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MBA Dissertation
Investigating consumer reactions to CSR as a
component of Brand Image : Primark in London .
Name – Murtuza Dohadwala
Student ID – 1003014
Pathway – Marketing
Supervisor – Prof. Riccardo Benzo .
Acknowledgement
I am grateful to Mr.Riccardo Benzo , my Supervisor , who guided me and
supported me during this research .
I would also like to thank my family , without whom this achievement would
not have been possible .
INDEXES
1 - Introduction
2 - Literature Review
3 - Conceptual Framework
4 - Research Methodology
5 - Data Analysis and Findings
6 - Conclusions
7 - Appendices
8 - References
Summary –
Over the past few decades, many organisations have been promoting and
publicising their CSR activities on their websites and also in annual reports .
Organisations practice CSR in order to promote itself as socially responsible in
the minds of the consumer and the different stakeholders . One of the most
important reason is to create a positive image in the minds of the consumers
which affects consumer behaviour in a positive way. But there are instances
where organisations are accused of unethical behaviour and still the sales
figures are not affected . For instance , Primark was accused of child labour
practices , but the sales of Primark were not affected .
For this reason we chose our topic of research to investigate about
consumer behaviour with regards to CSR as a component of brand image . For
this purpose , we conducted a survey based on a questionnaire on 152
respondents from London . Our research methodology involved collecting
quantitative data and since we are of a positivist view , we also generated
hypothesis . We used descriptive method and correlation method to analyse
the data .
In our data analysis , we found out that respondents did not consider CSR as an
important factor for making purchase decisions , but they considered price ,
quality , brand name and convenience for making purchase decisions .
However we will not generalise the findings as we did the survey on a sample
of population of London using a quota sampling method and as such the
sample population is not the representative of the whole population in the
universe .
Future researchers who wish to investigate on this topic may use qualitative
method which might generate different useful results .
1 - Introduction –
Many large firms in the UK include few paragraphs about their non-
financial activities in their annual reports . Publishing an organisations CSR
activities in their annual reports is a trend among many firms in the UK
.Organisation in the US have been practicing and publishing their CSR activities
since 1960 ( Whitehouse , 2006). There was a time only a few ambitious
organisations who wanted to do good for the community would have CSR as
one of their organisational objectives and looking at the present trend , CSR is
publicised and practiced by almost all the organisations BBC (2006) .
Organisations nowadays have different motives that go beyond making profit .
The motives may be to enhance the organisations reputation , to promote the
organisation as socially responsible , to target stakeholders of the organisation
, to reposition itself as an ethical organisation , etc. In order to protect their
goodwill and image in the market organisations practice and publicise about
their CSR activities . CSR as defined by Kotler and Lee (2005) as ” a
commitment to improve community well-being through discretionary business
practices and contributions of corporate resources” . Most of the organisations
in the UK are practicing CSR in their daily business activities . Many
organisations in the retail sector in the UK publish their CSR reports on their
websites to inform consumers about how responsible they are for the
environment and the society . It can also be said the existence of an
organisation depends upon how it practices CSR .
According to an article in Marketing week by Roberts (2012) firms are hiring PR
professionals so that they can communicate and promote the organisations
CSR activities to their consumers and stakeholders . For example ,Coca-Cola is
an Olympic sponsor and is trying to promote its CSR activities through public
relations .
The general trend nowadays for organisations is to promote its CSR activities
on the websites . Organisations also make use of CBA and CRM strategies to
enhance their image in the market .
1.1 - Background –
According to a report from Anonymous (2009) Organisations publicise their
CSR activities on their website to promote awareness among its multiple
audiences which can be NGO’s , consumer , employees , government ,
investors and analysts . It is a general trend among organisations to promote
their CSR activities through their company websites in order to create a
positive image of the organisation . Promoting a good image through CSR is
one of the important strategies of organisation to enhance the image and
increase brand loyalty and thus has a positive effects on the sales of the
organisation . But it is not necessary that consumers believe what
organisations claim about their CSR activities . Consumers in the USA are
sceptical about an organisations claim for CSR practices (Los Angeles Times ,
2011) . Consumers in China use internet to seek information about an
organisations CSR claims (Globescan , 2012) . According to Brink , Odkerken-
Schroder and Pauwels ( 2006 ) consumers are willing to pay a higher price for
to an ethical organisation and punish an organisation that is not ethical by
paying a lower price . For instance Nike had to suffer financial losses when one
consumers were boycotting Nike as workers were physically and verbally
abused in one of its contract manufacturing factories of Nike in Vietnam
(Anisimova , 2007) . However when Primark (UK) ,was accused of child labour
practices in one of its contract manufacturing in India . After 3 years of
investigation Primark was not found guilty (Guardian , 2011). However ,the
sales figures of Primark were not affected . Primark was still making profit
(Liverpool Daily Post , 2012). So this brings us to think whether CSR activities of
an organisation does actually affect consumer behaviour .
1.2 - Aims and objectives -
Taking into consideration the data available on CSR , we selected the aim of
our research which is investigating consumer reaction to CSR as a component
of brand image . Our research involved a deductive approach as we will be
testing and examining our hypothesis and if necessary modify the theory in the
light of the findings (Saunders , Lewis and Thornhill , 2003) . This research will
be an explanatory study as the emphasis is on studying a situation that will
help us explain the relationship between CSR and brand image .
We are of the view that CSR activities of an organisation do not affect
consumer behaviour. For this reason we selected Primark (UK) to conduct our
research . The reason we choose Primark (UK) was because in 2008 Primark
was accused of child labour practices and if CSR activities had an impact on
consumer behaviour , than the sales of Primark should have dropped . But that
was not the case for Primark . The sales figures of Primark were still going
strong , even though the case against Primark was under investigation.
Eventually after rigorous investigation Primark was not found guilty . In fact
Primark was even voted as the most unethical retailer in the UK in 2005 (Jones
, Temperley and Lima , 2009) . In order to achieve our aim , we have selected
three objectives .Our first objective was to understand consumers attitude
towards CSR which is on the basis of the findings of Pomering and Johnson
(2009) who state that consumers are sceptical about an organisations CSR
claims . Our second objective was to understand consumers relationship with
the Primark brand , as consumers were purchasing products of Primark even
though it was accused of unethical behaviour and our third objective is to try
and understand whether there is any relationship between CSR and brand
image on consumer behaviour that is to understand whether consumers
evaluate a product based on its CSR activities and whether they buy products
for the sole reason that the product is manufactures ethically .
1.3 - Summary of chapters -
We begin this paper with our literature review which includes an introduction
to the UK clothing and retail sector , history and CSR activities of Primark and
the existing marketing theories used by organisations to promote themselves
as socially responsible (Chapter 2) . We then discuss about the conceptual
framework of our research through which we select our aims and objectives of
the research and also select the hypothesis based on the existing theories and
our assumptions (Chapter 3) . This is followed by the research methodology for
our study which includes our research philosophy which is positivism as we are
of the opinion that CSR is not a relevant factor for consumer purchase decision
, research approach which is deductive as we are testing our hypothesis ,
research strategy which is explanatory as we will make use of existing theories
to test the hypothesis ,quantitative data collection method as want to establish
statistical relationships between variables , survey to measure the attitudes of
respondents through questionnaire , questionnaire for survey, sampling as we
will be using non-probability sampling method and data analysis which is
descriptive method and correlation method (Chapter 4) .
We conducted our research on 152 respondents through a mall intercept
survey method . We used quota sampling technique and thus we decided to
conduct survey based questionnaire with 152 respondents form the total
population of London . The respondents were given a questionnaire which
included statements which measured the attitudes of consumers on a Likert
scale of 1-5 . The questionnaire included 4 sections of statements and the last
section was screening questions in which we asked the age , gender , ethnicity
, income and first letter(s) of the post codes . For analysing the data collected
we used the descriptive data method and correlation method as with the use
of graphs and tables we will be able to numerically analyse the data and
conclude on the results generated with better accuracy . We also used Pearson
correlation coefficient method , in order to measure the associations between
the variables which helped us to strengthen the results of our findings . We
then proceed to the data analysis and findings from the survey questionnaire
in which are discussed on the basis of our hypothesis (Chapter 5) , followed by
the conclusions for the research in which we discuss whether we have
achieved the aims and objectives set for this research (Chapter 6) Then we
discuss about the ethical consideration for this research paper in which we
discuss about the ethical issues that we faced while conducting the research
(Chapter 6.1) . We also discuss about the validity of our results (Chapter 6.2) .
Our survey based on a sample of population of London (UK) , hence we also
discuss about the issue of generalizability of the results (Chapter 6.3) . Since we
are not claiming about the results of our research to be 100 per cent accurate ,
we also discuss about the limitations of our research in our limitations section
(Chapter 6.4) . In the end we discuss about future research implications as our
research methodology cannot be claimed to be the only suitable approach
which can be applied to generate the desired results (Chapter 6.5).
2 - Literature Review –
Our literature review is divided into 2 sections . Section 1 is called the
Sector Overview . In this section of the paper we will discuss about the
clothing industry and the retail industry in the UK . We will also discuss about
the history and CSR activities of Primark . Section 2 is the marketing theory on
CSR and brand image . It involves the discussion and arguments about various
authors research and findings about the relationship between CSR and brand
image and its impact on consumer behaviour .
2.1- Sector Overview –
2.1.1 - Clothing industry in the UK-
To achieve high profit in a labour intensive industry like clothing and to
some extent textile industry , cost minimisation has been a traditional factor
that has helped to achieve competitive success . Particularly in high wage
economies , this led to investment decisions centred on minimising labour cost
and refining output as well as outsourcing lower value added tasks to sub-
contractors who in turn resorted to work intensification to gain their own
production competences (Taplin,2006) . The clothing industry in the UK has
gone through a drastic change in the past few decades . The level of
employment in the clothing industry in the UK has been decreasing since 1978
. During the period from 1993 and 2002 employment in the clothing industry in
the UK fell by 48 per cent and during 1995 and 2002 the output decreased to
44 per cent followed by the closure of clothing manufacturing companies in
the UK by 35 per cent (ONS , 2002) cited in (Jones and Hayes , 2004) .
According to Jones and Hayes (2004) there could be three reasons for increase
in unemployment in an industry i.e. a lack of demand , a rise in productivity or
rise in imports . Between 1993 and 2001,there was a rise in imports to 104.5
per cent whereas there was a decrease of 36 per cent in the UK domestic
production. One of the reasons for increase in imports is the introduction of
the national minimum wage (NMW) in 1999 at a level of £3.60 per hour and
has increased to £6.08 per hour in 2011 (Direct Gov , 2012) . This has resulted
in companies shifting their manufacturing factories in less developed countries
due to cheap labour costs . Another factor that led to the job losses in the
clothing industry was the implementation of the liberalisation of the trade
policy in the EU in 1991 . As the UK policy is subsumed in EU policy , it can be
said that due to the progressive opening of the EU markets in clothing to
imports and the removal of trade barrier against imports is an influential
element in the downfall of the domestic employment and production in UK (
Jones and Hayes , 2004) . According to Allwood , Laursen , Rodriguez and
Bocken (2006 ) there has been an considerable increase in employment in the
clothing and textile sectors in countries like China , Bangladesh , India ,
Pakistan , Mexico , Romania , Cambodia and Turkey . Except India all the rest of
the countries have shown a remarkable growth in employment in the clothing
and retail sector from 1997 to 2002 and during the same period there has been
a decline in the employment in countries like USA , Europe and Philippines .
There has been a decline in the employment by 2.7 million from 1 million in EU
clothing and textile during 1995 to 2005 and a further 1 million forecasted job
losses from 2005 to 2010 .
2.1.2 - Retail industry in the UK -
The shift in location of production had a positive impact on the sales
figures of fashion retail business . According to the reports from Keynote
(2008) cited in Goworek(2010) ” The fashion industry in the UK forms a
significant component of the economy , with UK clothing and sales reaching
£48.55 billion in 2007”. According to report from Guardian,UK (2010) British
fashion industry contributes approximately 21 Billion Pounds in the UK
economy . The report was specially made by the British Fashion Council , who
aim to measure the true economic and social impact of the UK fashion industry
.The fashion industry’s contribution to the UK GDP is estimated to 37.2 billion
pounds in 2009 and out of this 20.9 billion pounds is due directly from retail
and wholesale manufacturers . Consumers in the UK spent 46 billion pounds
on clothes and shoes alone . Globalised production has been shifted to Far east
countries with China being the world’s leading exporter since 1993 . 95 per
cent of the clothing and footwear sold in the UK in 2005 was imported
(Goworek , 2010) . The economic climate has also influenced the consumer
behaviour as they were now trading in cheaper clothes (Ross and Harradine ,
2010) . There was a time when designer clothes were preferred by consumers ,
but now consumers prefer value for money clothing from the likes of Primark
(Poulter , 2008 ) cited in (Ross and Harradine , 2010) . According to Attwood
(2007) cited in Ross and Harradine (2010) consumers are now treating fashion
in a more disposable way . This led to the commencement of value based
clothing retailers like Primark , Asda , Tesco , Peacocks establishing their
presence in the market . Clothes are now manufactured abroad in bulk , at a
greater speed and at a low cost which can be exemplified by the likes of
Primark , where a tee-shirt can sell for £5.00 (BBC,2008) . According to the
report from Mintel (2010) the clothing sector in the UK was not affected by
recession as the market grew by 1.4 per cent in 2009 to GBP 41.3 billion and it
is estimated to increase to 1.5 per cent in 2010 to GBP 41.9 billion . Value
retailers outperformed well as the sales figures grew by 6 per cent in 2009 to
GBP 8.1 billion . This was due to the conscious efforts by consumers to
purchase cheap clothes . Almost 50 per cent of the consumers were buying
clothes that were on sale or at discounted rate . McColl and Moore (2011)
state that the UK clothing market has suffered from strong deflationary
pressures over the past decade with the entry and intense competition from
value based retailers like Primark , New Look and Peacocks . These retailers
are driving down the prices and showing a consistent growth in sales .
2.1.3 - History of Primark -
Reports from Mintel Oxygen (2007) cited in Ross and Harradine (2010)
state that Primark has become a retailing success as the company seems
immune to the credit crunch and that Primark has become the largest value
based retailer in the UK . The success story of Primark dates back to June 1969,
when it opened the first Penney’s Store in Mary Street , Dublin and entered
Great Britain in 1973 . By 1994 Primark had opened 66 stores out of which 32
were in the UK and 34 in Ireland . Primark had a milestone year in 1995 , when
it acquired 16 stores of BHS One-up in UK . The next major development was in
1999 , when it acquired 11 stores from the Co-Op and in the year 2000 ,
Primark acquired 11 stores from C & A . At present , Primark has a total
number of 236 stores trading in Ireland , Spain , UK , The Netherlands ,
Portugal , Germany and Belgium as on 30 April 2012 (Primark , 2012 ,a) .
Primark runs its business on a unique combination of fast fashion and lean
operations . In 2011, Primark received 14 awards which were as follows –
The Shoppers Award from The Mall Bamsley Awards 2011 ,
Overall Best Retailer of The Mall Wood Green from The Mall Blackburn
Awards 2011 .
The Shoppers Award from The Mall Blackburn Awards 2011 .
Overall best Retailer of The Mall Wood Green from The Mall Wood Green
Awards 2011 .
The Shoppers from The Mall Wood Green Awards 2011 .
Newcomer of the Year from ECE Retail Award .
Best Affordable Fashion from ITV Lorraine High Street Fashion Awards 2011 .
Best Bargains form Cosmopolitan Fashion Awards 2011 .
Outstanding Achievement in Business Arthur Ryan form The Business &
Finance Awards 2011 .
Best value Retailer of the Year from Drapers Fashion Awards 2011 .
Ireland Spain Economic Association Annual Award from Ireland Spain Economic
Association .
Best Budget Fashion Retailer Award from Celebs on Sunday Fashion Awards
2011 .
Shop I Can’t Live Without Award from Lakeside Retailer Awards .
Value for Money Award from Prima High Street fashion Awards 2011 (Primark
,2012, b)
Primark has 236 stores and that allows Primark to have a bargaining power
with the suppliers as it buys in bulk and Primark does not spend on advertising.
These two reasons combine contribute to the cost savings strategy of Primark
and thus it passes the cost savings to the consumers by selling its products at
low price (Primark ,2012, c) . Primark has its suppliers from India , China and
Bangladesh . Clothes are manufactured in large scale and at less cost as the
labour is cheap in less developed countries . Primark also makes sure that all
the suppliers of the contract manufacturing factories follow their code of
conduct as stated by Primark .
2.1.4 - CSR activities of Primark -
The Code of Conduct stated by Primark are for the health , safety and welfare
of the employees . Primark is strictly against child labour . In order to make
sure that the suppliers follow their code of conduct , Primark conducts regular
audits . Primark follows its own CSR policies with a view to help the community
, employees and its suppliers . Primark is also a member of the Ethical Trading
Initiative . To address common issues in the supply chain , Primark also has
training and capacity building programmes . The main focus of these
programmes differ from country to country . For example in China , Primark is
working towards increasing the labour wages . For Indian workers Primark is
working towards providing education and for Bangladesh , Primark is working
towards providing the labourers a better working condition ( Primark Ethical
Trading ,2012, a ) . Primark is also working towards environmental
sustainability by reducing its carbon emission by 10 per cent by 2013 ( Primark
, Ethical Trading ,2012, b ) . From the information that has been published on
the company website of Primark we can make out that Primark follows CSR
and makes sure that all the CSR policies that are followed and laid down by
Primark is also being practiced by it contract manufacturing factories . Primark
is trying to convey a message that it follows CSR and is also a strict follower of
ETI . Primark wants to make sure that consumers are aware of the CSR
practices by Primark and so wants to prove itself as a responsible organisation
that is concerned about the well-being of the economic , social and
environmental system . Primark wants to improve its brand image through the
effective usage , practice and publicising its CSR activities to the general public
and its shareholders . Ataman and Ulengin (2003) state that ” Brand image
which usually includes the products name , its physical features and
appearance including the packaging and the logo and its key functions is the
key to answer question of how consumer chooses among alternative brands
after information gathering processes of buyer behaviour “ . The concept of
CSR is not a new phenomenon . Nowadays organisations use CSR to improve
its brand image , which in turn helps to generate brand loyalty and increase
sales . There are many CSR marketing strategies that have been used by
organisations to promote their brand image as a socially responsible
organisation . CSR has become as one of the most important element of
marketing strategy . We will discuss about the use of CSR and its use as a
strategic tool in communicating with the consumers and stakeholders in the
next section .
2.2 - Marketing Theory –
2.2.1 - Corporate Communication and CSR -
Kotler and Lee (2005) , defined Corporate Social Responsibility (CSR) as” a
commitment to improve community well-being through discretionary business
practices and contributions of corporate resources “ . As Armstrong (2009)
stated “CSR is exercised by organisations when they conduct their business in
an ethical way , taking account of the social , environmental and economic
impact of how they operate and going beyond compliance “. The objective of
CSR is protect the rights of the workers , help in improving the environment
and supporting the community , ensure Fair trade activities are followed so
that all those who are involved are benefited from the trading activities . Many
organisations have CSR on the priority list of their core company values .CSR
practices is considered as one of the most important functions of an
organisation . In June 2005 , a group of high profile British companies in the UK
brought together by the Prince of Wales Programme , held a meeting with the
Prime Minister to set an example for developing countries to stress more on
the reduction of carbon emission . The group included executives from Shell ,
Tesco , Vodafone , BAA and Standard Chartered . The group believed that
developing countries will not take the environmental problems seriously unless
countries like the UK take the initiative and show how the climate change
problems can be tackled (Balmer , Fukukawa and Gray , 2007) . This shows the
importance of CSR as an essential element for enhancing the organisations
image as socially responsible which results into a positive impact on the
company’s profitability . According to Yu (2008), the positive effects of CSR on
an organisations profitability is achieved by various factors of competitive
advantage in the form of enhanced brand value and reputation ,
understanding customer needs and enhancing customer relationship . It also
results in motivating the employees morale which results in higher productivity
and also helps in building better relation with the government and the
community and can also help in improving the risk and crisis management
strategy . CSR has also been identified to have a positive influence on customer
loyalty (Mandhachitara and Poolthong ,2011). One of the benefits that an
organisation achieves due to the practice of CSR is a positive brand image .
