THE ROLE OF QUIKSILVERS CSR EVENT

SPONSORSHIP TOWARDS CORPORATE

REPUTATION, CUSTOMER IDENTIFICATION AND
CUSTOMER PURCHASE INTENTION

Wiwien Meinur Edwinsari

NIM 1263620059

THESIS
SUBMITTED AS PARTIAL FULFILMENT OF THE
REQUIREMENTS TO ACQUIRED TOURISM MASTER
DEGREE

OF

SEKOLAH TINGGI PARIWISATA TRISAKTI

2015

CHAPTER I
INTRODUCTION

A. Research Background
MICE industry in Indonesia showed rapid growth and has become an
international industry. Indonesia began to be one as a destination that can be taken
into account by the market as a MICE destination. The presence of MICE activities
both nationally and internationally is proof of confidence of the world community for
MICE activities. The important factors that attract more customers are the steady
economic growth, political stability and improved security, government support and
adequate

infrastructure

shows

how

more

potential

MICE

in

Indonesia.

Besides to boost tourism, MICE industry is also a strong indicator for the
development of a nation. Organizing international events always require new
innovation, human resources expert personnel and also the first class service
mentality. (www.kompasgramedia.com/business/eventvenue, 2013)
In Indonesia, many companies nowadays also uses event as a tool to connect
with its customers in ways that create meaningful and long-lasting relationships. The
company like Quiksilver, Aqua, Coca Cola, Pocari Sweat, XL service provider are
some of the company that giving sponsorship to many event activities in the country
both in small or big scale of sponsorship.

The company that use event to market their products during APEC Indonesia 2013 in
the first International Conference on Sustainable Development are Sinar Mas, BNI
and BRI, those companies are the sponsors of the event seminar. Beside sponsoring
the event, another way to get involve in the event are by partnering with the
organisers, which are commonly used by the media. This kind of partnership can be
benefitted by both companies, the partner and the organisers of the event.
(www.icsd.asia/press-release, 4 Sept 2013)
Over the past three decades, sponsorship has evolved from a small-scale
activity in a limited number of industrialized countries to a major global industry
(Meenaghan 1998). Examples of sponsorship, ranging from a multi-million dollar
sponsorship deal for Visa, Coca-Cola, Samsung and many other companies with the
Salt Lake City 2002 Olympic Games to the Southwest Airlines sponsorship of the
major league baseball. Sponsorship is clearly understood as a communications
instrument and therefore considered a commercial investment (Walliser 2003).
Researchers have viewed sponsorship as a powerful yet an indirect form of
persuasion (Crimmins and Horn 1996) that delivers messages in the form of
associations between a sponsor and a sponsored entity to the mind of a consumer
(Keller 2003).
The range of sponsored activities now has increased steadily, with the most
remaining important field is sports, attracting approximately three-quarters of the

total reported worldwide sponsorship expenditures in 2004 (Brand Strategy 2005).

With the rise of new form of marketing that increase consumers ability to avoid
normal advertising, intellectuals are stating that investment in the form of nontraditional advertising such as sponsorships will continue to grow in the future
(Harvey 2001).
Despite all of these indicators pointing to the need for a clear understanding of
the business value of sponsorships, marketers today remain unsure of what the return
on their investment is, how sponsorship works and how to develop an effective
sponsorship program (Harvey 2001). As Harvey (2001) notes, the words sponsored
by or the mere presence of a brand logo on the screen or in an arena can cost a
lot of money, if not millions. Until now, marketing practitioners do not seem to have
a clear justification whether that kind of media form is legitimate, and the decisions to
enter into sponsorship arrangements have often been based on the managers
instincts or on the personal sport interests of CEOs or marketing directors (ONeal,
Finch, Hamilton and Hammonds 1987).
There are several reasons for the lack of understanding of sponsorship effects.
First, part of the reason may be attributed to the lack of conceptual work that
addresses how sponsorship works (Pracejus 2004). Without a compelling theoretical
justification, findings from diverse research will only provide an incomplete picture
of how sponsorship affects consumers perceptions of a firm. Acknowledging such a

theoretical approaches to sponsorship research, Cornwell and Maignan (1998) note

that sponsorship research to date has not adopted any specific theoretical framework
that could guide investigations of consumers reaction to sponsorship (p. 14).
Second, there seems to be some confusion between the term sponsorship and other
related marketing terms such as cause-related marketing or event marketing. By
linking sponsorship with similar but different marketing terms, research has resulted
inconsistent or sometimes conflicting findings. Third, the conceptualization of the
key constructs in sponsorship research has been unclear. For example, many
researchers used the term attitude toward sponsor to cover various aspects of
sponsor image such as belief about the sponsors and/or the subjective evaluation of
firms (e.g., Speed and Thompson 2000). Some researchers even use the terms
attitude toward sponsor and the image of sponsor interchangeably (e.g., Stipp and
Schiavone 1996; Quester and Thompson 2001). Finally, there have been
methodological weaknesses involved in sponsorship research (Cornwell and Maignan
1998; Pham 1991).
Field studies appear to yield very unreliable findings, because they do not
allow for control of extraneous variables. For example, events can vary in size;
consumers can vary greatly in their involvement in and knowledge of events, and the
match between a firm and a sponsored event may also vary (Pracejus 2004). Given
the number of factors that can be involved in a sponsorship association, it is not

