Browsing by Author "Welser, Carolin"

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    From corporate social responsibility to brand activism and the effect on customer loyalty : a structural equation modelling approach
    (Stellenbosch : Stellenbosch University, 2023-03) Welser, Carolin; Terblanche-Smit, Marlize; Stellenbosch University. Faculty of Economic and Management Sciences. University of Stellenbosch Business School.
    ENGLISH SUMMARY: Increasingly multinational companies are making statements related to socio-political topics. This phenomenon is called brand activism and augments the concept of Corporate Social Responsibility (CSR). Therefore, it has the potential to direct a wider variety of socio-economic issues. Brand activism implementation causes negative and positive customer reactions. It is a challenge for companies to implement brand activism and predict the impact on customers. Existing literature lacks a robust theoretical body for brand activism. The effects of brand activism on customers are unclear, and there is no valid measurement model. This thesis aimed to understand the phenomenon of brand activism by identifying brand activism as an evolution of the concept of CSR and measuring the quantitative effect on customer loyalty. Therefore, brand activism was differentiated from CSR and implementation guidelines were inferred. A positive impact of progressive brand activism on customer loyalty was anticipated. Based on an in-depth literature review, this positive relationship was ascertained and observed by developing a measurement model to discover the impact of brand activism on customer loyalty. Thereof six brand activism dimensions, namely social, legal, workplace, economic, political, and environmental, were tested regarding the impact on customer loyalty and the effects of the six brand activism dimensions. The impact of brand activism on customers’ legitimacy and authenticity perceptions was uncovered. Customers’ expectations were compared to the measured effect on customer loyalty to make assumptions about the optimal implementation of brand activism. An experimental method utilising a survey with 372 respondents from South Africa, divided into six experimental groups and one control group, was applied. The survey targeted the Millennial generation (Generation Y). Millennials were selected as the unit of analysis as they have greater expectations regarding the socio-political activities of corporations than previous generations. The sample size was determined by applying a statistical power analysis. The experiment constituted six different treatments, including examples from the automotive brand Volkswagen in South Africa. Analysis of Variance was executed, and a structural equation model (SEM) was developed and applied. The SEM included three mediating variables, brand trust, customer-company identification, and brand image, besides the independent variable, brand activism, and the dependent variable, customer loyalty. The study reported an overall positive relationship between brand activism and customer loyalty. The variance analysis did not report significant results. Customer-company identification was the only mediating variable within the SEM reporting a high significance towards customer loyalty. Respondents perceived environmental brand activism as the most important dimension. Customers’ expectation regarding brand activism implementation was higher than the measured customer loyalty. Implementing brand activism was perceived more in an authentic manner than a legitimate one. This research suggests that brand activism as a concept should be implemented complementary to CSR. The relationship between brand activism and customer loyalty is based on the social identity theory. Therefore, customer identification with the company was the strongest predictor of loyalty within this relationship. An expectation-behaviour gap was suggested as customers’ expectations towards the company were higher than their actual remuneration with loyal behaviour. A customer grid model to minimise the cognitive dissonance of customers is proposed for implementation. Overall, this research contributes to the field of strategic marketing and consumer behaviour. In terms of qualitative contribution, this thesis adds to CSR, brand activism, and customer loyalty research. A theoretical basis of the brand activism phenomenon is developed, and a strategic brand activism framework is implemented. The quantitative contribution of the study is a measurement model for testing the relationship between brand activism and customer loyalty and the results of the applied experimental study. The practical contribution of this research is the developed loyalty grid model, loyalty stage process, and overall recommendations based on qualitative and quantitative findings.