International Journal of World Research, Vol: I Issue XIII, January 2014, Print ISSN: X

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1 CONSUMER'S AWARENESS LEVEL TOWARDS CAUSE RELATED MARKETING (CRM) PRODUCTS *R.Sudha, Research Scholar (Full Time), Department of Commerce, Hindusthan Arts and Science College, Coimbatore. **Dr.D.Elangovan, Associate Professor of Commerce, Hindusthan Arts and Science College, Coimbatore ABSTRACT India is a fast growing economy and is booming with national and multinational firms. At the same time, the Indian land also faces social challenges like poverty, population growth, corruption, illiteracy just to name a few.companies have become increasingly active in developing relationships between their brands and popular causes in such areas as the environment (e.g. nature conservancy), health issues and under privileged Children s education etc., Objectives of the study,to examine the consumer awareness of Cause related marketing (CRM) in selected FMCG products.methodology of the study, The study has used primary data as well as secondary data. A secondary data of literature of the Cause Related Marketing (CRM) was first undertaken in order to prepare background note. Primary data were collected through interview schedule Method. Cause Related Marketing (CRM) products for the study was selected from five FMGC (Fast Moving Consumer Goods) company products namely ITC Ltd, Hindustan Unilever Limited, Procter & Gamble, Colgate Pamolive India Ltd and Tata Global Beverages Ltd. Period of the study refers to July 2013 to December 2013 Keywords: Awareness, Chi-square test,fmcg., etc., India is a fast growing economy and is booming with national and multinational firms. At the same time, the Indian land also faces social challenges like poverty, population growth, corruption, illiteracy just to name a few. Therefore it is all the more imperative for the Indian companies to be sensitized to Corporate 1 P a g e

2 Social Responsibility (CSR) in the right perspective in order to facilitate and create an enabling environment for equitable partnership between the civil society and business. Competitive market conditions and strong consumer support have stimulated the growth of cause related-marketing as a business strategy. A study in the United Kingdom found that 86 percent of consumers have a more positive image of a company if that company is actively involved in improving the community (Business in the Community 1999) 7. In the United States a benchmark survey on cause-related marketing found 84 percent of consumers expressing a similar sentiment, with 64 percent suggesting that cause-related marketing should be a standard component of a company s activities (Cone Communications 1994) 8. A study conducted by Barone et al. (2000) found that some consumers might even be willing to pay a higher price to support a company perceived as being socially responsible. In Australia, 83 percent of consumers agreed that companies should involve themselves with cause-related marketing (Cavill and Company 1997) 9. In this study, the researcher has focused on the present consumer s perception and preference towards cause related marketing. THE SUCCESS OF A CAUSE-RELATED MARKETING (CRM) IN INDIA: The success of a cause-related marketing effort in India had prodded Procter & Gamble to expand the concept to seven countries in the Asean region, China and Australia. 'Shiksha is a very good example of cause-related marketing. Sakthi Masala 10 had won the award for its relentless efforts in uplifting the disabled by offering employment opportunities and establishing a 100 per cent charitable rehabilitation centre for the needy. The HLL 11 announced a contribution of fifty paisa to a diarrhea project on sale of each of its LIFEBUOY brand soap. It helped to improve market share for lifebuoy In India Whisper a brand in the sanitary nappies market where the materialistic difference is minimal announced a contribution of Re 1 on every pack of its sales for blind relief society. It helped to improve market share for Whisper The HLL announced a Rs. 5/- contribution to SOS children s village, a social service organization working for educating every little heart by inserting coupons in its Brook bond TajMahal tea powder packs. The customer has to tell the coupon number to the company through a toll free telephone number. Consumers who buyaashirvad (ITC Ltdproducts) (atta, spices and salt) were made aware that from its sale, a worthy contribution was being made to the water conservation efforts of the nation. Every purchase of Classmate notebooks, ITC contributes Re.1 to its rural development initiative that supports, among other projects, primary education in villages. HLL s Fair & Lovely Foundation offers the Project Saraswati scholarships for graduate and postgraduate studies which are granted to deserving young women who have the aptitude, drive and ambition to achieve their goals, but are financially constrained. Companies have become increasingly active in developing relationships between their brands and popular causes in such areas as the environment (e.g. nature conservancy), health issues and under privileged Children s education etc. As such alliances become a more important strategic component of the 2 P a g e