surprising to find inconsistent results from sponsorship research that quite often use a
field survey and interviews rather than controlled experiments or systematic surveys.
Many marketing managers are shifting some of tight promotional budgets
from traditional advertising options to event sponsorships and community-based
event marketing, as it shown by a projected six percent growth in sponsorship
investments in North America (International Events Group, 2009). This tendency is
especially decided when firms seek to demonstrate to their customer base that they
are socially responsible in this tight economic conditions and corporate scrutiny.
While consumers demand social responsibility, industry demands that marketing
peoples replace instinctive event marketing methods with quantifiable, scientific
approaches to effective event marketing and sponsorship.
Despite shifts towards community-based event marketing, questions still
remain about the consumers perceptions and the role of event sponsor's perceived
corporate social responsibility as determinants of effective event sponsorship.
Looking at the consumer theories, only little is known of how attendees' perceptions
on the sponsor as socially responsible are not cleared by their existing experience
with and knowledge of a sponsor's products. Further questions on how such product
knowledge may influence attendees' willingness to become committed customers of
the sponsor. These questions are embedded in a wider issue concerning how
sponsorships of community-based events by large, multinational firms may influence

local residents' perceptions of the firm's commitment to social responsibility. This

study examine how product knowledge may drive event attendees' perceptions of the
sponsor as more socially responsible. Such perceptions could, in turn, increase
attendees' commitment to the sponsor and intentions to buy the sponsor's products.
This study builds on extant consumer theories that explain the respective
importance of product knowledge and perception of the commitment to corporate
social responsibility on event sponsor effectiveness was done by PT. Quiksilver
Indonesia at Big Bali Eco Week-End in Kuta Beach Bali.
PT. Quiksilver Indonesia is a leading outdoor sports lifestyle company, which
designs, produces and distributes a diversified mix of branded apparel, footwear,
accessories and related products represents a casual lifestyle for young-minded
people that connect with its board riding heritage and culture of surfing,
skateboarding and snowboarding. The reputation of Quiksilvers brands is based on
different outdoor sports.
Since 2008, PT. Quiksilver Indonesia and Coca Cola Amatil Indonesia started
the initiative and conducted events related to Bali Beach Clean Up involving local
communities, Government and tourist.
This Bali Beach Clean Up program of PT. Quiksilver Indonesia is in
cooperation with PT. Coca Cola Amatil and later on Garuda Indonesia join the cause.

The Bali Beach Clean Up program is a CSR program of PT. Quiksilver

Indonesia and PT. Coca Cola Amatil which was started in 2008 aiming to reduce
rubbish along the beach in Bali, to strengthen the tourism in Indonesia and to work
together with the local people in Bali. This CSR program also supporting Balis
government to reach their goal to make Bali yang Bersih dan Hijau (Bali Clean and
Green).
This program was created because of the increasing complain by the tourists
and media coverage about how dirty & so much rubbish in Bali especially Kuta
beach. One of the publicity that made the news around the world was one of the photo
of Quiksilver Indonesian team rider Dede Suryana who surfed at Kuta Beach in the
water surrounding by the rubbish.
Kuta beach Bali is famous for its beautiful beach & waves as well as its sunset
which is one of the must visit destination for both domestic and international tourist,
if the beach and water dirty no tourist will come to enjoy it. Therefore PT. Quiksilver
Indonesia must maintain the cleanliness and environment of Kuta Beach.
Since it was started, this CSR program not just cleaning the beach but also
creating 74 new work place for the local to be employed working everyday as the
beach rubbish cleaner covering 9,7 km of the 5 main beaches in Bali.
To support the working to do their job, the companies provide 300 rubbish bin along
the beach, 3 rubbish dump trucks and 4 tractors to clean the sand from little rubbish

