“Social vs Environmental Sustainability: A Heineken Case Study”
Katie SnyderStudent Number: 11591285
Master’s Thesis
Graduate School of Communication Supervisor: Brahim Zarouli
2 Abstract
Companies are constantly competing to increase and maintain their consumers brand loyalty. Thus, it is critical for organizations to connect with consumers and meet their expectation of social responsibility. In order to meet this expectation, brands across all industries are increasingly deploying various sustainability initiatives to communicate to their key stakeholders (Boccia & Sarnacchiaro, 2017). This case study uses authentic and original initiatives from Heineken to examine how different types of corporate social responsibility campaigns, either environmental sustainability or social sustainability, affect consumers brand loyalty. Additionally, it investigates if the format that the campaign is presented in affects the level of brand loyalty. Furthermore, it is examined if individuals brand associations and drinking habits moderate these effects. This experiment utilized Heinekens “When You Drive, Never Drink” campaign, which addresses responsible consumption among adults; and their “Drop the C” campaign, focused on reducing carbon emissions. The results showed that there was not a significant effect of the different types of campaigns on consumer brand loyalty, and these effects were not moderated by brand associations or drinking habits. Further, it was concluded that nationality heavily skewed the results in this study, as over half of the participants were from the United States.
3 Introduction
Sustainability and social responsibility play a critical role in the shaping of brands today, as more consumers are becoming vocal about their environmental and ethical concerns (Boccia & Sarnacchiaro, 2017). As consumer demand for sustainable products and brands continues to increase, organizations across industries are dramatically upscaling efforts to convey that they are upholding and implementing a strong Corporate Social Responsibility (CSR) program. CSR can be defined as the integration of social and environmental concerns into an organizations business model to communicate to stakeholders that the organization is contributing to society (Crane & Glozer, 2016). Some companies have one CSR program in place, while larger
multinationals often have several programs incorporated into a long-term sustainability strategy (Pollach, 2015). Organizations communicate their sustainability efforts to consumers in various ways, such as annual reports, packaging labels, social media, and of course, marketing efforts (Cha, Yi, & Bagozzi, 2015; P. Jones, Comfort, & Hillier 2006).
Previous research shows, when well executed, engaging in CSR behavior can be
beneficial to organizations and their brands by increasing overall stakeholder approval, as well as enhancing reputation and consumers’ willingness to advocate for the brand (Du, Bhattacharya, & Sen, 2010). As a result, a vast amount of organizations from a range of industries are engaging in sustainable marketing and brand behavior to build their reputation while simultaneously aiming to win the favor of their consumers (Crane & Glozer, 2016).
In recent years, the alcohol industry has become heavily involved in CSR initiatives as consumers are turning toward companies that fulfill their societal duty (Kawa & Łuczyk, 2015; Morsing, 2006). These initiatives can range from increasing environmental sustainability, such as recycling bottles and reducing carbon emissions, to advocating for animal protection.
4 This experiment will examine Heineken in a case study using authentic CSR material that the researcher had access to as part of a practical internship. The world’s second largest beer company, Heineken, has gone beyond implementing CSR as a section of the business to embedding sustainability into the organizations core business model. The company places a strong emphasis on sustainable business practices with responsible consumption as one of the six key categories of its “Brewing a Better World” strategy. Additionally, the company is well known for heavily implementing and reinforcing Sustainable Development Goals developed by the United Nations. Recently, the organization, and its brands, have become more public about their global sustainability initiatives. In this case study, we will examine two existing CSR programs that fall under the Brewing a Better World umbrella from Heineken. This means that the CSR campaigns used in this study are authentic and reflective of Heineken’s current initiatives that are in place.
The first initiative is “Drop the C.” Publicly announced on February 12, 2018, this program aims to reduce carbon emissions through running production on 70% renewable energy by the year 2030 (Heineken, 2019). The second initiative focuses on Responsible Consumption, something that most large alcohol companies emphasize as social responsibility programs. Heineken uses their flagship brand to communicate this on a massive level through commercial advertisements, campaigns and statistical research results.
