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MODELING AND TESTING THE EFFECTS OF CAUSE RELATED MARKETING, CORPORATE REPUTATION, AND BRAND IMAGE ON BUYER ATTITUDE AND PURCHASE INTENTION SABRINA OKTORIO Simposium Riset Ekonomi II Surabaya, 23-24 November 2005

2497977 Makalah Dr Sabrina Oktoria Sihombing M Bus

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MODELING AND TESTING

THE EFFECTS OF CAUSE RELATED

MARKETING, CORPORATE REPUTATION, AND BRAND IMAGE ON BUYER ATTITUDE

AND PURCHASE INTENTION

SABRINA OKTORIO

Simposium Riset Ekonomi II Surabaya, 23-24 November 2005

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Modeling and Testing the Effects of Cause Related Marketing, Corporate Reputation, and Brand Image on Buyer Attitude and Purchase Intention

ABSTRACT

This research developed a model to analyze the effects of cause related marketing (CRM), corporate reputation, and brand image on buyer attitude and purchase intention. The research shows that the CRM can have positive influences on corporate reputation and brand image. However, CRM does not effect on buyer attitude. Implications for both theoretical as well as managerial are presented.

Key Words: CRM, Corporate reputation, Brand image, Attitude, Intention

Introduction Corporate social responsibility (CSR) has become a significant phenomenon in today’s business condition. The phenomena is emerged from several key factors such globalization, consumer movement, investors, and communities (van den Berghe, Baeten, & Somers, 2005; Hirschhorn, 2004; Raynard & Forstater, 2002; Assael, 1998). Those key factors require that corporate should concern not only to their shareholder, but also to stakeholders, such as employees and society (Ruggie, 2005). Moreover, CSR has become a standard for corporate in running their business (Cronin, 2001). There are many ways in which companies can apply CSR. For instance, CSR can be applying in the context of marketing. Specifically, companies can link with a charity for the benefit of itself as well as addressing social issues. This activity is known as cause related marketing (CRM) (Adkins, 1999). This research was inspired by a cause related marketing program, that is, Lifebuoy Sharing Health. The program was a purchase-triggered donation, that is, a purchase of Lifebuoy soap from July to August 2004 resulted in a donation to help building better sanitation in several parts of Indonesia. Thus, there are two main objectives of this research: (1) to understand LHS program as an implementation of CSR activity, and (2) to model and test the effects of cause related marketing, corporate reputation, and brand image on buyer attitude and purchase intention. The model developed should contribute to understanding consumer behavior. This paper is organized into five sections: justifications of the research, a review of the relevant literature and hypotheses, the research method, the discussion of the results, and conclusions of the research. Justifications of the Research This research can be justified on these two grounds as follows: (1) the importance of cause related marketing to solve social problems, and (2) potential outcomes for marketers and corporate.

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The importance of cause related marketing to solve social problems. The increased attention of CSR has influenced corporate to involve in the environment in which they operate. Thus there is a change in the application of the marketing concept. The marketing concept then include more than just the profit goals of marketing program but also the awareness of social needs. That is, social problems can be coped with marketing program (Maignan & Ferrell, 2004; Adkins, 1999; Lazer & Kelley, 1973). The corporate concern on social issues has increased the practice of CRM. In other words, corporate concern on their communities, whilst at the same time promoting their products and brands, based on mutual benefit relationships (Adkins, 1999). For example, American Express card campaigned ‘Share Our Strength’ in 1993 to 1996. The company donated 3 cents per card purchase and other transactions to reduce hunger. Another example is Coca-Cola, which donated 15 cents to Mothers Against Drunk Driving for every case of Coca-Cola bought during a 6-week promotion in more than 400 Walt-Mart stores in 1997. Similarly, Persil, a great Britain’s leading laundry detergent created an on-pack promotion to fight poverty and injustice in 2001 (onPhylanthropy.com, 2005: Adkins, 1999). In short, CRM activities can solve social problems. Potential outcomes for marketers and corporate. CRM is a commercial activity by which corporate and charities form a partnership for mutual benefit (Suter, 1995; Adkins, 1999). Furthermore, CRM is a strategic not tactical (Pringle & Thompson, 1999). The implementation of CRM give benefits for corporate such as positive corporate reputation, brand image, and positive consumer attitude toward brands (Skory & Repka, 2004; Adkins, 1999). However, marketers’ responses to CRM appear to have neglected to understand consumer attitudes (Endacott, 2004). Moreover, limited empirical works has been conducted to examine CRM and its effects on buyer decision-making (Suter, 1995; Maignan & Ferrel, 2004), especially in Indonesia. On the other hand, information about consumers is a powerful tool in any business (Kardes, 1999). Therefore, this research aims to testing the influences of CRM on several factors (i.e., corporate reputation, brand image, buyer attitude, and purchase intention) in Indonesia. The result of this study may contribute to the increase of CRM practices in Indonesia. Literature Review & Hypotheses Corporate Social Responsibility Corporate Social Responsibility (CSR) is defined as defined as companies’ responsibility to range of stakeholder groups that include: customers, employees, suppliers, shareholders, the political arena, the broader community, and the environment (Adkins, 1999). The CSR concept can be considered as a company’s willingness to not just fulfill stakeholder obligations but to do more (Commission 2001, cited by Cronin 2001). In other words, CSR also can be considered as “putting something back into the community” (Worthington, Ram, & Jones, 2003). The awareness of social responsibility has been recognized in marketing context. In particular, Kotler and Levy (1969) and Lazer and Kelley (1973) pointed out social roles in marketing concept. Thus, the field of social marketing has emerged and has focused in