like cigarette butt, bottle cap etc as well as supplying the beach lifeguard with their
uniforms.
Not many people know that Kuta beach is also one of the place where turtle
always come to beach to lay their eggs and when the beach dirty no turtle will come
up and lay their eggs. Since the companies did this beach clean up, turtle start coming
back to the beach and lay eggs. The companies also build a Kuta Beach Sea Turtle
Conservation as a big hatching sanctuary to keep turtle eggs until it hatched and to
teach awareness of the locals & visitors about the wildlife on the beach. Once the
eggs hatched, the baby turtle will be released back to their environment Kuta beach
and is now becoming one of the attraction for the tourists who come and visit Kuta
Beach. This CSR program is fully support by the government, local authorities and
NGOs.
As a special reward for the local community, PT. Quiksilver Indonesia and
Coca Cola Amatil Indonesia held its first and annual Balis Big Eco Weekend in
2011. It is a weekend festival filled with environmental exhibitions & activities Eco
Village, Lifesavers Race, the famous Turtle Release, surfing competition as well as
beaches clean up.
The event was opened and by The Indonesian Minister of Environment and
attended by the Governor of Bali showing their support and get a lot of National &
International media coverage. Since then another stakeholder give commitment to

join the program to help Bali gaining more good tourism publicity so that tourist will
come back and enjoy Kuta beach in Bali Indonesia. PT. Garuda Indonesia donated 2
barber surf rack trucks in 2012 as a start of the company commitment in the CSR
program. And the agreement with PT. Quiksilver Indonesia and PT. Coca Cola
Amatil was signed in 2013 in Jakarta.

B. Research Problem
1. Problem Identification
Based on the background above, it can be identified that there is no study being
done regarding how sponsorships of community-based events by Quiksilver, a large
multi national company may influence local residents, surfing industries and tourists'
perceptions in Bali of Quiksilver's commitment to social responsibility. This study
examine how product knowledge may drive event attendees' perceptions of the
sponsor as more socially responsible. This perceptions could, increase corporate
reputation of the sponsor and intentions to buy the sponsor's products. Based on the
background of study, the title of this research will be The Role of Quiksilvers
CSR Event sponsorship towards Corporate Reputation, Customer Identification
& Customer Purchase Intention

10

2. Problem Statement
Quiksilver has been conducting CSR at Kuta Beach Bali since 2008 with its Bali
Clean Up program which involving the local community, industry, tourist and
government. However, there is no study or information whether their CSR program
plays a role in its reputation, customer identification and affecting its customer
decisions toward buying the companys product.
This study attempts to explore the previous research Lacey, Close and Finney
(2010) by answering the following principal research questions:
1. How the local people of Kuta Bali aware of PT. Quiksilvers CSR activities?
2. What is the relationship between CSR activities Event and corporate reputation?
3. What is the relationship between CSR activities Event and customer identification?
4. What is the relationship between CSR activities Event and customer loyalty
(purchase intention)?
5. What is the relationship between corporate reputation and customer identification?
6. What is the relationship between corporate reputation and customer loyalty (purchase
intention)?
7. What is the relationship between customer identification and customer loyalty
(purchase intention)?

11

Customer Purchase
Intention

Reputation

Satisfaction

Trust

Identification

(Martinez, - - - - - Bosque 2013)

CSR Event

(Lacey, Close,
Finney, 2010) - - - - -

Product Knowledge

Event Sponsorship
Effectiveness

Figure 1. Problem Tree

C. Objective of The Research

Based on the research question above, the objectives of the research are:
1. To Analyze the relationship between CSR activities Event and corporate reputation
2. To Analyze the relationship between CSR activities Event and customer
identification
3. To Analyze the relationship between CSR activities Event and customer loyalty
(purchase intention)
4. To Analyze the relationship between corporate reputation and customer
identification?

12

5. To Analyze the relationship between corporate reputation and customer loyalty

(purchase intention)
6. To Analyze the relationship between customer identification and fan loyalty
(purchase intention)?

D. Benefit of The Research

The main contribution of this study is to show how product knowledge and
perception of commitment to corporate social responsibility each plays vital roles in
determining consumers' perceptions of an event sponsor and their intentions
regarding that sponsor. The study reveals how attendees who have product
knowledge more favorable associations with the sponsor, as a result of their
attendance at the event. Corporate social responsibility (CSR) mediates this
relationship, revealing, therefore, that demonstrations of CSR favorably influence the
positive outcomes for firms that engage in successful event sponsorships. Studies
based on field data from sponsored events are relatively rare. Furthermore, as
scholars have conducted few real world, event marketing studies, these findings allow
scholars to understand better on how attendees' prior knowledge of an event sponsor's
offerings impacts event-sponsorship outcomes. This result may help event
management team to improve the service and enhance a companys reputation.

13

E. Limitation of The Research

This research was designed to find out the role of CSR sponsorship event with
companys reputation, customer identification and their purchase intention.
The Limitation of The Research are:
1. All of the research that has been done was conducted in the USA and only
limited number of other western and hardly any in ASIA countries.
2. This research only investigates the service providers in hospitality and
tourism industry in Indonesia especially in Bali. The company, Quiksilvers
event attendee's being sample which related to hospitality and tourism
industry of this research such Event scope.