Thus, this research will explore the effects that these two types of CSR initiatives from Heineken have on consumers brand loyalty. This was chosen because although Heineken is a large multinational company, the beer industry is incredibly competitive, and loyalty can sway towards brands that align with consumers values – something that is often represented in CSR
5 initiatives (Tepeci, 2009). Furthermore, the study will determine if this effect is moderated by consumers drinking habits, as well as their own brand associations with Heineken.
This case study is relevant to understanding the connection between the adult beverage industries CSR efforts and the influence it may play on brand loyalty among consumers. Although few studies have examined responsible drinking in the alcohol industry as a socially responsible initiative, little to no research has been done to examine environmental CSR in the industry, nor have these two types of initiatives been compared when examining the effects on brand loyalty. The results from this study could provide valuable insight into what types of initiatives need to be emphasized for Heineken as it can contribute to raising public awareness through the effective communication of sustainable business practices.
Theoretical Background Brand loyalty
Consumers are constantly bombarded with the paradox of choice (Seligman, 2006); therefore, it is critical for larger organizations in the industry to maintain their dominance in the market and in the minds of their consumers. Thus, building and maintaining a strong sense of brand loyalty among consumers is critical for retaining current customers and gaining new ones.
This study will rely on Oliver’s (1999) definition of brand loyalty as "a deeply held commitment to rebuy or patronize a preferred product/service consistently in the future, thereby causing repetitive same-brand or same brand-set purchasing, despite situational influences and marketing efforts having the potential to cause switching behavior" (p.33). Bowen and
Shoemaker (1998) suggest a strong sense of brand loyalty will increase the likeability of the brand and decrease the likelihood that a consumer will purchase a competing brand, even if they
6 offer their product at a lower price point. Furthermore, customers who are loyal to a brand will often act as unofficial ambassadors or promoters by sharing their fondness of the brand or product with friends and family through positive word of mouth (Rashid, Khalid, & Rahman, 2015). Previous research has discovered a positive relationship between organizations engaging in CSR activities and consumers sense of brand loyalty (He & Lai, 2012; Rashid, Khalid, & Rahman, 2015).
Furthermore, past literature has emphasized the key role that consumers attitudinal preference and commitment contributes to defining brand loyalty (Chahal & Bala, 2010). Baldinger and Rubinson, 1996, suggest that considering attitudinal loyalty while measuring brand loyalty can be a useful tool in predicting behavior, especially in terms of purchase behavior.
Thus, understanding brand loyalty as a whole is necessary for the organization to develop effective communication strategies toward its consumers (Bennett & Rundle-Thiele, 2002). Environmental CSR and Responsible Consumption
As environmental problems have stepped into the public spotlight, growing numbers of consumers are making conscious decisions about the products they purchase and the companies they support (Boccia & Sarnacchiaro, 2017). In fact, previous research has found that consumers are willing to pay more for products that are associated with environmental sustainability
(Laroche et al., 2001). Environmental Corporate Social Responsibility (ECSR) initiatives are aimed towards environmental sustainability efforts – such reducing water waste and eliminating the use of plastics – and are often welcomed by stakeholders (Laroche et al., 2001). Bansal and Roth (2000) defined ECSR as a set of initiatives that an organization puts in place that “changes to the firm’s products, processes, and policies, such as reducing energy consumption and waste
7 generation, using ecological sustainable resources, and implementing an environment
management system” (p.717). With the rise in consumer demand for a more circular economy, larger multinational companies are under societal pressure to uphold environmentally conscious standards, and are therefore, devising and implementing green sustainability initiatives to meet these standards (Rashid, Khalid, & Rahman, 2015).