3 brand's marketing mix; managers seek direction as to how to generate the most impact with these tie-ins. Some other examples for cause marketing and Companies Corporate social responsibility are as follows: OBJECTIVES OF THE STUDY 1. To examine the consumer awareness of Cause related marketing (CRM) in selected FMCG products. 2. To offer suggestions on the basis of the result of the study. CONCEPTS AND DEFINITIONS: CONSUMER An individual who buys products or services for personal use and not for manufacture or resale. A consumer is someone who can make the decision whether or not to purchase an item at the store, and someone who can be influenced by marketing and advertisements. Any time someone goes to a store and purchases a toy, shirt, beverage, or anything else, they are making that decision as a consumer. 13 CONSUMER PERCEPTION Consumer perception is defined as the process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world. Perception has strategy implications for marketers because consumer make decisions based on what they perceive rather than on the basis of objective reality. It is described as "how we see the world around us." Two individuals may be exposed to the same stimuli under the same apparent conditions, but how each person recognizes, selects, organizes, and interprets these stimuli is a highly individual process based on each person's own needs, values, and expectations. CONSUMER PREFERENCE Consumer preferences are defined as the subjective (individual) tastes, as measured by utility, of various bundles of goods. They permit the consumer to rank these bundles of goods according to the levels of utility they give the consumer. Note that preferences are independent of income and prices. Ability to purchase goods does not determine a consumer s likes or dislikes. One can have a preference for Porsches over Fords but only have the financial means to drive a Ford. CONSUMER SATISFACTION Customer satisfaction has been widely debated as organizations/institutions increasingly attempt to measure it. Customer satisfaction can be experienced in a variety of situations and connected to both products and services. It is a highly personal assessment that is greatly affected by customer expectations. Satisfaction also is based on the customer s experience of both contacts with the organization and personal outcomes. A customer may be satisfied with a product or service, an experience, a purchase decision, a salesperson, store, service provider, or an attribute or any of these. Customer satisfaction is greatly influenced by individual expectations. CORPORATE SOCIAL RESPONSIBILITY Corporate Social Responsibility (CSR) as the contribution of both business resources and practices towards the betterment of the general community. Many causes throughout the world look to the corporate sector for assistance because of the financial power they are believed to wield (Adkins, 2000). CAUSE 3 P a g e

4 A cause is generally associated with a nonprofit organization that exists to provide a social service as opposed to a profit-making venture. The organization is governed by an independent group of people and any surpluses are reinvested in the activities associated with the cause (Abdy and Barclay 2001). CAUSE RELATED MARKETING Cause related marketing can be understood as a strategic positioning and marketing tool which links a company or a brand to a relevant social cause or issue for mutual benefit. It is the initiation and funding of deserving causes. Cause related marketing is a strategic marketing activity a way for a company to do well by doing good-distinct from sales promotion, corporate philanthropy, corporate sponsorship, corporate Samaritan acts and public relations, though it is often an amalgam of such activities. Nothing builds brand loyalty among today's increasingly hard to please consumers like a company s proven commitment to a worthy cause. Other things being equal many consumers would do business with a company that stands for something beyond profits. In nutshell, cause related marketing results in increased sales, visibility, and consumer loyalty and enhanced company image along with positive media coverage. FAST MOVING CONSUMER GOODS (FMCG) Products which have a quick turnover and relatively low cost are known as Fast Moving Consumer Goods (FMCG). FMCG products are those that get replace frequently within a year. The Indian FMCG industry began to shape during the last fifty odd years. The FMCG sector is a cornets one of the Indian economy. This sector touches every aspect of human life. Indian FMCG markets have been divided for a long time between the organized sector and unorganized sector. RESEARCH METHODOLOGY The study has used primary data as well as secondary data. A secondary data of literature of the Cause Related Marketing (CRM) was first undertaken in order to prepare background note. Primary data were collected through interview schedule Method. Interview schedules have been prepared in a simple manner to facilitate the CRM product customers to respond without any difficulty. Interview schedule have been pretested and validated.the population of this study is the consumers who consume selected Cause Related Marketing (CRM) products or cause brands in the city of Coimbatore in India. A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting items from the sample. Since the population size is infinite, sample size for the study was taken as 750 respondents.stratified Random Sampling Method was employed to select the sample respondents. Coimbatore city comprises of five major parts viz., East, West, North, South and central. Respondents were chosen from these five parts in the city. As the population frame could not be defined properly, a sample size of 750 was considered as reasonable. Hence selecting 150 respondents from each part, totally 750 consumers were selected randomly from five parts of Coimbatore city.cause Related Marketing (CRM) products for the study was selected from five FMGC (Fast Moving Consumer Goods) company products namely ITC Ltd, Hindustan Unilever Limited, Procter & Gamble, Colgate Pamolive India Ltd and Tata Global Beverages Ltd. Period of the study refers to July 2013 to December The primary data have been collected from the potential respondents from different areas and has been properly sorted, classified, edited, tabulated in a proper format and analyzed by deploying appropriate statistical tools. Descriptive statistics and Chi-square etc.,statistical tools are used. LIMITATIONS OF THE STUDY Following are the limitations, which made constraints while conducting this study. First, the samples are drawn from a particular area. The results are reliable to that place only. Second, the results of the analysis made in the study depend fully on the information given by the respondents. Third, the study has been 4 P a g e