14

CHAPTER II
LITERATURE REVIEW

A. Literature Review
The literature review is largely divided into five sections. The first section
provides the definition of event, explanation on the type of event and its purpose
including the overview of marketing event. The second, an overview of general
corporate social responsibility including definition, historical background, and causerelated marketing. The third section provides the corporate social responsibility in
sport society especially focusing on environment. The fourth section focuses on the
concepts of corporate reputation and customer identification. And the final section
provides the fan loyalty including purchase intention.

1. Event
1.1. Definition of Event
Events are essentially an assembly or reunion of people for private or public
celebration, ritual or remembrance. Event has evolve into a major feature for political
campaigns and businesses Events are used as a marketing tool to get a wider and
instant awareness and as a promotion tool instead of using traditional advertisement,
promotional campaign and channel of communication. (McCartney, 2010)

15

1.2. Types of events:

There are many type of events according to its purposes. (McCartney, 2010)
1.2.1. Sports Events
In the sport event there will be a competition between participants on land, air
or water, amateur or professional participation and high involvement of event
stakeholders such as participants, spectators, sponsors, media and the government.
1.2.2. Cultural
An event can be regarded as a cultural event when there are various festivals
based on religion, culture and local traditions, being held at multiple setting such as
museums, heritage sites, temples and churches, town and village squares, and open
grasslands.
At cultural events, its participant motives could be to seek the meaning and
understanding of the cultural elements therefore must be communicated to them by
providing written or verbal information.
The cultural exchange between tourists and residents provides an opportunity to
empower the local community and develop cultural tourism (Razaaq, 2003)
1.2.3. Arts
The purpose of arts event are to do concerts and performances used to
showcase local or international paintings, crafts, drawings, sculptures, dance, music,
songs and costumes. The Celebration events like award ceremonies with particular

16

focus on the arts also consider as Arts event. Arts events are about making
celebration and display which presenting opportunities to the audience to see, interact
and purchase arts and crafts. Arts Events display the intangible aspects of culture
which can create a unique distinction for the city or destination and therefore can be
used as a powerful attraction attribute in the marketing and promotion strategy.
1.2.4. Political
Events hosted by national and state governments which sometime displaying
the military forces of the nation.Political events can be local or coordinated
international visits to the country of destination. In European and Asian destination
where some monarch are still exist, events can revolve around the royal household.
1.2.5. MICE
The purpose of the events are for Meeting, Incentive Travel, Convention and
Exhibitions. Most of MICE event are for business travel.
A strategy to reward the staff for productivity and company commitment involving
leisure components is called Incentive Travel.
MICE events are a mixture of exhibitions, conventions and other parallel types of
meetings such as workshop and seminars.
1.2.6. Recreational
An event with the purpose to do fun sporting events & outings, social
activities and games.

17

1.2.7. Private
Private event is an event with the purpose to do gathering for a personal
reason like birthdays, weddings, anniversaries, parties and various other social
gatherings. The State funerals and events created around days of national mourning
and remembrance are also regarded as a private event.
1.2.8. Special Events
The purpose of the events to do product launches; opening and closing
ceremonies, and award ceremonies; beauty pageants; fund-raising and charity events.
The special events usually attracts particular attention due to their uniqueness of
theme within common calendar of yearly event, which have novelty factors and
prominence and possibility of participation of well known personalities and
celebrities. This event can attract further media attention as well as support from the
government and sponsors. (McCartney, 2010)
Goldblatt (202:pp.8-9) suggests that there are four reasons of the Special Events:
celebration, education, marketing and reunion. The primary reasons for holding
special events can be broken down into five categories: religious, political, social,
educational and commercial (Matthews, 2008)
1.2.8.1. Religious
In the ancient days, religious event is a special event which are centered on
ritual ceremonies designed to appeal to the Gods.

18

As for today, religion event continues to be one of the reasons for some special
events, particularly the affirmation of life events.
1.2.8.2. Political
Since the Roman Empire, political events were hold to demonstrate the power
of the ruler. Although today, politics does not play as a large part in a special events,
however it is still present all over the world.
1.2.8.3. Social
Social event is held to reaffirming ones status and membership in social
group or society. Examples of social events can be identified from small community
picnics on national holiday to mega event like the annual Carnival in Rio de Janeiro.
1.2.8.4. Educational
In ancient society, this special event means educating the people about their
own history and also instructing the people about the inherent dangers of not respect
loyalty to the governing body or individual or following the approved societal norm.
In the 20th century education event has taken on different context which turn to
growth into conferences and trade shows which the main reason to transfer or
exchange the knowledge.
1.2.8.5. Commercial
With the mark of technological advances in the 20th century, the primary
reason for holding special events has now become almost completely commercial.

