Introduction
Customer loyalty has initiated different impacts on companies' products and services. Additionally, corporate social responsibility has with time turn into the most critical perspectives for the accomplishment of organisations’ aspects of multiplying its customers. The research issue concerning CSR is following McDonald and Starbucks organisations that have extended their organisations in numerous areas yet their SWOT analysis outline that they depict challenges in working within CSR and precise corporate culture (Saeidi, Sofian, Saeidi, Saeidi and Saaeidi, 2015, p. 351, Walker and Kent 2009, p. 746). This paper seeks to analyse the aspects of Corporate Social Responsibility (CSR) concerning McDonalds and Starbucks companies, the procedure of customer appraisal, how it accomplishes the sufficient and legitimate information while airing out how the clear client perception concerning CSR influence client loyalty to the company.
Dissertation Structure
This dissertation is structured in five chapters with chapter one pointing out the research problem, the research questions and objectives. Chapter two discusses the literature review to point out elements relevant in answering the research questions. Chapter three reveals the research methodology employed and the relevance to the topic while chapter four examines the results and connecting the results to the Starbucks and McDonald’s company. Chapter five points out conclusions and recommendation of the study in regard to the research question and worldview concepts about customer loyalty concerning CSR.
Key Terms
i. Corporate social responsibility (CSR)-Refers to the self-regulation aspects of a company and how the aspects are integrated into the company’s business models (Tai and Chuang 2014, p. 117).
ii. Customer Loyalty refers to the result of positive emotional, social and satisfaction-based experience concerning the value and quality of service that a customer receives from a particular company. Kandampully, Zhang and Bilgihan (2015, p. 380) described that service provision is the overall and central focus for customer perceived value enhances customer loyalty.
II. General Description
Research Objectives
1. CSR in Conjunction with Customer Loyalty
Companies brands and consumer-customer identification are the key aspects that are relevant and which contribute to the primary objective of this study concerning McDonalds and Starbucks company (Swaen and Chumpitaz, 2008, pp.29).
Enhancing Brand Equity
CSR is responsible for enhancing a company’s brand equity since it mainly focuses on the relationship that occurs between corporate philosophy and an organizations financial performance as it is concerned with studying the potential ways of developing a competitive advantage enhancing the equity of the brand in all dimensions Lu, Liu and Rahman 2017, p. 253).
Consumer-Company’s Identification in the Market
CSR study is required to develop a proper consumer-company’s identification which is an essential aspect of both McDonald and Starbucks company (Raman et al. 2012, p. 67).
Problem Statement
Corporate social responsibility is a contested and broad concept in the current business world. It has also been discovered that CSR is a global aspect that puts organisations at a platform for a smooth progression of the companies that allude to the issues communicated (Chung, Yu, Choi and Shin 2015, p. 542).
Purpose Statement
The critics regarding the S.W.O.T analysis of Starbucks and McDonald’s companies pointed out the expansion of the two companies without taking the aspects of CSR with absolute seriousness. Consequently, the companies have shown great concern for the adoption of CSR and expanding the elements of CSR into the companies’ practice (Du et al. 2010, p.9).
Research Question
i. How are the host countries of Starbucks and McDonald Companies effective in enhancing the CSR policies in conjunction with enhancing consumer perspectives regarding the concept of customer loyalty?
ii. How are the aspects of CSR policies adopted by McDonald and Starbucks companies affected by the aspect of national and local political pressures concerning the elements that contribute to the desired customer perception that tend to contribute to customer loyalty?
iii. How is CSR affected by the challenges concerning cybercrimes and which frameworks should be put in place to enhance the best consumer perception towards Starbucks and McDonald’s company customer loyalty?
Chapter II:
Literature Reviews
Introduction
The today's aspects of environmentally friendly elements put most consumers on the alert of CSR of the companies in the economy thus demanding substantial and sustainable environmentally friendly services and products. Firms, therefore, must meet the society’s expectations when making environmental management aspects that conform with aspects concerning CSR (Martínez and del Bosque 2013, p. 90). In that perspective, consumer loyalty will be structured from the level by which the companies develop proper environmentally friendly approaches besides profit oriented elements of the company. To find the most appropriate answers to the research question, this chapter seeks to point out an analysis of thirty peer reviewed articles and make a conclusion at the end of the chapter.
