FACTORS RELATED TO INFLUENCING FOR CHOOSING CAUSE RELATED MARKETING (CRM) PRODUCTS FACTOR ANALYSIS

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1 FACTORS RELATED TO INFLUENCING FOR CHOOSING CAUSE RELATED MARKETING (CRM) PRODUCTS FACTOR ANALYSIS *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 are increasingly finding the marketing communications to be a challenging task. Marketers have discovered that the Technology is making our world smaller, Consumers have easier and more access to information, Consumers are communicating to each other more than ever before Consumers are more empowered and have more choices than ever before. Objectives of the study,to find out the factor influencing for choosing Cause related marketing (CRM) in selected FMCG products. Methodology of the study, Primary data as well as secondary data was used this study, Stratified random sampling method was used this study. 750 respondents was used this study. Findings of the study,from the above factor matrix it is found that coefficients for factor-i have high absolute correlations with variable X6(CRM Campaign),X5 (Brand familiarity), X12 (Cause- Corporate- Brand fit ) and X9 (Contribution level to cause) that is,.713,.648,.647 and.639respectively. Conclude this study,those associated with Eradicating Poverty came in second in order of preference, followed by those linked with health and hygiene. Despite these results, the researchers noticed that individual connection with a cause might have considerably influenced consumer perception, attitudes and behaviour in relation to a specific cause. Keywords: Factor analysis, cause related marketing, FMCG etc., Page 57

2 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 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. Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. Cause-related marketing is an emerging area within the marketing discipline, originating in the United States in the 1980s. Since the last few decades, companies are under mounting pressure to take responsibility for the effects of their corporate conduct on society, especially when these effects go beyond the firm's direct commercial interests (Mohr. L.A., Webb, D.J., and Harris K. E., 2001) 1. As a result, an increasing number of companies, small and big alike have developed corporate social responsibility (CSR) programs. As a type of CSR, cause-related marketing (CRM) has received particular corporate interest. This is due to the fact that especially CRM might have positive effects on consumer behavior (Sen and Bhattacharya, 2001) 2. Cause related marketing has become increasingly popular, academic few researchers have begun to examine how consumers respond to it. How consumers think and feel about cause-related marketing is explored by survey method. CSR and CRM Initiatives of Companies in India S.No. Area Organization Initiative 1 Health Care Lifebuoy Svastha ache hai campaign 2. Education Tata Tea Jagoo India Foundation Sensidize community P & G ShikshaCompaign 3. Community Surf Excel Daag ache hai campaign development 4. Environment ITC, HLL Aircel PepsiCo McDonalds HLL, ITC and P & G % of sales to Social Cause In collaboration with UNIFEM Save our Tigers Campaign Drop of joy Waste management Environment initiative 5. Women Empowerment ITC Amul E-Choupal Economic inclusion 6. Traffic related activity Honda CL Car Ltd HP Nature rights with Honda Fuel conservation. Source: (C. Praseeda and Reetu Sharma, 2012) 12. IIM Journal Statement of the problem Companies are increasingly finding the marketing communications to be a challenging task. Marketers have discovered that the Technology is making our world smaller, Consumers have easier and more access to information, Consumers are communicating to each other more than ever before Consumers are more empowered and have more choices than ever before. Yet it is becoming harder for the marketer to reach the target consumer. The proliferation of media channels have resulted both in audience fragmentation and information overload that even a consumer looking for a product may not find it. Faced Page 58