5 confined to Coimbatore city only and last one, for convenience and want of time only 750 respondents are taken for the study. CHI-SQUARE TEST S. NO. TABLE 1 PERIOD OF AWARENESS TOWARDS HINDUSTHAN UNILEVER CAUSE RELATED MARKETING PRODUCTS (TWO-WAY TABLE) PARCULARS 1 Zone 1 2 Zone 2 3 Zone 3 4 Zone 4 5 Zone 5 PERIOD OF AWARENESS OF HINDUSTHAN UNILIVER CRM PRODUCTS (YEARS) % 28.7% 14.0% 6.0% 19.3% 100% % 17.3% 10.0% 5.3% 14.0% 100% % 7.3% 5.3% 10.0% 24.0% 100% % 15.3% 10.0% 14.0% 25.3% 100% % 10.0% 7.3% 4.7% 14.7% 100% % 15.7% 9.3% 8.0% 19.5% 100% No of respondents 750 Calculated Chi square value Df 16 Asymp. Sig..000 From the above table says that the highest percentages of the respondents are aware of HUL CRM products for the period of less than one year i.e. In Zonal -1(32.0 percent), In Zonal - 2 (53.3 percent), In Zonal - 3 (53.3 percent), In Zonal - 4 (35.5 percent), In Zonal - 3 (63.3 percent), and the same has been lowest for the period of three to four years in zonal-1 (9.0 percent), zonal-2 (8.0percent), and zonal -5 (7.0 percent) and the same for the period of two to three years in the case of zonal 3 (8.0 percent), and 4 (15.0 percent). It is concluded that the overall awareness about Hindusthan Unilever CRM products high (47.5 percent) in less than one year and awareness level was very low (8.0 percent) in three to four years. It has been clear from the Chi-Square Table that the P-value (.000) has been less than 0.05 and the result has significant at 1 percent level. Hence, the null hypothesis (H 0 ) has rejected and the alternative hypothesis (H 1 ) has accepted. 5 P a g e

6 TABLE 2 PERIOD OF AWARENESS TOWARDS COLGATE CAUSE RELATED MARKETING PRODUCTS (TWO-WAY TABLE) S. NO. PARCULARS PERIOD OF AWARENESS OF COLGATE CRM PRODUCTS (YEARS) Zone 1 2 Zone 2 3 Zone 3 4 Zone 4 5 Zone % 25.3% 14.7% 4.7% 24.7% 100% % 17.3% 15.3% 6.7% 17.3% 100% % 11.3% 14.0% 10.0% 16.0% 100% % 14.0% 6.7% 23.3% 20.7% 100% % 15.3% 10.7% 9.3% 14.7% 100% % 16.7% 12.3% 10.8% 18.7% 100% No of respondents 750 Calculated Chi square value Df 16 Asymp. Sig..000 From the above table says that the highest percentages of the respondents are aware of Colgate CRM products for the period of less than one year i.e. In Zonal -1(30.6 percent), In Zonal - 2 (43.3 percent), In Zonal - 3 (48.7 percent), In Zonal - 4 (35.3 percent), In Zonal - 3 (50.0 percent), and the same has been lowest for the period of three to four years in zonal-1 (4.7 percent), zonal-2 (6.7 percent), zonal-3 (10.0 percent), zonal -5 (9.3 percent) and the same for the period of two to three years in the case of zonal- 4 (6.7 percent). It is concluded that the overall awareness about Colgate CRM products high (41.6 percent) in less than one year and awareness level was very low (10.8 percent) in three to four years. It has been clear from the Chi-Square Table that the P-value (.000) has been less than 0.05 and the result has significant at 1 percent level. Hence, the null hypothesis (H 0 ) has rejected and the alternative hypothesis (H 1 ) has accepted. 6 P a g e