Companies Non-Selfish Acts and Consumer Loyalty
Raman, Lim and Nair’s (2012, p. 45) qualitative research outlined that consumer loyalty depends on the desire that customers develop regarding a company’s ways of valuing its customers. Carroll and Shabana (2010, p. 89) communicates that a business’ social responsibility is said to encompass ethical, legal and the philanthropic expectations of the society thus influences customer loyalty. Since Starbucks and McDonald’s company are large corporations operating in multiple countries and regions, the aspect of their product awareness on social media should be accompanied with discount-oriented approaches, gifts for the customers who enhance the perception of the products thus strengthening the two fast foods company associative loyalty recognition. Roman et al. (2012, p. 46) outline that consumer loyalty is majorly improved through better and improved societal contributions.
Brand Equity
Walker and Kent (2009, p. 750) also point out that brand equity is a broad concept that enhances consumer loyalty as it shapes customers’ perception towards a company. Brand equity is the key feature that enhances customers’ e-loyalty thus CSR in enhancing the brand places a facility’s customers at the position of boosting their loyalty (Bilgihan 2016, p. 1). Branded articles should be circulated to customers to enable the businesses to be recognised instead of investing in product cannibalisation as it will render the business to exhaust all the possible business strategies relevant to future customer expansion (Homburg, Stierl & Bornemann, 2013). Companies are evaluated regarding the brand that they develop as branding is the eye of the society hence consumer loyalty lies in the hands of the societal image of the company brand (Lu, Liu and Rahman, 2017, pp.257). Since technology and the current web-based intelligence puts the society at a position to verify the indexes regarding companies concerning the issue of social responsibility, thus the aspects of customer loyalty stand a chance in both Starbucks and McDonald’s companies better consumer perception thus leading to better customer loyalty.
A company’s brand strategy confers to the aspects of enhancing CSR since it can be used to promote the cause, develop unique brand equity thus drawing customers’ attention towards the company’s products hence encouraging customer loyalty (Ahearne, Bhattacharya & Gruen, 2010 p. 547). Therefore, the value of the brand is the cause of an enhanced customer loyalty thus Starbucks and McDonald company requires to research on the issues that can improve the value of its brands. Saeidi et al. (2015, p. 343) communicates that political parties in the countries that companies operate prohibits proper adoption of the corporate social responsibility. Overwhelming requirements by political parties affect the environmental and anti-discrimination aspects regarding affirmative action. However, the article puts forth the fact that, companies need to work within the frameworks that the countries they operate in require of them. Kandampully, Zhang and Bilgihan (2015, p. 380) mentioned the aspects that companies do concerning CSR by the case study of a hospitality organization through pointing out that customer attachment improves the mutual relationship. In that perspective, developed countries have the most recent technology that makes customers aware of every company’s corporate social responsibility to the public and its consumers.
Perceived CSR, Environmental and Ethical Appeals
Shin and Thai (2015, p. 381) asserted that perceived corporate social responsibility that focuses on the environmental and ethical appeals enhances customer satisfaction thus leads to enhancement of customer loyalty. Just like the previous scholars, Shin and Thai (2015, p.391) described that environmental protection, a company’s volunteer acts, taking part in social charities among others are the major contributors to customer satisfaction that enhance loyalty since they are in line with the desired corporate social responsibility.
Since McDonald and Starbucks company are multi-billion corporations with the massive customer base, it has to develop CSR that aligns with the countries and the regions that it operates’ social behaviour to enhance customer satisfaction which is in line with loyalty (Alam and Rubel, 2014, p 27). When customers are appreciated, they develop confidence in the company thus enhancing their loyalty. Shin and Thai (2015) pointed out that the relationship between customer loyalty and satisfaction is in line with distinctly different characteristics that are intangible and which offer confidence to the customers. Therefore, enhancing customers’ needs contribute to their loyalty to the company (Yeo, Goh and Tso 2011, p. 210). The research narrowed its focus on the ethical, environmental components which puts a facility at a chance of convincing its enthusiastic customers to that it is affiliated to aspects that contribute to the better health of the society regardless of the cost and time. Tai and Chuang (2014, p. 117) stipulated that CSR has an important connection to multinational corporations and in fostering development. Consequently, customers’ loyalty to the company is influenced by how much the organisation is affiliated towards making life better for the society while the company aims at expanding its sales to the economy. For that matter, Starbucks and McDonald company are companies dealing with first foods that are highly perishable thus need to be cautious while serving the community with their products to ensure that their products allude to the desired aspects of customer satisfaction.
