression Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .718a .558 .552 .2460917 Table: 5 a. Predictors: (Constant), Cause Related Marketing b. Dependent Variable : Brand Awareness The data obtained through the questionnaire were processed to obtain the linear regression and the outcome is as given above. In this study, since the IBM SPSS statistics (ver. 20) software is used to analyse the data, the model fit of the study will be analysed by taking the adjusted R- square value in to account. According to the table, the Adjusted R Square value is 0.558 which is also expressed as 55.8 percent. Therefore, in the case of this study, the Adjusted R Square indicates that 55.8 percent of the total variance of “Brand Awareness” is explained by “Cause 0 5 10 15 20 25 30 0 10 20 30 40 BrandAwareness(BA) Cause Related Marketing (CRM) BA Linear (BA)
  • 37. 36 Related Marketing” activities. This implies that “Cause Related Marketing” has a positive impact on “Brand Awareness”. 5.7 Coefficients Coefficientsa Model Unstandardised Coefficients Standardised Coefficients T Sig. Confidence levelB Std. Error Beta F 1 (Constant) 14.815 1.945 5.618 .000 “Cause Related Marketing” .343 .072 .509 8.542 60.628 .000 *** Table: 6 Dependent Variable: Brand Awareness *** 99 percentage of confidence interval, ** 95 percentage of confidence interval, * 90 percentage of confidence interval. According to the table the coefficients of the variables are shown. Thus, the above figures are used to analyse the relationship between “Cause Related Marketing” and “Brand Awareness”. The standard error indicates the percentage of error in the research. Based on the analysis, the standard error of this study is 7.2 percent which is acceptable. The Beta value shows the impact of one variable on another. Therefore, it is the same as the Pearson Correlation and as a result the value of Pearson Correlation and Beta has the same value of 0.509 which indicates that when “Cause Related Marketing” increases by 1, the “Brand Awareness” will tend to increase by 0.509. The T value also highlights the relationship strength of the two variables. It is indicated that when the T value is positive and when it’s higher, it implies that the relationship of the two variables is positive and the significance of the relationship is higher. Thus, according to the above table, the T value is 8.5 which indicate that there is a positive relationship between “Cause Related Marketing and “Brand Awareness”. The F value indicated in the table is 60.628
  • 38. 37 and according to the statisticians, when the F value is positive and higher, it implies that “Cause Related Marketing has a significant positive impact on “Brand Awareness”. The most important section in the data analysis is the statistical significance. According to the SPSS tutorial, in order to state that relationship of two variables is significant, statistical significance should be less than 0.005 (less than 0.01). Thereby, according to the above table, the statistical significance is 0.000 which is less than 0.005. Thus, since the significance is 0.000, it implies that the independent variable; “Cause Related Marketing” (CRM) provides a 99% significance for the dependent variable “Brand Awareness”. It indicates the fact that CRM proves to be a significant factor for the improvement of “Brand Awareness” of a business. 5.8 Analysis of the interviews. In addition to the questionnaire, the researcher was also involved in conducting interviews in order to gain deeper insights about the customer’s perception on “Cause Related Marketing” activities and it’s impact to “Brand Awareness”. The objective of the researcher in the interview was to obtain the customer’s views and opinions on how to improve the brand awareness of the bank via “Cause Related Marketing” activities. The researcher interviewed ten (10) customer’s of the bank and analysed their responses with reference to the research objectives. The interviewer asked only fifteen (15) questions from each interviewee due to time constraints and the analysis was based on the way the interviewee responds to the questions. The following are responses given by two interviewees. In order to analyse the difference in perceptions the responses are of one male and one female respondent, selected on the basis of prudence, the validity and the relevance of the responses provided. Male interviewee’s response – (Occupation – A Business Analyst of an IT firm, Age group 25- 29) “I have learned the basics about what “Cause Related Marketing” is in the basic level of my degree course. I have been banking with this bank for now about a year now. The reason I selected this bank was due to attractive savings account product that they are promoting through advertising. I think for a developing country like Sri Lanka it is imperative that the corporate follow their strategies in line with ethical conduct best practices and thus I would like to see more companies engage in initiatives such as “Cause Related Marketing” campaigns. However the public awareness or the appreciation for these initiatives would depend largely on their education levels as well in my opinion. Nevertheless I guess it effectively creates some sort
