This research study examined Busboys and Poets, a local Washington D.C. coffee shop and restaurant that is a certified B Corporation, to determine if the B Corp certification increases customer loyalty and perception of brand value. A survey was administered to 100 customers to collect data on factors influencing their decision to visit Busboys and Poets and their opinions on business social and environmental responsibility. The results found that most customers were unaware of the B Corp certification and statistical analysis showed the sample size was too small to draw conclusions about the customer population. However, the research brought awareness of the certification and sustainability issues. Future research with a larger sample is recommended.
1.
B-CORP CERTIFICATION:
A MARKETING RESEARCH STUDY
(Busboys & Poets, Washington, D.C.)
BY,
LAUREN
ZAHRINGER
SUBMITED
SPRING
2011
MARYMOUNT
MANHATTAN
COLLEGE
2. 1
Table of Contents
1. Managerial Summary…………………………………………………................................... Pg. 2
2. Statement of Research Purpose and Objective………………………………………….. Pg. 2
3. Research Design and Methodology………………………………………………………... Pg. 2
3.1 Questionnaire Design………………………………………………………………………...... Pg. 2
3.2 Sampling Plan………………………………………………………………………………….. Pg. 3
3.3 Data Collection and Data Entry……………………………………………………………… Pg. 3
4. Analysis Results………………………………………………………………………………. Pg.3
5. Recommendations……………………………………………………………………………. Pg.3-4
6. Tables and Figures…………………………………………………………………………… Pg. 5-6
7. Appendices…………………………………………………………………………………….. Pg. 6-9
7.1 Questionnaire............................................................................................................................... Pg.6-7
7.2 Codebook……………………………………………………………………………………….. *Attached
7.3 Hypotheses and Operational Definitions …………………………………………………… Pg. 8
7.4 Detailed Secondary Research………………………………………………………………… Pg. 9
3. 2
1. Managerial Summary
The main topic of this research is the affect of a businesses marketing mix on customer
loyalty. For a business a successful marketing mix creates customer interest in goods or services,
builds strong customer relationships, and creates value for their customers and for themselves. This
project will explore whether being a certified Benefit Corporation (B Corp) adds value to a
business’s marketing mix, specifically researching the B Corp certification’s impact for a local
coffee shop, addressing whether it creates value, satisfaction, or loyalty for the coffee shop’s
customers.
B Corps are less a legal entity (Archibald, 2007), such as a C Corporation or an S
Corporation, but more so a certification of particular business practices and activities that are
socially and environmentally beneficial. In a sense a B Corp certification is for sustainable
businesses what LEED is for green buildings. According to the B Corp website, a B Corp
certification enhances and adds value to a business by the business being recognized as a leader,
and by differentiating the business’s commitments via a third party certification. But at the
consumer level, just how powerful is a B Corp certification?
Does having a B Corp certification enhance a business’s marketing mix by solidifying a
commitment to social causes and in turn increase customer loyalty? If a business enhances a
community and is committed to sustainable practices without a B Corp certification, will customer
loyalty and brand value increase upon gaining a B Corp certification? This research study will
examine Busboys and Poets, a local restaurant and coffee shop in Washington, DC that is a
certified B Corp. Specifically the question driving this research is: Does the B Corp certification
increase Busboys and Poets’ customer loyalty, and perception of brand value?
An analysis of the data collected is unable to provide statistical significance for observed
results regarding the aforementioned objective. Most likely the error in the data collection is a
result of a too small sample size. Nevertheless, this research was able to bring to the attention of
respondents information they were unaware of, such as Busboys and Poets’ B Corp certification
and what it means, as well as thinking about business’ role in addressing climate change, and being
accountable to all stakeholders. As a place for ideas, and conversations, inspiring interaction
regarding these ideas was beneficial, and potentially increased customer awareness.
2. Statement of Research Purpose and Objective
There are two main objectives for this study. The first is to find out if Busboys and Poet’s
tangible B Corp features, fair-trade market, space for community events, and independent
bookshop within restaurant, are a factor in customers’ decision to come to restaurant. The second
objective is to learn about Busboys and Poet’s actual market, on the terms of demographics, and
opinions relevant to themes of sustainable development. A survey will be administered to a random
sample of one hundred customers in order to collect data for analysis and fulfill research objectives.
Objective 1 Measure the factors in customers’ choice to go to Busboys and Poets.
Objective 2 Measure customers’ opinions regarding Business’ relationship to
society.
3. Research Design and Methodology
3.1 Questionnaire Design
The questionnaire was designed to ensure accuracy, and effectiveness in collecting the
necessary data to test the research hypotheses. Questions were created on the basis of operational
definitions of hypotheses. Data for this descriptive research was collected with closed response
questions in the form of likert scales, and multiple-choice questions.
4. 3
3.2 Sampling Plan
To ensure that the sample is random, all customers of busboys and poet’s will have equal
opportunity to participate in survey. A sample of 100 customers will be taken. The data collection
will occur onsite at the Busboys and Poets 14th
Street location in Washington, DC.
3.2 Data Collection and Entry
The researcher will distribute surveys to customers at the restaurant who will complete the
survey on the spot. The researcher will ask respondents if they are interested in filling out the
survey. If respondents are interested and wish to participate on their own will, they will be given
the survey. At this point the researcher will leave the immediate area, so as to ensure for the survey
taker’s relaxed and natural state of mind that is free from pressure. The researcher will return after
a few minutes to collect the completed surveys.