Many alcohol brands implement initiatives around responsible consumption rather than environmental issues, as it is the most relevant topic associated with the industry. In fact, responsible consumption campaigns were amongst the first CSR initiatives to be implemented within the alcohol industry (Pantani et al., 2017). Although research has stated that behavioral disruption from responsible consumption campaigns can be effective in a social practice setting, it is argued that such campaigns are more effective when shared and discussed by individuals with a personal connection or those in a community platform - rather than being exposed to the message from the brand or market (Fry, 2014).
Past literature concerning responsible consumption campaigns released directly by the industry has been prominently negative, suggesting these initiatives are developed to sway governments and policy makers towards allowing the beer, wine and spirits industry to self-regulate (Savell, Fooks, & Gilmore, 2015). Pettigrew et al. (2016) suggests such campaigns that promote responsible drinking are not viewed in a positive light, arguing that responsible drinking campaigns and campaigns produced by beverage companies could be considered unauthentic. Wolburg (2005) places a strong critique of the beer industries efforts to promote responsible consumption, by arguing such messages encourage poor decision making and behavior.
Additionally, critics have argued that responsible consumption initiatives run counter to most of the industries objective – which is to increase sales (Wolburg, 2005).
8 It should be noted that many companies in the adult beverage industry, including
Heineken, are producing and pushing low and no alcohol alternatives to their flagship brands; however, the majority of consumers may only associate such companies with their alcoholic options as the low and no alternatives are relatively new to many markets. Additionally, the Heineken brand allocates 10 percent of its total media budget in key markets towards communicating responsible consumption ads – placing a focus on “When You Drive, Never Drink” (Heineken, 2019).
Thus, as stated in the introduction, the beer industry is not the first that comes to mind when thinking about sustainability. Many alcohol brands implement initiatives around
responsible consumption rather than environmental issues, as it is the most relevant topic associated with the industry. Furthermore, environmental initiatives are often well received by consumers because they are easy to understand and process as a CSR initiative that is
contributing to the widely discussed wellbeing of our environment, compared to initiatives concerning social issues (Marin & Ruiz, 2007). Therefore, the following hypothesis is proposed: H1: Exposure to Environmental CSR messages from Heineken will lead to higher brand loyalty than exposure to Responsible Consumption messages.
Informationally centered and visually centered
Brand loyalty can be directly influenced by obtaining new knowledge about a brand (Tapesi, 1999). However, it is critical that this information is effectively communicated in order to be accurately understood by the consumer; thus, the format in which these messages are presented is an important factor for brands to take into consideration.
The first step in encouraging brand loyalty is to make the consumer aware of the brand and its products (Aaker, 1991). Tapesi (1999) argues that consumers with less information/
9 knowledge about brands are likely to be less brand loyal. Furthermore, consumers finding self-image congruency within the brand, its core values and what it stands for can contribute a great deal to increasing brand loyalty (Tapesi, 1999). Therefore, it is critical that Heineken can communicate key information about their CSR initiatives in a way that is appealing, digestible and easy for consumers to grasp and resonate with.
Morgan (2016) argues that when information is communicated exclusively through visually centered campaigns, the intended meaning behind the message may not be accurately understood. On the other hand, when there is only text and no visual appeal, the consumer may feel as though the information is simply too much work to process.
Thus, finding a relevant middle-ground to connect with consumers, especially about important and oftentimes complex topics, is key. According to de Haan, Kruikemeier, Lecheler, Smith and van der Nat (2017), informationally centered images (infographics) are an effective way to engage viewers and inform them about complicated topics through a combination of both visual and textual communication. Bouquin and Brown Epstein (2015) emphasize that the information being communicated is best understood when there is a visual aid to accompany the text, which is often summarized and concise. Furthermore, a study by Vanichvasin (2013) proved the infographics can increase one’s retention of the information being shown.
Thus, from the above literature, it can be argued that when there is a steady mix of text and visual appeal, there is a higher chance that the consumer will pay more attention to the message, understand the information being communicated and feel as though they know the brand better. Therefore, the following hypothesis is derived:
H2a: Informationally centered CSR messages will evoke more brand loyalty than visually centered messages.