“Brand image is the perceptual concept of a brand that is held by the
consumer” (Aaker and Biel , 1993) . Consumers tend to develop a brand loyalty
towards products manufactured by organisations that follow CSR .
Organisations are using different marketing strategies to communicate to the
consumers and at the same time create a positive impact on the minds of the
consumers . CSR communication is considered as an organisations capability
to respond to the social pressure rather than just doing an obligation to the
society (Johansen and Nielson , 2011) . Organisations utilize the CSR concept
strategically by focussing in selected areas that are suitable with the
organisations values . Selecting initiatives that support the organisations
objectives , supporting issues that provide opportunity to meet the marketing
objectives and selecting issues that are related to the core products and the
core markets are a few examples of the use of CSR as a strategic tool . As it has
been proven that communication of a firm commitment to CSR is a vital
motivation , it is often practiced via the support of causes (Sheikh and Beise-
Zee , 2011 ) . Organisations use brand association techniques to promote their
brand . Out of the many names that have been given to this association , some
of the names are Cause-related marketing (CRM) ( Varadarajan and Menon ,
1988) cited in (Bigne , Curras-Perez and Aldas-Manzano , 2012) or Cause-
brand alliance (CBA) ( Lafferty , 2007) cited in (Bigne , Curras-Perez and Aldas-
Manzano , 2012) . As this paper is about finding the link between CSR and
brand image , we will discuss the various types of CSR promotional strategies
used by organisations to perceive itself as socially responsible as it will help us
to give a better understanding about the strategies that organisations use to
enhance brand reputation .
2.2.2 - Cause Related Marketing -
According to Baghi , Rubaltelli and Tedeschi (2009) it has been observed
that from the past few years that more and more organisations are associating
their products with some sort of charitable trust in order to create a positive
brand image and to increase market share . It is widely accepted that
organisations use CRM as a communications strategy so that they can highlight
their standards of CSR activities and their contribution towards social
problems. The main objective of CRM is to integrate previous attitude towards
the brand and the cause with the new information provided by the association
and joint evaluation of both as suggested by the information integration theory
. Marketers make use of intense communication formats in the form of
sensitively provoking messages which helps to form more mental images than
pale messages , which in turns helps to increase consumers emotional
connection towards the product – cause link . This strategy helps to increase
the effectiveness of the transactional programs where in for every unit of a
product sold the organisation donates a certain percentage of the profit to the
social cause . As stated by Tsai (2009) “cause related marketing (CRM) is the
marketing activities characterising donations offered by corporate
organisations or product brands to a charity cause” . As marketers want to
enhance their brand attitude and purchase intentions , CRM has become a very
commonly used strategy by brand marketers .
2.2.3 - Cause –Brand Alliance –
Till and Nowak (2000) cited in (Bigne , Curras-Perez and Aldas-Manzano ,
2012) suggests that the classical conditional paradigm is the main element that
is used in the theoretical understanding of the associative learning process for
the cause-brand alliance persuasion . By using the same method used for
brand endorsements , marketers promote their brand by associating it with a
social cause , thereby provoking a sense of associative learning within their
target consumers and the consumers perceive the brand as socially responsible
due to the social cause values transferred to the brand . This type of strategy
creates a positive impact on the minds of the consumers about the product
being socially responsible . The perception of the fit between the brand and
the associated stimuli that is social cause is considered as the main element of
the persuasive capacity of the communication strategies used by marketers.
As stated by Lafferty (2007) cited in Bigne , Curras-Perez and Aldas-Manzano
(2012) it is the degree of similarity and compatibility that is perceived by
consumers that exists between the brand and the social cause , helps us to
define the perceived fit theory in a CBA context . It has been proven that the
use of CBA has a direct impact on various positive variables which include
brand image , altruistic attributions , brand credibility and product purchase
intentions .
Primark is one of the organisations in UK that uses CRM strategy to promote its
CSR activities through its website . According to Hinson , Boateng and Madichie
(2010) most of the organisations use internet as a medium to disclose
information to the general public as the internet has become a major medium
for corporate communications . For many organisations , corporate websites
serve as a complete and immediate information hub , through which
organisation can convey their messages that can shape and enhance the
corporate identity . Organisations also convey their reputation to the public
through corporate websites Thus the internet has become a means of fulfilling
the legal , economical , ethical and philanthropic responsibilities expected by
the stakeholders . In terms of the relationship between CSR and corporate
identity , the deliberate use of internet improves the way in which
organisations will communicate with stakeholders , acknowledge concerns
towards the society through ways that enhance the business-society
relationship and eventually communicate CSR programmes (Rolland and
Bazzoni , 2009) . Primark has a Facebook fan page with over 42,000 members.
When Primark was accused of child labour practices , there were many people
protesting against Primark on the internet , but the ratio was very low as
compared to the fans of Primark . Primark relies on its loyal customers to
defend for them and portrays itself as a value high street retailer. Primark
defended itself from the accusation by publishing all the details on the internet
and communicating directly with its consumers and stakeholders (Jones ,
Temperley and Lima , 2009). Improving labour wages in China , education for
workers in India and better working conditions for labours in Bangladesh and
its related activities are some of the CSR promotion strategy that are being
published on the company website of Primark to enhance the reputation of
the company by publicising its CSR activities (Primark , Ethical Trading, 2012) .
This in turn develops an association of trust in the organisation by consumers
who purchase products by organisations that follow CSR .
However consumers are aware of the advertising claims made by marketers of
promoting themselves as a socially responsible and ethically manufacturer .
Marketers have to be very careful when they have to build a positive brand
image of their company on the basis of trust . In order to convince consumers ,
marketers use the sick baby / well baby appeal . Consumers are not aware of
the social topic information advertised by the organisations. Social topic issues
including problems related to the environment are innumerable and
consumers lack familiarity with such topics . So organisations use the sick baby
/well baby appeal in which they inform to the consumers and familiarise the
social topic information to the consumers so that the CSR claims made by the
organisation can be more diagnostic by consumers . The sick baby appeal
works in informing the consumers of a problem and the well baby appeal
works to inform the consumers that the organisation can do something for the
problem (Pomering and Johnson , 2009 ).”Theories from cognitive psychology
such as contextualisation , priming and assimilation support the notion that
informing about a social problem will allow consumers to draw on those
associations in order to activate socially evaluative criteria “( Ashcroft , 2006
cited in Pomering and Johnson , 2009 ).
2.2.4 - Consumer Attitude towards CSR -
The conundrum however is whether these CSR promoting activities do actually
have an impact on the brand image of the organisation and whether it affects
the consumers attitude towards the brand and the organisation .
Due to an increase in competition in the market , organisations are
developing new promotional strategies that creates a perception in the minds
of the consumers about the brand being socially responsible if the brand is
associated with a social cause (Bigne , Curras-Perez and Aldas-Manzano ,
2012) . Consumers are willing to reward an organisation by paying a higher
price for their ethical behaviour and punish an organisation by paying a lower
price for their unethical behaviour ( Brink , Odkerken-Schroder and Pauwels ,
2006 ) .
This motivates the organisation to build a positive brand image in the
minds of the consumers . According to Keller (1993) cited in Gwinner and
Eaton (1999) Brand image has been defined as "perceptions about a brand as
reflected by the brand associations held in memory' . This definition takes an
associate memory network view, in that brand image is based upon linkages a
consumer holds in his/her memory structure regarding the brand. These
linkages also known as brand associations , are developed from a variety of
sources including brand and product category experiences, product attributes,
price information, positioning in promotional communications, packaging, user
imagery , and usage occasion .
The use of CBA and CRM as a CSR promotional strategy might improve the
brand image of an organisation , however it is not necessary that consumers
buy a product only because it is practicing CSR activities .
As stated by Singh , Sanchez and Bosque (2008 ) , organisations that promote
themselves to be socially responsible are perceived to have a positive image in
the minds of the consumers , but if the organisation is accused of any unethical
behaviour , than it will have a major negative impact on the reputation of the
organisation as compared to an organisation that has a low CSR profile . If the
consumers have a negative reaction towards an unethical behaviour of an
organisation , then they are even sensitive towards messages that are positive
as they do not believe what has been conveyed to them . Consumers are more
interested in the commercial activities rather than CSR activities of an
organisation that are beneficial to the consumers .
This has been seconded by Ha-Brookshire and Norum (2011) ,who suggest that
even though CSR practices of an organisation have an impact on consumer
behaviour , in many cases consumers give more preference to the quality ,
price , convenience and brand name of the product rather than the
organisations CSR activities . For example in the case of Primark even though it
was accused of child labour practices in one of its contract manufacturing
factories in India , it did not affect the sales figures of Primark . As per the
report , Primark did a good business during Christmas in 2011 . Primark owner
Associated British Foods had a 12 per cent rise in profits out of which retail
constituted of 16 per cent of the total contribution (Liverpool Daily Post ,2012)
. So we can say that CSR has minimal or no impact on the brand image of the
organisation as it does not affect the consumer buying behaviour .
This is also agreed by Berens , Riel and Rekom (2007 ) who argue that it is not
necessary that a good CSR image will help the organisation to have a positive
buying behaviour if it compromises on its quality of its products . Consumers
who do not care about CSR will buy the product if it is of good quality and
consumers who value a firms CSR activities will not buy a product even if it of
good quality .
According to Pomering and Johnson (2009), consumers are more sceptical
towards organisational CSR claims. Consumers believe that organisations are
promoting themselves as socially responsible only for their personal interests .
Consumers are aware that organisations use CSR activities as a marketing
strategy .
However research carried out by Miles and Munilla (2004) suggest that CSR
activities have a major impact on the brand image of an organisation .
Consumers and corporations in the US and Europe are hesitant to purchase
products from corporates that have a tarnished image due to its irresponsible
social behaviour .
According to Miles and Covin (2000) cited in Miles and Munilla (2004) positive
corporate reputation is an intangible asset to an organisation that enables the
organisation to differentiate its marketing mix strategies , gain monetary
exclusions and enhance their competitive positions in both business to
business and business to consumer market .
Research undertaken by Sen et al (2006) cited in Anisimova (2007) also suggest
that organisation that create awareness about its CSR activities have a positive
impact on the consumers views with regards to association , attitudes and
behavioural intentions . An example taken to explain this phenomenon was of
Nike . One of the contract manufacturing factories of Nike in Vietnam in the
1990’s was accused of physical and verbal abusive behaviour towards its
employees . This caused a lot of damage to the corporate reputation of Nike
and thus resulted in boycotts and decline in sales revenue . In order to get back
the consumer base and to improve its image , Nike had to take a proactive
approach to social responsibility and opened its Asian factories to be audited
by NGO’s .
As suggested by Lai , Chiu , Yang and Pai (2010) CSR effect on brand
performance is due to brand reputation and brand equity . Organisations that
practice and publicise its CSR Activities have a positive reputation amongst its
suppliers and consumers and this in turn helps to improve the financial
performance of the organisation. The CSR activities of an organisation act as an
antecedent of industrial brand equity, which is how the buyers perceive the
supplier. If marketers want to increase their financial performance they will
have to indulge in CSR practices and also promote their activities to their
buyers . This helps to improve their corporate reputation which in turns helps
to enhance the brand equity of the supplier . Corporate reputation and
industrial brand equity not only have a direct effect on brand performance but
also has partial mediating effects . If the managers want to increase their
brand performance they will have to work towards enhancing their corporate
reputation .
So now we have different arguments about the impact of CSR activities on
brand image and consumer behaviour . Singh , Sanchez and Bosque (2008 )
are of the opinion that CSR activities do not help in enhancing the brand image
and thus does not affect consumer behaviour . Ha-Brookshire and Norum
(2011) are of the opinion that even though CSR activities may have an impact
on consumer behaviour but consumers evaluate the products as per their
personal needs and according Berens , Riel and Rekom (2007 ) state that
consumers that give importance to CSR will buy the product of an organisation
even though it is not of good quality and consumers who do not give
importance to CSR will but the product only if it is of good quality . Either they
purchase goods from organisations that practice CSR or consumers purchase
goods as per their personal needs and evaluation of the products . Pomering
and Johnson (2009) state that consumers are sceptical about an organisations
claim for CSR , as consumers believe that organisations practice CSR as a
marketing tool .
On the other hand we have Miles and Munilla (2004 ) who state that CSR helps
the organisation to enhance its financial performance . Anisimova (2007) states
that CSR publicising helps to create a positive association about the
organisation in the minds of the consumer . Lai , Chiu , Yang and Pai (2010)
state that CSR helps to build a positive corporate reputation and brand equity
which creates a positive effect on the financial condition of the organisation
On the basis of the information above we now have different findings and
opinions from different authors on the relationship between CSR and brand
image on consumer behaviour . So our aims and objectives for the research
will be according to the data available on the existing theory .
3 - Conceptual Framework –
In this section we will discuss about deciding about our overall research
direction for this study. As per the information and data collected with regards
to the relationship between CSR and brand image on consumer behaviour , we
have got two different findings and viewpoints . According to Singh , Sanchez
and Bosque (2008 ) , Ha-Brookshire and Norum (2011) , Berens , Riel and
Rekom (2007 ) and Pomering and Johnson (2009) who are of the viewpoint
that consumer behaviour is not affected towards an organisation that practices
CSR . Consumers consider various other factors like price , quality ,
convenience and brand name of the product , rather than considering on the
organisations CSR activities . CSR activities do not enhance the brand image of
an organisation . Consumers are more sceptical towards organisations that
publicise their CSR activities as they think that the organisation is doing this
only to enhance their reputation and try to perceive itself as an organisation
that is giving back to the community . Consumers are not interested in an
organisations CSR activities as it does not affect their evaluation of the product
when they are purchasing . On the other hand we have Miles and Munilla
(2004) , Anisimova (2007) and Lai , Chiu , Yang and Pai (2010) where all of them
are of the viewpoint that CSR has a positive impact on the brand image of an
organisation which in turns has a positive effect on brand performance and
consumer buying behaviour . As stated by Miles and Munilla (2004) consumers
in US and Europe purchase products of organisations that practice CSR and are
hesitant to purchase products from organisation that do not practice CSR .
Organisations can improve their brand image and consumer behaviour by
practicing and publicising their CSR activities (Anisimova ,2007) . This has been
seconded by Lai , Chiu , Yang and Pai (2010) who state that CSR practicing
improves the financial performance of an organisation . As the purpose of this
research is to determine the impact of CSR activities on brand image of an
organisation , we decide on our aim for the research –
Investigating consumer reaction to CSR as a component of brand image :
Primark in London .
Consumer behaviour is tool that is used by organisations to measure its
performance of its products . Consumers reward an organisation for being
ethical and punish an organisation for being unethical (Creyer and Ross, 1997)
cited in (Brink , Odkerken-Schroder and Pauwels , 2006) . Consumers in US and
Europe purchase products on the basis of an organisations CSR activities. As
this research is about finding the relationship between the CSR activities and
brand image of an organisation on the consumer behaviour , we will first
explore the attitude and opinions that consumer have towards organisations
that follow CSR . Marketers use different marketing strategies like CRM and
CBA to perceive their image as an ethical organisation that is giving back to the
community . Consumers and US and Europe are hesitant to buy products from
manufacturers that do not practice CSR or are accused of malpractices of CSR
activities (Miles and Munilla , 2004) . Whereas when we consider the case of
Primark , even though it was accused of unethical behaviour , consumers were
still buying clothes from Primark and Primark was still making profit ( Liverpool
Daily post , 2012 ) .So in order for us to proceed ahead with the research we
will have to measure the attitude of consumer towards CSR . For this we will
include a section in our survey questionnaire in which we will ask consumers
about their opinions about CSR . This leads us to our first objective is –
1-To understand consumers attitude towards CSR .
As we can come to the conclusion from the data collected in the literature
review that consumers have a mixed reaction on the CSR activities of an
organisation . At one end we have consumers who buy products from an
organisation on the sole basis that it follows and practices CSR . Consumers are
able to form positive associations towards an organisation that practices CSR .
Consumers punish an organisation that does not follow CSR and rewards an
organisation that follows CSR by purchasing the product . But in the case of
Primark , it turns out to be different . Primark was accused of child labour
practices in 2008 , because of which it was in the news and this incident
supposedly tarnished the image of the brand as there were boycotts by
consumers . But if we consider the financial performance of Primark, the
company is financially performing well. Primark is a value based retailer in the
UK . Primark has won many awards for supplying fashionable clothes at
affordable prices (Primark(b), 2012) and was still getting awards even when
the judgement on the child labour case of Primark was still pending . Therefore
we will include a section in our survey questionnaire in which we will ask
consumers about what they think about the brand Primark . So our second
objective is –
2-To understand consumers relationship with the Primark brand .
Now in order to support our aim of the research paper we will select our third
objective on finding the relationship between CSR and brand image on
consumer behaviour . As stated earlier in the literature review , there has been
a difference of opinions by various authors . Few say there is no relation
between CSR activities on brand image and few are of the viewpoint that
consumer reward and punish organisations on the basis of their positive and
negative CSR activities respectively. Given an example of Nike where in the
image of Nike was tarnished because one of its contract manufacturing
supplier in Vietnam was accused of physical and verbal abuse to labourers .
Nike suffered severe losses and thus in order to gain back the positive image
and regain the financial loss, Nike apologised on its websites (Sen et al , 2006
cited in Anisimova , 2007) . Whereas when we take the example or Primark ,
the company was still making profit even though it was accused of practicing
child labour practices . Although Primark was not found to be guilty of
practicing child labour , the question remains unanswered as to why Primark
was making profit if the image of an organisation is tarnished due to unethical
behaviour and consumers do not buy products from such organisations , in the
case of Primark , the sales did not go down So we will include a section in our
survey in which we will ask consumers whether their decisions and their
opinion about Primark will change or not with respect to the CSR activities of
Primark . So our third objective is –
3- To try and understand whether there is any relationship between CSR and
brand image on consumer behaviour .
Since our research is based on the existing theories and we will be adopting a
positivist viewpoint for our research methodology , we will select our
hypothesis based on the aims and objectives of the research paper . Taking
into consideration that we are conducting this research on Primark (UK) , we
will decide on our hypothesis based on the data we have collected with
regards to Primark .
As defined by Kerlinger (1986) cited in Kumar (2011 ) “ A hypothesis is a
conjectural statement of the relationship between two or more variables
“(p.82) . In our research the two variables are CSR and brand image . The
importance of hypothesis is that it helps the researcher to specifically collect
the data required for the research and thus helps in focussing on the specific
research topic . In this research our hypothesis will help us to collect
information related to the CSR and brand image phenomenon . Hypothesis
also gives clarity to the research . Thus hypothesis is important as it brings
clarity , specificity and focus on the research . Hypothesis can be described as
an assumption , assertion , suspicion or an idea about a phenomenon
relationship or situation , the actual truth or the reality of which we may not
know or may not be aware . These assumptions , assertions or statements
become the basis of inquiry for the researcher . In most research studies
hypothesis are based on their own or other researcher’s observations ( Kumar,
2011 ) . As we will be conducting a research to find the relationship between
CSR and brand image, our hypothesis will help us to focus on the subject area
and also will act as a guide to direct the research in the correct path .