7 TABLE 3 PERIOD OF AWARENESS TOWARDS ITC LTDCAUSE RELATED MARKETING PRODUCTS (TWO-WAY TABLE) S. NO. PARCULARS PERIOD OF AWARENESS OF ITC LTD CRM PRODUCTS (YEARS) Zone 1 2 Zone 2 3 Zone 3 4 Zone 4 5 Zone % 23.3% 10.0% 5.3% 24.7% 100% % 14.0% 11.3% 14.0% 20.0% 100% % 15.3% 15.3% 20.0% 14.7% 100% % 14.7% 6.0% 26.7% 15.3% 100% % 14.0% 6.7% 10.0% 4.7% 100% % 16.2% 9.9% 15.2% 15.9% 100% No of respondents 750 Calculated Chi square value Df 16 Asymp. Sig..000 From the above table says that the highest percentages of the respondents are aware of ITC CRM products for the period of less than one year i.e. In Zonal -1(36.7 percent), In Zonal - 2 (40.7 percent), In Zonal - 3 (34.7 percent), In Zonal - 4 (37.3 percent), In Zonal - 3 (64.7 percent), and the same has been lowest for the period of two to three years in the case of zonal-2 (11.3 percent), and zonal- 4 (6.0 percent), for the period of three to four years in zonal-1 (5.3 percent), and the same for the period of more than four years in the case of zonal- 3 (14.7percent), and zonal- 5 (4.7 percent). It is concluded that the overall awareness about ITC Ltd CRM products high (42.8 percent) in less than one year and awareness level was very low (9.9 percent) in two to three years. It has been clear from the Chi-Square Table that the P-value (.000) has been less than 0.05 and the result has significant at 1 percent level. Hence, the null hypothesis (H 0 ) has rejected and the alternative hypothesis (H 1 ) has accepted. 7 P a g e

8 TABLE 4 PERIOD OF AWARENESS TOWARDS PROCTER & GAMBLE (P&G) CAUSE RELATED MARKETING PRODUCTS (TWO-WAY TABLE) S. NO. PARCULARS PERIOD OF AWARENESS OF HINDUSTHAN UNILIVER CRM PRODUCTS (YEARS) Zone 1 2 Zone 2 3 Zone 3 4 Zone 4 5 Zone % 28.7% 14.7% 4.7% 15.3% 100% % 6.7% 19.3% 14.7% 10.0% 100% % 8.0% 14.0% 7.3% 17.3% 100% % 24.7% 15.3% 5.3% 19.3% 100% % 9.3% 6.0% 5.3% 9.3% 100% % 15.5% 13.9% 7.4% 14.3% 100% No of respondents 750 Calculated Chi square value Df 16 Asymp. Sig. From the above table says that the highest percentages of the respondents are aware of P&G CRM products for the period of less than one year i.e. In Zonal -1(36.7 percent), In Zonal - 2 (49.3 percent), In Zonal - 3 (53.3 percent), In Zonal - 4 (35.3 percent), In Zonal - 3 (70.0 percent), and the same has been lowest for the period of three to four years in zonal-1 (4.7 percent), zonal-3 (7.3 percent), zonal- 4 (5.3 percent) and zonal -5 (5.3 percent) and the same for the period of one to two years in the case of zonal -2 (6.7 percent). It is concluded that the overall awareness about Procter & Gamble CRM products high (48.9 percent) in less than one year and awareness level was very low (7.4 percent) in three to four years. It has been clear from the Chi-Square Table that the P-value (.000) has been less than 0.05 and the result has significant at 1 percent level. Hence, the null hypothesis (H 0 ) has rejected and the alternative hypothesis (H 1 ) has accepted P a g e

