THE IMPACT OF CAUSE RELATED MARKETING ON CUSTOMER LOYALTY: A CASE STUDY ON CAUSE FIT AND SWITCHING BARRIERS FOR RETAIL BANKS

Brian R. Hoyt

Todd McCullough

Erica Callihan

Ashley Van Bibber

Ohio University

ABSTRACT

This case study was designed to examine the impact cause-fit has on switching barriers as

a measure of customer loyalty. The case study used survey results from 320 respondents measuring

the relationship between CRM efforts of the retail community banking sector and customer loyalty

as defined as intentions toward switching. The design included measures of cause-fit as a mitigating

factor on the influence of CRM on customer loyalty.

The findings suggest that community members who have strong positive attitudes toward

social causes have statistically stronger loyalty attitudes toward organizations that support social

causes than respondents with less positive attitudes toward social causes. Findings also suggest

that community members who perceive strong cause-fit (banks and social causes) have statistically

stronger loyalty attitudes toward those organizations than those respondents with weak cause-fit

perceptions. In addition, community members who support specific children’s social causes

expressed strong loyalty attitudes toward retail banks involved in social causes. Findings have

implications for service providers who use CRM to enhance brand image and strengthen customer

loyalty.