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the contribution of marketing activities to the society and environment (Lazer & Kelley, 1973). In communicating social marketing, cause related marketing (CRM) can be a visible activity to demonstrate corporate social responsibility whilst at the same time building the business (Adkins, 1999). Moreover, Adkins (1999) pointed out that CRM is an effective marketing tool in addressing social issues. In short, the CRM concept can be applied to maximize marketing contribution to its society. Cause Related Marketing CRM is a marketing activity (Vadarajan & Menon, 1988). It is defined as the process of formulating and implementing marketing activities that are ‘a commercial activity by which business with a product, service or image to market builds a relationship with a cause or a number of causes for mutual benefit’ (Adkins, 1999, p.11). Furthermore, the CRM is the ‘win-win-win’ scenario, which is, the charity or cause and business win and where the benefits go to consumer and other stakeholder (Pracejus, Olsen, & Brown, 2005; Adkins, 1999; Suter, 1995). In other words, mutual benefit is the bases of the partnership. It is the main objective of CRM. CRM is the alignment of corporate social responsibility and business practices (Suter, 1995). It is a form of demonstrating the organization’s corporate social responsibility. In other words, CRM can bring the words and vision of the corporate to life; to demonstrate the values through action, ‘to walk the talk’ and to ensure that all internal audiences and partners buy into and feel part of that vision, believe it and believe in it (Adkins, 1999, p.32). CRM can be applied in several forms such as advertising, sponsorship, public relations, direct marketing, and sales promotion (Adkins, 1999; Suter, 1995). However, CRM is often applied in the form of sales promotion, that is, donations to causes is triggered by purchase (Adkins, 1999). For example, PT Unilever Indonesia launched a program called ‘Lifebuoy Sharing Health’ which the company donated Rp 10,- from every purchase of Lifebuoy in July – Augustus 2004. The donation was planned to hygiene education and build health sanitation. Corporate Reputation Corporate reputation is defined as a stakeholder’s overall evaluation of a company overtime (Gotsi & Wilson, 2001). It is formed by the company’s various publics on the basis of information and experience (Caruana, 1997). The role of corporate reputation has been emphasized in marketing and consumer behavior research. More specifically, corporate reputation is a crucial factor in consumer decision-making (Endacott, 2004; Einwiller, 2001). For company’s perspectives, a company with a good reputation owns a valuable asset (Caruana, 1997). Furthermore, a good reputation provides a competitive advantage (Burke & Logsdon, 1996, cited by Husted, 2001). CRM activities are an effective way of enhancing corporate reputation, differentiating products and increasing both sales and loyalty (Cadbury, 1996, cited by Pringle & Thompson, 1999). Several research summarized by Endacott (2004) suggests that consumers are influenced their buying decision by CRM activities. In other words,