  • 39. 38 of a brand awareness amongst the target clientele and would be good if Cargills Agriculture and Commercial Bank to focus on in order to build their reputation. I don’t know of any initiatives taken by the bank on CRM strategy yet and if they haven’t in my opinion they should immediately think about doing something of that sort as it will be good way to improve their reputation. They should promote the campaigns well too so that people like us who does not notice the banks initiatives more often would get to know about them. I would generally have a better regard for a brand or a corporate which engages in such initiatives and would try to appreciate their effort by purchasing the product.” In analysing this response which largely represents the rest of the five (5) responses of the young male clients within the age group of 18 to 36, it is evident that they have got attracted to the bank due to it’s competitive product range and through advertising. According to Macdonald and Sharp (1996), the purchase decision of the consumers is influenced by brand awareness, despite whether the consumers are the familiar and willing to buy the product. There is a significant lack of customers who have got attracted by recommendations and any other marketing or promotional campaign. This may be due to the comparatively small clientele that the bank is servicing for currently. It was indicated that they had a positive attitude towards the corporate which practices CRM initiatives and would also tend to go for the products based on appreciation and gratitude towards the brand. They also mentioned the fact that there could be an impact made by these type of CRM campaigns on the improvement of the Brand Awareness of a company. However they also pointed out an important fact that the education or awareness levels and ability to think and interpret information in the minds of the customers would also have an impact on the success of the CRM campaigns. They agreed that they could become loyal to the brand or product o an extent due to these types of initiatives. Female interviewee’s response – (Occupation – Chartered Architect, Age group 30 - 35) “I have only been banking with Cargills for like six months now. Overall I cannot complain about their service. The reason I chose it was their attractive interest rates given for the savings accounts and it is close to my office as well. I’m currently discussing with them to obtain a loan for my higher studies as well. I had no idea of what “Cause Related Marketing” is actually until I was approached by you (the interviewer). According to the definition I think it is a very important subject and a very mutually beneficial strategy to be practiced by modern day businesses. It is actually a risk to select a newly established financial institute but I just thought of the stability of the group in making my move. I guess it would be very beneficial to the bank to practice CRM
  • 40. 39 strategies and they would need to promote them more in order to create awareness. I would prefer to do business with such a company as well. I do try to purchase products which are produced in an ethical background and do appreciate the brands which acts in a socially responsible manner. I became aware of their (bank’s) services by the billboard set up in front of their head office. I think the bank should really try to implement this kind of campaigns (CRM) to build their reputation. I would even tend to recommend the bank to others apart from the fact that they have a better offering of products than others, out of the liking and admiration that would be developed due to their contribution to the society through initiatives such as CRM.” Unlike the male correspondents the female correspondents had considered the risk factors that could be involved with the establishment of the bank but however have got more or less convinced by the corporate reputation and the stability of it’s parent company the “Cargills Ceylon PLC”. According to Brickely et al. (2002) as cited by Lai et al. (2010), acknowledged that a company’s reputation for socially responsible behaviour contributes significantly to the improvement of it’s brand capital. It is evident from these respondents’ statements that they do tend to regard the ethical stance and the socially responsible manner in which the companies act upon. This was specially noted amongst female correspondents who had a sound educational background. Also they exhibited more of an emotional attachment to certain brands which were brought up as examples during the discussions such as the “Embark” initiative carried on by a cloth shop named ODEL in Sri Lanka which sells a range of t – shirts with the “Embark” brand which contributes to a fund set up for the well being of stray dogs. Other than the remarks above the opinions and ideas of both the genders were similar to a large extent. The three interviewees who represented the age categories of 41 to 54 were very much concerned on the brand loyalty and the reason for them to bank with the new bank purely lied on the recommendations by their children and close relatives. Therefore it indicates the imperativeness for the bank to make their full effort in building it’s brand awareness. 5.9 Chapter Summary In conclusion, the chapter four contains the analysis and interpretation of data obtained in this research in order to analyse the relationship between “Cause Related Marketing” and “Brand Awareness”. The correlation between the two variables indicated that when “Cause Related Marketing” increases by 1, then “Brand Awareness” increases by 0.509. In addition, the regression analysis states that the adjusted R square is 55.8 percent which means that the total
  • 41. 40 variance of “Brand Awareness” is explained by 55.8 percent of “Cause Related Marketing”. In addition, to the quantitative analysis, the qualitative analysis was conducted through interviews and it was revealed that majority of the customers would recommend the practice of “Cause Related Marketing” campaigns in order to improve the brand awareness of the bank.