10 Past research also claims that infographics are especially effective when communicating information about complex environmental issues and initiatives, which are often difficult to summarize through visually centered material and lengthy to discuss exclusivley through text (Nisbet & Scheufele, 2007). When communicating about subjects related to social responsibility – and especially the intricacies of environmental responsibility - it is often difficult to effectively summarize such topics exclusively through visually centered material as they require elaboration and explanation of the what exactly is being done by the organization and why it matters to the consumer. Sheppard (2005) argued that depicting environmental initiatives through a mix of visual and informational demonstration can directly influence behavioral change towards the environment. As past research shows that infographics are effective when communicating information about environmental sustainability, it is likely that Heinekens communication of their environmental initiative to reduce carbon emissions through informationally centered campaigns will resonate with consumers.
H2b: Environmental campaigns that are informationally centered will evoke more brand loyalty than environmental campaigns that are visually centered.
Brand Associations
Keller (1993) defines brand associations as traits or characteristics that contain meaning for the brand linked to the consumers memory. Such meaning can provide consumers with a reason for preferring a specific brand above others that offer the same product or service (Aaker, 1996). Chen (2001) argues that “brand associations represent the basis for purchase decisions and brand loyalty” (p. 440). Romaniuk and Nenycz-Thiel (2013) claim that previous loyal behaviors can often be the result of a strong consumer brand association, while Atilgan et al. (2005) argue that strong brand associations are linked to higher brand loyalty among
11 stakeholders, and that brand associations can influence brand loyalty. Thus, it can be assumed that brand associations are indeed a predictor of brand loyalty (Aaker, 1996). The strength of an association often depends on the messages that the brand sends out in terms of positioning, strategy, and most - importantly in this case – values (Keller, 1993). In this case study, social values associated with Heineken will be taken into account.
Brand associations act as a solid foundation for brand value through differentiating a brand against its competitors (Aaker, 1996). Thus, if an organizations brands are associated with socially responsible campaigns, the brand will stand out in the perception of the consumer (Chen, 2001).
Furthermore, the consumer will think of the brand from the top of their mind when looking for a socially responsible product to purchase. Therefore, brand associations play an important role for organizations to understand their consumers, and in turn strive to stay at the top of their consumers’ mind - especially in a saturated product category such as beer or alcohol.
According to the above literature, if individuals associate Heineken with strong social values, their brand associations should indeed rank higher. As Heineken allocates 10% of media of its media budget towards responsible consumption campaigns - and that is what the
organization is more prominently known for in the product category of beer - then people with higher brand associations are more likely to be effected by responsible consumption messages. Therefore, the following hypothesis is derived:
H3: Exposure to Responsible Consumption messages will lead to higher brand loyalty than Environmental CSR messages, and this effect will be stronger for people who express high brand associations.
12 Drinking habits are an important variable to take into consideration when conducting a study about a large-scale beer brand. Although Heineken has a wide range of low and no alcoholic products available on the market today, it can be assumed that a large portion of consumers are familiar with the brands’ alcoholic products. However, it is plausible that the higher one’s consumption habits are of a certain product or brand, the higher the possibility of their loyalty toward a brand may be – especially if they engage in repeat purchase and
consumption behavior of the brand (Ji & Wood, 2007).
As mentioned, earlier in this paper, previous research states that effective Responsible Consumption campaigns may facilitate behavioral change amongst individuals (Fry, 2014). It is noted that campaigns which target specific cues in ones surroundings and environment may be successful in effecting one’s behavior, and thus encourage behavioral change through the disruption of their drinking habits (Verplanken and Wood, 2006). This may attest to the
effectiveness of initiatives which encourage Responsible Consumption behavior among existing consumers of a brand to which they currently demonstrate some loyalty to.
Thus, it raises the speculation that an individual with more frequent drinking habits may be affected more by a Responsible Drinking campaign from a brand in which they are already loyal to, rather than an individual who does not drink very often, and therefore is not concerned with such messages or the brands affiliated with them.