19

It has provided work and a place of creativity energy for people.

In todays world almost every event comes back to having the primary reason for its
existence as a commercial.
An incentive theme night does not have socializing as a primary reason; in fact it has
selling the company products as the reason.

2. Corporate Social Responsibility

2.1. Definition and History of CSR
Corporate Social Responsibility is a common term used in todays business
world. Throughout the literature, a variety of definitions are presented for CSR. There
are still arguments today with the many definitions, conceptualizations, and theories
associated with CSR. In addition, the notion of CSR is continuously changing
because the scope of CSR each organization, society, and community required is
different.
The roots of CSR can be traced back to the Medieval Era. According to May
et al. (2007), various questions related to organizations impact on society have been
present for centuries. In fact, the corporate form and modern labor union were derived
from the early Middle Ages (May, Cheney, & Roper, 2007).
May et al. (2007) mentioned that as petroleum, railroad, and other companies began
to reach monopoly status, the public began to question the appropriateness of their

20

actions. The public outrage eventually led to the creation of the Food and Drug
Administration which serves to ensure corporations are in fact looking out for the
best interests of the public. Essentially, CSR is a result of industrialization (May et
al., 2007).
Although there are a number of notable scholars and organizations who wrote the
definitions of CSR, many scholars accept that CSR research began with Carroll.
Carroll (1979, 1999) stated the definition of CSR using Bowens (1956, p.6)
presentation of a definition of CSR. Bowen discussed how CSR referred to the
obligations of businessmen to pursue the policies, to make decisions, or to act in
terms of the objectives and values of our society. This definition is over 50 years old
but could still be applied to our society today.
Carroll (1979) divided CSR into the economic, legal, ethical, and
discretionary (or philanthropic) expectation that society has of an organization at a
given point in time. Carroll (1999) provided an excellent article tracing the
definitional history of CSR. He wrote ideas of CSR from past research in the 1950s
and then finished his analysis in the 1990s.
As societys values and objectives have been changed, corporations seek to
meet the proper CSR demanded by their stakeholders. After the 2000s, Sen and
Bhattachary (2001) asserted that CSR can affect customer purchase intentions.

21

Klein and Dawar (2004) showed that CSR associations could take a strong
and direct impact on consumers attributions, and in turn, also influence brand
evaluations and purchase intentions.
Ethics in Action Awards (2003) mentioned CSR is a term describing a
companys obligation to be accountable to all of its stakeholders in all its operations
and activities. Socially responsible companies consider the full scope of their impact
on communities and the environment when making decisions, balancing the needs of
stakeholders with their need to make a profit.
While numerous definitions and interpretations of the concept of CSR have
been offered and important frameworks have been developed, CSR can be broadly
understood as the responsibility of organizations to be ethical and accountable to the
needs of their society as well as to their stakeholders. CSR is not only philanthropy,
but also a holistic business mindset, such as a corporate socially responsible culture
including both social and economic interests.
In addition, CSR can be articulated in a number of business practices and
initiatives. While being a scholarly area of management, focusing most often on the
financial impacts of CSR initiatives (Margolis & Walsh, 2003), CSR also has the
potential of offering strategic direction to business leaders that want to enhance their
organizations social and economic performance.
In contrast, Scherer and Palazzo (2010) argued what they describe as a new

22

perspective on corporate social responsibility. They asserted business firms have

started to engage in activities that have traditionally been regarded as actual
government activities. While previously CSR was defined first within an economic
framework where the role of business was to maximize profits, in conditions of
globalized markets, this framework has been significantly eroded (Scherer & Palazzo,
2010).
2.2. CSR past research
Companies across all industry sectors donate millions of dollars and
contribute socially to various nonprofit organizations through CSR initiatives
including philanthropy, cause-related marketing, or volunteerism (e.g., McAlister &
Ferrell, 2002; Porter & Kramer, 2002). Many researchers have provided some
empirical support for the benefits CSR initiatives provide, particularly in terms of
consumer-related outcomes (e.g., Mohr, Webb, & Harris, 2001; Sen & Bhattachary,
2001; Mohr & Webb, 2005; Ricks, 2005). These studies suggested an overall positive
consumer attitude toward companies associating themselves with causes that benefit
society, in that companies using their resources to benefit society is clearly related to
the concept of sound business responsibility.
However, the idea of consumer perceptions, specifically how consumers react
(both attitudinally and behaviorally) to CSR, is where research on the construct has
not yet made significant steps. Most of the work done with regard to CSR has been