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consumers have favorable opinions and more likely to buy a product from companies that support good cause. Furthermore, companies that act in socially responsible ways have positive reputation and also their products and services. Thus, it is hypothesized that: H1 : The CRM activity will be positively related to the consumer perception of corporate

reputation. Brand Image Research on brand has continued to be an important topic for both researchers and managers (for example, Del Rio, Vazquez & Iglesias 2001; Low & Lamb 2000; Keller 1993). For managers, a brand is a valuable business asset that can be used as a core component of a company’s strategy (del Rio, Vazquez & Iglesias 2001; Calderon, Cervera & Molla, 1997; Urde, 1994). It is also a critical factor to the success of the companies in the competitive market (Urde, 1994). In addition, a company image can be built by brands because brands advertise the quality and the size of the company (Kotler 2000). For researchers, a relationship between brands and customers has advanced the researchers in order to understand whether, why and in what form consumers buy brands (Webster, 2000). The understanding of brand image has become important themes for marketing and consumer behavior domains. Brand image is defined as the perception about a brand in the consumer memory (Keller, 1993). It is the consumers’ perceptions of the brand’s tangible and intangible associations (Engel, Blakwell & Miniard, 1993) and it is a main physical features and appearance (Ataman & Wengin, 2003). CRM has the potential to have direct impact on brand image. CRM can enhance brand image of products or services (Adkins, 1999). Furthermore, a research conducted by BITC (cited by Adkins, 1999) pointed out that CRM activities had a highly positive impact on consumer perceptions of a product or service. Thus, it is hypothesized that: H2: The CRM activity will be positively related to brand image. Consumer Behavior The understanding of consumer behavior is a main key to company marketing program (Assael, 1998). In specific, the awareness and understanding of consumer behavior contribute to the success of the companies’ product and services. In marketing, brand image and corporate reputation stimulate purchase by simplifying decision rules (Andreassen, 1994). Specifically, brand image influences consumer attitude. Furthermore, individual with little or no experience on specific brand may base their attitude on corporate reputation. Thus, reputation and brand image as important factors in influencing consumer attitude (Cretu & Brodie, 2005; Andreassen, 1994). Based on discussion on CRM, corporate reputation, and brand image, it is hypothesized that: H3: The CRM activity will be positively related to buyer attitude towards buying the

product. H4: Corporate reputation will be positively related to buyer attitude towards buying the

product.

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H5 : Brand image will be positively related to buyer attitude. According to theory of reasoned action (TRA; Fishbein & Ajzen, 1975; Ajzen & Fishbein, 1980), person’s purchase intention is determined by person attitude. Attitude is overall evaluation persons have toward objects, events, or people. Thus, it is hypothesized that: H6 : Buyer attitude will be positively related to buyer purchase intention. Figure 1. Proposed Main Research Model

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H1 H4 H3 H6 H2 H5

Cause-Related Marketing

Purchase Intention

Corporate Reputation

Brand Image

Attitude

Research Method Method. This research was a triangulation study, that is, the research used qualitative and quantitative data (Olsen, 2004). The use of multiple data resulted in a richer description (Olsen, 2004). Furthermore, triangulation is as convergent validity (Bryman, 2003; Olsen, 2004). Qualitative method, involving one-on-one depth interviews with brand manager and brand personnel of PT. Unilever Indonesia, were conducted to better understand on LHS program. Research Instrument. The process of questionnaire design as outlined in: (1) buyer perception of cause related marketing program, (2) buyer perception of corporate reputation, (3) brand image, (4) attitude toward buying the brand, and (5) intention toward buying the brand. Cause related marketing, corporate reputation, and brand image were viewed from the perspective of the consumer (Einwiller, 2001; Caruana, 1997). Specifically, exploratory research was initiated to identify the attributes that determine cause related marketing, corporate reputation, and brand image. The exploratory research sought to develop a set of items about cause related marketing, corporate reputation, and brand image. Then, most items were subject a survey in order to develop an instrument as recommended by Churchill (1979). Data Collection. This research applied purposive sampling, that is, respondents of this research should ever buy Lifebuoy soap in the last of 6 months of the research. A total of 216 students participated. This survey used a student sample for three reasons. The first reason is the convenience in recruiting the subjects. The second reason was that university students are an appropriate sample for this research. The third reason was that