As we can conclude on the basis of the data collected in the literature review ,
that even though Primark was accused of child labour practices in one of its
manufacturing factories in India and there was a lot of media attention on the
issue , there was a debate between loyal consumer and consumer who were
against Primark’s involvement in child labour practices . It will be difficult to
say whether all the consumers of Primark were aware of its involvement in
child labour practices , but even after this incident on the Facebook fan
following page of Primark, the number of customers that are loyal towards
Primark are many times more than the ones who dislike Primark (Jones ,
Temperley and Lima , 2009 ). Primark was and is still one of the most
profitable companies of ABF (Associated British Foods ) , Primark’s parent
company . In fact the profit percentage of Primark has increased over the years
(Liverpool Daily post ,2012) . We are of the view that CSR has very little or no
impact on the brand image of an organisation and that it does not affect
consumers attitude towards the brand and while making decisions during
purchasing a product . So we decide on the following hypothesis for our
research –
The Hypothesis for our first objective is –
a – Consumers are cynical about organisations that practice CSR .
The hypothesis for our second objective is –
b – Consumers think that Primark is concerned about making profit and not
concerned about the health and welfare of its employees and workers .
c – Consumers shop at Primark because of its affordability .
The hypothesis for our third objective is -
d – Consumers think that CSR activities of an organisation is not a relevant
factor for purchasing .
The selection of hypothesis will guide us in our study to collect the relevant
data . The reason we have selected hypothesis is because we have the data
that is existing theories in our literature review that supports our hypothesis .
Since our research is based on the existing theory , it is by default an
explanatory research . In order to achieve the aims and objectives for this
research paper we will have a positivist philosophy . Because of this fact the
most suitable way to generate knowledge would be to use a scientific
positivistic position The details of the research methodology will be explained
in the next section .
4 - Research methodology –
4.1 - Research philosophy –
Since we are of the view that there no relation or minimal effect on the
relationship between CSR and brand image on consumer behaviour , our
research philosophy will be of positivism . We have selected our hypothesis
based on the theory and the data in our literature review and we will test the
hypothesis on the basis of the findings we will be able to prove our hypothesis
are valid or invalid. Researchers have already proven that CSR has a positive
influence on the way consumers perceive a brand ( Greening and Turban ,
2000 ; Hillman and Keim, 2001 ; Sen and Bhattacharya , 2001) cited in (Berens ,
Reil and Rekom , 2007). This means that CSR helps to improve the brand image
of an organisation . Whereas Singh , Sanchez and Bosque (2008 ) state that CSR
has no effect on brand image and has no effect on consumers perception as
consumers are more interested in their personal needs and wants . In our
research we are investigating whether CSR practices has an impact on the
brand image of Primark . In order to facilitate replication , we will place more
importance on a highly structured methodology and on quantifiable
observations that will lead us to analyse the statistics (Gill and Johnson , 1997)
cited in (Saunders , Lewis and Thornhill , 2003) .
According to Fisher (2010 ) It is possible to achieve accurate and value free
knowledge through the implementation of a positivist philosophy . A positivist
may have a thinking that the study of human beings and their behaviour can
have accurate results with regards to tangible things . But it is difficult to study
the intangible things like behaviourism of human beings . A positivist has an
intention to generate general laws which can be utilised to predict human
behaviour with probability and not with absolute certainty . In our research we
will be conducting survey and on the basis of the findings and analysis we will
conclude on our hypothesis and thus this will help us to achieve the aims and
objectives of this research .
Therefore the methodology that is used to generate results in natural sciences
can also be used to generate results for social sciences and the results can be
termed as laws or empirical generalisation similar to the ones developed for
natural sciences . Therefore a well-founded analysis and explanation of the
social phenomena can be achieved on the basis of the data which can be
tested and verified (Walliman, 2011) . This has also been agreed by Saunders ,
Lewis and Thornhill (2003) , who state that a researcher with a positivist
philosophy will have a stance of a natural scientist and the findings and
analysis of the end product of the research will be a law like generalisation
similar to those generated by natural scientists . Since our research is based on
the use of existing theories and we want to prove our hypothesis , in order to
achieve our aim of the research the most suitable research approach will be a
deductive approach .
4.2 - Research Approach –
In this research we will be testing our hypothesis on the existing theories
and the data collected . We are of the view that CSR has no effect on brand
image and thus consumer behaviour is not affected by an organisations CSR
activities . We will be conducting survey questionnaires and on the basis of the
findings and analysis , we will be able to generate results which will then help
us to know whether our hypothesis are valid or invalid .
As stated by Adams , Khan , Raeside and White (2007) , a deductive approach is
helpful in establishing universal laws . These laws are basically the hypothesis
generated and these hypothesis are required to be tested against the
predictions of the laws . The universal law remains so until one or more of the
predictions generated are proved to be invalid and thus in that case the
theoretical framework needs to be reconsidered . As stated by Bryman (2012) ,
“The purpose of theory is to generate hypothesis that can be tested and that
will thereby allow explanations of laws to be assessed “ .Thus on the basis of
the findings and analysis , we will come to know whether our hypothesis are
proved to be valid or invalid . Therefore the deductive approach method
operates from a general to more specific . In our literature review we have
different arguments and counter arguments about the effects of CSR on brand
image and its effects on consumer behaviour and in order to test our theory
we have generated hypothesis , which will narrow our research and in the end
the outcome generated will help us to conclude on our research . Thus in a
deductive approach a general set of propositions which are related to the
given phenomenon are narrowed down to a more specific set of hypothesis
and these hypothesis are tested by the usage of application if the data in the
theory may or may not confirm the arguments (Adams , Khan , Raeside and
White , 2007) . As explained by Robson (1993) cited in Saunders , Lewis and
Thornhill (2003) there are 5 progressive stages through which a deductive
research will progress , which are deducing the hypothesis from the theory ,
conveying the hypothesis in operational terms which propose a relationship
between two variables , testing the operational hypothesis , examining the
precise output of the inquiry and if required modify the theory in the light of
the discoveries . We have selected our hypothesis for testing on the basis of
the theory in the literature review . Our two variables are CSR and brand image
. The 5 sequential steps mentioned above will help us to progress through the
research and we will modify our hypothesis after the findings and analysis on
the basis of the data gathered . Since the basis of our research is on existing
theories in the field of CSR and brand image , our research strategy is by
default an explanatory research strategy .
4.3 - Explanatory Research Strategy -
For the purpose of carrying on this research we have used the existing
theories on the relationship between CSR and brand image which are the two
variables that we will be researching about . In our literature review we have
different sets of arguments by various authors who state that CSR may help to
create a positive image in the minds of the consumers , but in the end
consumers purchase decisions are based on their personal needs and wants ,
Whereas there are others who say that consumers reward an organisation that
practices CSR by purchasing products from that organisation . The purpose of
this research is to find out the casual relationship CSR has on brand image of
an organisation . As defined by Saunders , Lewis and Thornhill (2003) research
that helps to generate casual relationship between two variables can be called
as an explanatory research . The importance is placed on studying a problem
or a situation which in turn helps to explain the relationship between the two
variables . Since our research is also based on studying the relationship
between CSR and brand image and we are using the theories that already exist
in this field , we can term our research strategy as an explanatory research
strategy .
Explanatory study is mostly associated with descriptive studies . According to
Blumberg , Cooper and Schindler (2011) In comparison to exploratory studies ,
descriptive studies are more formalised and are structured with clearly stated
hypothesis and investigative questions . Descriptive studies help to attain a
variety of research objectives , which include description of a phenomena or
characteristics associated with a subject , it also estimates the proportion of
the population that has the specific characteristics and lastly helps to discover
associations that exist between the different variables .
4.4 - Quantitative -
Quantitative research is frequently referred to as hypothesis – testing
research (Newman and Benz, 1998) . Quantitative data techniques are used to
assist in processes that range from generating simple tables or diagrams that
show the frequency of the event through establishing statistical associations
amongst variables to complex statistical modelling . There are various tools
available to analyse quantitative data . Some of the software’s used to analyse
data are excel and Lotus 123 , to the more advanced management and
statistical analysis software packages such as Minitab , SAS , SPSS for Windows
and Starview (Saunders , Lewis , Thornhill , 2003 ) . For our research to
analyse the data collected we will make use of SPSS software . We will be
conducting a survey to measure consumers attitude on the two variables CSR
and brand image . Based on the data collected from the survey , we will then
process and analyse the data on SPSS software . Quantitative data are of two
types categorical data and quantifiable data .” Data whose value cannot be
measured numerically , but can be either divided into sets or categories
according to the characteristics in which you may be concerned or placed in
rank order is termed as Categorical data . Data whose value can be measured
numerically as quantities is termed as quantifiable data .In quantifiable data
each data value can be assigned a position on a numerical scale and hence ,
quantifiable data are more accurate .“ (Saunders , Lewis and Thornhill , 2003 ,
p.347) .
For a quantitative research , a researcher will direct a considerable amount of
the research activity towards measuring concepts with scales that either
directly or indirectly provide numeric values . These numerical values are then
used for testing hypothesis and for statistical computations ( Zikmund , Babin ,
Carr and Griffin , 2010) .
As stated by Zikmund , Babin , Carr and Griffin ( 2010) a research which
involves numerical measurement and analysis approach by the means of an
empirical assessment and which is used to address a research objective can be
termed as an quantitative research
As also agreed by (Marczyk , DeMatteo and Festinger , 2010 ) Quantitative
research involves studies that make use of statistical analysis to obtain their
findings . Key features include formal and systematic measurement and the
use of statistics .
Since we will be analysing data numerically , our data collection technique will
be of quantifiable data . Since we will be gathering quantifiable data the most
suitable method to collect quantitative data will be through a survey based on
a questionnaire .
4.5 - Survey –
In order to collect the data required for our research we will be conducting
a survey . In a survey method respondents may be asked a variety of questions
that are related to their demographic and lifestyle characteristics , intentions ,
behaviour , attitudes , awareness and motivations (Malhotra , 2010).
According to Zikmund , Babin , Carr and Griffin (2010)The purpose of a survey
research is to gather primary data which is assembled specifically for the topic
under investigation . Surveys are mostly conducted in order to describe what is
happening or to learn the reasons for a specific organisational activity .
Measuring consumer attitudes , identification of target markets and describing
consumer purchase patterns are some of the objectives of a survey research .
Since survey research method is mostly associated with descriptive research ,
the term survey method is mostly associated with quantitative findings . This is
also agreed by Quinlan (2011) who states that survey methods are mostly used
for conducting research that involves the collection of quantitative data . The
data collection methods that are mostly used in a survey method are
questionnaires and scales . For our research we will be measuring the attitudes
of consumers , conducting our survey on a sample population in Inner London
and we will be using a questionnaire to gather the data and measure the
attitude of the consumer . On the basis of the explanation above , it is can be
said that the survey method of data collection is appropriate for our research
topic that is to try and find out whether there is any relationship between CSR
and brand image and does it affect consumer behaviour . Survey research
method involves the use of simple question formats which are standardised for
all the respondents . online ,email , post telephone or in person are some of
the ways in which surveys can be carried out (Quinlan , 2011) . For our
research we will be carrying out a survey in person and collect the data on a
questionnaire that will be given to the respondents . Survey research is
situated within a framework of positivism, it is deductive and is mostly used
primarily to generate quantitative data . Questionnaires and scales are the
most suitable data collection tools for such type of research . As questionnaire
and scales are useful for collecting specific information , they are designed to
elicit short precise responses to concisely stated and precise questions
(Quinlan , 2011). We will be using a Mall Intercept personal interview method .
The advantage for us will be that we do not have to go to the respondents
home and it is also very efficient . We will hand over the questionnaire to the
respondents and they can then fill the questionnaire. (Malhotra , 2010) As we
will conducting a survey , it will not be possible for us to conduct a survey on
the whole population and for this reason we will be conducting a survey on a
small sample of the population and we will making use of the Likert scale
method to measure the attitude of the consumers .
4.5.1 - Likert Scale –
To measure the data on a numerical scale , the most suitable method will be
the Likert Scale method as we will be measuring the attitude of consumers .
Rensis Likert developed the Liker scale . Likert scale method is widely used for
the measurement of attitude . A Likert scale not only measures the direction of
the attitude but it also measures the force of the attitude . Likert scale can be
of three types ,three point scale , five point scale and seven point scale (
Quinlan , 2011) . For our research we will be using the five-point scale .
Blumberg , Cooper and Schindler (2011)” In a Likert scale , the participant is
asked to agree or disagree with a statement that expresses either a favourable
or a non-favourable attitude towards the topic of interest . Each response is
given a numerical score to reflect its degree of attitudinal favourableness and
the scores may be totalled to measure the participants attitude “(p.362).
4.5.2 - Questionnaire -
Our research questionnaire will contain four sections in which we ask them
statements . The respondents will tick the answers which they think is
appropriate on the Likert scale option given at the end of each question . The
fifth section is the screening section wherein we ask the respondents about
their first letter(s) of their postcode ,age , gender , income and ethnicity .
Care has been taken while designing the format and structure of the
questionnaire . We have used simple , clear and precise statements in the
questionnaire . Potentially embarrassing questions like asking a respondent
directly about how much they earn are avoided . Instead we have ranged the
income brackets into 4 categories so that the respondents can select which
range of income they belong to . The use of jargons in the survey might create
confusion for the respondents that is why we have put our best efforts and
jargons in questionnaire has been avoided . The length of the statements in
the questionnaire and to the point so as to make it simpler for the respondents
to understand the statement clearly (Quinlan, 2011) . The questionnaire used
is in a coded format . As we are using the Likert scale method the answers are
coded between 1-5 . Pre-coding the questionnaire will make it easier for the
answers to be analysed as will be using statistical analysis to interpret the data
collected (May, 2001 , p.103) .
4.6 - Sampling –
For the purpose of this research we will be using the non-probability
sampling . The reason we have chosen a non-probability sampling method is
because we will be conducting a survey with only 150-170 respondents from
the total population of Inner London , as it will be difficult for us to conduct the
survey with the whole population of Inner London . As explained by
Quinlan(2011) the sample is selected to represent the population , but they
are not the representative of the population . The main objective of non-
probability sampling is to emphasize on a small number of population from
the total population and to comprehensively illustrate the phenomenon under
investigation . There are various types of approaches in non-probability
sampling techniques they are judgemental sampling , quota sampling ,
snowball sampling and convenience sampling . For our research we will be
using the quota sampling technique . We will be using different criteria to
select the respondents to conduct the survey .
For our survey we have selected the population of Inner London . According to
the report from ONS (2012) The population of London is 7, 825 , 000 which is
divided into inner London – 3,083,000 and outer London – 4,742,000 by the
mid year of 2010. The total population of 16 years and under in London was
19.6 per cent , the population of 65 years and over was 11.5 per cent and the
population of 17-64 years was the remaining 68.9 per cent .
According to a report in ONS (2012,b)“ The average population density of
London was 5,000 people per sq. km in 2010. The most densely populated
boroughs were Kensington and Chelsea with 14,000 people per sq. km and
Islington with 13,100 people per sq. km” .
The average pay scale rate for a Londoner is between £22614 – £39759 for
females that account to 41 % of this income group and 59 % males earn from
£26445 - £54170 (Payscale , 2012). We have included a section in our
questionnaire which deals with the income of the respondent , which will help
us to analyse the data and also help us to find which income group is more
influential for our findings and analysis . Although we will focus more on
consumers with low income as we are conducting a survey on a value for
money retailer .
The estimated population of Royal borough of Kensington and Chelsea (RBKC)
in 2011 is 169,906 with 82431 males and 87476 females ( the RBKC , (b) ). Over
51 % of the population living in the RBKC are in the age group of 15-44 (RBKC ,
2010(b)) . The estimated population for 2011 of the RBKC in the age group of
15-44 was 42713 males and 45723 for females (RBKC ,2010 (c)).
The estimated population of Islington borough is 199,130 in 2010 with
101,9669 (51%) females and 97,162 (49%) males . The major population in in
the age group of 15-34 with 73,800 residents and out of this there are 40,000
females and 33,800 males (Islington , 2010, (b) ) .
As we can conclude that the most populated Boroughs in London are in Inner
London we will conduct our survey which includes majority of percentage of
population from parts of Inner London .
So we will collect more data from NW 10 , SW 10 , SW1W , SW1X , SW3 , SW5 ,
Sw6 , SW7 , W10 , W11 , W12 , W14 , W2 W8 and W9 regions of post codes
that are included in the Kensington and Chelsea Borough ( The Royal Borough
of Kensington and Chelsea ,2010 (a) ) and for the Borough of Islington which
includes the post codes which are : N1, N4, N5, N6, N7, N8, N16, N19, NW5,
E8, WC1X, EC1A, EC1M, EC1R, EC1V, EC1Y, EC2A, EC2M, EC2Y (
Islington,2010,a) .
On the basis of the data collected above we will target our majority of the
respondents who are in the age group of 15-44 years that is young consumers.
Young consumers tend to spend more on fashion clothing and a majority of the
young consumers are not ready to change their purchase decisions with
regards to clothing , even during recession and females tend to spend more on
clothing as compared to males (Weeks , 2004) . There is a shift in the consumer
behaviour in the UK due to the economic climate and consumers are buying
cheap clothes . Due to drop in prices , consumers prefer to buy more clothes at
less price from retailers like Primark , instead of buying high end brands (Ross
and Harradine , 2010 ) . Since we are using the quota sampling technique , we
can control some characteristics of the sample (Malhotra and Birks , 2007). The
quota that we have developed on the basis of the information collected will be
, 55 % females and 45 % males approximately in the age group of 16- 35 years
and consumers with low income as Primark is a value for money retailer , so
we would assume that people with low income group will buy more from
Primark .
So for us to obtain more accurate data with regards to spending on clothing
we will have more female respondents in our survey .
4.7 - Data analysis –
For the analysis of the data collected and for the results generated from the
questionnaire we will be using descriptive analysis and correlation analysis
method to analyse the data collected .
4.7.1 - Descriptive analysis-
As we are using a quantitative method of collecting data , the best suitable
method to analyse the data will be descriptive analysis . In order to understand
and summarise the data we will use descriptive statistics which can be
represented by either tabular form or graphically ( Adams , Khan , Raeside and
White , 2007) . As stated by Reid (1995) ”descriptive statistics are simple
statements which describe the shape of the data and present the information
about one variable in readily understandable figures”(p.43). One of the
methods to analyse data through descriptive analysis is through frequency
distribution method . Obtaining a count of the number of responses associated
with the different values of the variable is the main objective of a frequency
distribution method . The values generated are then expressed in terms of
percentage . Generating a table of frequency counts , percentages and
cumulative percentage for the values associated with the variable are the main
features of a frequency distribution table (Malhotra , 2010). There are various
statistics associated with the frequency distribution . For the purpose of this
research we will be using Measures of location , a statistic that defines the a
location with the data collected . They are the Measures of central tendency as
they describe the centre of the distribution ( Malhotra and Birks , 2007). We
will also be explaining the frequency distribution graphically through a
histogram . The variables that we have used in the research will be analysed
through the use of the frequency distribution as they will help us to analyse
and also help us to obtain the desired results necessary for the study . We will
also analyse the basic associations within the different variables that is in our
case we will try to find out the relationship between CSR and brand image
through the implementation of correlation method .
4.7.2 - Correlation Analysis -
In this research we will determining whether there is any relationship between
the two variables CSR and brand image . For this reason we will using the
Correlation method to examine the relationship between the two variables .
According to Polonsky and Waller ( 2011) Correlation is the most common
method used to measure associations . Correlations can help us determine
whether there is a positive or negative relationship between two variables . As
also stated by Walliman (2011) “Correlation is another word to describe the
measure of association or relationships between two phenomena “(p.13).
The use of correlation method for analysis will help us to determine whether
there is a negative or positive relationship between CSR and brand image . One
of the most important relationship a researcher would like to explore is the
correlation between the two variables which are under investigation , as this
will help to analyse the output . This will show the strength of the relationship
between the two variables and also help the researcher to determine whether
the variables are related (Horn, 2009) . We will be using SPSS software for
measuring the correlation between CSR and brand image .