3 with declining rates of preferred media consumption by the target audience, marketers have now found that aligning themselves with a cause has enabled them to break through the clutter and differentiate themselves in the eyes of the consumer. They are now investing in cause branding to align their organization with a cause that is relevant to customers. OBJECTIVES OF THE STUDY 1. To find out the factor influencing for choosing Cause related marketing (CRM) in selected FMCG products. 2. To offer suggestions on the basis of the result of the study. METHODOLOGY OF THE STUDY 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. 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 Factor analysis was used this study.. 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 confined to Coimbatore city only and last one, for convenience and want of time only 750 respondents are taken for the study. DIMENSIONALITY OF THE MULTI-SCALE ITEMS (FACTOR ANALYSIS) Factor Analysis is a set of technique which by analyzing correlations between variables reduces their numbers into fewer factors which explain much of the original data, more economically. Even though a subjective interpretation can result from a factor analysis output, the procedure often provides an insight into relevant psychographic variables, and results in economic use of data collection efforts. The subjective element of factor analysis is reduced by splitting the sample randomly into two and extracting factors separately from both parts. If similar factors result, the analysis is assumed as reliable or stable. Page 59

4 TABLE -1 KMO AND BARTLETT S TEST FOR FACTORS RELATED TO INFLUENCING FOR CHOOSING CRM PRODUCTS Kaiser-Meyer-Olkin Measure of Sampling Adequacy.681 Bartlett s Test of Sphericity: Approx. Chi-Square Sig From the above table, two tests namely, Kaiser-Meyer-Olkin Measure of Sampling Adequacy (KMO) and Bartlett s Test of Sphericity have been applied to test whether the relationship among the variables has been significant or not. The Kaiser-Meyer-Olkin Measure of sampling adequacy shows the value of test statistics is 0.681, which means the factor analysis for the selected variable is found to be appropriate or good to the data. Bartlett s test of sphericity is used to test whether the data are statistically significant or not with the value of test statistics and the associated significance level. It shows that there exists a high relationship among variables. Table 2 EIGEN VALUES AND PROPORTION OF TOTAL VARIANCE OF EACH UNDERLYING FACTORS RELATED TO INFLUENCING FOR CHOOSING CRM PRODUCTS component Total Initial Eigen values % of Variance Cumulative % Extraction Sums of Squared Loadings Total % of Variance Cumulative % Rotation Sums of Squared loadings Total % of Variance Cumulative % Extraction Method: Principal Component Analysis The results of the factor analysis presented in the table 2 regarding factors related to influencing for choosing CRM products, have revealed that there are nineteen factors that had Eigen value exceeding one. Among those four factors, the first factor accounted for percent of the variance, the second percent, the third factor percent, and last factor per cent of the variance in the data set. The first four factors are the final factors solution and they all together represent percent of the total variance in the scale items measuring the factors related to influencing for choosing CRM products. Hence from the above results, it is certain that are factors related to level of satisfaction about various products 3. TABLE ---3 COMMUNALITIES FOR FACTORS RELATED TO INFLUENCING FOR CHOOSING CRM PRODUCTS Page 60

5 S.NO. ITEMS Initial Extraction(h 2 ) X1 Price of the product X2 Quality of the product X3 Nature of Cause X4 Availability of the product X5 Brand familiarity X6 CRM Campaign X7 Previous experience X8 Package of the product X9 Contribution level to cause X10 Attractive sales offers X11 Sales promotional activities X12 Cause- Corporate- Brand fit The above table (Communalities) represents the application of the Factor Extraction Process, it was performed by Principal Component Analysis to identify the number of factors to be extracted from the data and by specifying the most commonly used Varimax rotation method 4. In the principal component analysis, total variance in the data is considered. The proportion of the variance is explained by the fourteen factors in each variable. The proportion of variance is explained by the common factors called communalities of the variance. Principal Component Analysis works on initial assumption that all the variance is common. Therefore, before extraction the communalities are all Then the most common approach for determining the number of factors to retain 5 i.e., examining Eigen values was done. TABLE- 4 ROTATED COMPONENT MATRIX FOR FACTORS RELATED TO INFLUENCING FOR CHOOSING CRM PRODUCTS Variable code Component I II III IV X X X X X Page 61