23

conceptual in nature and few scholarly works have examined empirically the overall
effects that CSR has on consumer perceptions or other organizational characteristics
(e.g. image, reputation, or brand associations).
Almost 30 percent of studies conducted in the field o f CSR between the years
1970 and 2000 have been on the relationship between a corporations engagement in
socially responsible business activities (i.e., social performance) and financial
performance. An analysis of these studies treated CSR business activities as causally
preceding financial performance. In a meta-analysis of the past ten years of CSR in
the financial performance literature, Orlitzky, Schmidt, and Rynes (2003) detailed the
extent to which a compendium of variables and theories influenced the link between
CSR and corporate financial performance. In addition, the number of variables
influencing the social/financial interaction included internal and external benefits not
limited to: reputation, image, environment, and strategic variables. Margolis and
Walsh (2001) questioned if CSR affects corporate financial performance; it seems
reasonable to infer this is partially the result of consumers reacting positively to such
activities.
2.3. CSR and Consumer Behavior
The studies that have been conducted on consumers reactions to CSR have
often identified as one type of socially responsible business activity and have
manipulated whether or not a false corporation engaged in this activity (Ricks, 2005).

24

The type of CSR activity, consumers support of the initiative and their beliefs about
the trade of a company makes for the sake of its CSR play a crucial role in
consumers' reactions to CSR activities (Sen & Bhattacharya, 2001). Consumers who
respond more positively to CSR activities have been found to take more
responsibility for purchasing decisions and act more responsibly in their behavior
(Mohr and Webb, 2005). If the studies about consumers reactions to socially
responsible business activity are suggestive and the specific socially responsible
business activities do have an impact on consumers attitude toward their purchase
behavior, it would be beneficial to understand more clearly how consumers
conceptualize CSR.
In summary, as Lichtenstein, Drumwright, and Braig (2004) stated, CS
initiatives may result in first, corporate benefits, including increased actual purchase
behavior and more favorable evaluations, and second, increased benefits, in the form
of consumer donations, for nonprofits involved in CSR initiatives. The benefits can
occur both directly and indirectly through customers identification with the
corporation.

3. CSR in Sports Events

The reference of CSR in sport society does not have a long history (cf. Babiak
& Wolfe, 2006; Smith & Westerbeek, 2007; Walker, Kent, & Rudd, 2007; Brietbarth

25

& Harriss, 2008). Social responsibility has become increasingly prevalent in the sport
industry. For example, the Federation Internationale de Football Association (FIFA)
has made significant investments on social responsibility. More than 40 percent of
FIFAs income goes towards supporting the grassroots of the game, development
work, and partnerships with relief organizations (FIFA, 2004, p. 66). Adidas has
launched two new corporate responsibility publications which cover working
conditions, the environment, community affairs, and employee programs (Adidas
Group, 2011).
While little formal research has been conducted on the intersection of CSR
and sports franchises, it is possible to gather information from professional and trade
journals as well as newspaper articles to show how leagues and teams face the issue.
Since a study has not yet been performed to determine how the world of sports
defines CSR, the following review will use Carrolls four-part definition to examine
the literature on sports events and social responsibility to dissect how sports teams
approach economic, legal, ethical, and philanthropic responsibility.

4. Corporate Reputation and Customer Identification

4.1. Corporate Reputation
Today, the concept of corporate reputation plays a central role in an increasing
number of studies in the management literature. Reputation is rooted in the corporate

26

historical behavior and associations but can be abruptly changed if new information
about the organizations past behavior comes to light or if the organizations latest
behaviors or associations are jarring to observers (Lange, Lee, & Dai, 2011).
Reputation is a new (but critical) component in improving the organizations
strategic positioning in the marketplace (Kartalia, 2000).
Research has shown that a positive reputation does contribute to corporate
success (Fombrun, 1996) and Mahon and McGowan (1996) inserted that the notion
of advantage can work in nonmarket place arenas like simple public opinion. By
understanding that customers formulate a perceived corporate reputation,
management can commence activities aimed at enhancing organizational standing
with its customers (Caruana, 1997).
Fombrum and Shanley (1990) argued that a favorable reputation may enable
firms to charge premium prices, enhance their access to capital markets, and attract
better applicants and investors in their research on reputation-building and corporate
strategy. Evidence in their study concluded that the greater a firms contribution to
social welfare, the better its reputation and subsequent consumer patronage.
Consumers buying decisions can be influenced by a companys social reputation
(Fitzpatrick, 2000).
Vendelo (1998) wrote that reputation serves as valuable input to consumer
decision making when they cannot invest resources in obtaining detailed information