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using one group such as a student group decreases the possibility of sample heterogeneity (Kerlinger & Lee, 2000; Calder, Phillips, & Tybout, 1981). The sample size played role in the data analysis technique of structural equation modeling. A sample size of 200 and above but not exceeding 500 as suggested by Hair et al. (1995) was applied in this research. Cause Related Marketing. In this study, the CRM concept is measured by buyer perceptions to a specific marketing program (i.e., Lifebuoy Sharing Health). More specifically, respondents were asked about their perceptions on seven statements. For instance, their perceptions toward the benefits of CRM to the society and the poor, the impact of the activity toward the growth of people solidarity, and the impact of the activity on environment quality. Brand Image. This research applied the definition of brand image as suggested by Timmerman (2001) that brand image should: (1) as representative of the brand understudy and present in the respondent’s memory, and (2) relevant to the brand. Based on this definition, the researcher. Respondents were asked about their perceptions on five statements, for example: the fragrance of the product, the soap for health, and the price of the product. Company Reputation. As with brand image, this research applied a customized measure of corporate reputation (Caruana, 1997). Specifically, this research applied exploratory research to identify the attributes that determine corporate reputation (i. e., PT. Unilever Indonesia, Tbk), such as the company concern toward the social problems and environment. Attitude. The attitude toward buying the brand was assessed as a function of behavioral beliefs and outcome evaluations. A measure of attitude toward buying the brand was then computed by multiplying together each pairs of belief and evaluation.

Intention. Purchase intentions were measured with two items. The first item was worded as follows: “I will buy that shoe”. The second item was as follows: “I intend to buy that shoe”. Pretesting. The purpose of the pre-testing was to refine the questionnaire before using it in the actual survey (Malhotra, 2002). Respondents were asked to indicate their degree of agreement or disagreement on a five-point Likert scale that ranged from 1 (strongly disagree) to 5 (strongly agree). Items that exhibited corrected item-total correlations below 0.3 were eliminated (Azwar, 1999). Then, item-total statistics were again computed to achieve value greater than 0.3. The questionnaire was also assessed in terms of reliability and validity. The cut-off point 0.7 (Hair et al., 1995; Bagozzi, Davis & Warshaw, 1992) was applied as the cut-off point for coefficient alpha and composite reliability. The threshold value for average variance extracted (AVE) should achieved value greater than 0.5 (Hair et al., 1995). Regarding with validity of measures, this research applied factor analysis as a powerful and indispensable method of construct

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validation (Kerlinger & Lee, 2000, p. 679). The VARIMAX rotation was applied because this method gives the best results concerning the distinction of the extracted factors (Hair et al., 1995). Data Analysis. To test research hypotheses, structural equation modeling (SEM) analysis was applied in this research. This method was used because SEM has ability to assess the relationships comprehensively (Hair, Anderson, Tatham, & Black, 1995). Maximum likelihood (ML) was applied as an appropriate estimation method in this research. The major reason was the method is robust to violation of the normality assumption (Tabachnick & Fidell, 1996; Hoyle & Panther, 1995). However, on non-normal data, χ2 and standard error cannot be trusted (Bagozzi & Baumgartner, 1994). Therefore, the ML estimation applied in this research used χ2 adjusted which termed as CMIN/DF (Steenkamp & Van Trijp, 1991; Bentler & Chou, 1987). The research model shown in Figure 1 represents the structural model being examined. The model showed the relationships among theoretical constructs. The test of measurement model intends to verify the reliability coefficients of the measures and the convergent and discriminant validity of the measures. This research used several indices to evaluate the measurement model, that is, the individual item reliability, latent variable composite reliability, the average variance extracted (AVE), discriminant validity, and convergent validity. Competing Model. A competing model represents the comparison of models in order to determine the best-fitting model from a set of models (Hair et al., 1995). Furthermore, Hair et al (1995, p.667) pointed out that the importance of competing models for all structural equation models to assure the researcher that the proposed model is the “best” model available. The proposed model is as shown in Figure 1. Three competing models were developed for testing. The first competing model suggests that CRM is not only as predictor of buyer attitude but also as a predictor of purchase intention (Figure 2). The second competing model suggests that brand image is added as a predictor of purchase intention (Figure 3). Finally, the third competing model that shows that corporate reputation is a predictor of purchase intention (Figure 4). Figure 2. Competing Model 1 (compmod1)