Therefore, the following hypothesis is derived:
H4: Exposure to Responsible Drinking Campaigns will evoke stronger feelings of brand loyalty among those with higher drinking habits than those who do not drink often.
13 Procedure
This experiment tested the abovementioned hypotheses using a 2 (Environmental CSR vs Responsible Consumption) x 2 (Information centered vs visually centered) between-subjects design. The materials for this case study were not manipulated from their original state as to maintain the authenticity of utilizing the original content from Heineken. Thus, it should be noted that the experiment does not meet the rigorous standards of a traditional experiment, in that the stimuli are not identical to each other in every respect. In other words, since this experiment used original material that is produced and communicated by Heineken, it is more geared towards the external validity and less to internal validity.
Table 1: Factorial Design
Campaign
Stimuli Environmental Responsible Drinking
Information- centered
G1 G2
Visually- centered G3 G4
The data was collected through an online survey using the platform Qualtrics. Participants were recruited via non-probability convenience sampling through social media platforms such as WhatsApp and Facebook. The sample consisted of individuals aged 18 and above to ensure no participants were under legal drinking age.
Participants
283 respondents participated in this study. Of these participants, only two hundred and nineteen completed the questionnaire. Thus, a total of N = 219 was used for this study. The age
14 of participants ranged from 20 to 68, with a mean age of M = 32.04 (SD = 10.9). Among this sample, 50.7% were female, while the remaining 49.3% were male. Over half of the sample consisted of participants from the United States (57.5%), while 28.8% were Dutch, and the remaining 12.8% identified as other nationalities. During this experiment, respondents were assigned to one of the four conditions through randomization.
Randomization
In order to determine if the participants in the four experimental groups presented a significant difference, a randomization check was conducted on the following factors: gender and age.
A Chi-square analysis demonstrated that there was no significant difference among respondents’ gender across conditions, χ² (3) = 2.50, p =.48.
A one-way analysis of variance was conducted to test randomization for age. The results determined that there is not a significant difference across conditions, F (3, 218) =.20, p =.90. Operationalization
Independent Variables
Environmental CSR and Responsible Consumption
The independent variables in this case study are Environmental CSR initiatives and Responsible Consumption initiatives that are original communication material from Heineken. To operationalize these variables, existing campaigns from Heineken were used.
The environmental campaign was Heinekens “Drop the C” campaign, which focuses on reducing their carbon emissions through sustainable packaging, logistical processes and cooling
15 processes. The image used is the official “Drop the C” campaign image, which illustrates the various ways the brand is working toward their 2030 goal of running on 70% renewable energy in production.
The responsible consumption stimuli will utilize a current campaign from Heineken titled “When You Drive, Never Drink”. The campaign highlights the benefits of moderate drinking, along with statistics of consumers who do not set out to drink drive but may end up doing unintentionally.
Informational centered and visually centered
The informational-centered environmental sustainability campaign used was an infographic demonstrating the actions that Heineken is implementing to reduce their carbon footprint. The visually centered stimulus shows the title “Drop the C”, accompanied by the “C” icon, with a short description stating “Heinekens journey to lower its Carbon emissions”
The information-centered responsible drinking depicts an illustrated image of a car driving, with a statistic about drink drivers in the center at different point on the path. The visually centered stimulus depicts the title “When You Drive, Never Drink”, with a steering wheel over a Heineken bottle.
Brand Associations
The scales used to measure brand associations were adapted from the framework of Aaker (1996) and presented in a 5-point Likert-type scale with answers ranging from (1= completely disagree and 5 = completely agree). (1) I am familiar with Heineken. (2) There are reasons to buy Heineken over other brands. (3) I believe that Heineken is contributing to society. (4) I believe the people behind Heineken are socially responsible. (5) Heineken is well regarded
16 with my friends. The items to measure brand association were scaled together, resulting in a Cronbach’s alpha of .78 (M=11.9, SD=3.70).