Socially Responsible Practices and their Connection to Customer Loyalty
Undertaking socially responsible practices makes consumers develop a sense of trust in a company which later results in the development of customer loyalty towards the products that are being made and sold by the company (Chang and Yeh 2017, p. 38). Not only does a company need to adhere to socially responsible initiatives, but also to the socially conscious consumers regarding the issue of employees regarding the aspect of making a real difference in the world. Consumers are yoked to a company that takes the matter of the environment with absolute sincerity and transparency thus make the company earn public’s trust (Chang and Yeh 2017, p. 38). Companies concentrate on pimping their social responsibility to attract a desirable customer satisfaction that calls for loyalty (Kim, Vogt and Knutson, 2015, p. 179). Therefore, utmost integrity, aspects of developing various forms of important customer success and a keen understanding of corporate social responsibility make it possible to apply critical thinking as a way of enhancing customer perception that is following customer loyalty.
Ethical and Legal Responsibility
Customers tend to focus on the aspects regarding ethical, legal responsibility, environmental, social and legal liability that business is deemed to work in and weigh the elements to see whether the company is working towards ethical and social detrimental situations which contribute to whether an individual will allude to the company’s issues or not (Yeo, Goh and Tso 2011, p. 210). Consumers stand a chance to be the determinants of corporations’ success regarding corporate reputation concerning Muslim Customer Perceived Value Research which aired the interrelation between customer loyalty, retention and satisfaction (Eid, R., 2015, p. 252). Consumer perception tends to be influenced by CSR as it offers a roadmap for making corporations’ report regarding the evaluation of customer perception (Ahearne et al. 2o14, p. 28). Customer loyalty is shaped by the aspects that a company engages in for the benefit of the society (Tai and Chuang 2014, p. 118). Companies performance like stock prices tend to be from the standpoint of enhancing customer satisfaction together with aspects of consumer spending. Customers satisfaction with the CSR initiatives becomes a key component of the success and implementation of CSR policy.
Ahearne et al. (2o14, p. 29), aired out that satisfaction is the core contributor to customer loyalty. On the other hand, Vlachos et al. (2009, p.177) pointed out that managers need to invest in ways of alleviating profit-motivated giving and focus on service quality perception as it is the core enhancer of customer loyalty. Also, Gibbins (2018, p. 39) communicates about the research finding which communicated that social influences offers a chance for customer fulfilment thus enhancing customer loyalty. Higher levels of CSR associations are concerned with some sorts of stronger loyalty behaviour since most consumers tend to develop positive and stronger evaluation of the company (Brakus et al. 2009, p. 56). Brand equity is also another factor that enhances customer loyalty to a firm that alludes to CSR.
Satisfaction and CSR
Clapp and Rowlands (2014, p. 43) outlines that ssatisfaction is the crucial aspect that enhances customer loyalty regarding the issues of CSR in a company. For instance, Starbucks company employs elements of active consumer timelines to view if customer satisfaction is improved. Since pleasure is the overall measure of a company’s brand performance, consumer spending will also provide a roadmap for employee satisfaction (Assad, 2010, p.23). Company performance can be adequately monitored through an analysis of customer satisfaction. Consumers are said to be convinced by a particular company’s CSR regarding the customers’ interaction with the brand, the social welfare of the community and the perceived opportunism (Shen and Bae, 2018, p. 90). On the other hand, the attitude of the customers towards a particular brand of the company results in several effects of the attitude towards customer’s loyalty in conjunction with the perceived CSR.