5 - Data Analysis and Findings -
In this section we will discuss about the results that are obtained from
the data and whether the hypothesis that were selected for the purpose of this
study are relevant to help us in order to achieve the aim for the study . We will
first discuss about the sample of the population that we selected for the
purpose of this research is whether as per the requirements that we had
selected for this research .
In our survey, we collected data from 152 Londoners . The number of people
specified for the research survey were selected by quota sampling method , as
it was not possible for us to survey the whole population of London due to
time and budget constraints . The average age of the respondents is from 20-
30 years and the average income of the respondents is from £7476- £19999 for
75 respondents (49%) and £20000 - £39999 for 51 respondents (33%). Out of
the 152 respondents that we interviewed there are 83 females ( 54%) and 69
males ( 45%) . 31 respondents (20.4%) were from West London , 29
respondents (19.1%) were from North or North West London , 24 respondents
(15.8%) were from East London , 31 respondents (20.4%) were from South
East or South West London and 37 respondents (24.3 %) were from West
Central or East Central London (Central London). Tables A , B , C , D and E
below explain the details of the respondents on the basis of their age , income
, gender , post codes and ethnicity respectively.
Table A
5 - How old are you?
Frequency Percent Valid Percent
Cumulative
Percent
Valid 17 4 2.6 2.6 2.6
18 10 6.6 6.6 9.2
19 9 5.9 5.9 15.1
20 13 8.6 8.6 23.7
21 10 6.6 6.6 30.3
22 6 3.9 3.9 34.2
23 8 5.3 5.3 39.5
24 11 7.2 7.2 46.7
25 7 4.6 4.6 51.3
26 8 5.3 5.3 56.6
27 9 5.9 5.9 62.5
28 8 5.3 5.3 67.8
29 7 4.6 4.6 72.4
30 6 3.9 3.9 76.3
31 6 3.9 3.9 80.3
32 6 3.9 3.9 84.2
33 7 4.6 4.6 88.8
34 9 5.9 5.9 94.7
35 8 5.3 5.3 100.0
Total 152 100.0 100.0
Table B
5 - What is your annual gross income?
Frequency Percent Valid Percent
Cumulative
Percent
Valid Up to £7,475 11 7.2 7.2 7.2
£7,476 - £19,999 75 49.3 49.3 56.6
£20,000 - £39,999 51 33.6 33.6 90.1
More than £40,000 15 9.9 9.9 100.0
Total 152 100.0 100.0
Table C
5- What is your gender ?
Frequency Percent Valid Percent
Cumulative
Percent
Valid Male 69 45.4 45.4 45.4
Female 83 54.6 54.6 100.0
Total 152 100.0 100.0
Table D
5 - What is(are) the first letter(s) of your postcode?
Frequency Percent Valid Percent
Cumulative
Percent
Valid W (West London) 31 20.4 20.4 20.4
N or NW (North London) 29 19.1 19.1 39.5
E (East London) 24 15.8 15.8 55.3
SE or SW (South London) 31 20.4 20.4 75.7
WC or EC (Central London) 37 24.3 24.3 100.0
Total 152 100.0 100.0
Table E
5 - What is your ethic group?
Frequency Percent Valid Percent
Cumulative
Percent
Valid White 61 40.1 40.1 40.1
Black 29 19.1 19.1 59.2
Asian 31 20.4 20.4 79.6
Other 31 20.4 20.4 100.0
Total 152 100.0 100.0
A further explanation about the details of the respondents is explained in the
appendices . Appendix 1 - age , appendix 2- Income , appendix 3 –gender ,
appendix 4 – post code and appendix 5 – ethnic group .
The respondents that we interviewed for the research did fit into the criteria
we had selected for the research sample .
For our Questionnaire used for survey , please refer to appendix – 6 .
Now we will discuss about the hypothesis selected for the study and also
verify whether our hypothesis are valid or invalid on the basis of the results
that we have collected from the data .
5.1 - Hypothesis A –
Consumers are cynical about organisations that practice CSR .
In our survey questionnaire we asked the respondents about an
organisations CSR activities .
When asked to comment on the statement “Organisations engage in CSR
because they are bound by law” a total of 136 respondents (89.5%) are of the
viewpoint that organisations indeed practise CSR because they are bound by
law and 44.1% out of them ‘Strongly agree’ with the statement.
Table F
1 - Organisations engage in CSR because they are bound by law
Frequency Percent Valid Percent
Cumulative
Percent
Valid Strongly Agree 60 39.5 39.5 39.5
Agree 76 50.0 50.0 89.5
Neither Agree, Nor Disagree 10 6.6 6.6 96.1
Disagree 5 3.3 3.3 99.3
Strongly Disagree 1 .7 .7 100.0
Total 152 100.0 100.0
Consumers seem to believe that organisations do not observe CSR practices
willingly, but they are perhaps forced to abide by CSR principles by the
government. According to Balmer, Fukukawa and Gray (2007) there was a
meeting between executives of Shell , Tesco , BAA , Vodafone and Standard
Chartered with the UK Prime Minister in order to stress on lower carbon
emission from UK factories as it was beneficial for the climatic conditions. The
group was formed to educate all the rest of the organisations about the
climate conditions, which may indicate not all organisations are concerned
with CSR and would not necessarily act on their own.
The findings generated by Balmer, Fukukawa and Gray (2007) help us to
confirm that consumers are aware of an organisations intentions for CSR
claims.
According to a report from BIS (2009), the UK government has implemented
rules and regulations and encourages the organisations to follow the
government’s strategy for CSR . The aim of the UK government to create a
policy framework which benefits the health and safety of the community , less
negative impact on the environment and increase employment . Organisations
like Business in the Community (BITC) and Volunteering England are some of
the organisations established by the UK government to implement CSR
activities with corporate organisations .
Therefore, we can confirm from the data we have in our literature review that
consumers are aware that organisations practise CSR probably because they
are bound by existing laws and policies.
According to the data in Table G (“Wages paid to workers in third world
contract manufacturing factories by Western organisations are adequate”), 92
respondents (60.5%) are in disagreement that organisations pay adequate
wages to the third world labourers, whereas 46 respondents (30.3%) are of the
view that organisation do pay adequate wages to workers in their contract
manufacturing factories.
Table G
1 - Wages paid to workers in third world contract manufacturing factories by Western
organisations are adequate
Frequency Percent Valid Percent
Cumulative
Percent
Valid Strongly Agree 2 1.3 1.3 1.3
Agree 44 28.9 28.9 30.3
Neither Agree, Nor Disagree 14 9.2 9.2 39.5
Disagree 57 37.5 37.5 77.0
Strongly Disagree 35 23.0 23.0 100.0
Total 152 100.0 100.0
This shows that there is mixed opinion of consumers towards the wages that
are being paid to the workers of western organisations in the third world
contract manufacturing factories. According to a report from the BBC (2008),
organisation like Primark sell Tee-shirt for£5.00 and these clothes are
manufactured in third world contract manufacturing factories, which can be
assumed that if clothes are sold at such cheaper rates , then the organisation is
saving money on other factors which may include paying less wages to the
workers in third world countries . The reason there is shift in production of
clothes manufacturing from UK to third world manufacturing factories is
because of the wages in UK are high , £6.08 per hour in 2011 (Direct Gov ,
2012) so saving labour cost on production is an important factor that
influenced the shift in production of clothes manufacturing to third world
countries.
For instance, Nike used to pay wages way below the minimum wages rates in
contract manufacturing factories in countries like Indonesia , China and
Vietnam , until there were protests to increase them (eHow, 2012). However ,
the mean of 3.52 for this question is determined by a rather bipolar
distribution of values (standard deviation of 1.17), which eventually does not
make it possible to say more that there is a tendency to disagree with this
statement.
The results in Table H indicate that there is a major difference in the opinion of
the consumers with respect to the ETI.
Table H
1 - The Ethical Trading Initiative (ETI) ensures protection for third world labourers
Frequency Percent Valid Percent
Cumulative
Percent
Valid Strongly Agree 25 16.4 16.8 16.8
Agree 60 39.5 40.3 57.0
Neither Agree, Nor Disagree 16 10.5 10.7 67.8
Disagree 39 25.7 26.2 94.0
Strongly Disagree 9 5.9 6.0 100.0
Total 149 98.0 100.0
Missing Did not answer 3 2.0
Total 152 100.0
Out of the total 149 respondents that answered this question (3 missing values
were recorded), 85 respondents (55.9%) think that ETI is successful in
protecting the rights of the workers in the third world countries, whereas 48
respondents (31.6%) think the opposite. 16 respondents (10.5%) do not have a
specific opinion (‘Neither Agree, Nor Disagree’): that might indicate that they
are not aware of ETI’s activities.
The mean is 2.64 and the standard deviation is 1.208 , which on a Likert scale
of 1-5 is a very big difference. If ETI had been successful in protecting the rights
of the workers and labourers in third world countries then there would have
not been any incidents in contract manufacturing factories of Nike in Vietnam
(Sen et al., 2006 cited in Anisimova, 2007). What we might assume here is that
either consumers are not aware of ETI, or they do not care about the rights of
the workers in the third world countries.
Table I
1 - Organisations invest enough money in countries where they manufacture their products
Frequency Percent Valid Percent
Cumulative
Percent
Valid Strongly Agree 7 4.6 4.6 4.6
Agree 42 27.6 27.6 32.2
Neither Agree, Nor Disagree 14 9.2 9.2 41.4
Disagree 63 41.4 41.4 82.9
Strongly Disagree 26 17.1 17.1 100.0
Total 152 100.0 100.0
The result we have got from the survey on this statement is bipolar(Table I).
Hence for this statement we will not be able to confirm the validity of our
statement with respect to the answers given by the respondents.
The mean answer of respondents for this statements is 3.39, which is close to
the centre of the Likert scale where respondents ‘Neither Agree, Nor Disagree’
with the statement. This can be interpreted as a neutral response wherein
consumers are sceptical whether organisations are investing the required
amount of financial resources in third world countries where they manufacture
their products .In our literature review we have discussed about the
investment Primark has made for the betterment of the community of the
workers in third world countries (Primark ethical trading) . On the other hand
Nike , is an organisation that did not care about the health and safety of the
workers in its contract manufacturing factories (Sen et al ,2006) cited in
Anisimova ,2007) . However even Primark was accused of child labour in one
of its contract manufacturing factories in India (Jones , Temperley and Lima ,
2009) , but was proved innocent after rigorous investigation . Thus we can say
that there are some organisation that invest in the third world countries where
they manufacture their products and some organisations like Primark that do
invest in countries in which they manufacture .
Since we have a bipolar response for this statement , we will not confirm the
statement to be of more help to strengthen the research objective.
Key findings -
From the results generated in Table F , G , H and I , we can interpret the
following results :
Consumers think that organisations practice CSR not because they want to do
for the community, but because they are forced by law (Table F).
Consumers are sceptical about western organisation paying adequate wages to
workers in third world manufacturing factories (Table G) .
There is a mixed opinion about ETI in the minds of the consumers (Table H) .
The mean value of 3.39 , which does not help us to conclude on the statement
as the results generated are bipolar (Table I) .
On the basis of the four statements generated above we can conclude that
our hypothesis A to be valid as consumers are cynical about the intentions of
the organisations that practice CSR . The result that is generated from this
section is consistence with the secondary data we have in the literature review
. In our literature review we discussed about the findings derived by Pomering
and Johnson (2009) who state that Consumers are aware that organisation s
CSR claims are only a marketing strategy to promote itself as a socially
responsible and to create a positive image in the minds of the consumers .
Therefore there is consistency in the opinion of the consumers regarding an
organisations CSR claims .
5.2 - Hypothesis B
Consumers think that Primark is concerned about making profit and not
about the health and welfare of its employees and workers .
CSR Primark
In this section of our questionnaire , we asked the respondents about the
association that the respondents may have with regards to Primark’s CSR
activities .
When asked to comment on the statement, “ Primark is a socially responsible
organisation “ , 56.6% of the total respondents agree that Primark is a socially
responsible and out of the 56.6 % with 12.5 % strongly agree with the
statement . 31.6% do not consider Primark to be a socially responsible
organisation with 9.2 % strongly disagree and 11.85 of the respondents neither
agree or disagree with the statement .
Table J
2 - Primark is a socially responsible organisation
Frequency Percent Valid Percent
Cumulative
Percent
Valid Strongly Agree 19 12.5 12.5 12.5
Agree 67 44.1 44.1 56.6
Neither Agree, Nor Disagree 18 11.8 11.8 68.4
Disagree 34 22.4 22.4 90.8
Strongly Disagree 14 9.2 9.2 100.0
Total 152 100.0 100.0
As stated on the company website of Primark , there are various CSR activities
that Primark is practicing in order to improve the health and living conditions
of the workers in its contract manufacturing factories in countries like India ,
China and Bangladesh ( Primark Ethical Trading , a , b )
Taking into consideration the mean value , which is 2.72 and the standard
deviation of 1.209 for the response to the statement above , we interpret that
consumers think that Primark is a socially responsible organisation , but again
due to the mean value of 1.209 , on a Likert scale a fair chunk of consumers
may also tend to be on the disagreement side and the final result may be
bipolar .
When asked to comment on the statement , “Primark’s Code of Conduct is
helping improve conditions in the countries where they manufacture their
products “ the results generated were quite similar to the results of the first
statement . The mean value was 2.69 with a standard deviation of 1.203 ,
which we may interpret as consumers are of the opinion that Primark’s policies
are helping improve the conditions in the third world countries where it
manufactures . However on a Likert scale a standard deviation of 1.203 is very
high as it will divide the results of the respondents into two groups with few
respondents who are on the agreement side and few who neither agree nor
disagree with the statement (Refer to appendix – 7) .
When we asked consumers to comment on the statement “Primark is a
member of the Ethical Trading Initiative (ETI) because it is concerned for the
welfare and well-being of its workers and employees “ , the results that arrived
from the questionnaire were not completely different from the first statement
“Primark is a socially responsible organisation “ .
92 respondents out of the total 152 respondents who answered this statement
agree that Primark is not concerned with health and welfare of its workers and
employee. 36 respondents out of the total 92 who disagree with the statement
, strongly disagree about Primark CSR intentions . Whereas 46 respondents are
of the opinion that Primark is genuinely concerned with the health and welfare
of its workers and employees (Table K ).
Table K
2 - Primark is a member of the Ethical Trading Initiative (ETI) because it is concerned for the
welfare and well-being of its workers and employees
Frequency Percent Valid Percent
Cumulative
Percent
Valid Strongly Agree 14 9.2 9.2 9.2
Agree 34 22.4 22.4 31.6
Neither Agree, Nor Disagree 12 7.9 7.9 39.5
Disagree 56 36.8 36.8 76.3
Strongly Disagree 36 23.7 23.7 100.0
Total 152 100.0 100.0
The mean value is 3.43 , with a standard deviation of 1.316 which is very high .
There is a very narrow margin between the agreement and disagreement on
the statement that Primark is a member of ETI because it is concerned with the
health and welfare of the employees or because it wants to enhance its image
as a socially responsible organisation .
As we concluded that consumers are aware that organisations practice CSR
because they are forced by the government in our statement in section 1 ‘
Organisations engage in CSR because they are bound by law ‘ . There is similar
findings about Primark as on organisation that practices CSR only because it is
bound by UK government polices to engage in CSR activities . We would again
like to mention the findings of Balmer , Fukukawa and Gray (2007 ) who have
given an example of a group formed by a few UK companies to educate the
rest of the organisations about the change they can make to help improve the
climatic conditions . According to Yu (2008) , organisations that practice CSR
are perceived to be socially responsible and the thus practising CSR can help
the organisations benefit financially and also improve the reputation of the
organisation and also helps to strengthen customer relationships . As we have
also stated in our literature review that organisation use CBA (Cause – Brand
Alliance) (Lafferty , 2007) cited in (Bigne , Curras-Perez and Aldas-Manzano ,
2012)and CRM (Cause- Related Marketing) (Varadarajan and Menon , 1988)
cited in (Bigne , Curras-Perez and Aldas-Manzano , 2012) strategies to help
improve the image and reputation in the minds of the consumers . Primark is
also an organisation that wants to make profit , this can be seen with the
report in Liverpool Daily post (2012) , which states that Primark has made the
highest profit among all the subsidiaries of ABF . However because we have a
bipolar result on this statement we will not confirm the findings strong enough
to support our hypothesis .
When asked to comment on the statement “Primark invests in the
communities (Bangladesh, China and India) in which it manufacture its
products “, we got results that were again similar to statement 1 . The mean
value was 2.62 with a standard deviation of 1.196 , which can be interpreted
as Primark does invest into the countries in which it manufactures , but again ,
when calculated on the Likert scale will give us a bipolar result with few
consumers agree and few neither agree nor disagree (Refer to appendix – 8).
Key findings –
From the results derived from section 2 , we can confirm the following
statements -
Consumers think that Primark is a socially responsible organisation .
Consumers think that Primark’s Code of Conduct is helping improve the
conditions of the countries in which it manufactures .
Consumers are sceptical whether Primark is a member of ETI because it is
genuinely concerned for the welfare and benefits of the employees or only to
enhance its image .
Consumers are of the opinion that Primark does invest in communities in
which it manufactures .
From the statements above we may interpret that consumers have a positive
image of Primark as a socially responsible organisation , but at the same time
consumers are sceptical about Primark’s stance on CSR is to help the
community or to promote its image as a socially responsible organisation .
Therefore , we will not confirm that our Hypothesis B to be valid or invalid , as
the result we found is not completely supporting our hypothesis , even though
the mean value for statement 1 ,2 and 4 is 2.72 , 2.69 and 2.62 respectively ,
which tends to be more on the agreement side , however all the three
statement above have a standard deviation of above 1 , when calculated on
the Likert scale makes the results bipolar , but the data collected from the
survey does help us for our research as we can conclude that majority of the
consumers think Primark is practicing CSR and is a socially responsible
organisation .
As we have also stated in our literature review that organisations use CBA
(Cause – Brand Alliance) (Lafferty , 2007) cited in (Bigne , Curras-Perez and
Aldas-Manzano , 2012)and CRM (Cause- Related Marketing) (Varadarajan and
Menon , 1988) cited in (Bigne , Curras-Perez and Aldas-Manzano , 2012)
strategies to help improve the image and reputation in the minds of the
consumers . Primark is also an organisation that wants to make profit , this can
be seen with the report in Liverpool Daily post (2012) , which states that
Primark has made the highest profit among all the subsidiaries of ABF.
However , according to our findings we can conclude that consumers are
sceptical about Primark’s stance on CSR as the opinions in statements are
contrasting when calculated on the Likert scale .
5.3 - Hypothesis C
Consumers shop at Primark because of its affordability .
For the purpose of testing our hypothesis C , we selected 4 questions in our
Section 3 which deals with statements about consumers attitude towards low
cost fashion clothes from Primark .
Section 3
The data in the Table L shows that out of 152 respondents , 111 respondents
(73%) strongly agree and 41 respondents ( 27%) agree with the statement
“Primark is a source of affordable (value-for-money) clothing “ .
Table L
3 - Primark is a source of affordable (value-for-money) clothing
Frequency Percent Valid Percent
Cumulative
Percent
Valid Strongly Agree 111 73.0 73.0 73.0
Agree 41 27.0 27.0 100.0
Total 152 100.0 100.0
The mean value of 1.27 and a standard deviation of 0.445 also clearly states
that the respondents are of the view that Primark sells fashion clothes at low
prices (Refer to Appendix - 9 ). This is also supported by a report from Mintel
Oxygen (2007) cited in Ross and Harradine (2010) that states Primark as the
largest value based retailer in the UK .
