Investigation on how CSR affects customer loyalty A case study of Marks and Spencer Table of Contents Introduction 2 Rationale 2 Research question 2 Aim and objectives 3 Literature Review 3 Methodology 5 Research design 5 Data collection 6 Research strategy 6 Data analysis 7 Ethical consideration 7 Timescale 7 References 9 Introduction Corporate Social … Continue reading “CSR affects customer loyalty | My Assignment Tutor”
Investigation on how CSR affects customer loyalty A case study of Marks and Spencer Table of Contents Introduction 2 Rationale 2 Research question 2 Aim and objectives 3 Literature Review 3 Methodology 5 Research design 5 Data collection 6 Research strategy 6 Data analysis 7 Ethical consideration 7 Timescale 7 References 9 Introduction Corporate Social Responsibility (CSR) is a self-regulatory model practised by businesses and is a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders(Advantage, 2020). It involves initiatives taken by business organisations to develop the community, provide support in education and healthcare provision, or extend their support to the community, government and regulatory bodies as an activist to curb social issues (Advantage, 2020). These charitable and philanthropic activities are necessary because an organisation is part of society, impacting and getting impacted in turn by the community and society (Advantage, 2020). Organisations engage in these activities as they assume their responsibility towards different stakeholders, including customers. One of the driving factors for organisations to extend their CSR is owing to the notion that it keeps customers engaged (Tilt, 2016). Rationale The rationale behind this research is to examine how CSR influences Marks & Spencer (M&S). Understanding the impact of CSR on customers loyalty informs organisations to devise activities and take initiatives for the community development made of different customers. This research will contribute to the corporate social responsibility literature and inform M&P to formulate CSR strategies for enhanced customer loyalty which is an essential part to sustain competitive advantage because loyal customers act as apostles for the organisation and spread positive word of mouth. Research question How does CSR shape and influence customer loyalty of Marks & Spenser? Aim and objectives The research investigates the impact of CSR on customer loyalty in the case of Marks & Spenser. In this regard, the following are the research objectives: To identify CSR activities influencing customer loyalty in retailingTo examine CSR activities of Marks & Spencer and their impact on customersTo recommend the best CSR strategies for Marks & Spenser Literature Review Corporate social responsibility is about organisations bearing responsibilities towards multiple stakeholders and the society other than their shareholders, according to Wang, Tong, Takeuchi and George (2016). The thematic analysis highlighted that CSR became popular in the 1960s, and since then, corporations have initiated different strategies and separate units to manage their responsibilities towards society. Organisations operate at the global and national level through their long or short-haul community development activities. The study provided that in 2016, over eight thousand organisations from over 150 countries are part of the UN’s global compact to address issues relating to labour standards, anti-corruption and environmental preservation initiatives. Thus, CSR is now a prevailing organisational phenomenon. In light of this, Servera-Francés and Piqueras-Tomás (2018) studied CSR’s impact on consumer loyalty via consumer perceived value. The research analysed how customers perceive CSR activities taken by retailers. The study proposed that investment in these activities enhances customer value, loyalty and satisfaction. Using a sample of 408 hyper and supermarket consumers, the research found that these policies positively influence consumer perceived value, loyalty, satisfaction, trust and commitment. The research concluded that CSR is the variable which allows a retailer to differentiate itself from others in the industry and gain a competitive edge. Similarly, Cuesta-Valiño, Rodríguez and Núñez-Barriopedro (2019) studied the impact of a socially responsible strategy on consumer loyalty. The research elucidated that CSR stimulates positively in terms of retailer performance. The findings suggest that CSR policies of an organisation shape the organisational image and impact customer loyalty and create a quality relationship. Furthermore, quality and image mediate the relationship between CSR and customer loyalty, indicating that retailing organisations should invest in CSR. Osakwe and Yusuf (2020) stated that CSR is a road to increasing customer loyalty to sanctify the research further. The customer-oriented CSR literature confirms the positive influence on customer loyalty. However, the research used attribution theory to analyse the factors that strengthen CSR and customer loyalty. The research findings suggest that brand reputation and trust are important factors that mediate the relationship between CSR and customer loyalty. In addition to that, customers also play an integral role in compelling organisations to adopt CSR policies and activities. Iglesias, Markovic, Bagherzadeh and Singh (2018) analysed both co-creation and CSR activities. The study argued that previous researches examine the emotional impact of these activities, i.e. affective commitment of customers. However, the literature is sparse concerning behavioural (customer loyalty) and rational (trust) outcomes. The research findings state that CSR influences behavioural outcomes, i.e. customer loyalty indirectly and directly with co-creation activities. Most importantly, indirect influence is rather stronger because adopting co-creation strategies builds customer trust, increasing customer loyalty. A wide literature focuses on the association between CSR and sales growth in the UK’s retailing sector. Nyame-Asiamah and Ghulam (2019) examined Marks & Spencer and Tesco’s CSR activities and their revenue growth. The findings indicated a positive correlation between sales revenue and donations in the case of both companies. However, the important aspect to note here that M&P engages in philanthropic activities, environmental-friendly programmes and community work which has positively boosted its sales growth. Furthermore, Toda and Dawson (2017) examined the CSR activities of Marks & Spencer. The study