Effectiveness of Certification Seals How certification seals influence the attractiveness of an organization

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Effectiveness of Certification Seals

How certification seals influence the

attractiveness of an organization

By: Erwin Gelens

S1891677

December 2011

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Master Thesis

Effectiveness of Certification Seals

By: Erwin Gelens University of Groningen Msc BA Marketing Management

December 2011

1st Supervisor: Drs. G.F. Haanstra 2nd Supervisor: Dr. K.J. Alsem

Godfried van Seystlaan 6 3703 BS Zeist

06-50807623 gelenserwin@hotmail.com

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Preface

This Master thesis is written for my graduation, which is part of my Master Business Administration Marketing Management, at the University of Groningen.

This Master Thesis will present the results from the research about the effectiveness of certification seals. I have worked at the CRF Institute, the organization that is responsible for the Top Employers Certification seal for more then 5 months. In this period I have learned a lot about the usage of certification seals.

I would like to thank the CRF Institute, for giving me the chance to graduate on this topic and offering me a place at their company for my internship. In particular I would like to thank my supervisor, Martine Nicolaij for her support and valuable feedback during this process. I would also like to thank my supervisor of the University of Groningen, Drs. Gert Haanstra, for his support while writing my master thesis. I appreciated his (practical) feedback and direct communication. Furthermore I would like to thank Dr. Karel Jan Alsem for his final feedback, this enabled me to critically look at the whole process. His feedback was most valuable to bring the content of this thesis at a higher level.

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Management summary

The use of certification seals (provided by third-party organizations) is getting more popular. With certification seals organizations are able to increase their credibility and level of attractiveness, because they are certified by an independent source (third-party organization). Although, certification seals are getting more popular, the topic received minimal attention in the current literature. Research has been don into the effectiveness of general certification seals (on for example products or services) and factors that affect the effectiveness of certification seals. However, their researches show contradicting results about the effectiveness of certification seals. This thesis will contribute to the existing literature, first to analyze if certification seals are able to positively increase the level of attractiveness of an organization and second to analyze which factors contribute to the effectiveness of certification seal. Because of the limited research on this topic, this research can lead to new insights about the use of certification seals and therefore contribute to the existing literature. By using literature the variables are identified, that measure the effectiveness of certification seal. The above literature is used to formulate the main hypothesis if the use of a certification seal has an effect on the attractiveness of an organization. The other variables that measure the effectiveness of certification seals are credibility, quality of the firm, familiarity and the level of involvement of young professionals.

To test the effectiveness of certification seals, an experiment was carried out. 313 respondents were divided into 8 cells (test groups). The 8 cells contained 4 organisations without the information that they hold a certification seal and the same 4 organisations with information that they hold a certification seal.

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Friedman, (1997), Beltramini and Stafford, (1993), Yang et al, (2006), and Parkinson, (1975). Research about the level of trust (H2a) showed that there was no evidence found that the use of a certification influences the level of trust in an organization. This hypothesis is rejected because the ANOVA test showed a p-value of 0,667 when comparing the two groups (with and without certification seal). This is contradicting to the results of the research of Yang, et al (2006) which stated that the level of trust can be increased by certification seals. However, a regression analysis showed that the level of trust (p-value: 0,000), expertise (p-value: 0,000) and independence (p-value: 0,000) in the third-party organization has a significant positive influence on the perceived level of credibility of the certification seal. This is in line with the research of Anders, et al (2010), and Pelsmacker, et al (2004). H3 is supported: a certification seal has a positive effect on the attractiveness of an organization when the organization is perceived as a high quality firm because the ANOVA test showed a p-value of 0,000 (when comparing the quality of the firms). These results support the statement of Dean and Biswas, (2001) that certification seals are more effective when used by high quality firms. H4 is not supported: there is no significant influence (p-value: 0,114) on organizational attractiveness if respondents are familiar with the certification. There was no evidence found (p-value: 0,137) that disposition of certification seals positively influences the credibility of the certification seal. And there was no evidence found (p-value: 0,553) that the validation of certification seals positively influences the level of trust in an organization. This is different than the results of the research of Jian, et al (2008). The outcomes of H5 showed that there is not a significant difference in the level of involvement (p-value: 0,647) of the respondents when looking at the level of attractiveness of an organization with a certification seal. This does not confirm the research of Yang, et al (2006).

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Table of contents Management summary ... 3 Preface ... 3 1. Introduction ... 8 2. Theoretical framework ... 14 2.1 Certification seals... 14 2.2 Credibility ... 19

2.3 Quality of the firm ... 21

2.4 Involvement ... 22

2.5 Familiarity of the certification seal ... 24

2.6 Organization attractiveness ... 25

2.7 Hypothesis and conceptual model ... 27

3. Research design ... 31 3.1 Research method ... 31 3.2 Data collection ... 35 3.3 Plan of analysis ... 36 4. Results ... 39 4.1Data cleaning ... 39 4.2 General information ... 39

4.3 Effects of certification seal on the attractiveness of an organization ... 41

4.4 Effects of credibility ... 45

4.4.1 Effects of the use of the certification seal on the level of trust in an organization .. 45

4.4.2 Effects of the third-party organization on the credibility of the certification seal ... 47

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4.6 Effects of familiarity of certification on the effectiveness of the certification seal .... 49

4.6.1 Familiarity ... 49

4.6.2 Disposition of the certification seal ... 51

4.6.3 Validation of the certification seal ... 51

4.7 Effects of the level of involvement on the effectiveness of certification seals ... 52

5. Conclusions and recommendations ... 54

5.1 Summary of the results ... 54

5.2 Recommendations ... 60 5.3 Limitations ... 62 5.4 Further Research ... 63 References ... 64 Appendices ... 69 Questionnaire ... 69

Measurements for questionnaire ... 74

SPSS Output... 76

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1. Introduction

In these times of strong and powerful competition, an organization that is able to attract high-quality employees has a true competitive advantage, Birgelen, et al (2008). According to Fisher, Ilgen and Hoyer, (1979) only recently attention has been paid towards the need for the right information for an applicant about organizations and the way in which this information is collected and processed by the applicant in order to make the decision to accept or refuse a job offering. A job applicant can receive a lot of information about a job, this information can come from a variety of sources including other company‟s employees, friends, interviewers, etc. The source from which information is obtained should influence the reaction of the applicant to that information but also the level of attractiveness of the organization.