4. Analysis Results
4.1 Research Question 1
Question 1 Do customers of Busboys and Poets go to Busboys because of the tangible
features of its fulfillment to its B Corporation Status?
Operational
Definition
Customers come to Busboys and Poets because of factors attributable to B-corp
certification. When asked to respond to the prompt “I come to busboys and poets
because I like…” a 60% majority of respondents will indicate one or more of the
three B Corp factors included in the answer options. It is expected that a majority
will indicate one or more of the factors as a reason for why they go to Busboys and
Poets on the basis of its popularity, and owner opinion.
Hypotheses H0: Q7E + Q7G + Q7H ≥ 1
HA: Q7E + Q7G + Q7H < 1
Result 66% of respondents indicated that one or more B Corp factors were a reason
for why they come to Busboys and Poets.
Statistical
Significance
Are the above results indicative of Busboys and Poets customer population,
or did observed results occur as a result of chance? a chi-square test was used
to test for statistical significance. The results of the chi-square test were
Test Statistics
BCORP
Chi-square 14.448a
df 2
Asymp. Sig. .001
a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected
cell frequency is 22.3.
5. 4
With 2 degrees of freedom at the .01 significance level the chi-square table
value is 9.21034. Since the calculated chi-square is greater than the value
in the table, the null hypothesis is rejected and it is concluded that the
predictions made were incorrect, and this observed result is not
statistically significant to make any conclusions for the population.
4.2 Research Question 2
Question 2 Do customers of Busboys and Poets wants Businesses to be socially and
environmentally responsible?
Operational
Definition
The expected response is that customers do want businesses to be environmentally and
socially responsible. Customers are already present at a business that is such, and
therefore, it is expected that they have considered this idea before. When asked to
indicate agreement with the statement “I want businesses to be socially and
environmentally responsible” on a scale of 1-5, a 60% majority will respond 4 or
higher.
Hypotheses
Test
H0 : Q11 > 3
HA : Q11≤ 3
Result 97% of respondents indicated agreement on scale of 1-5, of 4 or higher.
Statistical
Significance
Since this is a hypothesis of frequencies, a chi-square test is used to test for
statistical significance of the observation.
Test Statistics
want businesses to be socially and
environmentally responsible at a local level
Chi-square 17.330a
df 1
Asymp. Sig. .000
a. 0 cells (.0%) have expected frequencies less than 5. The minimum
expected cell frequency is 48.5.
With 1 degree of freedom at the .01 significance level the chi-square table
value is 6.63. Since the calculated chi-square is greater than the value in the
table, the null hypothesis is rejected and it is concluded that the predictions
made were incorrect, and this observed result is not statistically significant to
make any conclusions for the population.
6. 5
5. Recommendations
Most likely do to insufficient sample size, it is not possible to confirm that Busboys
and Poets have seen a return on their investment in their certified Benefit Corporation
status at the consumer level regarding customer loyalty. However, factors to be considered
are the newness of the Benefit Corporation status, general lack of customer awareness, and
the relatively recent growth in societal awareness, regarding climate change, and
consumers’ awareness of knowing their ability to influence and address climate change
through their customer choices. Nevertheless, it is recommended that the objectives of this
research be considered again in the future, with a larger sample, of 200 customers.
6. Tables and Figures
31%
21%
48%
Percentage
of
Customers
who
Indicated
each
of
the
following
three
b
corp
attributable
factors
as
a
reason
for
why
they
go
to
busboys
Community
Event
Fairtrade
Market
Bookstore
12. 11
References
(2010). Let's hear those ideas. Economist, 396(8695), 55-57.
Bedell, D. (2010). Responsible Corporations Gain Legal Protection. Global Finance, 24 (6), 10.
Bigné-Alcañiz, E., Currás-Pérez, R., & Sánchez-García, I. (2009). Brand credibility in cause-related
marketing: the moderating role of consumer values. Journal of Product & Brand Management, 18(6),
437-447. doi:10.1108/10610420910989758.
Clasen, E. (1967). Marketing Ethics & the Consumer. Harvard Business Review, 45(1), 79-86.
Demetriou, M., Papasolomou, I., & Vrontis, D. (2010). Cause-related marketing: Building the corporate
image while supporting worthwhile causes.
Gitomer, J. (2009). Why Starbucks works. Des Moines Business Record, 27(28), 49.
Mastrull, D. (2009, November 22). Nonprofit certifies businesses that do good. Philadelphia Inquirer,
The (PA).
Sen, S., & Bhattacharya, C. (2001). Does Doing Good Always Lead to Doing Better? Consumer
Reactions to Corporate Social Responsibility. Journal of Marketing Research (JMR), 38(2), 225-243.
Murawski, J. (2010, March 21). BEYOND the BOTTOM LINE. News & Observer, The (Raleigh, NC).
Penny J. Minna and Namha B., C. (n.d). Commentary: Benefit corporation law could spur socially
responsible business boom. Daily Record, The (Baltimore, MD).
Pivato, S., Misani, N., & Tencati, A. (2008). The impact of corporate social responsibility on consumer
trust: the case of organic food. Business Ethics: A European Review, 17(1), 3-12. doi:10.1111/j.1467-
8608.2008.00515.x.
Van Dam, A. (1975). WE NEED A 'GENERAL BENEFIT CORPORATION'. Business & Society Review
(00453609), (15).