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RM Presentation - Fairtrade, Shared Values & Commitment

C
Charlotte Magnani

The document discusses relationship marketing and commitment between Fairtrade, a nonprofit organization, and its customers. It presents conceptual frameworks showing that customers form moral and affective commitment to Fairtrade based on shared values like fair prices and choice. This commitment is demonstrated through identification with Fairtrade's authentic behavior and ethical stance, motivating customers to remain in a long-term relationship. Limitations include the frameworks being subjective and not measuring all customer networks or their strength.

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POWER TO CHANGE THE WORLD EVERY DAY SHARED VALUES DRIVING COMMITMENT CHARLOTTE MAGNANI
AGENDA CONTEXT: FAIRTRADE & THEIR CUSTOMERS DEFINITIONS & INTERPRETATIONS: KEY TERMINOLOGY FRAMEWORK: EXISTING & CONCEPTUAL FAIRTRADES EVIDENCE OF VALUES THROUGH RELATIONAL & MARKETING EXCHANGES MOVING FORWARD: RESEARCH IMPLICATIONS 2
FAIRTRADE & THEIR CUSTOMERS Fairtrade is a non-profit organisation responsible for officiating fair trade amongst the supply chain of selected goods Donors, fundraising events, campaigns Organisational partnerships: daily touch-points 3
DEFINE: RELATIONSHIP MARKETING An organisation engaged in proactively creating, developing and maintaining committed, interactive and profitable exchanges with selected customers [partners] over time is engaged in relationship marketing Harker 1999, p.16
SHARED VALUES (i) FAIR PRICE: PRICE PREMIUMS ALL PARTIES ARE TREATED IN A DIGNIFIED MANNER (ii) FAIR RESOURCE: PLANET IS NOT AN INFINITE RESOURCE RESPONSIBILITY OF CONSUMPTION (iii) FAIR CHOICE: DESIRE FOR KNOWLEDGE AND EDUCATION BEING ACCOUNTABLE EMPOWERING CUSTOMERS TO ACHIEVE VALUES 5 integration of corporate social responsibility into business strategy Crane et al., 2014 p.131
COMMITMENT 6 INTEGRAL TO ALL RELATIONAL-EXCHANGES AIDS THE ESTABLISHMENT OF LONG-TERM RELATIONSHIPS MULTIDIMENSIONAL CONSTRUCT
DEFINE: NORMATIVE COMMITMENT Moral (normative) commitment suggests that Fairtrade customers form an attachment with Fairtrade based on moral judgement that leads to a higher degree of involvement with the organisation, aiding them to achieve their goals [shared values] Adapted from: Gonzalez & Guillen 2007
DEFINE: AFFECTIVE COMMITMENT Affective commitment implies that the Fairtrade customer has a psychological bond with the organisation, based on identification (Verheof et al. 2002) of their [shared values], which motivates them to remain in a relationship with Fairtrade because they genuinely want to be there Adapted from: Vivek et al. 2012 p.135