According to the data in Table M (“ Primark makes excessive profit “ ) , out of
the total 152 respondents who answered this statement , 29.6 % strongly
agree and 36.8 % agree that Primark makes excessive profit . 8.6 % of the
respondents neither agreed nor disagreed with the statement , whereas 13.8
% disagreed and 11.2 % strongly disagreed with the statement . This can also
be confirmed by the report in the Liverpool Daily Post (2012) which stated that
Primark contributed 16 % of the total profits of the Associated British Foods
company (Owner of Primark) . As stated on the company website of Primark ,
that the company does not spend on advertising , buys in bulk and it buys from
countries India , China and Bangladesh where labour wages are low (Primark,
c) . Thus it may be possible that this may be a cost saving strategy of Primark ,
which in turn helps to increase its profit
Table M
3 - Primark makes excessive profits
Frequency Percent Valid Percent
Cumulative
Percent
Valid Strongly Agree 45 29.6 29.6 29.6
Agree 56 36.8 36.8 66.4
Neither Agree, Nor Disagree 13 8.6 8.6 75.0
Disagree 21 13.8 13.8 88.8
Strongly Disagree 17 11.2 11.2 100.0
Total 152 100.0 100.0
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London_SBMA7049_DIS_Marketing_1003014
London_SBMA7049_DIS_Marketing_1003014
London_SBMA7049_DIS_Marketing_1003014
London_SBMA7049_DIS_Marketing_1003014
London_SBMA7049_DIS_Marketing_1003014
London_SBMA7049_DIS_Marketing_1003014
London_SBMA7049_DIS_Marketing_1003014
London_SBMA7049_DIS_Marketing_1003014
London_SBMA7049_DIS_Marketing_1003014
London_SBMA7049_DIS_Marketing_1003014

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London_SBMA7049_DIS_Marketing_1003014

  • 1. MBA Dissertation Investigating consumer reactions to CSR as a component of Brand Image : Primark in London . Name – Murtuza Dohadwala Student ID – 1003014 Pathway – Marketing Supervisor – Prof. Riccardo Benzo .
  • 2. Acknowledgement I am grateful to Mr.Riccardo Benzo , my Supervisor , who guided me and supported me during this research . I would also like to thank my family , without whom this achievement would not have been possible .
  • 3. INDEXES 1 - Introduction 2 - Literature Review 3 - Conceptual Framework 4 - Research Methodology 5 - Data Analysis and Findings 6 - Conclusions 7 - Appendices 8 - References
  • 4. Summary – Over the past few decades, many organisations have been promoting and publicising their CSR activities on their websites and also in annual reports . Organisations practice CSR in order to promote itself as socially responsible in the minds of the consumer and the different stakeholders . One of the most important reason is to create a positive image in the minds of the consumers which affects consumer behaviour in a positive way. But there are instances where organisations are accused of unethical behaviour and still the sales figures are not affected . For instance , Primark was accused of child labour practices , but the sales of Primark were not affected . For this reason we chose our topic of research to investigate about consumer behaviour with regards to CSR as a component of brand image . For this purpose , we conducted a survey based on a questionnaire on 152 respondents from London . Our research methodology involved collecting quantitative data and since we are of a positivist view , we also generated hypothesis . We used descriptive method and correlation method to analyse the data . In our data analysis , we found out that respondents did not consider CSR as an important factor for making purchase decisions , but they considered price , quality , brand name and convenience for making purchase decisions . However we will not generalise the findings as we did the survey on a sample of population of London using a quota sampling method and as such the sample population is not the representative of the whole population in the universe . Future researchers who wish to investigate on this topic may use qualitative method which might generate different useful results .
  • 5. 1 - Introduction – Many large firms in the UK include few paragraphs about their non- financial activities in their annual reports . Publishing an organisations CSR activities in their annual reports is a trend among many firms in the UK .Organisation in the US have been practicing and publishing their CSR activities since 1960 ( Whitehouse , 2006). There was a time only a few ambitious organisations who wanted to do good for the community would have CSR as one of their organisational objectives and looking at the present trend , CSR is publicised and practiced by almost all the organisations BBC (2006) . Organisations nowadays have different motives that go beyond making profit . The motives may be to enhance the organisations reputation , to promote the organisation as socially responsible , to target stakeholders of the organisation , to reposition itself as an ethical organisation , etc. In order to protect their goodwill and image in the market organisations practice and publicise about their CSR activities . CSR as defined by Kotler and Lee (2005) as ” a commitment to improve community well-being through discretionary business practices and contributions of corporate resources” . Most of the organisations in the UK are practicing CSR in their daily business activities . Many organisations in the retail sector in the UK publish their CSR reports on their websites to inform consumers about how responsible they are for the environment and the society . It can also be said the existence of an organisation depends upon how it practices CSR . According to an article in Marketing week by Roberts (2012) firms are hiring PR professionals so that they can communicate and promote the organisations CSR activities to their consumers and stakeholders . For example ,Coca-Cola is an Olympic sponsor and is trying to promote its CSR activities through public relations . The general trend nowadays for organisations is to promote its CSR activities on the websites . Organisations also make use of CBA and CRM strategies to enhance their image in the market . 1.1 - Background –
  • 6. According to a report from Anonymous (2009) Organisations publicise their CSR activities on their website to promote awareness among its multiple audiences which can be NGO’s , consumer , employees , government , investors and analysts . It is a general trend among organisations to promote their CSR activities through their company websites in order to create a positive image of the organisation . Promoting a good image through CSR is one of the important strategies of organisation to enhance the image and increase brand loyalty and thus has a positive effects on the sales of the organisation . But it is not necessary that consumers believe what organisations claim about their CSR activities . Consumers in the USA are sceptical about an organisations claim for CSR practices (Los Angeles Times , 2011) . Consumers in China use internet to seek information about an organisations CSR claims (Globescan , 2012) . According to Brink , Odkerken- Schroder and Pauwels ( 2006 ) consumers are willing to pay a higher price for to an ethical organisation and punish an organisation that is not ethical by paying a lower price . For instance Nike had to suffer financial losses when one consumers were boycotting Nike as workers were physically and verbally abused in one of its contract manufacturing factories of Nike in Vietnam (Anisimova , 2007) . However when Primark (UK) ,was accused of child labour practices in one of its contract manufacturing in India . After 3 years of investigation Primark was not found guilty (Guardian , 2011). However ,the sales figures of Primark were not affected . Primark was still making profit (Liverpool Daily Post , 2012). So this brings us to think whether CSR activities of an organisation does actually affect consumer behaviour . 1.2 - Aims and objectives - Taking into consideration the data available on CSR , we selected the aim of our research which is investigating consumer reaction to CSR as a component of brand image . Our research involved a deductive approach as we will be testing and examining our hypothesis and if necessary modify the theory in the light of the findings (Saunders , Lewis and Thornhill , 2003) . This research will be an explanatory study as the emphasis is on studying a situation that will help us explain the relationship between CSR and brand image . We are of the view that CSR activities of an organisation do not affect consumer behaviour. For this reason we selected Primark (UK) to conduct our
  • 7. research . The reason we choose Primark (UK) was because in 2008 Primark was accused of child labour practices and if CSR activities had an impact on consumer behaviour , than the sales of Primark should have dropped . But that was not the case for Primark . The sales figures of Primark were still going strong , even though the case against Primark was under investigation. Eventually after rigorous investigation Primark was not found guilty . In fact Primark was even voted as the most unethical retailer in the UK in 2005 (Jones , Temperley and Lima , 2009) . In order to achieve our aim , we have selected three objectives .Our first objective was to understand consumers attitude towards CSR which is on the basis of the findings of Pomering and Johnson (2009) who state that consumers are sceptical about an organisations CSR claims . Our second objective was to understand consumers relationship with the Primark brand , as consumers were purchasing products of Primark even though it was accused of unethical behaviour and our third objective is to try and understand whether there is any relationship between CSR and brand image on consumer behaviour that is to understand whether consumers evaluate a product based on its CSR activities and whether they buy products for the sole reason that the product is manufactures ethically . 1.3 - Summary of chapters - We begin this paper with our literature review which includes an introduction to the UK clothing and retail sector , history and CSR activities of Primark and the existing marketing theories used by organisations to promote themselves as socially responsible (Chapter 2) . We then discuss about the conceptual framework of our research through which we select our aims and objectives of the research and also select the hypothesis based on the existing theories and our assumptions (Chapter 3) . This is followed by the research methodology for our study which includes our research philosophy which is positivism as we are of the opinion that CSR is not a relevant factor for consumer purchase decision , research approach which is deductive as we are testing our hypothesis , research strategy which is explanatory as we will make use of existing theories to test the hypothesis ,quantitative data collection method as want to establish statistical relationships between variables , survey to measure the attitudes of respondents through questionnaire , questionnaire for survey, sampling as we
  • 8. will be using non-probability sampling method and data analysis which is descriptive method and correlation method (Chapter 4) . We conducted our research on 152 respondents through a mall intercept survey method . We used quota sampling technique and thus we decided to conduct survey based questionnaire with 152 respondents form the total population of London . The respondents were given a questionnaire which included statements which measured the attitudes of consumers on a Likert scale of 1-5 . The questionnaire included 4 sections of statements and the last section was screening questions in which we asked the age , gender , ethnicity , income and first letter(s) of the post codes . For analysing the data collected we used the descriptive data method and correlation method as with the use of graphs and tables we will be able to numerically analyse the data and conclude on the results generated with better accuracy . We also used Pearson correlation coefficient method , in order to measure the associations between the variables which helped us to strengthen the results of our findings . We then proceed to the data analysis and findings from the survey questionnaire in which are discussed on the basis of our hypothesis (Chapter 5) , followed by the conclusions for the research in which we discuss whether we have achieved the aims and objectives set for this research (Chapter 6) Then we discuss about the ethical consideration for this research paper in which we discuss about the ethical issues that we faced while conducting the research (Chapter 6.1) . We also discuss about the validity of our results (Chapter 6.2) . Our survey based on a sample of population of London (UK) , hence we also discuss about the issue of generalizability of the results (Chapter 6.3) . Since we are not claiming about the results of our research to be 100 per cent accurate , we also discuss about the limitations of our research in our limitations section (Chapter 6.4) . In the end we discuss about future research implications as our research methodology cannot be claimed to be the only suitable approach which can be applied to generate the desired results (Chapter 6.5).
  • 9. 2 - Literature Review – Our literature review is divided into 2 sections . Section 1 is called the Sector Overview . In this section of the paper we will discuss about the clothing industry and the retail industry in the UK . We will also discuss about the history and CSR activities of Primark . Section 2 is the marketing theory on CSR and brand image . It involves the discussion and arguments about various authors research and findings about the relationship between CSR and brand image and its impact on consumer behaviour . 2.1- Sector Overview – 2.1.1 - Clothing industry in the UK- To achieve high profit in a labour intensive industry like clothing and to some extent textile industry , cost minimisation has been a traditional factor that has helped to achieve competitive success . Particularly in high wage economies , this led to investment decisions centred on minimising labour cost and refining output as well as outsourcing lower value added tasks to sub- contractors who in turn resorted to work intensification to gain their own production competences (Taplin,2006) . The clothing industry in the UK has gone through a drastic change in the past few decades . The level of employment in the clothing industry in the UK has been decreasing since 1978 . During the period from 1993 and 2002 employment in the clothing industry in the UK fell by 48 per cent and during 1995 and 2002 the output decreased to 44 per cent followed by the closure of clothing manufacturing companies in the UK by 35 per cent (ONS , 2002) cited in (Jones and Hayes , 2004) . According to Jones and Hayes (2004) there could be three reasons for increase in unemployment in an industry i.e. a lack of demand , a rise in productivity or rise in imports . Between 1993 and 2001,there was a rise in imports to 104.5 per cent whereas there was a decrease of 36 per cent in the UK domestic production. One of the reasons for increase in imports is the introduction of the national minimum wage (NMW) in 1999 at a level of £3.60 per hour and has increased to £6.08 per hour in 2011 (Direct Gov , 2012) . This has resulted in companies shifting their manufacturing factories in less developed countries due to cheap labour costs . Another factor that led to the job losses in the clothing industry was the implementation of the liberalisation of the trade
  • 10. policy in the EU in 1991 . As the UK policy is subsumed in EU policy , it can be said that due to the progressive opening of the EU markets in clothing to imports and the removal of trade barrier against imports is an influential element in the downfall of the domestic employment and production in UK ( Jones and Hayes , 2004) . According to Allwood , Laursen , Rodriguez and Bocken (2006 ) there has been an considerable increase in employment in the clothing and textile sectors in countries like China , Bangladesh , India , Pakistan , Mexico , Romania , Cambodia and Turkey . Except India all the rest of the countries have shown a remarkable growth in employment in the clothing and retail sector from 1997 to 2002 and during the same period there has been a decline in the employment in countries like USA , Europe and Philippines . There has been a decline in the employment by 2.7 million from 1 million in EU clothing and textile during 1995 to 2005 and a further 1 million forecasted job losses from 2005 to 2010 . 2.1.2 - Retail industry in the UK - The shift in location of production had a positive impact on the sales figures of fashion retail business . According to the reports from Keynote (2008) cited in Goworek(2010) ” The fashion industry in the UK forms a significant component of the economy , with UK clothing and sales reaching £48.55 billion in 2007”. According to report from Guardian,UK (2010) British fashion industry contributes approximately 21 Billion Pounds in the UK economy . The report was specially made by the British Fashion Council , who aim to measure the true economic and social impact of the UK fashion industry .The fashion industry’s contribution to the UK GDP is estimated to 37.2 billion pounds in 2009 and out of this 20.9 billion pounds is due directly from retail and wholesale manufacturers . Consumers in the UK spent 46 billion pounds on clothes and shoes alone . Globalised production has been shifted to Far east countries with China being the world’s leading exporter since 1993 . 95 per cent of the clothing and footwear sold in the UK in 2005 was imported (Goworek , 2010) . The economic climate has also influenced the consumer behaviour as they were now trading in cheaper clothes (Ross and Harradine , 2010) . There was a time when designer clothes were preferred by consumers , but now consumers prefer value for money clothing from the likes of Primark (Poulter , 2008 ) cited in (Ross and Harradine , 2010) . According to Attwood
  • 11. (2007) cited in Ross and Harradine (2010) consumers are now treating fashion in a more disposable way . This led to the commencement of value based clothing retailers like Primark , Asda , Tesco , Peacocks establishing their presence in the market . Clothes are now manufactured abroad in bulk , at a greater speed and at a low cost which can be exemplified by the likes of Primark , where a tee-shirt can sell for £5.00 (BBC,2008) . According to the report from Mintel (2010) the clothing sector in the UK was not affected by recession as the market grew by 1.4 per cent in 2009 to GBP 41.3 billion and it is estimated to increase to 1.5 per cent in 2010 to GBP 41.9 billion . Value retailers outperformed well as the sales figures grew by 6 per cent in 2009 to GBP 8.1 billion . This was due to the conscious efforts by consumers to purchase cheap clothes . Almost 50 per cent of the consumers were buying clothes that were on sale or at discounted rate . McColl and Moore (2011) state that the UK clothing market has suffered from strong deflationary pressures over the past decade with the entry and intense competition from value based retailers like Primark , New Look and Peacocks . These retailers are driving down the prices and showing a consistent growth in sales . 2.1.3 - History of Primark - Reports from Mintel Oxygen (2007) cited in Ross and Harradine (2010) state that Primark has become a retailing success as the company seems immune to the credit crunch and that Primark has become the largest value based retailer in the UK . The success story of Primark dates back to June 1969, when it opened the first Penney’s Store in Mary Street , Dublin and entered Great Britain in 1973 . By 1994 Primark had opened 66 stores out of which 32 were in the UK and 34 in Ireland . Primark had a milestone year in 1995 , when it acquired 16 stores of BHS One-up in UK . The next major development was in 1999 , when it acquired 11 stores from the Co-Op and in the year 2000 , Primark acquired 11 stores from C & A . At present , Primark has a total number of 236 stores trading in Ireland , Spain , UK , The Netherlands , Portugal , Germany and Belgium as on 30 April 2012 (Primark , 2012 ,a) . Primark runs its business on a unique combination of fast fashion and lean operations . In 2011, Primark received 14 awards which were as follows – The Shoppers Award from The Mall Bamsley Awards 2011 ,
  • 12. Overall Best Retailer of The Mall Wood Green from The Mall Blackburn Awards 2011 . The Shoppers Award from The Mall Blackburn Awards 2011 . Overall best Retailer of The Mall Wood Green from The Mall Wood Green Awards 2011 . The Shoppers from The Mall Wood Green Awards 2011 . Newcomer of the Year from ECE Retail Award . Best Affordable Fashion from ITV Lorraine High Street Fashion Awards 2011 . Best Bargains form Cosmopolitan Fashion Awards 2011 . Outstanding Achievement in Business Arthur Ryan form The Business & Finance Awards 2011 . Best value Retailer of the Year from Drapers Fashion Awards 2011 . Ireland Spain Economic Association Annual Award from Ireland Spain Economic Association . Best Budget Fashion Retailer Award from Celebs on Sunday Fashion Awards 2011 . Shop I Can’t Live Without Award from Lakeside Retailer Awards . Value for Money Award from Prima High Street fashion Awards 2011 (Primark ,2012, b) Primark has 236 stores and that allows Primark to have a bargaining power with the suppliers as it buys in bulk and Primark does not spend on advertising. These two reasons combine contribute to the cost savings strategy of Primark and thus it passes the cost savings to the consumers by selling its products at low price (Primark ,2012, c) . Primark has its suppliers from India , China and Bangladesh . Clothes are manufactured in large scale and at less cost as the labour is cheap in less developed countries . Primark also makes sure that all the suppliers of the contract manufacturing factories follow their code of conduct as stated by Primark .
  • 13. 2.1.4 - CSR activities of Primark - The Code of Conduct stated by Primark are for the health , safety and welfare of the employees . Primark is strictly against child labour . In order to make sure that the suppliers follow their code of conduct , Primark conducts regular audits . Primark follows its own CSR policies with a view to help the community , employees and its suppliers . Primark is also a member of the Ethical Trading Initiative . To address common issues in the supply chain , Primark also has training and capacity building programmes . The main focus of these programmes differ from country to country . For example in China , Primark is working towards increasing the labour wages . For Indian workers Primark is working towards providing education and for Bangladesh , Primark is working towards providing the labourers a better working condition ( Primark Ethical Trading ,2012, a ) . Primark is also working towards environmental sustainability by reducing its carbon emission by 10 per cent by 2013 ( Primark , Ethical Trading ,2012, b ) . From the information that has been published on the company website of Primark we can make out that Primark follows CSR and makes sure that all the CSR policies that are followed and laid down by Primark is also being practiced by it contract manufacturing factories . Primark is trying to convey a message that it follows CSR and is also a strict follower of ETI . Primark wants to make sure that consumers are aware of the CSR practices by Primark and so wants to prove itself as a responsible organisation that is concerned about the well-being of the economic , social and environmental system . Primark wants to improve its brand image through the effective usage , practice and publicising its CSR activities to the general public and its shareholders . Ataman and Ulengin (2003) state that ” Brand image which usually includes the products name , its physical features and appearance including the packaging and the logo and its key functions is the key to answer question of how consumer chooses among alternative brands after information gathering processes of buyer behaviour “ . The concept of CSR is not a new phenomenon . Nowadays organisations use CSR to improve its brand image , which in turn helps to generate brand loyalty and increase sales . There are many CSR marketing strategies that have been used by organisations to promote their brand image as a socially responsible organisation . CSR has become as one of the most important element of marketing strategy . We will discuss about the use of CSR and its use as a
  • 14. strategic tool in communicating with the consumers and stakeholders in the next section . 2.2 - Marketing Theory – 2.2.1 - Corporate Communication and CSR - Kotler and Lee (2005) , defined Corporate Social Responsibility (CSR) as” a commitment to improve community well-being through discretionary business practices and contributions of corporate resources “ . As Armstrong (2009) stated “CSR is exercised by organisations when they conduct their business in an ethical way , taking account of the social , environmental and economic impact of how they operate and going beyond compliance “. The objective of CSR is protect the rights of the workers , help in improving the environment and supporting the community , ensure Fair trade activities are followed so that all those who are involved are benefited from the trading activities . Many organisations have CSR on the priority list of their core company values .CSR practices is considered as one of the most important functions of an organisation . In June 2005 , a group of high profile British companies in the UK brought together by the Prince of Wales Programme , held a meeting with the Prime Minister to set an example for developing countries to stress more on the reduction of carbon emission . The group included executives from Shell , Tesco , Vodafone , BAA and Standard Chartered . The group believed that developing countries will not take the environmental problems seriously unless countries like the UK take the initiative and show how the climate change problems can be tackled (Balmer , Fukukawa and Gray , 2007) . This shows the importance of CSR as an essential element for enhancing the organisations image as socially responsible which results into a positive impact on the company’s profitability . According to Yu (2008), the positive effects of CSR on an organisations profitability is achieved by various factors of competitive advantage in the form of enhanced brand value and reputation , understanding customer needs and enhancing customer relationship . It also results in motivating the employees morale which results in higher productivity and also helps in building better relation with the government and the community and can also help in improving the risk and crisis management strategy . CSR has also been identified to have a positive influence on customer loyalty (Mandhachitara and Poolthong ,2011). One of the benefits that an organisation achieves due to the practice of CSR is a positive brand image .