Cause-Related Marketing

Attitude

Brand Image

Corporate Reputation

Purchase Intention

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Figure 3. Competing Model 2 (compmod2)

Cause-Related Marketing

Attitude

Brand Image

Corporate Reputation

Purchase Intention

Figure 4. Competing Model 3 (compmod3)

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Results

Cause-Related Marketing

Attitude

Brand Image

Corporate Reputation

Purchase Intention

Findings from the In-depth Interview PT. Unilever Indonesia and Corporate Social Responsibility PT. Unilever Indonesia (PT. UI) has been operating in Indonesia since 1933. The company produces a range of products such as soaps, shampoos, tea, ice cream and others. PT. UI applies and demonstrates the corporate purpose by engaged in four major themes: SME development, a clean campaign, sustainable fishing, and sustainable public health education (Pranatadjaja, 2004). Furthermore, PT. UI set up the PT. ULI Peduli Foundation in 2000, to implement corporate social responsibility. PT. UI believes that as a business, the company depends on a healthy environment. One important part in an environment is water. The need of water for the company can be described as follows:

“We need water to produce our products and the consumer needs clean water to use and consume them. No water: no washing, no cooking, no tea. It’s simple as that.”

In relating with health issues, PT. UI uses the Lifebuoy brand in order to address health problems and social challenges. Lifebuoy campaigns focus on the importance of cleanliness. In specific, washing hands is one important message that is campaigned by Lifebuoy in order to reduce the incidence of diarrhea significantly, one of the main causes of mortality in Indonesian children.

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Lifebuoy and Cause Related Marketing One newest Lifebuoy program is known as ‘Lifebuoy Sharing Health’. The program is a sales promotion type approach where a percentage of the product price is donated to charity. In short, donations to a cause are triggered by consumer purchase. The main theme of the program is health education. However, health improvement is linkage with a healthy environment. In specific, the program focuses on sanitation and water supply as crucial factors that related to health education. One theme in health education is the importance of cleanliness, that is, washing hands. Washing hands can reduce the incidence of diarrhea significantly. Diarrhea can be transmitted by several factors such as dirty hands, flies, and inadequate sanitation. All of the transmission can be blocked by changes in hygiene attitude and behavior. Improved sanitation can also contribute to preventing transmission. In short, PT. UI believes that the development of sanitation infrastructures do not and will not by itself improve health. Thus, in order to get maximum benefits out of improved and development of sanitation infrastructures, people need to be supported with hygiene education. Box 1 provides the key features of the program. Box 1. Key Features of Lifebuoy Health Sharing

Name of the program Lifebuoy Sharing Health Fund PT. UI donated Rp 10,- for every purchase Lifebuoy soap in July – Augustus 2004 Program duration 10 months (2004-2005) Main objectives * Hygiene behavior

* Improved sanitation infrastructures

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Primary target * Mothers

* Children

Channels of communication * Advertising (television, maga- zines, radios, newspapers)

* Hygiene education in primary school (school visit)

Partners * Coalition for Healthy Indonesia * Coalition for Healthy West Java

* Indonesian Doctor Organization * Care International Indonesia

Source: personal interview with Lifebuoy Senior Brand Manager

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Actual Survey In this research, a questionnaire was administered to a total sample of 250 respondents. The usable sample after eliminating incomplete questionnaire consisted of 216 respondents. The 216 usable questionnaire lead to 86.4 % response rate. The instrument was assessed for reliability and validity. Evidence of reliability was found as shown in Table 1. Composite reliability, which is analogous to Cronbach α (Fornell & Lacker, 1981 cited by Netemeyer, Durvasula & Lichtenstein, 1991), were over 0.70. The Cronbach α were also over 0.70. Average variance extracted (AVE) was also computed. According to Hair et al. (1995), a level of 0.50 or greater supports the consistency among items in a scale. Furthermore, an assessment of the corrected item-to-total correlation resulted in the range 0.3112 to 0.8285. Table 1. The Cronbach α, Composite Reliability and AVE of Variables