9 EXISTING FRAMEWORK FIGURE 1.2: KMV MODEL - MAGNANIS (2014) STUDY
10 CONCEPTUAL FRAMEWORK
11 CONCEPTUAL FRAMEWORK MORAL COMMITMENT BASED ON PERCEIVED ETHICAL STANCE AUTHENTIC BEHAVIOUR LEADS TO HIGHER LEVEL OF IDENTIFICATION AFFECTIVE COMMITMENT MOTIVATION TO REMAIN IN A COMMITTED RELATIONSHIP acting according to ones values, preferences, and needs Kernis, 2003 p.16
It is essential for organisations to have a successful community to create demand for goods, provide critical public assets and a supportive environment (Porter & Kranmer, 2011 p.66).
There is a direct correlation between high levels of involvement in an organisations activities, and high levels of transparency in the operations and achievements of that organisation (MacMillan 2005)
SUBJECTIVE NOT ALL CUSTOMER NETWORKS IDENTIFIED IMPORTANCE & STRENGTH NOT MEASURED APPLICATION TO OTHER NPOs 14 LIMITATIONS & FURTHER STUDY
CRANE, A., PALAZZO, G., SPENCE, L. & MATTEN, D. (2014), 'CONTESTING THE VALUE OF "CREATING SHARED VALUE"', CALIFORNIA MANAGEMENT REVIEW, 56(2): 130-153 DWYER, F., R., SCHURR, P.H., & OH, S. (1987). DEVELOPING BUYER-SELLER RELATIONSHIPS JOURNAL OF MARKETING, 51(APRIL): 11-27 GONZALEZ, T., F. & GUILLEN, M. (2007). ORGANISATIONAL COMMITMENT: A PROPOSAL FOR A WIDER ETHICAL CONCEPTUALIZATION OF NORMATIVE COMMITMENT, JOURNAL OF BUSINESS ETHICS, 78: 401-414 HARKER, M.J. (1999). RELATIONSHIP MARKETING DEFINED? AN EXAMINATION OF CURRENT RELATIONSHIP MARKETING DEFINITIONS, MARKETING INTELLIGENCE & PLANNING, 17(1): 13-16 KERNIS, M.H. (2003). HIGH SELF-ESTEEM: A DIFFERENTIATED PERSPECTIVE, VIRTUE, VICE, AND PERSONALITY: THE COMPLEXITY OF BEHAVIOR. AMERICAN PSYCHOLOGICAL ASSOCIATION, WASHINGTON US: P3-22 MACMILLAN, K., MONEY, K., MONEY, A., & DOWNING, S. (2005). RELATIONSHIP MARKETING IN THE NOT-FOR-PROFIT SECTOR: AN EXTENSION AND APPLICATION OF THE COMMITMENT -- TRUST THEORY', JOURNAL OF BUSINESS RESEARCH, 58(6): 806-818 MEYER, J.P., & L. HERSCOVITCH (2001). COMMITMENT IN THE WORKPLACE: TOWARD A GENERAL MODEL, HUMAN RESOURCE MANAGEMENT REVIEW 11: 299326 MORGAN, R. & HUNT, S. (1994). THE COMMITMENT-TRUST THEORY OF RELATIONSHIP MARKETING, JOURNAL OF MARKETING, 58(3): 20-38 VIVEK, A., BEATTY, S., & MORGAN R. (2012). CUSTOMER ENGAGEMENT: EXPLORING CUSTOMER RELATIONSHIPS BEYOND PURCHASE, JOURNAL OF MARKETING THEORY AND PRACTICE, 20(2): 127-145 15 REFERENCES
16 CONCEPTUAL FRAMEWORK