  • 42. 41 6.0 Findings and the discussion 6.1 Chapter Introduction This chapter discusses about the outcomes of the questionnaire and the interviews and thereby tests the research hypothesis. The researcher in this research conducted both quantitative and qualitative research in order to analyse the relationship between “Cause Related Marketing” and “Brand Awareness”. 6.2 Testing the hypothesis According to Vardarajan and Menon (1988), as cited by van den Brink et al. (2006) a CRM campaign aims at two objectives i:e; to support a social cause and to improve the marketing performance. “Cause Related Marketing” concept was built on the idea of creating socially responsible attributes infused into the brand and through that to differentiate the products in order to enhance sales. Brickely et al. (2002) as cited by Lai et al. (2010), acknowledged that a company’s reputation for socially responsible behaviour contributes significantly to the improvement of it’s brand capital. Jones (2005) in his “daisy – wheel” model of brand equities has suggested that brand equity forms by generating creative interactions between the brand and it’s stake holders. Therefore social responsibility initiatives originated by companies, forms an important linkage between the brand awareness and customer expectations. Thus going in line with the afore stated schools of thought, the researcher was committed to determine the nature of the relationship between the two variables of “Cause Related Marketing” and “Brand Awareness”. Therefore the hypothesis of the research was that “There is a positive relationship between “Cause Related Marketing” and “Brand Awareness” which was tested via questionnaire and interviews. According to the results of the questionnaire, processed using the SPSS analysis, the Correlation Analysis indicated that when “Cause Related Marketing” increases by 1, the “Brand Awareness” will increase by 0.509. In addition, the two tailed significance is 0.000 which is less than 0.005 which indicates that the positive relationship between “Cause Related Marketing” and “Brand Awareness” is significant at 99 percentage of confidence interval. The adjusted R Square indicated a value of 55.2 percent which states that total variance of “Brand Awareness” is explained by 55.2 percent of “Cause Related Marketing”. Therefore based on the quantitative
  • 43. 42 analysis, it can be stated that there is a significant positive relationship between “Cause Related Marketing” and “Brand Awareness”. The researcher also conducted the interview in order to support the findings of the quantitative analysis. The interviews conducted by the researcher indicated that many customers identified “Cause Related Marketing” as an important and an effective strategy of building corporate reputation. The respondents also pointed out the fact that the “Cargills Agriculture and Commercial Bank” lacks a proper advertising and a marketing campaign and it is imperative for the bank therefore to implement an effective strategy to promote it’s policies and values amongst the target clientele. Majority also mentioned that they will be made to consider purchasing a product or be loyal to a brand which would carry out a corporate ethical stance in it’s promotions and thus a strategy such as “Cause Related Marketing” would be ideal for the bank to create “Brand Awareness” which could eventually be converted into brand loyalty. Therefore through a qualitative analysis, the researcher was able to determine that that there is a positive relationship between “Cause Related Marketing” and “Brand Awareness”. Therefore, it is stated that the hypothesis of this researcher has been satisfied through both quantitative and qualitative analysis. 6.3 Demographic analysis. In processing the demographic data of the respondents who were involved in the survey the researcher was able to make certain observations. The first demographic factor which the researcher analysed was the gender distribution of the respondents. As indicated in the chart 1 in chapter 5, there were almost equal number of respondents participated in this survey from both genders. However the age analysis indicated the fact that the majority of the customers belonged to the age groups below 35 as indicated in chart 2 in chapter 5. The responses gathered from the questionnaire and especially through the interviews indicated the fact that the young customers are constantly exploring the better options that are on offer by different financial institutions and that they do not give much consideration about the stability or the reputation of the particular institution as long as it offers a better deal for them than the rest. The researcher therefore concluded the fact that the bank has attracted more young customers who are willing to take a risk and go for a new experience. The older customers would prefer to stick to their loyal brands which are more stable despite the attractiveness of the product range on offer.
  • 44. 43 6.4 Chapter conclusion The chapter five focuses on discussing the findings from the research. Firstly, the researcher tested the hypothesis which was constructed in this study. Through the quantitative and qualitative analysis, the researcher ascertained that there is a significantly positive relationship between “Cause Related Marketing” and “Brand Awareness”. The researcher also found out that demographically the bank has so far been able to largely attract only the young customers who are willing to take risks for a higher return.