27

about companies products, acting as a mechanism for assuring product quality,

influencing customer loyalty, and offering inimitability to the organization.
Customer loyalty has a tendency to be higher when perceptions of corporate
reputation are strongly favorable (Nguyen & LeBlanc. 2001). A positive corporate
reputation prompts consumers to believe advertising claims (Goldberg & Hartwick,
1990). Reputation research initially had to deal with the enormous differences
between the various definitions of the concept corporate reputation (Eberl &
Schwaiger, 2005). As previously noted and while certain differences exist, an
integrative definition and narrow conceptualization o f the construct is still in relative
infancy. However, it has been suggested communication and the exchange of
experiences with the organization and the overall public can provide information to
the consumer for the cultivation of reputation (e.g., Mahon, 2002). From the
communication position and resulting attitude formation, objects that are part of
experiences serve as powerful tools of reputation construction and further
compliment the communication received from other sources. Schwaiger (2004)
asserted that the two parts of reputation allow for the broadening of the construct,
which is accomplished as follows: drawing on the common knowledge from attitude
theory we can conceptualize reputation by means of both a cognitive component (i.e.,
competence) and an affective component (i.e., sympathy). The competence
component refers to the organizations ability to produce quality products, maintain a

28

stable financial platform, and address stakeholder concerns and needs; while the
sympathy component plays on the corporations socially conscious activities (i.e.,
philanthropy, volunteerism, and community development). His study identified 21
items that would account for the variance in the two reputational components. The
author stated that a problem with identifying levers for reputation was merely driven
by the public need to know which companies are admirable and that little attention
has been paid to whether corporate reputation has consequences for any
organizational outcomes or performance measures (Schwaiger, 2004).
Hammond and Slocum (1996) presented a measurement of corporate
reputations reflecting social responsibility. They proposed four attributes of the
measurement which purportedly represent a companys relations with stakeholders:
1. Quality of products and services, representing relations with customers;
2. Ability to attract, develop & retain talented people, representing relations with
employee;
3. Community and environmental responsibility, representing relations with the
environment the company operates in;
4. Quality of management, representing management of relations with stakeholders,
awareness of and pro-activity to changes in the business environment.
The model helps explain the overarching themes prevalent within the reputation
construct; only three of the four are relevant to the current investigation. Product

29

quality, community and environmental responsibility, and quality management are

applicable to consumer perceptions of the practice. Consumers would have difficulty
assessing the extent to which organizations hire and retain quality people; therefore,
this dimension will be disregarded presently but nevertheless is applicable to future
investigations. To this end, socially responsible activity will probably do little to alter
consumer perception of internal organizational processes (i.e., attracting and retaining
employees).
Reputation is related to but also distinct from corporate image, since
reputation is a more robust construct with respect to a companys time and
communicational efforts (Eberl & Schwaiger, 2005). The concept is therefore more
intimately linked to an organizations personality than the communicated image.
Recently, the definition of reputation has evolved (Walker, 2010), but a definitive
definition of the construct has yet to emerge in spite of numerous attempts to describe
and integrate the definitions in use (Lange, Lee, & Dai, 2011). Most reputation
research apply one of three theoretical approaches: resource based view, signaling
theory, or institutional theory (Walker, 2010). Walker (2010, p. 370) extends and
refines this definition of reputation by identifying five attributes: (a) it is based on
perceptions (internal and external); (b) these perceptions are from all stakeholders; (c)
reputation is inherently comparative; (d) reputation can be positive or negative; and
(e) reputation is stable and enduring.

30

4.2. Customer Identification

Sport customer identification has been studied with a lot of different sports at
many different levels, including basketball, soccer, and baseball (Wann, Dimmock, &
Grove, 2003; Rickard, Grieve, & Derryberry, 2008). Fan identification is defined as a
fan's psychological connection to a team; that is, the extent to which the fan views the
team as an extension of him or her (Wann et al., 2001). Trail, Anderson, and Fink
(2000) defined identification as an orientation of the self in regard to other objects
including a person or group that results in feelings or sentiments of close attachment
(p. 165-166). An individuals identification with a given sport team (team
identification) has also been defined as ones level of attachment to or concern about
a particular sports team (Branscombe & Wann, 1992). Objects of attachment can
vary, but sports are often characterized by high levels of consumer commitment and
emotional identification (e.g., Sutton et al 1997). Underwood, Bond, and Baer
(2001) argued that compared with other service providers, sport teams can generate
exceptionally high levels of identification among consumers.
Previous research has demonstrated a sport team does serve as a distinct
source of group identity and each team should be considered as a significant
community to fans (Wann, Melnick, Russell, & Pease, 2001). Teams may also be
regarded as part of larger social networks. Based on the theory of social capital (e.g.,
Putnam, 1993, 2000), it is reasonable to expect that an individuals identification with