  • 15. “Brand image is the perceptual concept of a brand that is held by the consumer” (Aaker and Biel , 1993) . Consumers tend to develop a brand loyalty towards products manufactured by organisations that follow CSR . Organisations are using different marketing strategies to communicate to the consumers and at the same time create a positive impact on the minds of the consumers . CSR communication is considered as an organisations capability to respond to the social pressure rather than just doing an obligation to the society (Johansen and Nielson , 2011) . Organisations utilize the CSR concept strategically by focussing in selected areas that are suitable with the organisations values . Selecting initiatives that support the organisations objectives , supporting issues that provide opportunity to meet the marketing objectives and selecting issues that are related to the core products and the core markets are a few examples of the use of CSR as a strategic tool . As it has been proven that communication of a firm commitment to CSR is a vital motivation , it is often practiced via the support of causes (Sheikh and Beise- Zee , 2011 ) . Organisations use brand association techniques to promote their brand . Out of the many names that have been given to this association , some of the names are Cause-related marketing (CRM) ( Varadarajan and Menon , 1988) cited in (Bigne , Curras-Perez and Aldas-Manzano , 2012) or Cause- brand alliance (CBA) ( Lafferty , 2007) cited in (Bigne , Curras-Perez and Aldas- Manzano , 2012) . As this paper is about finding the link between CSR and brand image , we will discuss the various types of CSR promotional strategies used by organisations to perceive itself as socially responsible as it will help us to give a better understanding about the strategies that organisations use to enhance brand reputation . 2.2.2 - Cause Related Marketing - According to Baghi , Rubaltelli and Tedeschi (2009) it has been observed that from the past few years that more and more organisations are associating their products with some sort of charitable trust in order to create a positive brand image and to increase market share . It is widely accepted that organisations use CRM as a communications strategy so that they can highlight their standards of CSR activities and their contribution towards social problems. The main objective of CRM is to integrate previous attitude towards the brand and the cause with the new information provided by the association
  • 16. and joint evaluation of both as suggested by the information integration theory . Marketers make use of intense communication formats in the form of sensitively provoking messages which helps to form more mental images than pale messages , which in turns helps to increase consumers emotional connection towards the product – cause link . This strategy helps to increase the effectiveness of the transactional programs where in for every unit of a product sold the organisation donates a certain percentage of the profit to the social cause . As stated by Tsai (2009) “cause related marketing (CRM) is the marketing activities characterising donations offered by corporate organisations or product brands to a charity cause” . As marketers want to enhance their brand attitude and purchase intentions , CRM has become a very commonly used strategy by brand marketers . 2.2.3 - Cause –Brand Alliance – Till and Nowak (2000) cited in (Bigne , Curras-Perez and Aldas-Manzano , 2012) suggests that the classical conditional paradigm is the main element that is used in the theoretical understanding of the associative learning process for the cause-brand alliance persuasion . By using the same method used for brand endorsements , marketers promote their brand by associating it with a social cause , thereby provoking a sense of associative learning within their target consumers and the consumers perceive the brand as socially responsible due to the social cause values transferred to the brand . This type of strategy creates a positive impact on the minds of the consumers about the product being socially responsible . The perception of the fit between the brand and the associated stimuli that is social cause is considered as the main element of the persuasive capacity of the communication strategies used by marketers. As stated by Lafferty (2007) cited in Bigne , Curras-Perez and Aldas-Manzano (2012) it is the degree of similarity and compatibility that is perceived by consumers that exists between the brand and the social cause , helps us to define the perceived fit theory in a CBA context . It has been proven that the use of CBA has a direct impact on various positive variables which include brand image , altruistic attributions , brand credibility and product purchase intentions . Primark is one of the organisations in UK that uses CRM strategy to promote its CSR activities through its website . According to Hinson , Boateng and Madichie
  • 17. (2010) most of the organisations use internet as a medium to disclose information to the general public as the internet has become a major medium for corporate communications . For many organisations , corporate websites serve as a complete and immediate information hub , through which organisation can convey their messages that can shape and enhance the corporate identity . Organisations also convey their reputation to the public through corporate websites Thus the internet has become a means of fulfilling the legal , economical , ethical and philanthropic responsibilities expected by the stakeholders . In terms of the relationship between CSR and corporate identity , the deliberate use of internet improves the way in which organisations will communicate with stakeholders , acknowledge concerns towards the society through ways that enhance the business-society relationship and eventually communicate CSR programmes (Rolland and Bazzoni , 2009) . Primark has a Facebook fan page with over 42,000 members. When Primark was accused of child labour practices , there were many people protesting against Primark on the internet , but the ratio was very low as compared to the fans of Primark . Primark relies on its loyal customers to defend for them and portrays itself as a value high street retailer. Primark defended itself from the accusation by publishing all the details on the internet and communicating directly with its consumers and stakeholders (Jones , Temperley and Lima , 2009). Improving labour wages in China , education for workers in India and better working conditions for labours in Bangladesh and its related activities are some of the CSR promotion strategy that are being published on the company website of Primark to enhance the reputation of the company by publicising its CSR activities (Primark , Ethical Trading, 2012) . This in turn develops an association of trust in the organisation by consumers who purchase products by organisations that follow CSR . However consumers are aware of the advertising claims made by marketers of promoting themselves as a socially responsible and ethically manufacturer . Marketers have to be very careful when they have to build a positive brand image of their company on the basis of trust . In order to convince consumers , marketers use the sick baby / well baby appeal . Consumers are not aware of the social topic information advertised by the organisations. Social topic issues including problems related to the environment are innumerable and consumers lack familiarity with such topics . So organisations use the sick baby
  • 18. /well baby appeal in which they inform to the consumers and familiarise the social topic information to the consumers so that the CSR claims made by the organisation can be more diagnostic by consumers . The sick baby appeal works in informing the consumers of a problem and the well baby appeal works to inform the consumers that the organisation can do something for the problem (Pomering and Johnson , 2009 ).”Theories from cognitive psychology such as contextualisation , priming and assimilation support the notion that informing about a social problem will allow consumers to draw on those associations in order to activate socially evaluative criteria “( Ashcroft , 2006 cited in Pomering and Johnson , 2009 ). 2.2.4 - Consumer Attitude towards CSR - The conundrum however is whether these CSR promoting activities do actually have an impact on the brand image of the organisation and whether it affects the consumers attitude towards the brand and the organisation . Due to an increase in competition in the market , organisations are developing new promotional strategies that creates a perception in the minds of the consumers about the brand being socially responsible if the brand is associated with a social cause (Bigne , Curras-Perez and Aldas-Manzano , 2012) . Consumers are willing to reward an organisation by paying a higher price for their ethical behaviour and punish an organisation by paying a lower price for their unethical behaviour ( Brink , Odkerken-Schroder and Pauwels , 2006 ) . This motivates the organisation to build a positive brand image in the minds of the consumers . According to Keller (1993) cited in Gwinner and Eaton (1999) Brand image has been defined as "perceptions about a brand as reflected by the brand associations held in memory' . This definition takes an associate memory network view, in that brand image is based upon linkages a consumer holds in his/her memory structure regarding the brand. These linkages also known as brand associations , are developed from a variety of sources including brand and product category experiences, product attributes, price information, positioning in promotional communications, packaging, user imagery , and usage occasion .
  • 19. The use of CBA and CRM as a CSR promotional strategy might improve the brand image of an organisation , however it is not necessary that consumers buy a product only because it is practicing CSR activities . As stated by Singh , Sanchez and Bosque (2008 ) , organisations that promote themselves to be socially responsible are perceived to have a positive image in the minds of the consumers , but if the organisation is accused of any unethical behaviour , than it will have a major negative impact on the reputation of the organisation as compared to an organisation that has a low CSR profile . If the consumers have a negative reaction towards an unethical behaviour of an organisation , then they are even sensitive towards messages that are positive as they do not believe what has been conveyed to them . Consumers are more interested in the commercial activities rather than CSR activities of an organisation that are beneficial to the consumers . This has been seconded by Ha-Brookshire and Norum (2011) ,who suggest that even though CSR practices of an organisation have an impact on consumer behaviour , in many cases consumers give more preference to the quality , price , convenience and brand name of the product rather than the organisations CSR activities . For example in the case of Primark even though it was accused of child labour practices in one of its contract manufacturing factories in India , it did not affect the sales figures of Primark . As per the report , Primark did a good business during Christmas in 2011 . Primark owner Associated British Foods had a 12 per cent rise in profits out of which retail constituted of 16 per cent of the total contribution (Liverpool Daily Post ,2012) . So we can say that CSR has minimal or no impact on the brand image of the organisation as it does not affect the consumer buying behaviour . This is also agreed by Berens , Riel and Rekom (2007 ) who argue that it is not necessary that a good CSR image will help the organisation to have a positive buying behaviour if it compromises on its quality of its products . Consumers who do not care about CSR will buy the product if it is of good quality and consumers who value a firms CSR activities will not buy a product even if it of good quality . According to Pomering and Johnson (2009), consumers are more sceptical towards organisational CSR claims. Consumers believe that organisations are
  • 20. promoting themselves as socially responsible only for their personal interests . Consumers are aware that organisations use CSR activities as a marketing strategy . However research carried out by Miles and Munilla (2004) suggest that CSR activities have a major impact on the brand image of an organisation . Consumers and corporations in the US and Europe are hesitant to purchase products from corporates that have a tarnished image due to its irresponsible social behaviour . According to Miles and Covin (2000) cited in Miles and Munilla (2004) positive corporate reputation is an intangible asset to an organisation that enables the organisation to differentiate its marketing mix strategies , gain monetary exclusions and enhance their competitive positions in both business to business and business to consumer market . Research undertaken by Sen et al (2006) cited in Anisimova (2007) also suggest that organisation that create awareness about its CSR activities have a positive impact on the consumers views with regards to association , attitudes and behavioural intentions . An example taken to explain this phenomenon was of Nike . One of the contract manufacturing factories of Nike in Vietnam in the 1990’s was accused of physical and verbal abusive behaviour towards its employees . This caused a lot of damage to the corporate reputation of Nike and thus resulted in boycotts and decline in sales revenue . In order to get back the consumer base and to improve its image , Nike had to take a proactive approach to social responsibility and opened its Asian factories to be audited by NGO’s . As suggested by Lai , Chiu , Yang and Pai (2010) CSR effect on brand performance is due to brand reputation and brand equity . Organisations that practice and publicise its CSR Activities have a positive reputation amongst its suppliers and consumers and this in turn helps to improve the financial performance of the organisation. The CSR activities of an organisation act as an antecedent of industrial brand equity, which is how the buyers perceive the supplier. If marketers want to increase their financial performance they will have to indulge in CSR practices and also promote their activities to their buyers . This helps to improve their corporate reputation which in turns helps
  • 21. to enhance the brand equity of the supplier . Corporate reputation and industrial brand equity not only have a direct effect on brand performance but also has partial mediating effects . If the managers want to increase their brand performance they will have to work towards enhancing their corporate reputation . So now we have different arguments about the impact of CSR activities on brand image and consumer behaviour . Singh , Sanchez and Bosque (2008 ) are of the opinion that CSR activities do not help in enhancing the brand image and thus does not affect consumer behaviour . Ha-Brookshire and Norum (2011) are of the opinion that even though CSR activities may have an impact on consumer behaviour but consumers evaluate the products as per their personal needs and according Berens , Riel and Rekom (2007 ) state that consumers that give importance to CSR will buy the product of an organisation even though it is not of good quality and consumers who do not give importance to CSR will but the product only if it is of good quality . Either they purchase goods from organisations that practice CSR or consumers purchase goods as per their personal needs and evaluation of the products . Pomering and Johnson (2009) state that consumers are sceptical about an organisations claim for CSR , as consumers believe that organisations practice CSR as a marketing tool . On the other hand we have Miles and Munilla (2004 ) who state that CSR helps the organisation to enhance its financial performance . Anisimova (2007) states that CSR publicising helps to create a positive association about the organisation in the minds of the consumer . Lai , Chiu , Yang and Pai (2010) state that CSR helps to build a positive corporate reputation and brand equity which creates a positive effect on the financial condition of the organisation On the basis of the information above we now have different findings and opinions from different authors on the relationship between CSR and brand image on consumer behaviour . So our aims and objectives for the research will be according to the data available on the existing theory .
  • 22. 3 - Conceptual Framework – In this section we will discuss about deciding about our overall research direction for this study. As per the information and data collected with regards to the relationship between CSR and brand image on consumer behaviour , we have got two different findings and viewpoints . According to Singh , Sanchez and Bosque (2008 ) , Ha-Brookshire and Norum (2011) , Berens , Riel and Rekom (2007 ) and Pomering and Johnson (2009) who are of the viewpoint that consumer behaviour is not affected towards an organisation that practices CSR . Consumers consider various other factors like price , quality , convenience and brand name of the product , rather than considering on the organisations CSR activities . CSR activities do not enhance the brand image of an organisation . Consumers are more sceptical towards organisations that publicise their CSR activities as they think that the organisation is doing this only to enhance their reputation and try to perceive itself as an organisation that is giving back to the community . Consumers are not interested in an organisations CSR activities as it does not affect their evaluation of the product when they are purchasing . On the other hand we have Miles and Munilla (2004) , Anisimova (2007) and Lai , Chiu , Yang and Pai (2010) where all of them are of the viewpoint that CSR has a positive impact on the brand image of an organisation which in turns has a positive effect on brand performance and consumer buying behaviour . As stated by Miles and Munilla (2004) consumers in US and Europe purchase products of organisations that practice CSR and are hesitant to purchase products from organisation that do not practice CSR . Organisations can improve their brand image and consumer behaviour by practicing and publicising their CSR activities (Anisimova ,2007) . This has been seconded by Lai , Chiu , Yang and Pai (2010) who state that CSR practicing improves the financial performance of an organisation . As the purpose of this research is to determine the impact of CSR activities on brand image of an organisation , we decide on our aim for the research – Investigating consumer reaction to CSR as a component of brand image : Primark in London . Consumer behaviour is tool that is used by organisations to measure its performance of its products . Consumers reward an organisation for being ethical and punish an organisation for being unethical (Creyer and Ross, 1997)
  • 23. cited in (Brink , Odkerken-Schroder and Pauwels , 2006) . Consumers in US and Europe purchase products on the basis of an organisations CSR activities. As this research is about finding the relationship between the CSR activities and brand image of an organisation on the consumer behaviour , we will first explore the attitude and opinions that consumer have towards organisations that follow CSR . Marketers use different marketing strategies like CRM and CBA to perceive their image as an ethical organisation that is giving back to the community . Consumers and US and Europe are hesitant to buy products from manufacturers that do not practice CSR or are accused of malpractices of CSR activities (Miles and Munilla , 2004) . Whereas when we consider the case of Primark , even though it was accused of unethical behaviour , consumers were still buying clothes from Primark and Primark was still making profit ( Liverpool Daily post , 2012 ) .So in order for us to proceed ahead with the research we will have to measure the attitude of consumer towards CSR . For this we will include a section in our survey questionnaire in which we will ask consumers about their opinions about CSR . This leads us to our first objective is – 1-To understand consumers attitude towards CSR . As we can come to the conclusion from the data collected in the literature review that consumers have a mixed reaction on the CSR activities of an organisation . At one end we have consumers who buy products from an organisation on the sole basis that it follows and practices CSR . Consumers are able to form positive associations towards an organisation that practices CSR . Consumers punish an organisation that does not follow CSR and rewards an organisation that follows CSR by purchasing the product . But in the case of Primark , it turns out to be different . Primark was accused of child labour practices in 2008 , because of which it was in the news and this incident supposedly tarnished the image of the brand as there were boycotts by consumers . But if we consider the financial performance of Primark, the company is financially performing well. Primark is a value based retailer in the UK . Primark has won many awards for supplying fashionable clothes at affordable prices (Primark(b), 2012) and was still getting awards even when the judgement on the child labour case of Primark was still pending . Therefore we will include a section in our survey questionnaire in which we will ask consumers about what they think about the brand Primark . So our second objective is –
  • 24. 2-To understand consumers relationship with the Primark brand . Now in order to support our aim of the research paper we will select our third objective on finding the relationship between CSR and brand image on consumer behaviour . As stated earlier in the literature review , there has been a difference of opinions by various authors . Few say there is no relation between CSR activities on brand image and few are of the viewpoint that consumer reward and punish organisations on the basis of their positive and negative CSR activities respectively. Given an example of Nike where in the image of Nike was tarnished because one of its contract manufacturing supplier in Vietnam was accused of physical and verbal abuse to labourers . Nike suffered severe losses and thus in order to gain back the positive image and regain the financial loss, Nike apologised on its websites (Sen et al , 2006 cited in Anisimova , 2007) . Whereas when we take the example or Primark , the company was still making profit even though it was accused of practicing child labour practices . Although Primark was not found to be guilty of practicing child labour , the question remains unanswered as to why Primark was making profit if the image of an organisation is tarnished due to unethical behaviour and consumers do not buy products from such organisations , in the case of Primark , the sales did not go down So we will include a section in our survey in which we will ask consumers whether their decisions and their opinion about Primark will change or not with respect to the CSR activities of Primark . So our third objective is – 3- To try and understand whether there is any relationship between CSR and brand image on consumer behaviour . Since our research is based on the existing theories and we will be adopting a positivist viewpoint for our research methodology , we will select our hypothesis based on the aims and objectives of the research paper . Taking into consideration that we are conducting this research on Primark (UK) , we will decide on our hypothesis based on the data we have collected with regards to Primark . As defined by Kerlinger (1986) cited in Kumar (2011 ) “ A hypothesis is a conjectural statement of the relationship between two or more variables “(p.82) . In our research the two variables are CSR and brand image . The
  • 25. importance of hypothesis is that it helps the researcher to specifically collect the data required for the research and thus helps in focussing on the specific research topic . In this research our hypothesis will help us to collect information related to the CSR and brand image phenomenon . Hypothesis also gives clarity to the research . Thus hypothesis is important as it brings clarity , specificity and focus on the research . Hypothesis can be described as an assumption , assertion , suspicion or an idea about a phenomenon relationship or situation , the actual truth or the reality of which we may not know or may not be aware . These assumptions , assertions or statements become the basis of inquiry for the researcher . In most research studies hypothesis are based on their own or other researcher’s observations ( Kumar, 2011 ) . As we will be conducting a research to find the relationship between CSR and brand image, our hypothesis will help us to focus on the subject area and also will act as a guide to direct the research in the correct path . As we can conclude on the basis of the data collected in the literature review , that even though Primark was accused of child labour practices in one of its manufacturing factories in India and there was a lot of media attention on the issue , there was a debate between loyal consumer and consumer who were against Primark’s involvement in child labour practices . It will be difficult to say whether all the consumers of Primark were aware of its involvement in child labour practices , but even after this incident on the Facebook fan following page of Primark, the number of customers that are loyal towards Primark are many times more than the ones who dislike Primark (Jones , Temperley and Lima , 2009 ). Primark was and is still one of the most profitable companies of ABF (Associated British Foods ) , Primark’s parent company . In fact the profit percentage of Primark has increased over the years (Liverpool Daily post ,2012) . We are of the view that CSR has very little or no impact on the brand image of an organisation and that it does not affect consumers attitude towards the brand and while making decisions during purchasing a product . So we decide on the following hypothesis for our research –
  • 26. The Hypothesis for our first objective is – a – Consumers are cynical about organisations that practice CSR . The hypothesis for our second objective is – b – Consumers think that Primark is concerned about making profit and not concerned about the health and welfare of its employees and workers . c – Consumers shop at Primark because of its affordability . The hypothesis for our third objective is - d – Consumers think that CSR activities of an organisation is not a relevant factor for purchasing . The selection of hypothesis will guide us in our study to collect the relevant data . The reason we have selected hypothesis is because we have the data that is existing theories in our literature review that supports our hypothesis . Since our research is based on the existing theory , it is by default an explanatory research . In order to achieve the aims and objectives for this research paper we will have a positivist philosophy . Because of this fact the most suitable way to generate knowledge would be to use a scientific positivistic position The details of the research methodology will be explained in the next section . 4 - Research methodology – 4.1 - Research philosophy – Since we are of the view that there no relation or minimal effect on the relationship between CSR and brand image on consumer behaviour , our research philosophy will be of positivism . We have selected our hypothesis based on the theory and the data in our literature review and we will test the hypothesis on the basis of the findings we will be able to prove our hypothesis are valid or invalid. Researchers have already proven that CSR has a positive influence on the way consumers perceive a brand ( Greening and Turban , 2000 ; Hillman and Keim, 2001 ; Sen and Bhattacharya , 2001) cited in (Berens ,
  • 27. Reil and Rekom , 2007). This means that CSR helps to improve the brand image of an organisation . Whereas Singh , Sanchez and Bosque (2008 ) state that CSR has no effect on brand image and has no effect on consumers perception as consumers are more interested in their personal needs and wants . In our research we are investigating whether CSR practices has an impact on the brand image of Primark . In order to facilitate replication , we will place more importance on a highly structured methodology and on quantifiable observations that will lead us to analyse the statistics (Gill and Johnson , 1997) cited in (Saunders , Lewis and Thornhill , 2003) . According to Fisher (2010 ) It is possible to achieve accurate and value free knowledge through the implementation of a positivist philosophy . A positivist may have a thinking that the study of human beings and their behaviour can have accurate results with regards to tangible things . But it is difficult to study the intangible things like behaviourism of human beings . A positivist has an intention to generate general laws which can be utilised to predict human behaviour with probability and not with absolute certainty . In our research we will be conducting survey and on the basis of the findings and analysis we will conclude on our hypothesis and thus this will help us to achieve the aims and objectives of this research . Therefore the methodology that is used to generate results in natural sciences can also be used to generate results for social sciences and the results can be termed as laws or empirical generalisation similar to the ones developed for natural sciences . Therefore a well-founded analysis and explanation of the social phenomena can be achieved on the basis of the data which can be tested and verified (Walliman, 2011) . This has also been agreed by Saunders , Lewis and Thornhill (2003) , who state that a researcher with a positivist philosophy will have a stance of a natural scientist and the findings and analysis of the end product of the research will be a law like generalisation similar to those generated by natural scientists . Since our research is based on the use of existing theories and we want to prove our hypothesis , in order to achieve our aim of the research the most suitable research approach will be a deductive approach .