  • 45. 44 7.0 Conclusion and Recommendations 7.1 Conclusion In conclusion, the research undertaken proves that there is a significant positive impact created by “Cause Related Marketing” on “Brand Awareness”. The “Cargills Agriculture and Commercial Bank” being the new comer into the banking and finance sector in Sri Lanka; which is seen to be a highly competitive battle ground with a constantly evolving target market, dominated by a set of long standing, reputed and well established set of financial institutes; needs to carve their mark by promoting it’s presence aggressively. In order to attract the sophisticated set of customers and to create awareness on the brand and it’s products, the bank needs to ensure the ethical existence of the business which would intern create goodwill towards the bank and it’s operations amongst both the relevant sector authorities and governing bodies and the amongst the community and public in large. The study done through an exploratory research, enabled the researcher to conclude the fact that the bank currently do not have a strong brand awareness created within it’ target market. In addition, the exploratory research also helped the researcher to determine the fact that “Cause Related Marketing” strategy could be used as an effective channel in order to create brand awareness of the bank and it’s products. 7.2 Recommendations Therefore in analysing the data gathered and processed through the research conducted, the following recommendations could be made for the Cargills bank in line with their corporate motto which is “Banking on the Human Spirit” [online] http://www.cargillsbank.com. According to the bank’s policy of empowering aspiring entrepreneurs and farming community alike, it is recommended for the bank to implement “Cause Related Marketing” strategies which would enable to sell it’s products such as the loan schemes to the farmers of the rural areas who have already established a lasting connection with the Cargills super market chain. The Cargills super market chain has successfully implemented the firm’s strategy on downward integration, which has resulted in elimination of intermediaries who are the whole sale dealers, enabling them to create a mutually beneficial and a strong and long lasting, loyal relationship with it’s group of suppliers, the farmers and small holder entrepreneurs. The company has been
  • 46. 45 able to get it firmly positioned in the minds of the consumers and thus create an undisputed goodwill and brand loyalty so far by being able to provide the consumers mainly with essential day to day basic food items, through adopting a unique strategy of downward vertical integration. This has produced the company with several benefits which have been then turned onto become a sustainable competitive advantage. Also this have been proved to become one of the best implemented Corporate Social Responsibility (CSR) strategies, so far in the Sri Lankan corporate arena, which has been praised and recognised by the local authorities and the consumer community, thus increasing the sense of belongingness and the goodwill in the society towards the company and it’s business and has been saluted as one of the most sustainable business models produced in the world so far (Annual report, Cargills Ceylon Plc, 2009/2010). Therefore it is recommended for the “Cargills Agriculture and Commercial Bank” to design and implement cause related marketing campaigns, integrating the corporate group policies of supporting the farmers and vertically integrating the business process and promote it’s products such as the loan schemes, savings accounts and fixed deposit schemes etc; which would enable the bank to successfully approach a wider clientele and establish it’s presence strongly across the country through the super market chain, creating a mutually beneficial and socially responsible conduct of business which would in turn result in the increase of brand awareness and eventually brand loyalty as well as the creation of goodwill towards the bank within the society and governing authorities, that would enhance the stability and the growth of the Cargills Agriculture and Commercial Bank Private Limited of Sri Lanka.
  • 47. 46 8.0 Future opportunities for research It is evident that even though there had been many researches done on ascertaining the relationship between the concepts of “Cause Related Marketing (CRM)” and “Brand Awareness”, there is still the opportunity to study the level of impact created on the consumer perception by Cause Related Marketing campaigns and to which extent would it create the brand awareness for the products making the customer loyal to the product and the brand. With time constrains that applied to this research, the researcher could not analyse the level of impact that a cause related marketing campaign would make on improving the brand awareness which could have been ascertained by calculating the improvement of the market share of similar brands and products of the competitors subsequent to some cause related marketing campaigns which are being conducted by them. Also there is the possibility of ascertaining the impact that a CRM campaign would make on the company’s profitability as well. It is very relevant and important for a corporate functioning in a developing country such as Sri Lanka to understand it’s role in nourishing the society that it operates in while promoting it’s business and operations, creating a mutually beneficial partnership. Activities such as CRM would provide an ideal platform specially for new businesses to implant goodwill and it’s ethical conduct and existence, in the minds of the customers. Therefore the researcher would suggest the academia to explore the possibility of doing further research on analysing the “level of impact” made by “Cause Related Marketing” campaigns on a company, in terms of improving it’s brand awareness, market share and profitability. Also, in processing the demographic data gathered by the survey the researcher was able to understand that the risk appetite of the target customer groups would change based on age. Thus it would be beneficial to research on the possibility of impacting the risk averse nature of customers through a CRM campaign, which would be highly beneficial for a newly established financial institute in a country such as Sri Lanka.
