CSR

From a business case perspective, CSR can be a source of opportunity and

innovation and provide sustainable competitive advantage (Porter and Kramer,
2006; Smith, 2007). Similarly, brands founded on genuine CSR identity are more
likely to attract loyal, and change resistant consumers (Perez, 2009).
Consumers themselves frequently claim that the firms CSR profile plays a
large role in what brands they choose to purchase. Several surveys report that
consumers say that they are influenced by the CSR reputation of a firm (Castaldo et
al., 2009, p. 1)
CRM
Berry (1983) viewed relationship marketing as a strategy to attract, maintain
and enhance customer relationships. Gummesson (1993) defined the term as a
strategy
in which the management of interactions, relationships and networks is a
fundamental
issue. According to Gronroos (1994), the aim of relationship marketing is to
establish,
maintain, and enhance relationships with customers and other partners, at a profit,
so
that the objectives of the parties involved are met.
Making value, rare and not being imitable result in introducing the customer
relations management as a competitive advantage for an organization, but as
mentioned by Amit and Shoomakher (1993), for an element can be introduced as a
stable competitive advantage, it requires being durable(Dane,2002,P.54).
One fundamental principle for customer relations management in all texts for
customer relations management is the continuously improvement of a process (i.e.
Jamal, 1998, Mac Adam, 2000,..) continuously improving the process and revision
for recognizing the needs of customers turns it to a stable competitive
advantage(Dougall,2004,P.23)
Rapp and Collins (1990) suggest, similarly, that its goals are to create and
maintain lasting relationships between the firm and its customers that are
rewarding for both sides. This is achieved by a mutual symbiosis and fulfilment of
promises (Ndubisi 2003a, b). In other words, a key objective is to foster customer

loyalty, which Oliver (1999) defined as a deeply held commitment to re-buy or repatronize a preferred product or service in the future despite there are situational
influence and marketing efforts having the potential to cause switching behavior.
Ndubisi and Chan (2005) found a significant relationship between conflict
handling and customer loyalty, indirectly through trust and perceived relationship
quality. The ability of the product or service provider to handle conflict well will also
directly influence customer loyalty.
Calonius (1988) emphasized that an integral element of the relationship
marketing approach is the promise concept. He argued that the responsibilities of
marketing do not only, or predominantly, include giving promises and thus
persuading customers as passive counterparts in the marketplace to act in a given
way, but also in keeping promises, which maintains and enhances evolving
relationship. Fulfilling promises that have been given is equally important as a
means of achieving customer satisfaction, retaining the customer base, and
securing long-term profitability (Reichheld and Sasser, 1990), besides fanning the
fire of trust.
Brand Image
A brands image often influences a customers
expectations and consequently satisfaction with a
product or service. Brand image pertains to the
perception or mental picture a customer holds of a
brand and is formed through his/her response, whether
reasoned or emotional [17], to brand-related stimuli,
including communication with other people and
advertisements [34]. The objective is to arouse a
positive affective response to the brand in the
customers, such that they buy brands for their physical
attributes and functions [27], and their symbolic
meanings associated with the brand [19], product or
service. During its formation, the customers
experiences, feelings and trust will influence the image
[32]. As a customer-oriented concept, brand image
reflects the customers perspective what he/she
receives from brand and relies on his/her experience
with it [34]. Therefore, positive interactions between
the business and customer can promote positive
experiences and instill positive feelings and trust in the
customer.
Brand Reputation

Some corporations start CSR programs to improve their reputation (Zhou et al.,
2012). Corporate reputation is often conceptualized as perceptions, attitudes and the
esteem
with which stakeholders hold an organization (Hillenbrand and Money, 2009).

Brand reputation is the substitute for product quality when inherent cues
or attributes are complex to employ (Kirmani and Rao , 2000).
Customer Loyalty
Chaffey (2008) defined consumer loyalty as a desire on the part of the
customer to continue to conduct business with a given company over time.
Assael (1992) defined brand loyalty as a favourable attitude towards a brand,
thus resulting in consistent purchase of the brand over time a view supported by
Keller (1993). The present study follows the view of Assael (1992) in defining brand
loyalty as a customers favourable attitude towards the provider, thus resulting in
repurchasing behaviour.
Hubungan CSR dengan Brand Image
Nevertheless, a key dimension of CSR resides in reputation and public
relations. A positive corporate reputation indicates beneficial brand image and
investor relations, which ultimately supports financial performance. From a
consumer perspective it has been verified that a firm with credible CSR activities
and reporting, is more successful in generating longer term consumer purchase
intentions, loyalty and advocacy (Du et al., 2010).
CSR is an essential element in building and maintaining a favorable corporate
reputation [and profitability], which is regarded as an important strategic resource
factoring into a companys competitive advantage (Park et al., 2014).
Hubungan CRM dengan Brand Image
CRM embodies the modern marketing paradigm of relationship management
(RM) and leverages IT to acquire customers, understand and satisfy their needs and
expectations, and maintain their long-term relationships through retention
programs, particularly those that build loyalty [37] right channel at the right time
[47] and involves attracting (acquiring), developing and maintaining successful
customer relationships over time [5], [14], and building customer loyalty [25]
through efficient and effective two-way dialogues [39] CRM practices involve the