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RM Presentation - Fairtrade, Shared Values & Commitment

  • 1. POWER TO CHANGE THE WORLD EVERY DAY SHARED VALUES DRIVING COMMITMENT CHARLOTTE MAGNANI
  • 2. AGENDA CONTEXT: FAIRTRADE & THEIR CUSTOMERS DEFINITIONS & INTERPRETATIONS: KEY TERMINOLOGY FRAMEWORK: EXISTING & CONCEPTUAL FAIRTRADES EVIDENCE OF VALUES THROUGH RELATIONAL & MARKETING EXCHANGES MOVING FORWARD: RESEARCH IMPLICATIONS 2
  • 3. FAIRTRADE & THEIR CUSTOMERS Fairtrade is a non-profit organisation responsible for officiating fair trade amongst the supply chain of selected goods Donors, fundraising events, campaigns Organisational partnerships: daily touch-points 3
  • 4. DEFINE: RELATIONSHIP MARKETING An organisation engaged in proactively creating, developing and maintaining committed, interactive and profitable exchanges with selected customers [partners] over time is engaged in relationship marketing Harker 1999, p.16
  • 5. SHARED VALUES (i) FAIR PRICE: PRICE PREMIUMS ALL PARTIES ARE TREATED IN A DIGNIFIED MANNER (ii) FAIR RESOURCE: PLANET IS NOT AN INFINITE RESOURCE RESPONSIBILITY OF CONSUMPTION (iii) FAIR CHOICE: DESIRE FOR KNOWLEDGE AND EDUCATION BEING ACCOUNTABLE EMPOWERING CUSTOMERS TO ACHIEVE VALUES 5 integration of corporate social responsibility into business strategy Crane et al., 2014 p.131
  • 6. COMMITMENT 6 INTEGRAL TO ALL RELATIONAL-EXCHANGES AIDS THE ESTABLISHMENT OF LONG-TERM RELATIONSHIPS MULTIDIMENSIONAL CONSTRUCT
  • 7. DEFINE: NORMATIVE COMMITMENT Moral (normative) commitment suggests that Fairtrade customers form an attachment with Fairtrade based on moral judgement that leads to a higher degree of involvement with the organisation, aiding them to achieve their goals [shared values] Adapted from: Gonzalez & Guillen 2007
  • 8. DEFINE: AFFECTIVE COMMITMENT Affective commitment implies that the Fairtrade customer has a psychological bond with the organisation, based on identification (Verheof et al. 2002) of their [shared values], which motivates them to remain in a relationship with Fairtrade because they genuinely want to be there Adapted from: Vivek et al. 2012 p.135
  • 9. 9 EXISTING FRAMEWORK FIGURE 1.2: KMV MODEL - MAGNANIS (2014) STUDY
  • 11. 11 CONCEPTUAL FRAMEWORK MORAL COMMITMENT BASED ON PERCEIVED ETHICAL STANCE AUTHENTIC BEHAVIOUR LEADS TO HIGHER LEVEL OF IDENTIFICATION AFFECTIVE COMMITMENT MOTIVATION TO REMAIN IN A COMMITTED RELATIONSHIP acting according to ones values, preferences, and needs Kernis, 2003 p.16
  • 12. It is essential for organisations to have a successful community to create demand for goods, provide critical public assets and a supportive environment (Porter & Kranmer, 2011 p.66).
  • 13. There is a direct correlation between high levels of involvement in an organisations activities, and high levels of transparency in the operations and achievements of that organisation (MacMillan 2005)
  • 14. SUBJECTIVE NOT ALL CUSTOMER NETWORKS IDENTIFIED IMPORTANCE & STRENGTH NOT MEASURED APPLICATION TO OTHER NPOs 14 LIMITATIONS & FURTHER STUDY
  • 15. CRANE, A., PALAZZO, G., SPENCE, L. & MATTEN, D. (2014), 'CONTESTING THE VALUE OF "CREATING SHARED VALUE"', CALIFORNIA MANAGEMENT REVIEW, 56(2): 130-153 DWYER, F., R., SCHURR, P.H., & OH, S. (1987). DEVELOPING BUYER-SELLER RELATIONSHIPS JOURNAL OF MARKETING, 51(APRIL): 11-27 GONZALEZ, T., F. & GUILLEN, M. (2007). ORGANISATIONAL COMMITMENT: A PROPOSAL FOR A WIDER ETHICAL CONCEPTUALIZATION OF NORMATIVE COMMITMENT, JOURNAL OF BUSINESS ETHICS, 78: 401-414 HARKER, M.J. (1999). RELATIONSHIP MARKETING DEFINED? AN EXAMINATION OF CURRENT RELATIONSHIP MARKETING DEFINITIONS, MARKETING INTELLIGENCE & PLANNING, 17(1): 13-16 KERNIS, M.H. (2003). HIGH SELF-ESTEEM: A DIFFERENTIATED PERSPECTIVE, VIRTUE, VICE, AND PERSONALITY: THE COMPLEXITY OF BEHAVIOR. AMERICAN PSYCHOLOGICAL ASSOCIATION, WASHINGTON US: P3-22 MACMILLAN, K., MONEY, K., MONEY, A., & DOWNING, S. (2005). RELATIONSHIP MARKETING IN THE NOT-FOR-PROFIT SECTOR: AN EXTENSION AND APPLICATION OF THE COMMITMENT -- TRUST THEORY', JOURNAL OF BUSINESS RESEARCH, 58(6): 806-818 MEYER, J.P., & L. HERSCOVITCH (2001). COMMITMENT IN THE WORKPLACE: TOWARD A GENERAL MODEL, HUMAN RESOURCE MANAGEMENT REVIEW 11: 299326 MORGAN, R. & HUNT, S. (1994). THE COMMITMENT-TRUST THEORY OF RELATIONSHIP MARKETING, JOURNAL OF MARKETING, 58(3): 20-38 VIVEK, A., BEATTY, S., & MORGAN R. (2012). CUSTOMER ENGAGEMENT: EXPLORING CUSTOMER RELATIONSHIPS BEYOND PURCHASE, JOURNAL OF MARKETING THEORY AND PRACTICE, 20(2): 127-145 15 REFERENCES