  • 48. 47 9.0 Individualreflective report Having missed the initial two lectures on the subject due to work, I had to have a strategic discussion with the lecturer Dr. Nalin Abeysekara on how to approach the coursework immediately as by then the rest of my colleagues had already completed their proposals. Initially I was bombarded with a set of questions by the lecturer in order for him to identify my background as an employed mature part time student and to enable me to identify and decide on the subject area on which I would like to pursue my research on. I always had an interest towards the concept of Corporate Social Responsibility and it’s related concepts that could be used to create a strategy that would both enhance the growth of the business and uplift the standards of living amongst the communities. Therefore in identifying my interest in the concept of “Cause Related Marketing” and the knowledge I had on the particular sector of business (banking and finance) which was focused on for the research and also the ability for me to obtain information based on my previous work experience as an Investment Advisor in the Colombo Stock Exchange, attached to a leading brokerage in another bank, I was able to identify my strengths in this particular subject area and sources of obtaining information, thus being able to successfully select the topic for the research and the sector in focus for the research. My initial weaknesses included the inability to understand and construct the proper conceptual framework and the difficulties I had in reviewing and critiquing the literature published on the related subject areas of research. This was a challenging learning experience for me and I got it reviewed by the lecturer several times in order to make sure I was on the right track and was doing the task accordingly and appropriately. Also the use of the SPSS system and the interpretation of data using the particular system were also entirely new, learning experience. I acquired the knowledge on how to feed the data into the system and process the data and interpret it sensibly in order to come into conclusions. Overall it could be concluded that this module provided an entirely new learning experience and a wealth of knowledge pertaining to the areas of conducting a full scale business research which I have not obtained so far either from the my past studies done on several professional courses or through my experience acquired so far in my professional career. Therefore I do hereby state the fact that I myself as a student am fully satisfied with the standard of this module and it’s
  • 49. 48 content, the course work and more importantly it’s professional relevance for the students who pursue graduate level studies and for the modern day practical operations of an organistaion. The knowledge I have gathered in conducting this small scale research will undoubtedly be immensely useful for me currently as an executive and as a prospective manager in future.  Word count – 13,050 (Thirteen thousand fifty) words.
  • 50. 49 10.0 References Aupperle. K.E, Carroll. A.B and Hatfield. J.D (1985) An empirical examination of the relationship between corporate social responsibility and profitability, The Academy of Management Journal, 28, (2) pp. 446-463. [Online]. Available from: http://www.jstor.org/stable/pdfplus/256210.pdf?acceptTC=true&jpdConfirm=true. [Accessed 25 December 2014] Baker M.J, and Adkins S. (2003) The Marketing Book. Oxford: Butterworth - Heinemann. [Fifth Edition] pp. 669 - 692. Barone M.J, Miyazaki A.D and Taylor K.A (2000) The Influence of Cause-Related Marketing on Consumer Choice: Does One Good Turn Deserve Another? , Journal of the Academy of Marketing Science, 28, (2), pp. 248 – 262. [Online]. Available from: http://www.uk.sagepub.com/clow/study/articles/PDFs/11_Barone.pdf. [Accessed 05 January 2015] Barone M.J, Norman A.T and Miyazaki A.D (2007) Consumer response to retailer use of cause- related marketing: Is more fit better? , Journal of Retailing, 83, (4), pp. 437 – 445. [Online]. Available from: https://datapro.fiu.edu/campusedge/files/articles/miyazakia2380.pdf. [Accessed 19 January 2015] Bronn P.S and Vrioni A.B (2001) Corporate social responsibility and cause-related marketing: an overview, International Journal of Advertising, 20, (2), pp. 207–222 [Online]. Available from: file:///C:/Users/Toshiba/Downloads/corporate-social-responsibility-and-cause-related- marketing.pdf [Accessed 04 January 2015] Cargills Agriculture and Commercial Bank Private Limited, Sri Lanka, official web site. [Online] Available from: http://www.cargillsbank.com/#our-journey. [Accessed 19 March 2014].