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CMGT500 Final Project

The Importance of Cause: Brand Loyalty in eCommerce
by

Graham Berry

on 19 December 2013

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Transcript of CMGT500 Final Project

e-commerce
The take-off of CSR online
e-Commerce
has a
BIG
problem.
Trust is low online.
Without trust, building relationships is difficult.
Our research shows
In a survey of AmazonPrime customers, we found that Brands can build trust online by including CSR.
The Importance of Cause
Brand Loyalty in eCommerce
Maung Lin
Yingying Liao
Graham Berry
Brands all over get it
Lasting relationships require a commitment.
The benefits of Cause in eCommerce
Have compelled some to charge ahead!
Some with sincerity and others with vanity.
Watch out!
Causes need internal support!
When organizational culture doesn't back up a cause the cost can be high.

When Microsoft engineers developed a touchscreen e-reader well ahead of Apple they were told to stop coming up with new ideas and focus on software that would create quicker profits. As a result, Microsoft missed a big opportunity and lost a lot of talent (Allan 2012).





Take the time to do CSR right
and your brand can take flight!
Start by knowing the eConsumer
Evidence shows that both rational and emotional campaigns are effective.

(Farache & Perkes 2010)
The Big Picture is clear.
CSR can even create and maintain brand legitimacy.
eCommerce Customers
are particularly sensitive to cause.
Where options are almost limitless and an abundance of information is available factors like CSR are particularly salient as value proposition differentiators.
But how do we choose a cause?
One important challenge
Communicating on a personal level.
Personal, self-interested values expressed in CSR campaigns are more influential than political, social or moral values. In other words, if the cause represents valuable attributes to you - then you'll probably support it.

(Smeltz 2012)
Because the best friends are loyal.
Coincidentally, so are the best customers.
The Rewards are HUGE too!
Rewards of Cause:
- Reduces operational costs
- Enhances Customer Satisfaction
- Lifts employee morale
- Sparks creativity at all levels

(Welker 2013)
Corporate Criminals
As we look to the future
Consider the new eConsumer
We can build greatness with our
bear hands
!
To increase effectiveness
Take into account some other factors
Mobile
Trust is the lowest,
Smartphones
influence e-commerce loyalty too.
Involvement
has also been shown to drive loyalty!
and CSR
makes it easy to get involved.
Here are
5 IDEAS
to
Efforts
Smart e-Commerce Leaders
Use
eBrands
Can soar with
CSR is "an opportunity to not only get a seat at the table, but to stay there."
Empowered
because (almost) everyone likes to cheer for the good guys.
and in the future
Brands that answer
the call for CSR
Maybe
eBrands can change
Let's start with a bit on
Corporate Social Responsibility
The will is all that is needed.
Link CSR Strategy
and Brand Image
Brand champions, those that identify with your cause, will even come to your aid.
(McWilliam 2011)
(Vijayan 2011)
(Pratminingsih, Lipuringtyas & Rimenta 2013)
(Argenti, Howell & Beck 2005)
For a strong foundation.
(Popoli 2011)
Today, consumers are following authenticity because when we sincerely work together...
(Debeljak & Krkac 2011)
Demand for CSR spending is on the rise.
Britain and India have both already proposed legislation to mandate CSR (Chenai 2008).
(Anon 2002; Rowley 1996,1998; Teo 2002; Jones & Wijayasarathy 1998; Mayer 2002; Raphel 1996; Roberts et al. 2003; Blair, Friend, Godwin & Babis 2006)
like marital status, age, education, culture and gender.
(Sagi 2003; Kai, Lim, Leung, Sia & Lee 2004; Girard, Korgaonkar & Silverblatt 2003)
59% of e-consumers say they will leave positive reviews for brands that are good corporate citizens (Rogers 2013).
Will have the advantage.
Typically, men compare pricing and use bar-code scanners while women share pictures and look for discounts or coupons (Knight 2013).
due to security and
privacy concerns.
(Soroosh & Ingmar 2012; Rowley 1996)
(Butler & Peppard 1998; Vijayasarathy 2003)
put CSR into e-commerce.
1. Pick an organization you
can believe in.
2. Plan joint promotions.
3. Donate your product
or service.
4. Donate a portion of
profits to the cause.
5. Use Social Media
(Volusion 2012)
Yo Paulie, it's one of those
drones from Amazon!
-whoa!
-
Won't always be profitable,
However...
Website
The
As a CSR Platform
because it serves as a the primary link between sense-making and involvement (Damangeot and Broderick 2007) .
Corporate Social Responsibility
(Argenti, Howell and Beck 2005, p 89)
Trust will grow as e-consumers are involved and
the world.
-#SFBatkid
Who knows? -
So is the shame for those without brand integrity.
Full transcript