A source that can be used for applicants when searching for a new job, are certification seals. These certification seals can inform the applicant that the company has achieved high standards in, for example, HR policy. This research will focus on the effects of certification seals. It will be the question if certification seals are able to positively increase the attractiveness of the organization. This is an important aspect, because according to Morroko and Uncles, (2008) potential employees frequently experience/suffer from receiving less information about a possible employer/organization.

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This research is valuable because the use of certification seals for organizations is increasing and the market contains important third-party endorsers who are responsible for research and providing organizations a certification seal. Two examples of these certification seals are Great Place to Work and Top Employers. The difference between these two organizations is that Great Place to Work focuses on employee satisfaction and Top Employers on how the organization performs on HR-management.

Figure 1: Great Place to Work Figure 2: Top Employers

The research will be conducted among young professionals. According to Reisenwitz and Iyer (2009), generation Y (in academic literature young professionals are named generation Y) are those that are born during the years 1977-1988. They have the characteristics as being less cynical, more idealistic, more optimistic and more attached to value tradition. Generation Y is also more used to technology and knows how to solve problems and shorten the learning curve using collaboration tools. Generation Y is the first generation in which Internet consumption is exceeding the television consumption (Riesenwitz and Iyer, 2009).

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This research focuses on young professionals because according to Carter, (2008) young professionals are the most influential generation for organizations because this generation is larger than the baby boomers, and the members have more spending power and a strong opinion at a young age. Young professionals are less satisfied with their jobs and employer than previous generations. Young professionals are more open to leaving their job for something better (Eisner, 2005). It will be a challenge for organizations to deal with a mass retirement of older employees and their replacement by young people entering the workforce (Twenge, Campell, Hoffman and Lance, 2010). Thus this research shall focus on young professionals/generation Y, because organizations are always searching for new and talented employees. The main question in this thesis will be if certification seals can help organization increase their level of attractiveness.

Background Company

This research is performed within the CRF Institute. CRF Institute is the organization behind the Top Employers certification seal. Organizations are eligible for the Top Employers certification seal if they achieve high standards based in HR – policy. The Top Employers methodology consists of research, an assessment- and certification phase and an implementation phase.

Organizations can use the Top Employers certification seal for marketing purposes. They can use it for example in recruitment or to retain and engage their employees. CRF Institute is active worldwide. Some examples of organizations that are Top Employers are:

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Research forms the core of the Top Employers project. Through objective, fact-based research, the CRF institute determines whether an organization meets the requirements to be certified as a Top Employer. Key drivers, HR practices and policies are reviewed thoroughly.

The research process consists of four steps. The first step in identifying a country‟s Top Employers is to prepare a shortlist of organizations that qualify for the research phase. This is based on a thorough market assessment made in close collaboration with leading HR partners. The second part of the research process contains the HR Best Practices Survey: in the research, all critical areas of the HR management of the participating organizations are assessed. Primary Benefits, Secondary Benefits and Working Conditions, Training and Development, Career Opportunities and Company Culture are reviewed thoroughly. In the third step of the research phase, CRF Institute reviews and audits the results. The review is executed with one or more senior (HR) managers of the organization. An independent auditor then performs an additional audit to check that procedures are followed correctly and that the ratings are based on the actual answers of participants. The last part of the research process contains the Rating and Selection: The ratings from the research phase determine whether or not the participating organization is certified as a Top Employer. Only those organizations that meet the requirements receive the Top Employers certification seal.

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Background problem

The CRF Institute wants to know how young professionals react on certification seals when an organization is communicating this. The question arises if certification seals are able to increase the level of attractiveness of an organization. The CRF Institute states that certification seals are not always seen as credible by the employers and employees. Certain participants of the Top Employers projects do not see the added value of the certification seal and therefore do not use the seal in their marketing campaigns. For the CRF Institute it is important to know how people respond to certification seals and if a certification seal is able to positively increase the attractiveness of an organization. They can use possible outcomes of this research to show participants of the Top Employers projects that the certification seal has added value to the attractiveness of the organization.

Research will be conducted into the effect of certification seals on the attractiveness of an organization among the target group of young professionals. How the certification seal is experienced, what is the impact on the level of attractiveness of the organization that present the certification seal?

Problem statement and research question

Problem statement: Do Certification Seals make a significant difference in positively

increasing the attractiveness of an organization?

Research question:

“How do young professionals perceive certification seals, and what factors of the certification seals influence the attractiveness of an organization?”

Literature lacks research on specific HR certification seals for organisations, however a lot research has been done into the effectiveness of general certification seals and factors that affect the effectiveness of certification seals. By combining the variables appointed in literature a new model can be created. To identify these variables and to answer the main research question the following sub-questions are created:

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- How do certification seals influence young professionals?

- What is the attitude of young professionals towards the organization that is holding a certification seal?

- What factors of a certification seals influence young professionals when searching for information about the organization?

o Credibility

o Quality of the firm o Familiarity

The purpose of the thesis is to provide statistical evidence for the effect of certification seals on the attractiveness of an organization. This thesis will contribute to the existing literature, first to analyze if certification seals are able to positively increase the level of attractiveness of an organization and second to analyze which factors contribute to the effectiveness of certification seal. Because of the limited research on this topic, this research can lead to new insights about the use of certification seals and therefore contribute to the existing literature. First previous literature will be discussed to better understand the effects of certification seals and to identify the variables that can be used to measure the effectiveness of certification seals. Based on this the variables that determine the effectiveness of certifications seals are identified. Based on the literature review a conceptual model is created.

Structure

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2. Theoretical framework

This study is about measuring the effect of certification seals on the attractiveness of an organization. The purpose of this study is to identify the function of certification seals and how certification seals influence the attractiveness of an organization. Therefore literature about certification seals and the factors of the certification seals that influence the attractiveness of an organization will be discussed.