Drinking Habits
To measure respondents drinking habits, existing questions from the World Health Organization (WHO) were adapted. The first item asked, (1) “How often do you drink beer or cider?” The respondent was presented with a 5-point Likert scale with answers ranging from (1= Never and 5 = More than 4 times per week). The second question was presented as (2) “How many units of alcohol do you drink on a typical day when you are drinking? (A single unit equals to one drink)”. Respondents were again presented the options on a 4-point Likert-type scale, ranging from (1 = 0 and 4 = More than 7). Finally, the last questioned asked “On how many days out of the last week did you have a drink?” and was open answer.
Control Variables Age
The continuous variable Age was controlled for in the multiple linear regression analysis (M= 32.11, SD= 10.92).
Nationality
Nationality was measured as a control variable. In order to create a near even comparison given the participants in this study, the variable was transformed into a dummy variable
(0=European, 1=American). This was chosen because only 28.8% of respondents were Dutch respondents, while the remaining respondents were either American (N=128) or from another European country including the Netherlands (N=91) (M=0.58, SD=0.49).
17 Gender
Gender was controlled for and measured as a dummy variable (0 = Male, 1= Female) (M = 0.51, SD = 0.50).
Dependent Variables Brand loyalty
The dependent variable in this study is Brand Loyalty. To measure brand loyalty, an adjusted scale by Yi and Jeon (2003) was used. The items are presented on a 5-point likert scale (1= completely disagree and 5 = completely agree) (1) I like Heineken more than other brands; (2) I have a strong preference for Heineken; (3) I give consideration prior purchasing Heineken ; (4) I would recommend Heineken to others. (5) I am committed to Heineken brands. (6) I would pay a higher price for Heineken brands. The items for brand loyalty were scaled together,
resulting in a Cronbach’s alpha of .83 (M=5.04, SD=1.44).
Results
To test the abovementioned hypotheses, a multiple linear regression analysis was conducted to gain an overarching view of the results for each hypothesis, and the interaction effect of the moderating variables and control variables. Brand loyalty was used as the dependent variable. The predictor variables CSR type, format type, drinking habits and brand associations were included in the analysis as independent variables. Furthermore, nationality, age and gender were used as control variables. The interaction terms for H2a, H3 and H4 were named
ECSRxFormat (environmental CSR and format type), ResConsumptionxAssociation (responsible consumption and brand associations) and ResConsumptionxHabit (responsible consumption and drinking habits) The model produced an R2=0.46.
18 Table 2: Multiple Linear Regression results
Coefficientsa Model Unstandardized Coefficients Standardize d Coefficients t Sig. 95.0% Confidence Interval for B B Std. Error Beta Lower Bound Upper Bound 1 (Constant) .925 .438 2.111 .036 .061 1.788 Age .002 .006 .022 .385 .700 -.009 .014 Nationality -.458 .133 -.198 -3.458 .001 -.719 -.197 Sex .001 .118 .000 .005 .996 -.232 .233 CSR_Type .625 .596 .281 1.048 .296 -.551 1.800 Format_type .040 .162 .018 .249 .803 -.279 .360 ECSRxFormat .089 .231 .035 .384 .702 -.367 .545 ResConsumptio xAssoc .102 .162 .153 .628 .531 -.217 .421 ResConsumptio nxHabit .150 .111 .317 1.351 .178 -.069 .369 Drinking Habits -.287 .178 -.276 -1.614 .108 -.638 .064 Brand Association .744 .262 .495 2.839 .005 .227 1.260
a. Dependent Variable: Brand Loyal
Hypothesis 1
The first hypothesis proposed that Environmental CSR messages would contribute to higher brand loyalty than responsible consumption messages. CSR Type, b = 0.63, t =1.05, p = -0.30, 95 % CI [-0.55, 1.80], has a non-significant influence on brand loyalty. This means that the type of CSR message presented to the participant does not affect their level of brand loyalty. Thus, hypothesis 1 is rejected.