  • 28. 4.2 - Research Approach – In this research we will be testing our hypothesis on the existing theories and the data collected . We are of the view that CSR has no effect on brand image and thus consumer behaviour is not affected by an organisations CSR activities . We will be conducting survey questionnaires and on the basis of the findings and analysis , we will be able to generate results which will then help us to know whether our hypothesis are valid or invalid . As stated by Adams , Khan , Raeside and White (2007) , a deductive approach is helpful in establishing universal laws . These laws are basically the hypothesis generated and these hypothesis are required to be tested against the predictions of the laws . The universal law remains so until one or more of the predictions generated are proved to be invalid and thus in that case the theoretical framework needs to be reconsidered . As stated by Bryman (2012) , “The purpose of theory is to generate hypothesis that can be tested and that will thereby allow explanations of laws to be assessed “ .Thus on the basis of the findings and analysis , we will come to know whether our hypothesis are proved to be valid or invalid . Therefore the deductive approach method operates from a general to more specific . In our literature review we have different arguments and counter arguments about the effects of CSR on brand image and its effects on consumer behaviour and in order to test our theory we have generated hypothesis , which will narrow our research and in the end the outcome generated will help us to conclude on our research . Thus in a deductive approach a general set of propositions which are related to the given phenomenon are narrowed down to a more specific set of hypothesis and these hypothesis are tested by the usage of application if the data in the theory may or may not confirm the arguments (Adams , Khan , Raeside and White , 2007) . As explained by Robson (1993) cited in Saunders , Lewis and Thornhill (2003) there are 5 progressive stages through which a deductive research will progress , which are deducing the hypothesis from the theory , conveying the hypothesis in operational terms which propose a relationship between two variables , testing the operational hypothesis , examining the precise output of the inquiry and if required modify the theory in the light of the discoveries . We have selected our hypothesis for testing on the basis of the theory in the literature review . Our two variables are CSR and brand image
  • 29. . The 5 sequential steps mentioned above will help us to progress through the research and we will modify our hypothesis after the findings and analysis on the basis of the data gathered . Since the basis of our research is on existing theories in the field of CSR and brand image , our research strategy is by default an explanatory research strategy . 4.3 - Explanatory Research Strategy - For the purpose of carrying on this research we have used the existing theories on the relationship between CSR and brand image which are the two variables that we will be researching about . In our literature review we have different sets of arguments by various authors who state that CSR may help to create a positive image in the minds of the consumers , but in the end consumers purchase decisions are based on their personal needs and wants , Whereas there are others who say that consumers reward an organisation that practices CSR by purchasing products from that organisation . The purpose of this research is to find out the casual relationship CSR has on brand image of an organisation . As defined by Saunders , Lewis and Thornhill (2003) research that helps to generate casual relationship between two variables can be called as an explanatory research . The importance is placed on studying a problem or a situation which in turn helps to explain the relationship between the two variables . Since our research is also based on studying the relationship between CSR and brand image and we are using the theories that already exist in this field , we can term our research strategy as an explanatory research strategy . Explanatory study is mostly associated with descriptive studies . According to Blumberg , Cooper and Schindler (2011) In comparison to exploratory studies , descriptive studies are more formalised and are structured with clearly stated hypothesis and investigative questions . Descriptive studies help to attain a variety of research objectives , which include description of a phenomena or characteristics associated with a subject , it also estimates the proportion of the population that has the specific characteristics and lastly helps to discover associations that exist between the different variables .
  • 30. 4.4 - Quantitative - Quantitative research is frequently referred to as hypothesis – testing research (Newman and Benz, 1998) . Quantitative data techniques are used to assist in processes that range from generating simple tables or diagrams that show the frequency of the event through establishing statistical associations amongst variables to complex statistical modelling . There are various tools available to analyse quantitative data . Some of the software’s used to analyse data are excel and Lotus 123 , to the more advanced management and statistical analysis software packages such as Minitab , SAS , SPSS for Windows and Starview (Saunders , Lewis , Thornhill , 2003 ) . For our research to analyse the data collected we will make use of SPSS software . We will be conducting a survey to measure consumers attitude on the two variables CSR and brand image . Based on the data collected from the survey , we will then process and analyse the data on SPSS software . Quantitative data are of two types categorical data and quantifiable data .” Data whose value cannot be measured numerically , but can be either divided into sets or categories according to the characteristics in which you may be concerned or placed in rank order is termed as Categorical data . Data whose value can be measured numerically as quantities is termed as quantifiable data .In quantifiable data each data value can be assigned a position on a numerical scale and hence , quantifiable data are more accurate .“ (Saunders , Lewis and Thornhill , 2003 , p.347) . For a quantitative research , a researcher will direct a considerable amount of the research activity towards measuring concepts with scales that either directly or indirectly provide numeric values . These numerical values are then used for testing hypothesis and for statistical computations ( Zikmund , Babin , Carr and Griffin , 2010) . As stated by Zikmund , Babin , Carr and Griffin ( 2010) a research which involves numerical measurement and analysis approach by the means of an empirical assessment and which is used to address a research objective can be termed as an quantitative research As also agreed by (Marczyk , DeMatteo and Festinger , 2010 ) Quantitative research involves studies that make use of statistical analysis to obtain their
  • 31. findings . Key features include formal and systematic measurement and the use of statistics . Since we will be analysing data numerically , our data collection technique will be of quantifiable data . Since we will be gathering quantifiable data the most suitable method to collect quantitative data will be through a survey based on a questionnaire . 4.5 - Survey – In order to collect the data required for our research we will be conducting a survey . In a survey method respondents may be asked a variety of questions that are related to their demographic and lifestyle characteristics , intentions , behaviour , attitudes , awareness and motivations (Malhotra , 2010). According to Zikmund , Babin , Carr and Griffin (2010)The purpose of a survey research is to gather primary data which is assembled specifically for the topic under investigation . Surveys are mostly conducted in order to describe what is happening or to learn the reasons for a specific organisational activity . Measuring consumer attitudes , identification of target markets and describing consumer purchase patterns are some of the objectives of a survey research . Since survey research method is mostly associated with descriptive research , the term survey method is mostly associated with quantitative findings . This is also agreed by Quinlan (2011) who states that survey methods are mostly used for conducting research that involves the collection of quantitative data . The data collection methods that are mostly used in a survey method are questionnaires and scales . For our research we will be measuring the attitudes of consumers , conducting our survey on a sample population in Inner London and we will be using a questionnaire to gather the data and measure the attitude of the consumer . On the basis of the explanation above , it is can be said that the survey method of data collection is appropriate for our research topic that is to try and find out whether there is any relationship between CSR and brand image and does it affect consumer behaviour . Survey research method involves the use of simple question formats which are standardised for all the respondents . online ,email , post telephone or in person are some of the ways in which surveys can be carried out (Quinlan , 2011) . For our research we will be carrying out a survey in person and collect the data on a
  • 32. questionnaire that will be given to the respondents . Survey research is situated within a framework of positivism, it is deductive and is mostly used primarily to generate quantitative data . Questionnaires and scales are the most suitable data collection tools for such type of research . As questionnaire and scales are useful for collecting specific information , they are designed to elicit short precise responses to concisely stated and precise questions (Quinlan , 2011). We will be using a Mall Intercept personal interview method . The advantage for us will be that we do not have to go to the respondents home and it is also very efficient . We will hand over the questionnaire to the respondents and they can then fill the questionnaire. (Malhotra , 2010) As we will conducting a survey , it will not be possible for us to conduct a survey on the whole population and for this reason we will be conducting a survey on a small sample of the population and we will making use of the Likert scale method to measure the attitude of the consumers . 4.5.1 - Likert Scale – To measure the data on a numerical scale , the most suitable method will be the Likert Scale method as we will be measuring the attitude of consumers . Rensis Likert developed the Liker scale . Likert scale method is widely used for the measurement of attitude . A Likert scale not only measures the direction of the attitude but it also measures the force of the attitude . Likert scale can be of three types ,three point scale , five point scale and seven point scale ( Quinlan , 2011) . For our research we will be using the five-point scale . Blumberg , Cooper and Schindler (2011)” In a Likert scale , the participant is asked to agree or disagree with a statement that expresses either a favourable or a non-favourable attitude towards the topic of interest . Each response is given a numerical score to reflect its degree of attitudinal favourableness and the scores may be totalled to measure the participants attitude “(p.362). 4.5.2 - Questionnaire - Our research questionnaire will contain four sections in which we ask them statements . The respondents will tick the answers which they think is appropriate on the Likert scale option given at the end of each question . The fifth section is the screening section wherein we ask the respondents about their first letter(s) of their postcode ,age , gender , income and ethnicity .
  • 33. Care has been taken while designing the format and structure of the questionnaire . We have used simple , clear and precise statements in the questionnaire . Potentially embarrassing questions like asking a respondent directly about how much they earn are avoided . Instead we have ranged the income brackets into 4 categories so that the respondents can select which range of income they belong to . The use of jargons in the survey might create confusion for the respondents that is why we have put our best efforts and jargons in questionnaire has been avoided . The length of the statements in the questionnaire and to the point so as to make it simpler for the respondents to understand the statement clearly (Quinlan, 2011) . The questionnaire used is in a coded format . As we are using the Likert scale method the answers are coded between 1-5 . Pre-coding the questionnaire will make it easier for the answers to be analysed as will be using statistical analysis to interpret the data collected (May, 2001 , p.103) . 4.6 - Sampling – For the purpose of this research we will be using the non-probability sampling . The reason we have chosen a non-probability sampling method is because we will be conducting a survey with only 150-170 respondents from the total population of Inner London , as it will be difficult for us to conduct the survey with the whole population of Inner London . As explained by Quinlan(2011) the sample is selected to represent the population , but they are not the representative of the population . The main objective of non- probability sampling is to emphasize on a small number of population from the total population and to comprehensively illustrate the phenomenon under investigation . There are various types of approaches in non-probability sampling techniques they are judgemental sampling , quota sampling , snowball sampling and convenience sampling . For our research we will be using the quota sampling technique . We will be using different criteria to select the respondents to conduct the survey . For our survey we have selected the population of Inner London . According to the report from ONS (2012) The population of London is 7, 825 , 000 which is divided into inner London – 3,083,000 and outer London – 4,742,000 by the
  • 34. mid year of 2010. The total population of 16 years and under in London was 19.6 per cent , the population of 65 years and over was 11.5 per cent and the population of 17-64 years was the remaining 68.9 per cent . According to a report in ONS (2012,b)“ The average population density of London was 5,000 people per sq. km in 2010. The most densely populated boroughs were Kensington and Chelsea with 14,000 people per sq. km and Islington with 13,100 people per sq. km” . The average pay scale rate for a Londoner is between £22614 – £39759 for females that account to 41 % of this income group and 59 % males earn from £26445 - £54170 (Payscale , 2012). We have included a section in our questionnaire which deals with the income of the respondent , which will help us to analyse the data and also help us to find which income group is more influential for our findings and analysis . Although we will focus more on consumers with low income as we are conducting a survey on a value for money retailer . The estimated population of Royal borough of Kensington and Chelsea (RBKC) in 2011 is 169,906 with 82431 males and 87476 females ( the RBKC , (b) ). Over 51 % of the population living in the RBKC are in the age group of 15-44 (RBKC , 2010(b)) . The estimated population for 2011 of the RBKC in the age group of 15-44 was 42713 males and 45723 for females (RBKC ,2010 (c)). The estimated population of Islington borough is 199,130 in 2010 with 101,9669 (51%) females and 97,162 (49%) males . The major population in in the age group of 15-34 with 73,800 residents and out of this there are 40,000 females and 33,800 males (Islington , 2010, (b) ) . As we can conclude that the most populated Boroughs in London are in Inner London we will conduct our survey which includes majority of percentage of population from parts of Inner London . So we will collect more data from NW 10 , SW 10 , SW1W , SW1X , SW3 , SW5 , Sw6 , SW7 , W10 , W11 , W12 , W14 , W2 W8 and W9 regions of post codes that are included in the Kensington and Chelsea Borough ( The Royal Borough of Kensington and Chelsea ,2010 (a) ) and for the Borough of Islington which includes the post codes which are : N1, N4, N5, N6, N7, N8, N16, N19, NW5,
  • 35. E8, WC1X, EC1A, EC1M, EC1R, EC1V, EC1Y, EC2A, EC2M, EC2Y ( Islington,2010,a) . On the basis of the data collected above we will target our majority of the respondents who are in the age group of 15-44 years that is young consumers. Young consumers tend to spend more on fashion clothing and a majority of the young consumers are not ready to change their purchase decisions with regards to clothing , even during recession and females tend to spend more on clothing as compared to males (Weeks , 2004) . There is a shift in the consumer behaviour in the UK due to the economic climate and consumers are buying cheap clothes . Due to drop in prices , consumers prefer to buy more clothes at less price from retailers like Primark , instead of buying high end brands (Ross and Harradine , 2010 ) . Since we are using the quota sampling technique , we can control some characteristics of the sample (Malhotra and Birks , 2007). The quota that we have developed on the basis of the information collected will be , 55 % females and 45 % males approximately in the age group of 16- 35 years and consumers with low income as Primark is a value for money retailer , so we would assume that people with low income group will buy more from Primark . So for us to obtain more accurate data with regards to spending on clothing we will have more female respondents in our survey . 4.7 - Data analysis – For the analysis of the data collected and for the results generated from the questionnaire we will be using descriptive analysis and correlation analysis method to analyse the data collected . 4.7.1 - Descriptive analysis- As we are using a quantitative method of collecting data , the best suitable method to analyse the data will be descriptive analysis . In order to understand and summarise the data we will use descriptive statistics which can be represented by either tabular form or graphically ( Adams , Khan , Raeside and White , 2007) . As stated by Reid (1995) ”descriptive statistics are simple statements which describe the shape of the data and present the information about one variable in readily understandable figures”(p.43). One of the
  • 36. methods to analyse data through descriptive analysis is through frequency distribution method . Obtaining a count of the number of responses associated with the different values of the variable is the main objective of a frequency distribution method . The values generated are then expressed in terms of percentage . Generating a table of frequency counts , percentages and cumulative percentage for the values associated with the variable are the main features of a frequency distribution table (Malhotra , 2010). There are various statistics associated with the frequency distribution . For the purpose of this research we will be using Measures of location , a statistic that defines the a location with the data collected . They are the Measures of central tendency as they describe the centre of the distribution ( Malhotra and Birks , 2007). We will also be explaining the frequency distribution graphically through a histogram . The variables that we have used in the research will be analysed through the use of the frequency distribution as they will help us to analyse and also help us to obtain the desired results necessary for the study . We will also analyse the basic associations within the different variables that is in our case we will try to find out the relationship between CSR and brand image through the implementation of correlation method . 4.7.2 - Correlation Analysis - In this research we will determining whether there is any relationship between the two variables CSR and brand image . For this reason we will using the Correlation method to examine the relationship between the two variables . According to Polonsky and Waller ( 2011) Correlation is the most common method used to measure associations . Correlations can help us determine whether there is a positive or negative relationship between two variables . As also stated by Walliman (2011) “Correlation is another word to describe the measure of association or relationships between two phenomena “(p.13). The use of correlation method for analysis will help us to determine whether there is a negative or positive relationship between CSR and brand image . One of the most important relationship a researcher would like to explore is the correlation between the two variables which are under investigation , as this will help to analyse the output . This will show the strength of the relationship between the two variables and also help the researcher to determine whether
  • 37. the variables are related (Horn, 2009) . We will be using SPSS software for measuring the correlation between CSR and brand image . 5 - Data Analysis and Findings - In this section we will discuss about the results that are obtained from the data and whether the hypothesis that were selected for the purpose of this study are relevant to help us in order to achieve the aim for the study . We will first discuss about the sample of the population that we selected for the purpose of this research is whether as per the requirements that we had selected for this research . In our survey, we collected data from 152 Londoners . The number of people specified for the research survey were selected by quota sampling method , as it was not possible for us to survey the whole population of London due to time and budget constraints . The average age of the respondents is from 20- 30 years and the average income of the respondents is from £7476- £19999 for 75 respondents (49%) and £20000 - £39999 for 51 respondents (33%). Out of the 152 respondents that we interviewed there are 83 females ( 54%) and 69 males ( 45%) . 31 respondents (20.4%) were from West London , 29 respondents (19.1%) were from North or North West London , 24 respondents (15.8%) were from East London , 31 respondents (20.4%) were from South East or South West London and 37 respondents (24.3 %) were from West Central or East Central London (Central London). Tables A , B , C , D and E below explain the details of the respondents on the basis of their age , income , gender , post codes and ethnicity respectively.