First the function of certification seals will be discussed. Following to this, the factors of the certification seals will be outlined. As an overall conclusion the outcomes of the literature study will be combined to compose a set of variables, which can be used to test the influence of certification seals on the attractiveness of an organization. These results are summarized in a conceptual model.

2.1 Certification seals

Third-party organization endorsement (certification by an independent source) is getting more popular. According to Feng, et al (2008) Third-party organization endorsement ads have grown increasingly popular in recent years. Over the last years the use of certification seals has become a worldwide phenomenon (Moussa and Touzani, 2008). Organizations are able to increase the credibility of advertisement claims because the included information comes from an independent source (Third-party organization), and is approved by placing a certification seal in the advertisement or job vacancy. Feng, et al (2008) state that the certification seal can present certain characteristics that can, for example, reduce the uncertainty for persons who are applying for a job. Examples of these characteristics are expertise and trustworthiness. Miyazaki and Krishnamurthy, (2002) state that although the popularity of the use of certification seals, the effects of seals on the consumers have received minimal attention by academic researchers over the years.

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following definition of certification: “certification is the (voluntary) assessment and approval by an (accredited) party on an (accredited) standard. A key feature of a certification system is that inspections are carried out by independent bodies (third party audit) beholden to standards laid down by external organizations.”

Taylor, (1958) argues that two elements are necessary for classification of a certification seal:

1. The certification seal must certify as to the presence or absence of particular product or services characteristics

2. The certification seal must be used on the products or services of one or more organizations other than the organization who is responsible for the certification seal

According to Yang, et al (2006) certification seals are used to increase the level of trust the consumers have in organizations. To generate more trust, it is important for organizations to participate in good and trustworthy third-party programs and attempt to learn/tell consumers about the significance of the certification seals. Another benefit can be that certification experts can discover weaknesses in the structure of the organization which were not detected by internal auditors (Thorton, 2000).

Laric and Sarel, (1981) state that certifications seals are provided by many different types of institutions to products and services that meet their given standards. Examples of these institutions can be professional and technical organizations, consumers magazines, unions, independent testing laboratories, and government agencies. Laric and Sarel, (1981) proposed that the information which is provided by third party certification seals can be sort out into three categories:

1. Factual certification: The presence of a particular characteristic is certified. 2. Evaluative certification: The certification seal provides brand and attribute-

specific evaluations.

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Certification seals derive from Third-party organization endorsement. According to Dean and Biswas, (2001) third-party endorsement is advertising that integrates the name of a third-party organization and a positive evaluation of the advertised product that is attributed to the third-party organization. Another definition of third-party endorsement is provided by Wang, (2005) and defines it as “the third-party‟s opinions or evaluations about products and/or organizations that integrate the name of the third party, and a positive or negative evaluation of the product or organization that is attributed to the third party.”

Dean and Biswas, (2001) describe three types of Third-party endorsement:

1. Products or organizations are rated against competing products or organizations one ore more criteria

2. A certification seal is awarded by the Third-party organization

3. A (subjective) non comparative statement is made about one or more product attributes

The second form is an example where certification seals come from. Also, according to Dean and Biswas, (2001) this is the most visually striking form. The Third-party organization corporate logo, the graphics of the seal will activate a memory within the consumer or applicant and will draw the attention. A good example of this form is the CRF Institute (Third-party organization), with their Top Employers certification seal (seal of approval).

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Moussa and Touzani, (2008) stated that certification seals can be seen as signals that bring back problems that rise up under asymmetric information. Jahn, et al (2008) agrees with this statement and state that the most important task of a certification seal is to bring back the information asymmetry within the market.

Research has been done into the effects of certification seals by Parkinson, (1975), Miyazaki and Krishnamurthy, (2002), Yang, et al (2006), Jian, et al (2008), Laric and Sarel, (1981), Jian, Jones and Javie, (2008), Anders, et al (2010), Dean, (1999), Fireworker and Friedman, (1977) and Peterson, et al (1992). The results of these studies showed different outcomes about the effects of certification seals. These results are both negative and positive.

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exploratory studies on the understanding of consumers‟ of certification seals and the perceived believability of information with advertisement containing a certification seal. The results of the study of Beltramini and Stafford, (1993) showed that consumers do not comprehend what certification seals represent, and in most cases, consumers do not perceive the believability of advertisement claims to be enhanced by the presence of certification seals.

More detailed outcomes of their research showed that:

- The ability of a respondent to successfully identify a certification seal seemed to be depending upon the certification seal‟s source, correctness, and longevity of exposure.

- Certification seals that are in current use or have been in existence for less than then years were found to be best understood.

- The perceived believability ratings of advertisements with certification seals where higher than advertisements without certification seals. Yet, these results have provided minimal practical significance.

Beltramini and Stafford, (1993) also indicate that certification seals can be misunderstood by consumers. And to conclude, findings of their study indicated that certification seals, in general, do not raise the believability of ad claims. Consumers must also know the certification seal (familiarity). Yang, et al (2006) state that the influence of certification seals in the initial trust toward unfamiliar organizations highly depends on whether consumers are familiar with and trust the certification seal. Parkinson, (1975) agrees with this statement and state that the impact of certification seals depends on them being recognized widely and well-known.

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by consumers. Laric and Sarel, (1981) classify three categories of deceptions that can be applied to certification seals:

1. Unconscionable lie: Telling something that is factually untrue.

2. Claim-Fact Discrepancy: Phases such as accepted, approved, or recommended without sufficient explanation of the procedures mentioned in the evaluation 3. Claim-Belief-Interaction: Misinterpretation of certification seals when these are

used in a reduced form.