Hypothesis 2
The second hypothesis was divided into two parts. The first part aimed to determine if informationally centered messages would contribute to higher brand loyalty than visually
19 centered messages. Format Type, b = 0.40, t = 0.25, p < 0.80, 95 % CI [-0.28, 0.36] has a non-significant influence on brand loyalty, when holding other variables in constant. This result shows that the format in which such messages are presented in do does not affect an individual’s level of brand loyalty. Thus, hypothesis 2a is rejected.
The second section of hypothesis 2 tested whether there was a moderated effect of Environmental CSR campaigns on campaign format type (informational or visual). The
moderating variable Environmental CSR and format type did not have a significant influence on brand loyalty, b = 0.09, t = 0.38, p < 0.70, 95 % CI [-0.37, 0.55]. These results determine that the format in which environmental CSR campaigns are presented in do does not affect the level of brand loyalty. Thus, hypothesis 2b is rejected.
Hypothesis 3
It was predicted that the relationship between responsible consumption messages and brand loyalty is affected by brand associations. The analysis produced a non-significant result, b = 0.10, t = 0.63, p < 0.53, 95 % CI [-0.22, 0.42]. This means that the level of brand loyalty is not affected by the exposure of responsible consumption campaigns, regardless of the level of one’s brand associations. Thus, hypothesis 3 is not confirmed.
Hypothesis 4
The final hypothesis predicted that the combined variables responsible consumption campaigns and drinking habits would have a significant interaction effect on brand loyalty. The multiple regression analysis showed a non-significant interaction effect, b = 0.15, t =1.35, p < 0.18, 95 % CI [-0.07, 0.37]. This means that the level of brand loyalty is not affected by the exposure of responsible consumption campaigns, regardless of their drinking habits. Thus, hypothesis 4 is rejected.
20 All relationships were controlled by the demographic variables of gender, age and
nationality. Although there was no significant influence of gender or age on the results of the analysis, nationality did prove to effect respondents brand loyalty, b = -0.46, t = -3.46, p = 0.01, 95 % CI [0.72, -0.20].
Discussion
This study investigated the efficacy of CSR initiatives from Heineken on brand loyalty. The conditions were divided by CSR initiative type (environmental vs social) and format type (visual vs informational). Furthermore, the study examined whether these effects are moderated by variables such as ones drinking habits and their current brand associations. Control variables such as age, gender and nationality were also considered in the research.
Specifically, this research was a case study of CSR initiatives that are currently in place by Heineken. The materials used were original content that were not manipulated – thus it was expected that the external validity of this study would be quite high. The type of CSR initiatives used were separated into two distinct groups – environmental and social sustainability. The environmental initiative depicted a program currently in place called “Drop the C”, which aims to reduce Heinekens carbon emissions. The social initiative is a heavily advertised campaign that communicates “When You Drive, Never Drink”. The messages were further divided into two additional groups – with one group focusing on visually centered messages, while the other focused on informationally centered messages.
From the results of this study, it cannot be fully determined as to whether different types of CSR campaigns influence one’s brand loyalty toward Heineken. Further, the main effects concerning brand loyalty were quite limited as the CSR messages, both environmental and
21 responsible consumption, as well as informationally centered and visually centered, did not have the intended effect on participants.
There are several factors that could have heavily influenced the results of this study. First, it was found that over half of the participants were from the United States, where the beer market is dominated by domestic brands and craft-beers – a segment that is rapidly growing in the region (Aquilani, Laureti, Poponi, & Secondi 2015). A study by Lopez and Matschke (2012) uncovered that there is indeed a “home bias” when it comes to Americans view of foreign beer brands, and that Americans strongly prefer domestic brands. Porral, Lévy-Mangín, and
Bourgault (2013) explored the differences that domestic beer and imported beer have on brand equity in the Spanish market. Their results concluded that consumers express higher evaluations of domestic brands over imported brands. Furthermore, the claim that individuals express higher loyalty towards domestic items are in line with the research conducted by Knight (1999), which states that individuals are often only willing to buy foreign consumer goods when they are of a significantly higher quality than that of the domestic option. Thus, it can be assumed that individuals from Europe, and more specifically, the Netherlands, would likely have likely produced more desirable results in the study.