actions and initiatives a business takes to retain its current customers and attract
potential customers through personal touches in fulfilling and satisfying their
individual needs.
These practices include customer segmentation, database marketing,
customization and one-to-one marketing, proactive selling, cross selling, loyalty
program, and customer referral [29], [38], [47] A brands image often influences a
customers expectations and consequently satisfaction with a product or service.
Brand image pertains to the perception or mental picture a customer holds of a
brand and is formed through his/her response, whether reasoned or emotional [17],
to brand-related stimuli, including communication with other people and
advertisements [34]. The objective is to arouse a positive affective response to the
brand in the customers, such that they buy brands for their physical attributes and
functions[27], and their symbolic meanings associated with the brand [19], product
or service. During its formation, the customers experiences, feelings and trust will
influence the image [32]. As a customer-oriented concept, brand image reflects the
customers perspective what he/she receives from brand and relies on his/her
experience with it [34].
Therefore, positive interactions between the business and customer can
promote positive experiences and instill positive feelings and trust in the customer.
Hubungan Brand Image dan Brand Reputation
An organization does not have a single reputation at any point in time. It has
a number of reputations depending on the stakeholders concerned. Interactions
with brand-associated stimuli (including mass communication, employees, agents or
other individuals and groups that are linked to the brand), enables stakeholders to
form their perceptions of an organisation. These perceptions consolidate to become
a single impression at a point in time the brand image. Over time these
fragmentary images evolve to become the stakeholders perception of the
reputation of the organization. Reputation is an outcome of interactions between
stakeholders and the organization over time (Argenti and Druckenmiller, 2004).
Balmer (2001) believes that company reputation is linked with the
organisations values, vision and purpose, it can be expected to have a broader
influence. This means it may have a more direct impact on perceptions of customer
value and customer loyalty. Hal 3

Some corporations start CSR programs to improve their reputation (Zhou et

al., 2012).
So the reputation would lead to customer loyalty via trust that customers can
achieve through public relation activities [15].

Hubungan Brand Reputation dan Competitive Advantage

The resource-based view within the strategy literature has argued that
sustainable competitive advantage is created primarily from intangible capabilities,
including brands and reputations (Omar et al., 2009).
Reputation is a key competitive advantage in markets where product
differentiation is difficult, attracting superior workers and providing leverage for
managing stakeholders (Husted and Allen, 2007).
Competitive advantage is strengthened through the use of CSR (Nakvi et al.,
2013; Melo and Galan, 2011) and some researchers even say that CSR principles
are required for the development of a competitive advantage (Scharf et al., 2012).

Hubungan Brand Reputation dan Customer Loyalty

Consequently, it was concluded that CSR tends to influence customer loyalty
indirectly.
CSR strategies can enhance the link with their stakeholders (Aaker, 1996;
Maignan et al., 1999). As Delgado and Munuera (2001) argue, loyalty is based on an
individual experience with the brand so the result comes not only from direct
relations arising from the use of the service, but also other indirect contacts coming
through advertising, or the image and reputation of the company. Following these
ideas, the perception of a socially responsible behavior can strengthen brand loyalty
as it conveys a character (Keller and Aaker, 1992), a system of distinct values
(Turban and Greening, 1997), showing respect toward customers and enhancing
loyalty to the company (Maignan et al., 1999). According to Earls et al. (1998), a
strong brand image will make customer loyalty stronger (in Miller & Muir, 2004).
Accordingly, individuals value the efforts of companies that engage in
philanthropy programs, energy conservation plans or sponsorship of cultural or

social events, among other initiatives. Additionally, this support may lead to a
greater brand loyalty (Maignan et al., 1999)
Loyalty is determined by brand image (Park et al., 2004; Brunner et al.,
2007). In the search for the key determinants of customer brand loyalty, several
researchers have proposed brand image as a key component finding that this
construct is associated with loyalty (Andreassen and Lindestad, 1998; Park et al.,
2004; Brunner et al., 2007)