From the literature review of certification seals, the following variables are derived: - Credibility

- Quality of the firm (effectiveness) - Involvement

- Familiarity

- Organizational attractiveness

They will be explained with literature arguments below. 2.2 Credibility

Dean and Biswas, (2001) indicate that third-party endorsement can be unique in the ability to signal quality and inform the consumer. Or in the case of a certification seal in a job vacancy or advertisement, inform the applicant about the employer and organization. Dean and Biswas use the signaling theory to explain the signaling of quality and credibility. This signaling theory states that organizations can attempt to lower the consumer uncertainty and risk perception by sending pre (purchase) signals of unperceivable organizational/product quality. Moussa and Touzani, (2008) provide the following definition of these signals as “a marketer-controlled, easy-to-develop informational cue, extrinsic to the product itself that consumers use to form inferences about the quality or the value of a product or organization”.

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would experience damage. It can lead to a reputation loss. Thus, third-party organizations should improve the perceived trustworthiness of the ad/vacancy and the quality signal (provided that the third-party endorser is independent of the marketer) (Dean and Biswas, 2001).

According to Yang, et al (2006) companies can increase the level of trust of consumers by participating in well-known and trustworthy third-party certification programs. These programs can help to learn consumers about the significance of the certification seals.

According to Anders, et al (2010) organizations that are responsible for the certification of other organizations must be competent, independent, and credible to verify and certify compliance. Their research concluded that credible signals in het market critically depend on the ability of third-party organizations to create a positive reputation to their certification service. This critically depends on how accreditation is gained and maintained. Anders, et al (2010) point out that the credibility of third-party organizations depends on the independence and objectiveness of the certifier.

According to the research of Pelsmacker, et al (2004) the credibility of the certification seal (represented by the endorser) is an important issue, and may be more important than complete information.

Gotlieb and Saral, (1991) Dean and Biswas, (2001) and Hovland et al, (1953) have indicated that source credibility has two fundamental dimensions:

1. Expertise (accurate knowledge)

2. Trustworthiness (unbiased communication of knowledge)

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According to Dean and Biswas, (2001) an expert who also perceived to be trustworthy is able to generate the most opinion change, but a trustworthy individual was persuasive, whether expert of not. Also according to their research, third-party endorsement was argued to be unique in the ability to signal product/organization quality and to inform the consumers.

Moussa and Touzani, (2008) conclude that the credibility of the certification seal is likely to depend on the awarder‟s credibility. To be credible, a certification seal must come from a third-party organization, foreign to the organization that is showcasing the seal, competent and not all interested in sale/profits of the organization that is holding the certification seal.

Erdem and Swait, (2001) have stated that the credibility of a brand signal is most likely the most important characteristic. The signaling theory suggests that signal credibility specifies whether a market signal express information effectively. Also according to Fisher, Ilgen and Hoyer, (1979) credibility is a very important variable to the extent that it gives the signaling means the power. A highly credible signal can be able to influence consumer perceptions by creating a set of representations that can explain the overall perceived quality and purchase/applying for a job intention. According to Carpenter and Larceneux, (2008) the existence of an independent third party has the potential advantage of signaling the credibility that is necessary for it to be a justified efficient strategy. 2.3 Quality of the firm

The research of Dean and Biswas, (2001) describes the effectiveness of third-party endorsement as quality signals. They concluded that signaling theory (Signal theory: suggests that endorsement should have a “bonding” component to be credible) and the economics of information framework (explained below) suggests perceived quality and information value of the ad is most likely to be affected by Third-party endorsement, and indeed, these variables contributed the most to the endorsement main effect.

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time spent searching for correct and valuable information. Consumers will inform themselves about offerings only to the point that the marginal costs of gathering information more information equals or exceeds that marginal return. Third-party endorsement can provide information about the employer and be perceived as cost-efficient guide to employer information. For example, the Top Employers certification seal can provide information about an employer and can reduce the time searching for valuable and correct information for an applicant.

The research of Feng, et al (2008) agreed with the findings of Dean and Biswas (2001). When a third-party endorser was being perceived as honest and endorsed a few high quality organizations, a separating equilibrium occurred. Then third-party endorsement was a signal of high quality. In a separating equilibrium consumers can distinguish high-quality organizations from low-high-quality organizations.

A pooling equilibrium occurred when a third-party endorser was dishonest and endorsed high quality firms as well as low quality firms, and then a third-party endorsement was not a signal of high quality. In a pooling equilibrium consumers cannot distinguish between high-quality organizations and low-quality organizations. Thus, when a separate equilibrium occurs, an organization‟s strategy is a signal, when a pooling equilibrium takes place, the strategy is not a signal. The findings Feng, et al (2008) suggests that third-party endorsement via a certification seal that high quality firms most benefit from a third-party endorser which is seen as being honest, because this type of endorsement can function as a signal of high quality (Feng, et al 2008).

2.4 Involvement

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certification seal. According to Petty, et al (1983) High involvement attitudes in response to an advertisement would be affected via the central route, but under low involvement attitudes would be affected via the peripheral route. The central route shows factors such as:

- Cognitive proof of attitude incompatible behavior

- The comprehension, learning, and retention of issue- or product relevant information

- The manner in which a person combines and integrates issue- or product-relevant beliefs into an overall evaluative reaction

The peripheral route emphasize do not occur because an individual has personally considered the pros and cons of the issue, but because the attitude issue or object is associated with positive or negative cues, or because the person makes a simple inference about the essentials of the advocated position based on various simple cues in the persuasion context.

The quality of arguments contained in a message has had a greater impact on persuasion under conditions of high rather than low involvement. Peripheral cues such as the expertise or attractiveness of a message source have had a greater impact on persuasion under conditions of low rather than high involvement (Petty, et al 1983). Example: a person who is not purchasing a new refrigerator at the moment (low involvement) will not expend the effort required to think about the product-relevant arguments in the ad, but may instead focus on the attractiveness, credibility, or prestige of the product‟s endorser (peripheral route).

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2.5 Familiarity of the certification seal

Jian, et al (2008), performed a research into the logo display and concluded that logos are useless when consumers are not familiar with the third-party seals or do not notice or comprehend the logo display.

Jian, et al (2008) proposed a model with factors that influence the perception of certification seals. The following factors are mentioned:

1. Intensity of the logo exposure

2. Disposition to third-party certification 3. Logo Validation

Intensity of the logo exposure:

This means how many identifying logos a person has seen before. According to Jian, et al (2008) noticing certification seal logos should have a positive impact on a consumer‟s perceptions of these logos. If the consumers are frequently exposed to logos and have low involvement or knowledge, this exposure will be processed as a peripheral cue and should be able to create more positive associations.