Second, in terms of drinking habits, this study measured individuals drinking habits using an adapted scale from the World Health Organization, which asked participants how often they drank the product category of beer or cider. However, it would have been wise to measure how often respondents purchase and/or consume Heineken brands specifically, as this information could provide crucial insight into the individuals purchase behavior. Further, such insights could have revealed if there was indeed a difference among participants from other nationalities.
22 Thirdly, it should be addressed that there is a fine line between advertising an
organizations good deeds and exploiting them. The environmental sustainability materials from Heineken used in this study are not heavily communicated in contrast to the responsible
consumption campaign, which uses 10% of the brands media budget and incorporates major sponsorships to communicate their message to stakeholders. Furthermore, when comparing the environmental CSR initiative to other organizations, such as one of their major competitors, Carlsberg, it is evident that there is not a great deal of advertising going into communicating these messages. However, abstaining from advertising environmental sustainability initiatives was a conscious effort made by Heineken, as they do not wish to be perceived as “green washing”. A study by Chen, Huang, Wang, and Chen (2018), found that greenwashing had a direct negative affect on consumer behavior toward brands, as well as an indirect negative affect on consumer brand loyalty. Furthermore, it would be interesting to explore the effects of
perceived greenwashing on brand loyalty – especially by companies that are spending
considerable amounts of money to communicate and advertise their environmental sustainability. Limitations
A limitation of this case study was sample size and the means employed to collect the sample. Due to time constraint, the sample size met the bare minimum requirements of 50 participants per condition – thus, it is difficult to accurately apply this to the greater population. Furthermore, the sample was collected via convenient sampling through social media networks. This could have skewed the results drastically as the researcher conducting this study is from the United States, and therefore over half of the respondents were American. After reviewing the results and determining nationality did indeed affect brand loyalty among respondents, it would have been ideal to have a sample of only Europeans; this is because they are from the region
23 where Heineken is based and most active, and thus it is probable that they are more loyal towards Heineken (Knight, 1999).
Furthermore, the stimuli were not completely comparable, as the four conditions were different. This was a conscious decision that was made by the researcher in order to utilize authentic material from Heineken. However, it is possible that since the conditions were indeed different, they could have elicited incomparable responses.
Future research
As Heineken continues to develop socially responsible initiatives, there are several opportunities to replicate this study in the future. The environmental initiatives used in this case study have not been communicated as widely as their responsible consumption initiatives
because the organization is still working towards further developments, such as reducing plastics. Thus, it quite likely that in the coming years, there will be more materials available from the company to utilize in future studies.
Additionally, it would be interesting to compare different types of CSR campaigns among competing brands in the industry, as to determine if certain messages from different brands elicit different levels of brand loyalty. Shifting from observing campaigns within one organization to the observation between multiples organizations in an industry can provide a broader view of the effect of CSR campaigns from the alcohol industry as a whole. Examples of comparable companies would be Pernod Ricard and Carlsberg, both of which are heavily
emphasizing their commitment to contributing to environmental sustainability through the use of paper bottles for their products.
24 Conclusion
Although the expected main effects and interaction effects of this case study were not confirmed, it was discovered that nationality and country of origin play an important role in determining one’s brand loyalty. This study hints that an international company with a presence in over 70 markets around the world still does not garner the same brand loyalty in the United States as its domestic competitors. Moreover, the question of whether certain types of CSR campaigns evoke more brand loyalty than others remains. Although the data gathered for this study does not confirm the hypothesized assumptions, the results offer further improvement for future studies to determine if sustainability initiatives in the beer industry play a role in consumer loyalty.
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33 Appendix A: Conditions
34 Condition 2: Informationally centered responsible consumption initiative
35 Condition 3: Visually centered environmental initiative