Cronbach α Composite Reliability

AVE

CRM Company Reputation Brand Image Buyer Attitude Purchase Intention

0.7457 0.7138 0.7112 0.7615 0.9060

0.754 0.733 0.712 0.790 0.906

0.987 0.988 0.996 0.695 0.975

Table 3 show the variable correlation ranged from 0.261 to 0.671 and significantly different from one, showing discriminant validity. In addition, a consistent pattern between criterion and predictors is supporting for the nomological validity (Cronbach & Meehl, 1955, cited by Netemeyer et al., 1991). Table 3. Correlation among Variables

CRM Comp. Rep. Brand Attitude Intention

Image CRM 1 Comp. Rep. .297** 1 Brand Image .298** .314** 1 Attitude .380** .354** .671** 1 Intention .327** .261** .448** .632** 1 ** Correlation is significant at the 0.01 level (2-tailed)

Table 4 shows the comparison of the four models on goodness-of-fit measure. Competing models were examined in this research to assure that the proposed model is as the best model. The results show that the proposed model is the best model compares to other competing models. Furthermore, the overall fit of the model was reasonable fit.

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Table 4. Comparison of Goodness-of-Fit Measure for the Proposed Model and Competing Models

Level of Proposed Competing Models Goodness-of-Fit Measure Acceptable Fit Model Compmod1 Compmod2 Compmod3Absolute Fit Measures CMIN/DF >5 2.919 2.933 2.929 2.939 GFI >0.90 0.823 0.823 0.822 0.823 RMSEA <0.80 0.094 0.095 0.095 0.095 Incremental Fit Measures AGFI >0.90 0.770 0.769 0.767 0.768 TLI >0.90 0.797 0.796 0.796 0.795 NFI >0.90 0.762 0.762 0.763 0.762 Parsimonious Fit Measures PNFI Higher values indi- 0.650 0.646 0.647 0.646 cate better fit PGFI Higher values indi- 0.632 0.628 0.627 0.628 cate parsimony

To examine the structural relationships, the hypothesized paths were estimated and most hypotheses (H1, H2, H5, H6) were supported as shown in table 5. Table 5. Parameter Estimates for Structural Paths Hypotheses Path Standardized CR Hypotheses

regresion Verification weight

H1 CorpRep <-- CRM 0.413 3.969 Yes H2 BI <-- CRM 0.4230 3.981 Yes H3 Att <-- CRM 0.126 1.538* No H4 Att <-- CorpRep 0.133 1.869* No H5 Att <-- BI 0.746 5.780 Yes H6 Int <-- Att 0.707 10.006 Yes

CRM = cause related marketing Att = attitude CorpRep = corporate reputation Int = intention BI = brand image * not significant

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Hypothesis 1 stated that the CRM activity will be positively related to the consumer perception of corporate reputation. This hypothesis was substantiated (CR = 3.969). Furthermore, hypothesis 2 stated that the CRM activity will be positively related to brand image. This hypothesis also was substantiated (CR = 3.981). Hypothesis 3 stated that the CRM activity will be positively related to buyer attitude. On the other hand, this hypothesis was not substantiated because the loading of attitude

CRM was not significant (CR = 1.538). Again, hypothesis 4, the relationship between corporate reputation and attitude, was also not substantiated because the loading of path was not significant (CR = 1.869). Finally, this research supported hypothesis 5 (brand image will be positively related to attitude, CR = 5.780) and hypothesis 6 (buyer attitude will be positively related to buyer purchase intention, CR = 10.006). Discussion This research attempted to model and test the effect of cause related marketing, corporate reputation, and brand image on buyer attitude and purchase intention. The test results were mixed. Two hypotheses were not substantiated (that is, the relationship between CRM activity and buyer attitude and the relationship between corporate reputation and attitude). In relating with modeling the models, the finding from the data suggests that the proposed model fits the sample data better than other models. The rejection of the third hypothesis (that is, the relationship between the CRM activity and buyer attitude toward buying the brand) may result from the brand chosen for this research, Lifebuoy. Lifebuoy is one of the oldest and well-known soap brands in Indonesia. Therefore, respondents may have their attitude toward the brand. This attitude that formed by respondents was not influenced by CRM activities. The relationship between corporate reputation and buyer attitude was also not confirmed in this research. Though PT. Unilever Indonesia is a well-known company but respondent in this research may not linked the company reputation with their attitude toward buying the brand. The result in this research showed that brand image influenced their attitude toward buying the brand. Conclusion and Limitations The understanding of consumer behavior is one key of organizational success. Thus, this research examined the effect of CRM, corporate reputation, and brand image on buyer attitude and purchase intention. This research has one main limitation, which signal caution the generalisability of the results. This research was restricted to the examination of one type of marketing program and one product. Theoretical and Managerial Implications The result of this research has both theoretical and managerial implications. Theoretically, this research tested and supported that CRM as one marketing strategy that can influence consumer perceptions on corporate reputation and brand image. Furthermore, this present research applied the structural equation modeling method. The result supports the convergent and discriminant validity of the scales.