Disposition to third-party certification:

This is the extent to which an individual is willing to depend on third-party certification for (trustful) information. The outcomes of the research of Jian, et al (2008) showed that the consumer‟s general disposition to third-party certification has a positive effect on the consumer‟s perception of the identifying logos.

Logo Validation:

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2.6 Organization attractiveness

According to Highhouse, Lievens and Sinar (2003), organizational attractiveness can be reflected in an person‟s affective and attitudinal thoughts about certain organizations as potential places for employment. This research focuses on the effects of a certification seal on organizational attractiveness because recognizing if there are factors of a certification seal which determine organization attractiveness and job choice of qualified individuals has become increasingly important, since this is viewed as a major source of competitive advantage (Turban and Greening, 1996).

This research focuses on organizational attractiveness because it is a good indicator of actual application and job choice decision in later stages and it can be measured in an early recruitment stage. According to Hoye & Saks (2010), organizational attractiveness means an individual‟s attitude toward an organization as an employer, as expressed by a typical item such as “This organization is attractive to me as a place for employment”.

Because the main use of the certification seal used in this research is about recruitment, the image of an organization as an employer consists of individuals‟ impressions of an organization as a place to work. According to the research of Hoye & Saks (2010), persons who are searching for a job are more attracted to organizations with a more favorable image.

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2.7 Hypothesis and conceptual model

After the variables are identified, a conceptual model can be presented. The purpose of this research paper is to identify if certification seals have an effect on the attractiveness of an organization, perceived by young professionals. To measure this, the variables of certification seals have been determined. These variables will be integrated into one conceptual model, which will explain the relations between certification seals and the attractiveness to organizations.

In the previous sections the variables of certification seals have been identified. However before a conceptual model can be identified it also has to be considered if there are relationships between these variables. It has been found that consumer‟s certification seals have an effect on the attractiveness of an organization.

According to research the effects of certification seals on organizations can be both negative and positive. The research of Fireworker and Friedman, (1977) showed significant positive effects of the use of certification seals. Parkinson, (1975) agreed with Fireworker and Friedman and stated that various seals of approval significantly influence a consumer‟s choice, but are often misperceived that they have a greater meaning. The study of Beltramini and Stafford, (1993) followed this line and concluded that the believability of advertisement cannot be enhanced by the presence of certification seals. Contradicting to these findings Dean, (1999) suggest that third-party endorsement may have significant positive effects, but more research is required to determine the most optimal conditions for the use of certification seals. According to the research of Beltramini and Stafford, (1993), Yang et al, (2006) and Parkinson, (1975) the impact and effect of certification seals depends on the way certification seals are recognized and consumers are familiar with and trust the certification seal. Therefore based on the above conclusions the main hypothesis is:

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Certification seals have the ability to show credibility and inform the consumer. Yang, et al (2006) state that organizations can raise the level of trust of consumers by participating in famous and trustworthy third-party certification programs. But if certification seals want to be perceived as being credible, the organization that are responsible for the certification (third-party endorsers) need to be independent, objective, competent and credible (Anders, et al 2010). Credibility is a very important variable of the certification seal, according to Pelsmacker, et al (2004) the credibility of certification seals is even more important than offering complete information about the seal. Source credibility can be divided into two dimensions: expertise and trustworthiness. If a third-party organization is perceived as being an expert and trustworthy their certification seal will have a more positive effect. Based on these assumptions, it is hypothesized that1:

H2a: The use of a certification seal will have a positive effect on the level of trust in an organization.

H2b: The level of trust in a third-party organization has a positive influence on the credibility of a certification seal.

H2c: The more a third-party organization is perceived as being an expert, the higher the level of credibility of the certification seal will be.

H2d: If the third-party organization is being perceived as independent, the certification seal will be judged to be more credible.

According to Dean and Biswas, (2001) certification seals are able to signal quality. But, certification seals are only effective when used by high quality firms. When low quality firms use certification seals the effect is lower. Based on these assumptions, it is hypothesized that:

H3: A certification seal has a positive effect on the attractiveness of an organization when the organization is being perceived as a high quality firm.

1_{H2a is focussed on the effects of a certification seal on the level of trust in a}

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According to Jian, et al (2008) when consumers will notice the certification seal logos this will have a positive impact on the consumers‟ perception of these logos. When the consumer is frequently exposed to the logo and has low involvement or knowledge, this exposure will be processed as a peripheral cue and should create positive associations. Also Jian, et al (2008) stated that the logo disposition (the extent to which a person is willing to depend on third-party certification for trustful information) plays an important role. Another factor of the display of a logo is the logo validation. Logo validation is if a person will check the source of the certification seal. For example, this can happen when a person knows that Ahold is a Top Employer (certification seal) and want to check which organization (third-party organization: CRF Institute) is responsible for the Top Employer certification seal. Based on these assumptions, it is hypothesized that:

H4a: If a young professional is familiar with the certification seal, the certification seal will be more effective.

H4b: The young professional’s general disposition to third-party certification has a positive effect on the consumer’s perception of the identifying logos.

H4c: The increased effort to validate a third-party certification seal will be positively related to the trust transfer to the certified organization.

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Based on this assumption, the following is hypothesized:

H5: When young professionals are highly involved (actively searching for a job), a certification seal will have less effect compared to young professionals that are of low involvement.

The hypothesis can be defined in the conceptual model that is presented below (figure 1). Based on the literature part, the variables are presented in a conceptual model.

Figure 3, Conceptual model

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3. Research design

This chapter describes the research design that is used to answer the research question. The research design is the blueprint for conducting the marketing research project. It had the goal to obtain the information needed to solve the marketing research problem. With this research design, the researcher was able to conduct the marketing research project effectively and efficiently. The purpose of this research was to provide statistical evidence on the influence of certification seals on the attractiveness of organizations. In this chapter their will be explained how the research was conducted (research method) how the data was collected (data collection) of how the data was analyzed (plan of analysis).

