Enterprise Donating Method Influence On Customer Profitability

In recent years, great changes have taken place in the business environment of enterprises operation. On one hand, the public expectation on enterprises stays no longer just on economic aspect but also resume other kinds of responsibilities, such as education, medical treatment, environment protection, etc. On the other hand, traditional marketing methods can hardly meet the diverse needs of the competition of homogeneous products. Enterprises want to develop new market strategies in order to achieve the increase in sales, enhance of price premium, reduction of customer cost and other aspects of returns. In reality, more and more enterprises start to realize the importance of assuming social responsibility while gradually including it into their strategic plans. However, enterprises get different consumer results from the practice of donation due to difference in donating method, motive attribution, customer loyalty, etc.In this paper, we summarize from the existing literature, establish conceptual model according to the related theory, using donating method as independent variable, customer profitability (purchase increase, price premium capacity enhance and retention cost decrease) as dependent variables, donating motive attribution (other-center attribution and self-center attribution) as mediation variables and customer loyalty as regulated variable. And then, we put forward 10 research hypothesesIn order to verify the hypotheses above, we conduct simulation experiment in this study, dividing enterprises donating methods into two groups:unconditional charity donation and cause-related marketing. And then, we gain 280 effective questionnaires in total by means of online and field survey. After that, we use SPSS 19.0 and AMOS7.0 software to conduct analysis on the obtained data in order to test the research hypothesis.The study result indicates the conclusion below:enterprises donating method has significant effect not only on other-center motive attribution but also on self-center motive attribution; while other-center motive attribution has positive effect on customer profitability, self-center motive attribution has negative effect on customer profitability; both other-center motive attribution and self-center motive attribution have mediation effect in the relation between donating method and customer profitability; customer loyalty has positive regulated effect in the relation between donating method and other-center motive attribution, but has negative regulated effect in the relation between donating method and self-center attribution; customer loyalty has partial regulated effect in the relation between either other-center motive attribution or self-center motive attribution and customer profitability. At last, we provide some enlightenment on the management of corporate social responsibility according to the results of hypothesis test.