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Practically, this research supports that companies who adopt CRM may endeavour to win support from consumers. Cause related marketing program could be a viable promotional strategy for companies in order to enhance their company reputation and brand image. Hence, the understanding of consumer behavior and its dynamics is crucial for practitioner. The results of this study may offer an understanding the effects of CRM to consumer purchase decision.

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and South Asian Business in the United Kingdom: An Exploratory Study. London: Centre for Social Markets.

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CURRICULUM VITAE Name : Sabrina Oktoria SIHOMBING Address : Perum. Gedong Kuning Jl. Jeruk B8 Yogyakarta Telephone : 0274 – 556757 (home) 0815 6851152 (mobile phone) Office : Magister Manajemen STIE STIKUBANK Jl. Kendeng V Bendan Ngisor

Semarang E-mail address : [email protected]

Date of birth : October 16, 1970 Education

1999 – 2004 : DOCTORAL PROGRAM (MARKETING MANAGEMENT) (Dr.) Gadjah Mada University

Yogyakarta, INDONESIA 1994 – 1995 : MASTER OF BUSINESS (MARKETING MANAGEMENT) (M.Bus.) Queensland University of Technology Brisbane, AUSTRALIA 1989 – 1993 : SARJANA EKONOMI (MARKETING MANAGEMENT) (S.E.) Satya Wacana Christian University Salatiga, INDONESIA

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Published articles

Sihombing, S.O. (2005). An Assessment of the Reliability and Validity of the

CETSCALE in Indonesia, Manajemen Usahawan Indonesia, 7, Juli, 23-28. Sihombing, S.O. (2005). The Influences of Country-of-Origin, Consumer Ethnocentrism,

and Consumer Attitude Toward Purchase Intention of Domestic and Foreign Brand. Jurnal Bisnis and Ekonomi, 12, 1, 1-22.

Sihombing, S.O. (2005). Predicting Intention and Behavior of Choosing a Brand: A

Comparison Between the Theory of Planned Behavior and the Theory of Trying. The Journal of Accounting, Management, and Economics Research, 5, 1, 23-50.

Sihombing, S.O. (2004). Analisis Hubungan Sikap dan Perilaku Memilih Satu Merek: Uji

Theory of Trying. Jurnal Ekonomi, 3, 13, 53-68. Sihombing, S.O. (2003). Perluasan Theory of Planned Behavior: Aplikasi pada Niat dan

Perilaku Memilih Satu Merek. Empirika, 16, 2, 187-213. Sihombing, S.O. (2002). Paradigms in Consumer Behavior. Gadjah Mada International

Journal, 4, 2, 149-176. Sihombing, S.O. (2002). Predicting Behavior from Attitudes: A Comparison between the

Theory of Planned Behavior and the Theory of Trying. Wahana, 5, 1, 19-34. Sihombing, S.O. (2002). Teori Keunggulan Sumberdaya: Suatu Teori Kompetisi Baru,

Kajian Bisnis, 25, 97-109. Sihombing, S.O. (2001). Pengaruh Sikap terhadap Iklan (Aad) dan Sikap terhadap Merek

(AB) terhadap Pilihan Merek: Suatu Analisa Empiris. Daya Saing, 2, 1, 31-53. Sihombing, S.O. (2001). Empirical Generalizations and Lawlike Generalization in

Marketing Science. Economic Journal, 16, 2. Sihombing, S.O. (2001). Memelihara Komitmen dalam Mengimplementasikan Strategi.

Manajemen, No. 153, pp. 8-9.

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