3.1 Research method

The research was conducted via an online questionnaire. Respondents had to fill in questions about organization attractiveness in combination with the use of a certification seal. The respondents were divided into two groups:

Procedure

Group one did not received a treatment (was not manipulated) and respondents had to

answer questions about the attractiveness of an organization and if they would like to work for the company in the near future. The questions were based on statements. Respondents had to fill in a five point Likert scale (1 strongly disagree, 5 strongly agree). An example of a statement is: In my opinion, this company is a good place to work.

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Management. The research certification is based on Primary Benefits, Secondary Benefits, Training & Development, Career Opportunities and Company Culture. The certification seal demonstrates that organization X offers their employees good Primary and Secondary Benefits and working Conditions”. This text is a explanation of the benefits/use of the certification seal. The text is used because it is the essence of the use of a certification seal. The certification seal represents these characteristics (excellent HR conditions) which could result in a more attractive organization. Also because the respondents are of low involvement and do not know a lot about certification seals for being a good employer, this extra information is necessary to provide the respondents information about certification seal.

The two groups were also divided into four different subgroups. Test group 1 (no manipulation) was divided into four groups, where every group is confronted with a different organization. The same is applied to test group 2 (with manipulation), where the respondents were divided into four groups, and every group was confronted with the same organizations from test group 1, only now with the information that the organization holds a certification seal.

Four organizations were carefully selected by the researchers based on differences in the factors relevant for this research. In order to avoid biased due to a difference in corporate image and a-priori respondent attraction to the organizations involved, two well-known and two relatively unknown organizations were included in the research.

The well-known organizations are: - Ahold

- SNS Reaal

The relatively unknown organizations are: - Eriks

- NCIM Groep

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they are well-known under the population. This was checked by asking the respondents if the organization is well-known in the questionnaire. The researcher chose four different organizations to measure the impact of the awareness and quality of the firm. This was possible with the chosen four organizations. More organizations would lead to more information and required more analysis, because of the limited time for this research only four organizations where chosen.

Group 1 was divided into 4 subgroups, the subgroups were confronted with the following organizations:

- Subgroup 1: Ahold - Subgroup 2: SNS Reaal - Subgroup 3: Eriks

- Subgroup 4: NCIM Groep

Group 2 was also divided into 4 subgroups, the subgroups were confronted with the following organizations:

- Subgroup 5: Ahold (including information about the certification seal) - Subgroup 6: SNS Reaal (including information about the certification seal) - Subgroup 7: Eriks (including information about the certification seal)

- Subgroup 8: NCIM Groep (including information about the certification seal)

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In the second part of the questionnaire both groups had to react on general statements about certification seals, third party endorsement and the level of involvement of the respondents (searching for a new job). For example:

- I am familiar with certification seals for outstanding HR policy.

- I attach value to organizations with certification seals for outstanding HR policy. - An organization with a certification seal is more trustworthy for me.

- I am actively looking for another job.

Figure 4, Visualization of the respondent‟s distribution

Causal research

This research was a causal research. According to Malhotra, (2010) causal research is used to obtain evidence of cause-and-effect (causal) relationships. Causal research is appropriate for the following purposes:

1. To understand which variables are the cause (independent variables) and which variables are the effect (dependent variables) of a phenomenon

2. To determine the nature of the relationship between the casual variables and the effect to be predicted

The following steps are taken in the causal research:

 Determination of cause-and-effect relationship: the effect of the certification seal on the attractiveness of an organization.

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 Measuring the effect on dependent variable: attractiveness of an organization

 Control of other mediating variables: credibility, familiarity, effectiveness and involvement

 Experiment: online questionnaire with manipulation 3.2 Data collection

Participants

The research was conducted among young professionals. Young professionals are characterized as having the age from 21 to 35 and are highly educated, which means that they have a bachelor (applied science or university) or master‟s degree. The group of respondents are tested by filling out an online questionnaire. The questionnaire contained questions related to the identified variables. As mentioned before, the group was split into 2 main test groups to test the effects of a certification seal. The sample size of every group was big enough so that there were no differences between the two test groups.

The target sample size was aimed at a minimal of 240 respondents (120 per test group and 30 per subtest group). This sample size is based on prior research. Dean, et al (2001) did a similar research about the effects of Third-Party organization endorsement, and they used a sample size of 229 respondents, with 10 experimental groups with a minimal of 20 respondents and a maximal of 25 respondents per group. The research of Dean (1999) about different types of endorsement is also similar to this research, and used 185 respondents. Dean (1999) also used 8 test groups containing cells ranging from 22 to 24 subjects each. Yang, et al (2006) did research about the display of third party logo on websites and used 160 respondents. Miyazaki, et al (2002) performed a research about the effects of different types of seals of approval on the internet and used 204 respondents. Based on these articles, to be sure of enough respondents, this research will target a sample size of a minimal of 30 respondents per test group, which will be a total of 240 respondents.

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the researcher and might have information about the research or the activities of the researcher at the company. So by approaching the indirect social network the respondents were not influenced.

Sampling design

The following steps were taken:

1. Target population: Element: Male or female young professional; Extent: the Netherlands; Time: Period of the survey is September 2011.

2. Sampling frame: Respondents were approached via the indirect social network of the researcher.

3. Sampling technique: Simple random internet sampling with modification to exclude persons who are not in the target population.

4. Sample size: 313 (minimal of 120 per test group and minimal of 30 per subtest group)2

5. Execution: The network of the researcher was used to approach the respondents. The questionnaire was programmed in MWM23, and the target population was able to fill in the questionnaire online.

3.3 Plan of analysis

Based on the prior research which discussed the influence of certification seals on organizations this paper will continue on this research. Thereby the purpose of this research paper is to provide statistical evidence for the influence of certification seals on the attractiveness of organizations.