6 X X X X X X X Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. Rotation converged in 12 iterations. Table 4 represents the Rotated Component Matrix, which is an important output of principal component analysis. The coefficients are the factor loadings which represents the correlation between the factors and the twelve (X 1 to X 12 ). From the above factor matrix it is found that coefficients for factor-i have high absolute correlations with variable X6(CRM Campaign),X5 (Brand familiarity), X12 (Cause- Corporate- Brand fit ) and X9 (Contribution level to cause) that is,.713,.648,.647 and.639 respectively. Similarly factor-ii has high absolute correlation with variable X 1 (Price of the product), X 2 (Quality of the product), X 3 (Nature of Cause), and X 4 (Availability of the product) that is,.741,.643,.613 and.532 respectively. Next, factor III has high absolute correlation with variable X 11 (Sales promotional activities)and X 10 (Attractive sales offers) that is,.793 and.703 respectively. Factor-IV has high absolute correlation with variable X 7 (Previous experience), and X 8 (Package of the product ) that is,.840 and.589 respectively. For example in this study, factor one is at least somewhat correlated with twelve variable out of the twelve variables with absolute value of factor loading greater than or equal to 0.5. In such a complex matrix it is difficult to interpret the factor. So proceed to compute the rotated factor matrix. TABLE 5 Component Transformation Matrix Component The above table reveals the factor correlation matrix. If the factors are uncorrelated among themselves, then in the factor correlation matrix, the diagonal elements will be 1 s and off diagonal elements will be 0 s. Since matrix was rotated with Varimax, barring some variables all other variables are found to have, even if not zero correlations but fairly low correlation. Page 62

7 Component Plot in Rotated Space 1.0 Q3.1.1 Q3.1.3 Component Q3.1.2 Q3.1.8 Q3.1.4 Q Q Q Q3.1.7 Q3.1.9 Q Q Component Component 3 HART -1 CONCLUSION Thus the twelve variables in the data were reduced to four Component factor and each factor may identified with the corresponding variables as follows: Page 63

8 TABLE -6 SHOWING THE FACTORS IDENTIFIED THE FACTORS RELATED TO INFLUENCING FOR CHOOSING CRM PRODUCTS X6 CRM Campaign % X5 Brand familiarity 41.99% X12 Cause- Corporate- Brand fit 41.86% X9 Contribution level to cause 40.83% X1 Price of the product 54.91% X2 Quality of the product 41.34% X3 Nature of Cause 37.58% X4 Availability of the product 28.30% X11 Sales promotional activities 62.88% X10 Attractive sales offers 49.42% X7 Previous experience 70.56% X8 Package of the product 34.69% Factor I Factor II Factor III Factor IV SUGGESTIONS Non-profits should conduct extensive research on the corporation that it is planning to have as a partner. Preference should be given to corporations with similar objectives, whereas corporations with bad reputations should be avoided.non-profits should communicate through newsletters or websites to inform donors and clients of the CRM programs in which they are taking part and what benefits they will receive from the partnership.cause-related marketing campaigns represent good initiatives for cooperation between profit and nonprofit organizations, and that consumers acknowledge their efforts. Quality of the product and price, among other elements of a certain campaign, positively influence consumers intention to buy, so partners in the cause-related marketing programs should take this into account when deciding on what cause to support. CONCLUSION This study found that consumers have a better perception of firms that work with charities and good causes. However, they are aware that corporations themselves benefit from this partnership. They also consider that the partnership between corporations and charities contributes to society, and believe this contribution could be higher, categorizing it currently as having a merely medium impact.the respondents view working with a corporations as beneficial to non-profit organisations. They agree this is a good way for charities and good causes to receive financial assistance from corporations, and that such partnerships increase publicity and awareness for the charity and good cause. Regarding charities, consumers put a priority on supporting good causes related to Children Education. Those associated with Eradicating Poverty came in second in order of preference, followed by those linked with health and hygiene. Despite these results, the researchers noticed that individual connection with a cause might have considerably influenced consumer perception, attitudes and behaviour in relation to a specific cause. Page 64

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