Companies brands and consumer-customer identification are the key aspects that are relevant and which contribute to the primary objective of this study concerning McDonalds and Starbucks company. Mandhachitara and Poolthong’s (2011, p. 2) article concentrated on the fact that perceived service quality and its connection to mediated relationship between repeat patronage intentions and CSR enhances customers’ loyalty. Pérez and Rodriguez (2015, p. 2) communicates that loyalty is among customers is an expression of satisfaction with the company’s corporate performance.
Consumer loyalty is much influenced by how a particular company works towards enhancing accomplishing its CSR by developing a popular corporate culture (Saeidi et al. 2015, p.342). Customers’ loyalty to any particular firm is yoked to the company’s responsibility concerning the environmental effects and social well-being of people.
The study of CFR about how it affects customers’ perception and loyalty to the company is in line with the company’s product brand. Most McDonalds and Starbucks companies are large organisations that have spread their branches all over the world (Mermod and Idowu 2014, p. 145). However, maintaining its customers and ensuring that they keep their customer base they require to enhance their brand and develop the aspect of brand equity. The brands that the companies deal with should show equality in all the branches as a way of improving customer perception as all customers tend to be aware of the affiliations of the companies to CSR.
Jaroensrisomboon (2009, p. 8) mentioned that a customer who is completely satisfied shows high aspects of loyalty than the customer who is dissatisfied. Since most companies like McDonald’s have ventured much is spreading their companies branches to multiple regions in the world, it is evident that product cannibalisation will soon limit the companies from maintaining its customers or attracting new customers as product cannibalisation seems to ruin them (Örtenblad 2016, p. 32).
Trust Factors and CSR
From Potepkin and Firsanova’s (2017, p. 83) research, trust factor is the cause of customer loyalty regarding CSR. The article compared Russian and Finnish customers’ perception regarding their country as the main factor under study. There is a high correlation concerning CSR perceived by consumers and their outstanding loyalty to their affiliate organisations. Additionally, Potepkin and Firsanova (2017, p. 83) mentioned that, “implementation of social initiatives” enhances the level of CSR thus improving customer loyalty. that trust mediates the correlation between consumers’ perception and loyalty to the products and aspects of CSR. However, personal characteristics of the target consumer, i.e. customer’s reaction regarding their country of origin, age and gender are the real factors that determine the aspect of customer perception satisfaction and loyalty (Alam, and Rubel, 2014). If a company associates itself with the attributes of its consumers, then the consumers will be able to enhance their perception regarding the company regarding the company’s business objectives in general (Carroll and Shabana 2010, p. 88). The other aspects that are important and relating to customer loyalty to a company include the interest developed towards the support that a particular company portrays and the consumers’ affiliations towards the company of their choice concerning the similarity index with other corporations in the market.
In most instances, consumers get affiliated with companies’ products or services after a thorough inquiry into the companies’ ways of enhancing CSR and working within the corporate culture (Yeo, Goh and Tso 2011, p. 199). Consequently, it is a high time for this paper to scrutinise the means of outlining consumer-company identification regarding the customer base of McDonald and Starbucks company. According to Martínez and del Bosque (2013, p. 99), the only way that companies can spend in people is through enhancing CSR. CSR helps in shaping customers’ perception regarding how the company aims at ensuring that it is yoked and destined to serve its customers with absolutely relevant aspects regarding customers’ needs.
Research Gaps
Connotative theory states that customer’s loyalty is directly linked to their willingness to repurchase products. However, the researches failed to outline the incidents that prevent the applicability of connotative theory. Most of the case methods lacked the aspect of consumer involvement in the overall process of purchasing (Stanaland, Lwin and Murphy 2011, p. 56). Therefore, here are high chances that the responses outlined by the literature reviewed did not reflect the actual responses. The findings in the research and literature review articles are subject to challenges since the feasibility, and the efficacy of the data collected cannot be entirely justified to be true.
Strengths of the Research
The strengths of the methods are that it collected participants’ opinions widely and valued all of them. The techniques offered a platform for the participants to express their feelings and incorporated them in concluding (Stanaland, Lwin and Murphy 2011, p. 55). Customer perceptions and loyalty measures were made separate thus provided a chance to determine the relationships that they hold.