The questionnaire contained questions on the variables (discussed in the literature part) which determine the effect of certification seals on the attractiveness of an organization. The data which was obtained from the respondents will be analyzed for significance and used for modeling the relationship between the variables (credibility, effectiveness, familiarity and involvement) and its effect on the certification seal. Based on the results

2_{Based on table 11.2 Marketing Research, (Malhotra, 2010)}

3_{MWM2 is an ESOMAR-member (European society for Opinion and Market research), MWM2 works in}

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conclusions will be drawn on which variables of the certification seal have most influence on the effects of the certification seal and on the attractiveness of an organization.

Measures

The independent variables that were tested in this experiment are credibility, quality of the firm and familiarity. The dependent variable in measuring the effectiveness of certification seals is the attractiveness of an organization. The IV and DV are measured according to the following tests:

- The DV is measured with an ANOVA test (H1)

- The level of trust in an organization (credibility) is measured with an ANOVA test (H2a)

- The level of trust in the third-party organization (credibility) is measured with a regression analysis (H2b,c,d)

- The effects of the quality of the firm is measured with a ANOVA test (H3) - Familiarity is measured with a ANOVA test and regression analysis (H4) - Involvement is measured with a ANOVA test (H5)

It is assumed that the respondents are of low knowledge about the object (certification). According to Malhotra, (2010) if respondents are not very knowledgeable or involved with the task, fewer categories should be used. Therefore for the purpose of this research a five point Likert scale will be used. Using a different scale in the questionnaire can confuse the respondents. Using one scale will result into a clearer and better structured questionnaire, and will not confuse the respondents when answering the questions. In table one the questionnaire measurement is presented4. A non forced scale (5 point Likert scale) is used because according to Maxell, (1972) forcing respondent intro an agree or disagree format is likely to cause difficulty for many respondents. Also Maxwell, (1972) stated that by forcing respondent, the results will be less realistic and more misleading.

4

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The independent variables are measured by a 1-5 disagree/agree scale. By using this scale respondents are asked if they agree or disagree with stands which are provided in the questionnaire. A Likert scale is a measurement scale with five response categories with the rang from “strongly disagree” to “strongly agree,” that requires the respondents to chose a degree of agreement or disagreement with each of a series of statements related to the stimulus objects, (Malhotra, 2010).

The data are typically treated as interval. Thus, the Likert scale possesses the characteristics of description, order, and distance. The questionnaire of this research will control both positive as negative statements. The reason for having both positive and negative statements is to control the tendency of some respondents to mark one or the other end of scale without reading the items (Malhotra, 2010). The advantage of the Likert scale is that is easy to construct and administer. Respondents readily understand how to use the scale, making it suitable for electronic interviews, which is the method used for this research. Finally the significance of the coefficients will be evaluated. A confidence level of 95% is assumed in testing the significance.

The data was first analyzed by a Cronbach Alpha test. This test will indicate whether the variables are significant and will be used to measure the internal consistency and reliability of the sample. This coefficient varies from 0 to 1, and a value of 0.6 or less, generally indicates unsatisfactory internal consistency reliability. Then the means of the variables were tested. This is necessary to support the hypothesis. In the last part of the results, a regression analysis and ANOVA were performed to see if the independent variables are significant. With the regression analysis it is possible to analyze the relationship between the dependent variable (attractiveness of organization) versus the independent variables (the use of the certification seal, credibility, quality of the firm, familiarity and involvement). But there should be taken into account that according to Malhotra, (2010) we can never prove that X (certification seal) cause Y (attractiveness of the organization). At best, we can only infer that X is one the causes of Y in that it makes the occurrence of Y probable.

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4. Results

In this chapter the results of the experiment are presented. Respondents were contacted via the internet to fill in the questionnaire. More information about this process can be found in chapter 3. More than 340 respondents filled in the online questionnaire. This chapter will present the research results per hypothesis.

4.1 Data cleaning

First the researcher cleaned the data. The researcher used an advanced online research tool (MWM2) which was able to automatically filter the respondent that did not fit into the target group. For example, if a respondent filled in 38 for the age question, the respondent was automatically sent to the end of the questionnaire and deleted from the total respondents. So the characteristics of the respondents who are excluded were persons that did not fit into the target group. Also there were a number of respondents who answered every question with a 3 (neutral) and filled in the questionnaire to fast (average time of 30 seconds). These respondents were excluded because it is necessary that every respondent read the information about the organization, the certification seal and the third-party organization which was provided in the questionnaire. With an average fill in time of 30 seconds, the respondents could not have read this information and therefore their answers do not have value for this research.

4.2 General information

The data cleaning resulted in a final sample of 313 respondents (48.2 % of respondents were woman, 51.8 % men).

Gender Number Percent

Female 151 48,2%

Male 162 51,8%

Total 313 100,0%

Table 1: Gender

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Education Number Percent

HBO 194 62,00%

University Bachelor 38 12,10%

University Master/ PhD 81 25,90%

Total 313 100,00%

Table 2: Education

The 313 respondents were divided into 8 cells (test groups). The online questionnaire tool (MWM2) automatically divided the respondents into the 8 cells. When a respondent entered the questionnaire, the research tool assigned a number (ranging from 1 to 8) to this respondent. Based on the assigned number, the respondent was directed to the appropriated cell. Each of the 8 experimental cells contained data from a minimum of 35 to a maximum of 46 respondents. A SPSS analyses was conducted to confirm that there were no differences between the group based on the important characteristics age, gender and education. The average age of the 8 cells ranged between 26,86 and 28,50, the average gender ranged between 1,49 and 1,62 (1: female, 2: male) and the average education level ranged between 6,33 and 6,89 (6: HBO, 7: WO Bachelor, 8: WO Master). Based on this information, there can be concluded that there where no crucial difference between the respondents in the 8 cells.

The 8 cells contained 4 organisations without the information that they hold a certification seal for being a good employer and the same 4 organisations with information that they hold a certification seal for being a good employer. In the research design two well-known and two relatively unknown organizations were chosen. The organizations were not pretested on the level of awareness, this was based on the assumption of the researcher. The assumption about the level of awareness was tested in the questionnaire. The results below show that the assumption of the researcher was correct.