  • 38. Table A 5 - How old are you? Frequency Percent Valid Percent Cumulative Percent Valid 17 4 2.6 2.6 2.6 18 10 6.6 6.6 9.2 19 9 5.9 5.9 15.1 20 13 8.6 8.6 23.7 21 10 6.6 6.6 30.3 22 6 3.9 3.9 34.2 23 8 5.3 5.3 39.5 24 11 7.2 7.2 46.7 25 7 4.6 4.6 51.3 26 8 5.3 5.3 56.6 27 9 5.9 5.9 62.5 28 8 5.3 5.3 67.8 29 7 4.6 4.6 72.4 30 6 3.9 3.9 76.3 31 6 3.9 3.9 80.3 32 6 3.9 3.9 84.2 33 7 4.6 4.6 88.8 34 9 5.9 5.9 94.7 35 8 5.3 5.3 100.0 Total 152 100.0 100.0 Table B 5 - What is your annual gross income? Frequency Percent Valid Percent Cumulative Percent Valid Up to £7,475 11 7.2 7.2 7.2 £7,476 - £19,999 75 49.3 49.3 56.6 £20,000 - £39,999 51 33.6 33.6 90.1 More than £40,000 15 9.9 9.9 100.0 Total 152 100.0 100.0
  • 39. Table C 5- What is your gender ? Frequency Percent Valid Percent Cumulative Percent Valid Male 69 45.4 45.4 45.4 Female 83 54.6 54.6 100.0 Total 152 100.0 100.0 Table D 5 - What is(are) the first letter(s) of your postcode? Frequency Percent Valid Percent Cumulative Percent Valid W (West London) 31 20.4 20.4 20.4 N or NW (North London) 29 19.1 19.1 39.5 E (East London) 24 15.8 15.8 55.3 SE or SW (South London) 31 20.4 20.4 75.7 WC or EC (Central London) 37 24.3 24.3 100.0 Total 152 100.0 100.0 Table E 5 - What is your ethic group? Frequency Percent Valid Percent Cumulative Percent Valid White 61 40.1 40.1 40.1 Black 29 19.1 19.1 59.2 Asian 31 20.4 20.4 79.6 Other 31 20.4 20.4 100.0 Total 152 100.0 100.0 A further explanation about the details of the respondents is explained in the appendices . Appendix 1 - age , appendix 2- Income , appendix 3 –gender , appendix 4 – post code and appendix 5 – ethnic group .
  • 40. The respondents that we interviewed for the research did fit into the criteria we had selected for the research sample . For our Questionnaire used for survey , please refer to appendix – 6 . Now we will discuss about the hypothesis selected for the study and also verify whether our hypothesis are valid or invalid on the basis of the results that we have collected from the data . 5.1 - Hypothesis A – Consumers are cynical about organisations that practice CSR . In our survey questionnaire we asked the respondents about an organisations CSR activities . When asked to comment on the statement “Organisations engage in CSR because they are bound by law” a total of 136 respondents (89.5%) are of the viewpoint that organisations indeed practise CSR because they are bound by law and 44.1% out of them ‘Strongly agree’ with the statement. Table F 1 - Organisations engage in CSR because they are bound by law Frequency Percent Valid Percent Cumulative Percent Valid Strongly Agree 60 39.5 39.5 39.5 Agree 76 50.0 50.0 89.5 Neither Agree, Nor Disagree 10 6.6 6.6 96.1 Disagree 5 3.3 3.3 99.3 Strongly Disagree 1 .7 .7 100.0 Total 152 100.0 100.0 Consumers seem to believe that organisations do not observe CSR practices willingly, but they are perhaps forced to abide by CSR principles by the government. According to Balmer, Fukukawa and Gray (2007) there was a meeting between executives of Shell , Tesco , BAA , Vodafone and Standard Chartered with the UK Prime Minister in order to stress on lower carbon emission from UK factories as it was beneficial for the climatic conditions. The
  • 41. group was formed to educate all the rest of the organisations about the climate conditions, which may indicate not all organisations are concerned with CSR and would not necessarily act on their own. The findings generated by Balmer, Fukukawa and Gray (2007) help us to confirm that consumers are aware of an organisations intentions for CSR claims. According to a report from BIS (2009), the UK government has implemented rules and regulations and encourages the organisations to follow the government’s strategy for CSR . The aim of the UK government to create a policy framework which benefits the health and safety of the community , less negative impact on the environment and increase employment . Organisations like Business in the Community (BITC) and Volunteering England are some of the organisations established by the UK government to implement CSR activities with corporate organisations .
  • 42. Therefore, we can confirm from the data we have in our literature review that consumers are aware that organisations practise CSR probably because they are bound by existing laws and policies. According to the data in Table G (“Wages paid to workers in third world contract manufacturing factories by Western organisations are adequate”), 92 respondents (60.5%) are in disagreement that organisations pay adequate wages to the third world labourers, whereas 46 respondents (30.3%) are of the view that organisation do pay adequate wages to workers in their contract manufacturing factories. Table G 1 - Wages paid to workers in third world contract manufacturing factories by Western organisations are adequate Frequency Percent Valid Percent Cumulative Percent Valid Strongly Agree 2 1.3 1.3 1.3 Agree 44 28.9 28.9 30.3 Neither Agree, Nor Disagree 14 9.2 9.2 39.5 Disagree 57 37.5 37.5 77.0 Strongly Disagree 35 23.0 23.0 100.0 Total 152 100.0 100.0 This shows that there is mixed opinion of consumers towards the wages that are being paid to the workers of western organisations in the third world contract manufacturing factories. According to a report from the BBC (2008), organisation like Primark sell Tee-shirt for£5.00 and these clothes are manufactured in third world contract manufacturing factories, which can be assumed that if clothes are sold at such cheaper rates , then the organisation is saving money on other factors which may include paying less wages to the workers in third world countries . The reason there is shift in production of clothes manufacturing from UK to third world manufacturing factories is because of the wages in UK are high , £6.08 per hour in 2011 (Direct Gov , 2012) so saving labour cost on production is an important factor that influenced the shift in production of clothes manufacturing to third world countries.
  • 43. For instance, Nike used to pay wages way below the minimum wages rates in contract manufacturing factories in countries like Indonesia , China and Vietnam , until there were protests to increase them (eHow, 2012). However , the mean of 3.52 for this question is determined by a rather bipolar distribution of values (standard deviation of 1.17), which eventually does not make it possible to say more that there is a tendency to disagree with this statement. The results in Table H indicate that there is a major difference in the opinion of the consumers with respect to the ETI.
  • 44. Table H 1 - The Ethical Trading Initiative (ETI) ensures protection for third world labourers Frequency Percent Valid Percent Cumulative Percent Valid Strongly Agree 25 16.4 16.8 16.8 Agree 60 39.5 40.3 57.0 Neither Agree, Nor Disagree 16 10.5 10.7 67.8 Disagree 39 25.7 26.2 94.0 Strongly Disagree 9 5.9 6.0 100.0 Total 149 98.0 100.0 Missing Did not answer 3 2.0 Total 152 100.0 Out of the total 149 respondents that answered this question (3 missing values were recorded), 85 respondents (55.9%) think that ETI is successful in protecting the rights of the workers in the third world countries, whereas 48 respondents (31.6%) think the opposite. 16 respondents (10.5%) do not have a specific opinion (‘Neither Agree, Nor Disagree’): that might indicate that they are not aware of ETI’s activities.
  • 45. The mean is 2.64 and the standard deviation is 1.208 , which on a Likert scale of 1-5 is a very big difference. If ETI had been successful in protecting the rights of the workers and labourers in third world countries then there would have not been any incidents in contract manufacturing factories of Nike in Vietnam (Sen et al., 2006 cited in Anisimova, 2007). What we might assume here is that either consumers are not aware of ETI, or they do not care about the rights of the workers in the third world countries. Table I 1 - Organisations invest enough money in countries where they manufacture their products Frequency Percent Valid Percent Cumulative Percent Valid Strongly Agree 7 4.6 4.6 4.6 Agree 42 27.6 27.6 32.2 Neither Agree, Nor Disagree 14 9.2 9.2 41.4 Disagree 63 41.4 41.4 82.9 Strongly Disagree 26 17.1 17.1 100.0 Total 152 100.0 100.0 The result we have got from the survey on this statement is bipolar(Table I). Hence for this statement we will not be able to confirm the validity of our statement with respect to the answers given by the respondents.
  • 46. The mean answer of respondents for this statements is 3.39, which is close to the centre of the Likert scale where respondents ‘Neither Agree, Nor Disagree’ with the statement. This can be interpreted as a neutral response wherein consumers are sceptical whether organisations are investing the required amount of financial resources in third world countries where they manufacture their products .In our literature review we have discussed about the investment Primark has made for the betterment of the community of the workers in third world countries (Primark ethical trading) . On the other hand Nike , is an organisation that did not care about the health and safety of the workers in its contract manufacturing factories (Sen et al ,2006) cited in Anisimova ,2007) . However even Primark was accused of child labour in one of its contract manufacturing factories in India (Jones , Temperley and Lima , 2009) , but was proved innocent after rigorous investigation . Thus we can say that there are some organisation that invest in the third world countries where they manufacture their products and some organisations like Primark that do invest in countries in which they manufacture .
  • 47. Since we have a bipolar response for this statement , we will not confirm the statement to be of more help to strengthen the research objective. Key findings - From the results generated in Table F , G , H and I , we can interpret the following results : Consumers think that organisations practice CSR not because they want to do for the community, but because they are forced by law (Table F). Consumers are sceptical about western organisation paying adequate wages to workers in third world manufacturing factories (Table G) . There is a mixed opinion about ETI in the minds of the consumers (Table H) . The mean value of 3.39 , which does not help us to conclude on the statement as the results generated are bipolar (Table I) . On the basis of the four statements generated above we can conclude that our hypothesis A to be valid as consumers are cynical about the intentions of the organisations that practice CSR . The result that is generated from this section is consistence with the secondary data we have in the literature review . In our literature review we discussed about the findings derived by Pomering and Johnson (2009) who state that Consumers are aware that organisation s CSR claims are only a marketing strategy to promote itself as a socially responsible and to create a positive image in the minds of the consumers . Therefore there is consistency in the opinion of the consumers regarding an organisations CSR claims . 5.2 - Hypothesis B Consumers think that Primark is concerned about making profit and not about the health and welfare of its employees and workers . CSR Primark
  • 48. In this section of our questionnaire , we asked the respondents about the association that the respondents may have with regards to Primark’s CSR activities . When asked to comment on the statement, “ Primark is a socially responsible organisation “ , 56.6% of the total respondents agree that Primark is a socially responsible and out of the 56.6 % with 12.5 % strongly agree with the statement . 31.6% do not consider Primark to be a socially responsible organisation with 9.2 % strongly disagree and 11.85 of the respondents neither agree or disagree with the statement . Table J 2 - Primark is a socially responsible organisation Frequency Percent Valid Percent Cumulative Percent Valid Strongly Agree 19 12.5 12.5 12.5 Agree 67 44.1 44.1 56.6 Neither Agree, Nor Disagree 18 11.8 11.8 68.4 Disagree 34 22.4 22.4 90.8 Strongly Disagree 14 9.2 9.2 100.0 Total 152 100.0 100.0 As stated on the company website of Primark , there are various CSR activities that Primark is practicing in order to improve the health and living conditions of the workers in its contract manufacturing factories in countries like India , China and Bangladesh ( Primark Ethical Trading , a , b )
  • 49. Taking into consideration the mean value , which is 2.72 and the standard deviation of 1.209 for the response to the statement above , we interpret that consumers think that Primark is a socially responsible organisation , but again due to the mean value of 1.209 , on a Likert scale a fair chunk of consumers may also tend to be on the disagreement side and the final result may be bipolar . When asked to comment on the statement , “Primark’s Code of Conduct is helping improve conditions in the countries where they manufacture their products “ the results generated were quite similar to the results of the first statement . The mean value was 2.69 with a standard deviation of 1.203 , which we may interpret as consumers are of the opinion that Primark’s policies are helping improve the conditions in the third world countries where it manufactures . However on a Likert scale a standard deviation of 1.203 is very high as it will divide the results of the respondents into two groups with few respondents who are on the agreement side and few who neither agree nor disagree with the statement (Refer to appendix – 7) .
  • 50. When we asked consumers to comment on the statement “Primark is a member of the Ethical Trading Initiative (ETI) because it is concerned for the welfare and well-being of its workers and employees “ , the results that arrived from the questionnaire were not completely different from the first statement “Primark is a socially responsible organisation “ . 92 respondents out of the total 152 respondents who answered this statement agree that Primark is not concerned with health and welfare of its workers and employee. 36 respondents out of the total 92 who disagree with the statement , strongly disagree about Primark CSR intentions . Whereas 46 respondents are of the opinion that Primark is genuinely concerned with the health and welfare of its workers and employees (Table K ). Table K 2 - Primark is a member of the Ethical Trading Initiative (ETI) because it is concerned for the welfare and well-being of its workers and employees Frequency Percent Valid Percent Cumulative Percent Valid Strongly Agree 14 9.2 9.2 9.2 Agree 34 22.4 22.4 31.6 Neither Agree, Nor Disagree 12 7.9 7.9 39.5 Disagree 56 36.8 36.8 76.3 Strongly Disagree 36 23.7 23.7 100.0 Total 152 100.0 100.0 The mean value is 3.43 , with a standard deviation of 1.316 which is very high . There is a very narrow margin between the agreement and disagreement on the statement that Primark is a member of ETI because it is concerned with the health and welfare of the employees or because it wants to enhance its image as a socially responsible organisation .
  • 51. As we concluded that consumers are aware that organisations practice CSR because they are forced by the government in our statement in section 1 ‘ Organisations engage in CSR because they are bound by law ‘ . There is similar findings about Primark as on organisation that practices CSR only because it is bound by UK government polices to engage in CSR activities . We would again like to mention the findings of Balmer , Fukukawa and Gray (2007 ) who have given an example of a group formed by a few UK companies to educate the rest of the organisations about the change they can make to help improve the climatic conditions . According to Yu (2008) , organisations that practice CSR are perceived to be socially responsible and the thus practising CSR can help the organisations benefit financially and also improve the reputation of the organisation and also helps to strengthen customer relationships . As we have also stated in our literature review that organisation use CBA (Cause – Brand Alliance) (Lafferty , 2007) cited in (Bigne , Curras-Perez and Aldas-Manzano , 2012)and CRM (Cause- Related Marketing) (Varadarajan and Menon , 1988) cited in (Bigne , Curras-Perez and Aldas-Manzano , 2012) strategies to help improve the image and reputation in the minds of the consumers . Primark is also an organisation that wants to make profit , this can be seen with the report in Liverpool Daily post (2012) , which states that Primark has made the
  • 52. highest profit among all the subsidiaries of ABF . However because we have a bipolar result on this statement we will not confirm the findings strong enough to support our hypothesis . When asked to comment on the statement “Primark invests in the communities (Bangladesh, China and India) in which it manufacture its products “, we got results that were again similar to statement 1 . The mean value was 2.62 with a standard deviation of 1.196 , which can be interpreted as Primark does invest into the countries in which it manufactures , but again , when calculated on the Likert scale will give us a bipolar result with few consumers agree and few neither agree nor disagree (Refer to appendix – 8). Key findings – From the results derived from section 2 , we can confirm the following statements - Consumers think that Primark is a socially responsible organisation . Consumers think that Primark’s Code of Conduct is helping improve the conditions of the countries in which it manufactures . Consumers are sceptical whether Primark is a member of ETI because it is genuinely concerned for the welfare and benefits of the employees or only to enhance its image . Consumers are of the opinion that Primark does invest in communities in which it manufactures . From the statements above we may interpret that consumers have a positive image of Primark as a socially responsible organisation , but at the same time consumers are sceptical about Primark’s stance on CSR is to help the community or to promote its image as a socially responsible organisation . Therefore , we will not confirm that our Hypothesis B to be valid or invalid , as the result we found is not completely supporting our hypothesis , even though the mean value for statement 1 ,2 and 4 is 2.72 , 2.69 and 2.62 respectively , which tends to be more on the agreement side , however all the three statement above have a standard deviation of above 1 , when calculated on the Likert scale makes the results bipolar , but the data collected from the
  • 53. survey does help us for our research as we can conclude that majority of the consumers think Primark is practicing CSR and is a socially responsible organisation . As we have also stated in our literature review that organisations use CBA (Cause – Brand Alliance) (Lafferty , 2007) cited in (Bigne , Curras-Perez and Aldas-Manzano , 2012)and CRM (Cause- Related Marketing) (Varadarajan and Menon , 1988) cited in (Bigne , Curras-Perez and Aldas-Manzano , 2012) strategies to help improve the image and reputation in the minds of the consumers . Primark is also an organisation that wants to make profit , this can be seen with the report in Liverpool Daily post (2012) , which states that Primark has made the highest profit among all the subsidiaries of ABF. However , according to our findings we can conclude that consumers are sceptical about Primark’s stance on CSR as the opinions in statements are contrasting when calculated on the Likert scale . 5.3 - Hypothesis C Consumers shop at Primark because of its affordability . For the purpose of testing our hypothesis C , we selected 4 questions in our Section 3 which deals with statements about consumers attitude towards low cost fashion clothes from Primark . Section 3 The data in the Table L shows that out of 152 respondents , 111 respondents (73%) strongly agree and 41 respondents ( 27%) agree with the statement “Primark is a source of affordable (value-for-money) clothing “ . Table L 3 - Primark is a source of affordable (value-for-money) clothing Frequency Percent Valid Percent Cumulative Percent Valid Strongly Agree 111 73.0 73.0 73.0 Agree 41 27.0 27.0 100.0 Total 152 100.0 100.0
  • 54. The mean value of 1.27 and a standard deviation of 0.445 also clearly states that the respondents are of the view that Primark sells fashion clothes at low prices (Refer to Appendix - 9 ). This is also supported by a report from Mintel Oxygen (2007) cited in Ross and Harradine (2010) that states Primark as the largest value based retailer in the UK . According to the data in Table M (“ Primark makes excessive profit “ ) , out of the total 152 respondents who answered this statement , 29.6 % strongly agree and 36.8 % agree that Primark makes excessive profit . 8.6 % of the respondents neither agreed nor disagreed with the statement , whereas 13.8 % disagreed and 11.2 % strongly disagreed with the statement . This can also be confirmed by the report in the Liverpool Daily Post (2012) which stated that Primark contributed 16 % of the total profits of the Associated British Foods company (Owner of Primark) . As stated on the company website of Primark , that the company does not spend on advertising , buys in bulk and it buys from countries India , China and Bangladesh where labour wages are low (Primark, c) . Thus it may be possible that this may be a cost saving strategy of Primark , which in turn helps to increase its profit Table M 3 - Primark makes excessive profits Frequency Percent Valid Percent Cumulative Percent Valid Strongly Agree 45 29.6 29.6 29.6 Agree 56 36.8 36.8 66.4 Neither Agree, Nor Disagree 13 8.6 8.6 75.0 Disagree 21 13.8 13.8 88.8 Strongly Disagree 17 11.2 11.2 100.0 Total 152 100.0 100.0