Conclusion
In summation, the research offers extensive explanations, makes sufficient examination of issues and includes theories concerning corporate social responsibility to air out the factors that enhance customer loyalty. Customer loyalty has been found to be influenced by a company’s CSR and consumer expectations about the company. Therefore, the literature reviews consist of an abstract, introduction, qualitative design, data collection method, analysis, discussion, and recommendations that contribute to the fact that CSR influences customer loyalty by strengthening the customer behaviour with the affiliate company.
Chapter III:
Research Methodology
Brief Introduction to the Problem
Today, Starbucks company has been found to have spread its branches across the world, but as much as its branches become scattered throughout, product cannibalisation needs to be accompanied with CSR elements to ensure that the company’s consumer base does not wither. Likewise, McDonald’s company requires maintaining its customer base having worked in all business modes (Stanaland, Lwin and Murphy 201, p. 57). CSR is needed in McDonald’s company as its customers are aware of the necessary corporate responsibility that the company owes them. This study is prompted by the overhaul debate that revolves around the proponents of CSR concerning the shift in the overall adoption of CSR in Starbucks and McDonald’s company. Additionally, there is a growing social demand for both Starbucks and McDonald’s company to take the lead towards adopting better corporate cultures that will work in line with the proper CSR as a way of ensuring that it maintains its vast customer base by working within the stipulated government's boundaries (Brakus, Schmitt and Zarantonello, 2009, pp.57). Therefore, this exposition aims to speculate the literature findings, how the research and was done, the choice of analysis, the participants, research designs, measures and assessment tools used in the study. Since this dissertation is majorly on qualitative approaches, the literature reviewed portrayed elements of the qualitative plan that relates to the worldview concepts regarding the generation of theories and historical construction.
Participants
The research collected people’s assumptions regarding how they develop their loyalty appeals towards the services or products of a company in line with CSR after a thorough IRD process. The literature was structured from the data collected from the society by studying the customers’ cultures and collecting their worldviews concerning the informed assumptions regarding the current social changes (Bediako 2017, p. 67). The researcher considered the confidentiality of the participants and the data collected was highly taken through confidential processes to protect the participants' consent. Also, the participants were business partners who had prior knowledge of customer awareness of their companies’ social responsibility thus contributed a lot to the data collected and the analysis of the literature reviewed. Data analysis procedures were perfect since there was no error recorded, thus putting the research in to be an ideal one and which can be well accepted for review.
Reasons for Collecting Data on Literature Reviewed
The literature reviewed were analysed to through the subsections, the methods used, the data collected and discussions concerning CRS and how customer perception define the aspect of loyalty of the customers to companies’ products (Örtenblad 2016, p. 31). Through analysis of the qualitative literature, I analysed the possible methods of data collection used in the literature to come up with a viable conclusion concerning how customer perception is influenced by a company’s CSR in conjunction with the results brought about by customers regarding how a company engages itself in CSR. The reason for such an inquiry was to come up with a content specific discussion concerning the aspects of corporate social responsibility and the aspects of customer loyalty. I analysed the surveys done by Potepkin and Firsanova (2017, p. 83) on Russian and Finish customers. This research aimed at analysing the qualitative epistemology in the research through critiquing the abstract, the methodology, research designs, the comparative data analysis and the research weaknesses to be able to come up with the required data concerning customer perception and how companies’ CSR influences employees’ perception and loyalty.
Research Designs
I analysed various authors’ surveys that were structured with subsections for pointing out the required information. Also, the inquiry relied on the review of various qualitative sources which are recently pre-reviewed concerning the matters of company’s corporate social responsibility and which revolve around the research topic. Qualitative epistemology was extensively relied upon up in the literature analysed (Örtenblad 2016, p. 31). The analysis of the article outlined various means of collecting data qualitatively by incorporating questionnaires, maintain group focus and valuing the views collected from people regarding customer perception in CSR and the effect of customers’ perception to the aspect of loyalty to a company’s products. The research analysed the methods used in the literature reviewed which found out that the use of phenomenological designs which alternated interviews, reading documents, watching videos, speculating about the customers’ social media communication and visiting places. The interview forms listed all the variables regarding race, religion, professional experience among others (Shen and Bae 2018, p. 98). Regarding the data collection technique employed, a set of structured questionnaires also work out well since it offered an opportunity for the inclusion of the qualitative tests theory that should outsource data from the participants by the use of if-then questions. The participants were carried through aspects of ethical appeals that were well structured since the research sought for the permission from the institutional review board, and it ensured that the participants were adults, and were involved in the study after a voluntary participation request. In most of the literature reviewed, there were no particular hypotheses of the research since the literature outlined aspects of structured interviews as the matter concerned with customers’ perception.