I know this organization

Group Mean SD

Group 1: Ahold (without seal) 4,33 1,040 Group 5: Ahold (with seal) 3,81 1,177

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Table 3: Awareness

According to standard deviation (biggest std. deviation has to be smaller than the smallest std. deviation multiplied by 2) it is allowed to use an ANOVA test to test if the above level of awareness significantly differs per organization. The ANOVA test5 confirms that there is a significant difference between Ahold and SNS (Two well-known organizations) and Eriks and NCIM Group (Two relatively unknown organizations).

4.3 Effects of certification seal on the attractiveness of an organization

First the variables are presented that measure the attractiveness of the organization. These variables were derived from the literature part. The variables will first be presented together with the mean and the standard deviation. This will give an insight into the differences between the groups (the four organizations without the certification seal and the same four organizations with the certification seal). Each of the 8 test groups had to answer the same questions to test the variables of attractiveness. After this general information a Cronbach Alpha test is performed to test if it is allowed to combine the attractiveness variables to one variable to measure the attractiveness of the organizations. After this, an ANOVA test is performed to test if the two groups (group 1: organizations without certification seal, and group 2: organizations with certification seal) significantly differ from each other based on the attractiveness. This is to test the main hypothesis 1:

The use of a certification seal has an effect on the attractiveness of an organization. Also

a one-way ANOVA test is performed to analyze if there are differences between the 8 test groups. A post-hoc test (Bonferroni) is used to check which groups significantly differ from each other.

5

In Appendix SPSS Output 1, the result of the SPSS test is presented

Group 2: SNS (without seal) 3,33 0,888 Group 6: SNS (with seal) 3,43 0,919

Average SNS 3,38

Group 3: Eriks (without seal) 1,48 1,167 Group 7: Eriks (with seal) 1,54 1,381

Average Eriks 1,51

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Mean of variables

Questions Group 1 (Ahold without seal) Group 5 (Ahold with seal)

I think this is an attractive organization 3,88 3,78 I think this is a sincere organization 3,47 3,42 I think this is a competent organization 3,95 3,92 I think this organization has prestige 4,09 3,75 I would accept a job with this organization 2,53 2,94

Average 3,584 3,562

Questions Group 2 (SNS without seal) Group 6 (SNS with seal)

Average 2,966 2,906

Questions Group 3 (Eriks without seal) Group 7 (Eriks with seal)

Average 2,914 3,222

Questions Group 4(NCIM without seal) Group 8 (NCIM with seal)

Average 2,664 3,274

Organizations without seal Organizations with seal

Average mean of groups 3,032 3,241

Table 4: variables of organization attractiveness

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Cronbach Alpha to combine the variables of organization attractiveness

The following variables measure the attractiveness of the organization: - I think this is an attractive organization

- I think this is a sincere organization - I think this is a competent organization - I think this organization has prestige - I would accept a job with this organization

A Cronbach Alpha test is performed to test if it is possible to combine the above variables to one variable of organization attractiveness.

Cronbach Alpha N of items

,795 5

Table 5: Cronbach Alpha test

The Cronbach Alpha test shows a result of 0,795.So this result shows satisfactory internal consistency reliability. The above variables are combined to one variable of organization attractiveness.

ANOVA test for measuring organization attractiveness

An ANOVA test is performed to analyze if there is a significant difference in the organization attractiveness between an organization with a certification seal and an organization without a certification seal.

Certification seal Mean Std. Deviation N

No 3,05 ,689 163

Yes 3,24 ,776 150

Table 6: Descriptive results of organization attractiveness variable

Based on the mean an organization with a certification seal is more attractive than an organization without a certification seal.

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certification seal (group 1: without seal, group 2: with seal). The ANOVA test6 showed a result of 0,023. This is below 0,05 which means that there is a significant difference between group 1 (without certification seal) and group 2 (with certification seal) based on organizational attractiveness.

For a more detailed overview the five variables of organization attractiveness are analyzed separately to check if these variables significantly differ when an organization holds a certification seal or not. These findings are summarized in the table below.7

Group 1: Without certification Group 2: With certification

Variable Mean Std. Deviation N Mean Std. Deviation N Sig. Attractive organization 3,06 1,029 163 3,36 1,076 150 0,013 Sincere organization 3,19 0,828 163 3,41 0,956 150 0,033 Competent organization 3,48 0,740 163 3,56 0,894 150 0,379 Prestige organization 3,29 0,921 163 3,36 0,936 150 0,496 Accept a job 2,23 1,194 163 2,51 1,236 150 0,042

Table 7: ANOVA of variables of organizational attractiveness

One way ANOVA test for comparing the two groups

For hypothesis 1 it was necessary to compare the two groups (certification versus no certification) with each other. But testing the 8 different groups (the four organizations with and without certification) would provide valuable information. With a one way ANOVA test it is possible to see which organisations differ from each other, based on the fact if they hold a certification seal or not. For the one way ANOVA test the dependent variable is total attractiveness and the independent variable is group (group 1 to 8). The one way ANOVA showed a result of 0,0008. This indicates that there is a significant difference between the groups. But is important to know which groups significantly differ form each other based on total attractiveness. Therefore the Post Hoc Test (Bonferroni) will be used. The table with results is presented in the appendix.

6_{SPSS output is presented in Appendix SPSS Output 4} 7_{SPSS output is presented in Appendix SPSS Output 5} 8

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The focus will be on the comparison of the same organisation with and without certification seal:

- Group 1 (Ahold without certification) versus group 5 (Ahold with certification) - Group 2 (SNS without certification) versus group 6 (SNS with certification) - Group 3 (Eriks without certification) versus group 7 (Eriks with certification) - Group 4 (NCIM without certification) versus group 8 (NCIM with certification)

The Post Hoc Test, lead to the following results: Group 1 versus group 5: 1,000 sig.

Group 2 versus group 6: 1,000 sig. Group 3 versus group 7: 1,000 sig. Group 4 versus group 8: 0,004 sig.

Only for NCIM there is a significant difference (0,004) in organization attractiveness if the organization holds a certification seal. For the other organizations, the test did not show a significant difference.

4.4 Effects of credibility