argued that the organisation added CSR in its strategic actions following a drastic drop in its profitability in 1999. The Plan A Scheme of Marks & Spencer aims to contribute and make a difference in society and improve the lives of its employees. In this regard, Marks & Spencer has also incorporated healthy eating and promoted it through its marketing. As a result, Marks & Spencer’s CSR activities have increased customer loyalty, according to Islam (2016). The research analysed the impact of ethical practices which is part of CSR in M&P on customer behaviour and loyalty. Plan A has enabled the organisation to achieve a competitive edge and sustain it in the highly fierce UK retailing sector. However, the research findings indicated that of 33.6 million M&P consumers, the new CSR plan only influenced 12 per cent consumers, i.e. ethical consumers. Methodology Research design Research is either qualitative or quantitative based on the research objectives. Qualitative research is exploratory, giving an in-depth insight into human behaviour, opinions, and meanings (Yin, 2014). On the other hand, qualitative research is numbered, using statistical or mathematical tools to explain certain phenomena. The results are interpreted based on numbers and data collected, whereas qualitative research explores experiences and ideas (Bryman, 2017). Thus, the present research is qualitative because it is useful in exploring the impact of CSR activities on the loyalty of M&P’s customers. Though it may create misleading conclusions in the absence of statistical tools and data; it is a suitable approach for the present research because it will help capture customers’ attitude towards the CSR activities of M&P (Park and Park, 2016). Data collection There are two types of data, i.e. primary and secondary. Primary data is first-hand data collected by a researcher, whereas secondary data is already existing or available for the use. However, secondary data is not entirely related to the research topic (Yin, 2014). On the other hand, primary data is complex and time-consuming. As a result, the validity and reliability can be questionable if the data collection measures are not appropriate (Park and Park, 2016). Therefore, the researcher will employ secondary sources such as textbooks published reports, and peer-reviewed articles. Research strategy The research uses Desktop Research method, which is a secondary research method involving existing sources of information. Using this method, the current data will be collated and summarised (Maramwidze-Merrison, 2016). The sources mentioned above will be used to collect the data. All the sources published after 2016 will be used to maintain the quality and recency of the results. Data analysis Keeping in mind the research design and strategy, the present research will use content analysis. For that matter, secondary sources, i.e. reports and peer-reviewed articles, will be selected for analysis. The content analysis is a suitable technique in investigating CSR’s impact on customer loyalty in Marks & Spencer (Yin, 2014). Ethical consideration Ethical considerations in research include consent if the research involves respondents, due credit is given to others’ work and voluntary involvement, ensuring participants’ confidentiality, open communication, and liberty to withdraw from the research (Koonrungsesomboon, Laothavorn and Karbwang, 2016). Since the present research is desktop-based, the ethical considerations that need to be taken and taken into account while undertaking this research include the proper use of in-text citations, use of credible resources and giving due credit to others’ work. The research aims to use credible and authentic resources and uses in-text citations to avoid plagiarism (Koonrungsesomboon, Laothavorn and Karbwang, 2016). Timescale Key activitiesWeek 1Week 2Week 3Week 4Week 5Week 6Week 7Undertaking a literature reviewCollecting dataAnalysing dataWriting findings and discussionFinal draft References Advantage, C. ed., 2020. Corporate Social Responsibility. In: CSR and Socially Responsible Investing Strategies in Transitioning and Emerging Economies, 1st ed. IGI Global, p.346. Bryman, A., 2017. Quantitative And Qualitative Research: Further Reflections On Their Integration. Routledge, pp.57-78. Cuesta-Valiño, P., Rodríguez, P. and Núñez-Barriopedro, E., 2019. The impact of corporate social responsibility on customer loyalty in hypermarkets: A new socially responsible strategy. Corporate Social Responsibility and Environmental Management, 26(4), pp.761-769. Iglesias, O., Markovic, S., Bagherzadeh, M. and Singh, J., 2018. Co-creation: A Key Link Between Corporate Social Responsibility, Customer Trust, and Customer Loyalty. Journal of Business Ethics, 163(1), pp.151-166. Islam, K., 2016. Can Ethical Business Strategy Influence Consumers Buying Behavior and Loyalty: Marks and Spencer PLC?. SSRN Electronic Journal, 3(1), p.26. Koonrungsesomboon, N., Laothavorn, J. and Karbwang, J., 2016. Ethical considerations and challenges in first-in-human research. Translational Research, 177, pp.6-18. Maramwidze-Merrison, E., 2016. Innovative Methodologies in Qualitative Research: Social Media Window for Accessing Organisational Elites for interviews. Electronic Journal of Business Research Methods, 14(2), pp.78-90. Name-Asiamah, F. and Ghulam, S., 2019. The relationship between CSR activity and sales growth in the UK retailing sector. Social Responsibility Journal, 16(3), pp.387-401. Osakwe, C. and Yusuf, T., 2020. CSR: a roadmap towards customer loyalty. Total Quality Management & Business Excellence, pp.1-17. Park, J. and Park, M., 2016. Qualitative versus quantitative research methods: Discovery or justification?. Journal of Marketing Thought, 3(1), pp.1-8. Servera-Francés, D. and Piqueras-Tomás, L., 2018. The effects of corporate social responsibility on consumer loyalty through consumer perceived value. Economic Research-Ekonomska Istraživanja, 32(1), pp.66-84. Tilt, C., 2016. Corporate social responsibility research: the importance of context. International Journal of Corporate Social Responsibility, 1(1), pp.56-70. Toda, Y. and Dawson, J., 2017. Approach to Promotion of Healthy Eating. Explorations in Globalization and Glocalization: Marketing History through the Age, 1(1), pp.20-25. Wang, H., Tong, L., Takeuchi, R. and George, G., 2016. Corporate Social Responsibility: An Overview and New Research Directions. Academy of Management Journal, 59(2), pp.534-544. Yin, R., 2014. Case Study Research. Los Angeles: Sage.