Shen and Bae (2018, p. 89) communicates about customer satisfaction concerning service value and connections to the company’s quest to develop a desirable CSR that attract elements of customer loyalty. On the other hand, there was the use of case studies of companies that helped the researchers to obtain the required data concerning customer perception on CSR of companies which is the aspect that shapes their loyalty to the companies (Wagner, Lutz, and Weitz 2009, p. 91). The narrative approach involves the mix of methods that include segmentation analysis, in-depth interviews and surveys. For instance, Potepkin and Firsanova (2017, p. 83) employed chronological plan by carrying out in-depth interviews with Finish and Russian participants in the inquiry about customer loyalty as an influence by companies CSR.
Shin and Thai (2015, p. 380) dealt with an ethnographic research design as the primary way of collecting sufficient data concerning customer loyalty and how customer perception influences the loyalty of customers towards companies’ modes of CSR. Shin and Thai (2015, p. 388) immersed themselves in target population’s environment as a way of speculating into their cultural underpinnings and compatibility of the cultures with the companies CSR. It was structured with aspects of motivations, cultural anthropology and relying mostly on the environment rather than surveys and interviews (Choi and La 2013, p. 230). Through the ethnographic approach, the results were recorded and an analysis of the data done to point out a precise meaning.
Assessment Tools
The assessment tools used were the Holmes-Rahe that measured customers’ perception regarding CSR and loyalty to the corporation that they were affiliated. The range of scores was relevant in determining the loyalty levels (Choi and La, 2013, p. 233). There was also the use of professional quality of life scales, i.e., ProQOL scales that are used to measure aspects of customers’ loyalty and perception concerning the company’s products and ways of carrying out their practices thus outlining the level of satisfaction which reflects more on the aspects of loyalty.
Measures
Brakus, Schmitt and Zarantonello (2009, p. 53) outline the possible manner by which the qualitative inquiry worked out through the aspects of philosophical investigations regarding the concept of CSR and customer loyalty aspects. The literature search applied pleasurable dimensions that enhanced the intellectual, social, emotional and physical pleasures. 25 graduate-level business students were passed through surveys concerning brand experience and consumers’ conceptions. There was the provision of open-ended questions by the participants who answered the issues in the structured interviews with a variety of responses concerning the different goods and services that the company provides regarding CSR.
Sampling Procedures
Samples collected in the surveys were analysed using Holmes Rahe approach and SPSS to come up with the most appropriate discussion and conclusion concerning the topic. The strategy was practical since it provides grounds for finding the most common responses to the survey questions thus offering a chance for the most appropriate conclusion to be made. Since the research question is majorly dependent on people’s assumptions and perceptions, the methodology was appropriate especially the use of open-ended questions in questionnaires. The ProQOL scales that were used to measure aspects of customers’ loyalty and perception concerning the company’s products and ways of carrying out their practices were appropriate since they were used to provides a platform of judging the level of satisfaction on the aspect of loyalty (Alam and Rubel, 2014, pp.27).
Conclusion
In summation, the articles reviewed outlined that the researchers used group cohesion approaches that give a chance for analysing the relevant data and commonalities of responses regarding corporate social responsibility and customer loyalty. The research methods are appropriate since they offered a variety of information concerning different companies and their customer perception concerning CSR and customer loyalty. The rationale for the efficacy of the methodology is connected to the fact that sufficient data was collected and offered a room for comparison of the data to inspect its effectiveness to the research concerning corporate social responsibility and customer loyalty.
Chapter IV:
Introduction
At some point, customers usually communicate their grievances through active timelines that facilities develop and will give a company a chance to reshape their mode of CSR to provide an opportunity for the company to prove that it can keep its cu
