Cause-related marketing and its impact on brand image and loyalty: Evidence from international fast-food chains

Abstract

ABSTRACT The work described in this paper investigates the impact of cause-related marketing on brand image and loyalty from the perspective of international fast-food chains. Fourteen semi-structured interviews were conducted with the managers to assess the current use of cause-related marketing practices (CrM) in fast-food chain restaurants. From the results of the interviews and review of literature, a model was developed including four variables, these are as follows: CrM, customer loyalty, brand image, and price increase. A self-administered structured questionnaire was designed to collect data on managers perspective of CrM, impact on brand image, customer loyalty, and price increase. Seven hundred and four questionnaires were distributed. Results from the study indicate that there is a correlation between CrM and brand and that there is a positive and significant and relationship between CrM and customer loyalty, CrM was found to have more effect on attitudinal loyalty than on behavioral loyalty. In addition, results revealed that brand image and customer loyalty are correlated. Regression analysis signified that customer loyalty is affected by brand image as the relationship between them is significant and positive. The study also found that brand image acted as a partial mediator between CrM and customer loyalty.