9 TABLE 5 PERIOD OF AWARENESS TOWARDS TATA TEA CAUSE RELATED MARKETING PRODUCTS (TWO-WAY TABLE) S. NO. PARCULARS PERIOD OF AWARENESS OF TATA TEA CRM PRODUCTS (YEARS) Zone 1 2 Zone 2 3 Zone 3 4 Zone 4 5 Zone % 19.3% 4.7% 11.3% 14.7% 100% % 9.3% 18.7% 4.7% 14.0% 100% % 10.0% 4.7% 14.0% 19.3% 100% % 20.0% 14.7% 7.3% 12.7% 100% % 4.7% 5.3% 5.3% 6.0% 100% % 12.7% 9.6% 7.7% 13.3% 100% No of respondents 750 Calculated Chi square value Df 16 Asymp. Sig. From the above table says that the highest percentages of the respondents are aware of ITC CRM products for the period of less than one year i.e. In Zonal -1(54.0 percent), In Zonal - 2 (53.3 percent), In Zonal - 3 (52.0 percent), In Zonal - 4 (45.3 percent), In Zonal - 3 (78.7 percent), and the same has been lowest for the period of two to three years in the case of zonal-1 (4.7 percent), and zonal- 3 (4.7 percent), for the period of three to four years in zonal-2 (4.7percent), zonal-4 (7.3 percent) and the same for the period of one to two years in the case of and zonal- 5 (4.7 percent). It is concluded that the overall awareness about ITC Ltd CRM products high (56.7 percent) in less than one year and awareness level was very low (7.7 percent) in three to four years. It has been clear from the Chi-Square Table that the P-value (.000) has been less than 0.05 and the result has significant at 1 percent level. Hence, the null hypothesis (H 0 ) has rejected and the alternative hypothesis (H 1 ) has accepted P a g e

10 CONCLUSION This study has attempted to provide an understanding of consumer perceptions regarding CRM and its main programmes in India. Further research should therefore consider the following points. This research interviewed only consumers in the coimbatore area (Tamilnadu, India). Future research could expand the data collection to other towns/cities in India in order to carry out a comparative study. This research investigated the perceptions of FMCG products consumers regarding CRM. Further research could be carried out with consumers who consuming other CRM products and services. Future research could be done with a primary focus on the Consumer Association to investigate how it evaluates CRM programmes and how the Consumer Association influences the average consumer. Further research can be carried out to explore the perspective of non-profits regarding the impact CRM has on the organization. Concluding the results of this research, which are in line with the literature, it s evident that cause related marketing is one of phenomenal tool of marketing practice, which has significance effect on sales of the companies. The potential consumers got positive effect on their purchase intention. Consequently rise in brand loyalty make consumer to purchase bulk quantities, re-purchase and they also help in creating positive words of mouth about brand and company that eventually increases sales of corporate sector. REFERENCES 1. Subrahmanyan, Saroja, (2004). Effects of price premium and product type on the choice of cause-related brands: a Singapore perspective Journal of Product & Brand Management, Vol. 13 Issue 2, Pp Endacott, Roy William John, (2004). Consumers and CRM: a national and global perspective, Journal of Consumer Marketing, Vol. 21 Issue 3, Pp Gourville, John T.; Rangan, V. Kasturi, (2004). Valuing thecause Marketing Relationship California Management Review, Vol. 47 Issue 1, Pp Carter, Ben, (2004). Charity begins at Vodafone Marketing ( ), Pp Vaidyanathan, Rajiv; Aggarwal, Praveen, (2005). Using commitment to drive consistency: Enhancing the effectiveness of CRM communications, Journal of Marketing Communications, Vol.11, Issue 4, Pp Grau,stacyLandreth; Folse, Judith Anne Garretson, (2007). Cause-related marketing, Journal of Advertising Vol. 36 Issue 4, Pp P a g e