31

a team may be influenced by relationships that an individual has with larger social
networks surrounding the team (e.g., James & Ross, 2004; Kolbe & James, 2000).
Fans are then members of larger social networks; by identifying communities within
the social network and linking the team to various communities, a team has the
potential to strengthen the bond between the organization and its members.
Furthermore, fan identification researchers believe that the level of identification with
an organization depends on such factors as satisfaction with an organization, the
reputation of the organization, frequency of contact, and the visibility of affiliation
(Wu & Tsai, 2008).
Researchers have found that fan identification is an important predictor of
numerous affective, cognitive and behavioral reactions in sport contexts (e.g. Wann
& Branscomb, 1993, 1995; Wann & Dolan, 1994; Wann, Tucker, & Schrader, 1996).
Research has additionally shown that highly identified fans experience intense
emotion and high levels of anxiety during and after their teams competitions (e.g.,
Hirt, Zillmann, Erickson, & Kennedy, 1992; Wann, Schrader, & Adamson, 1998).
Research strongly indicates that fan identification has a positive influence on
consumer attitudes and behaviors. From a financial standpoint, fan identification can
positively impact merchandise sales, ticket sales, and even media revenue; fostering
and maintaining team identity among fans should be one of the main goals of a sports
team (e.g., Fisher & Wakefield, 1998; Madrigal, 2000; Matsuoka, Chelladurai, &

32

Harada, 2003; Sutton et al., 1997). In addition, from a social perspective, fan
identification may positively align with the socially responsible mission of the
organization. If social responsibility can influence fan identification, then
organizations who promote community involvement and charitable giving will
contribute to stronger psychological connections on the part of their consumersenabling more positive attributes to be assigned to their brand.
Recently, although there are claims that fan identification does not enhance
performance (Gockel, Kerr, Seok, & Harris, 2008), Van, Tissington, & Hertel (2009)
indicate a direct relationship between fan identification and performance in an
experimental setting. Related to this debate, Solansky (2011) asserted in his paper the
notion that fan identification is beneficial to performance. Although not all tasks
require the skills of multiple individuals, when people are placed in a collective
arrangement that requires them to combine their skills and abilities and integrate their
actions, performance gains are realized with identification among team members.

5. Loyalty and Purchase Intention

5.1. Loyalty
A considerable volume of research of fan behavior focusing on the concept of
loyalty have been conducted and identified during the past decades. It is important to
consider the concept of loyalty in general and to know how the concept has been

33

investigated and assessed in previous research. The previous loyalty research in

consumer behavior was plagued by the use of a diverse conceptualizations and
operational definitions of loyalty that inhibited comparison and generalization of the
research findings (Backman & Crompton, 1991).
Dick and Basu (1994) stated that customer loyalty is viewed as the strength of
the relationship between an individuals relative attitude and repeat patronage.
Attitudes have been related to behaviors, although it is imperative to note that one
may hold a positive attitude toward a brand but not purchase it over multiple
occasions because of comparable or greater attitudinal extremities toward other
brands. The nature of relative attitude is likely to provide a stronger indication of
repeat patronage than the attitude toward a brand determined in separation (Dick &
Basu, 1994).
The definition of customer loyalty is individually or group continuous
purchasing behavior toward the merchandise or services of a specific company (Day,
1977; Lutz, 1986). However, Bhote (1996) believed that when customers were
satisfied with a companys products or services, they would want to promote that
company positively through word o f mouth.
Improving customer loyalty in the service aspect would increase economic
returns (Reichheld, 1996). Regarding evaluating customer loyalty, Parasuraman et al.
(1994) believed that customer behavior, intent to repurchase, and recommendations

34

through positive word of mouth should be assessed. Jones and Sasser (1995) and
Srinivasan, Anderson, & Ponnavolu (2002) classified customer loyalty according to
three primary categories: primary behavior, secondary behavior, and intent to repurchase.
5.2. Customer Satisfaction and Purchase Intention
There is also evidence to suggest that it is the satisfaction of the customer that
ultimately determines their future intentions and behavior towards the service
(Mcdougall & Levesque, 2000). Bitner, Booms, and Tetreault (1990) and Jones and
Suh (2000) found that overall satisfaction had a direct influence on how likely
customers were to re-use the product or the service.
Prior research in marketing suggested that customer value influences
customers overall satisfaction (Woodruff & Gardial, 1996) and purchase intent
(Thibaut & Kelley, 1959), and the investment model (Rusbult, 1980) suggested that
the value revived (costs and benefits comparisons) from the current relationship
influences the overall satisfaction with the current relationship and the intention to
continue the relationship. McDougall and Levesque (2000) proposed a causal path
with perceptions of service quality influencing future purchase behavior of customers.
In a sports and leisure content, Howat, Murray, & Crilley (1999) found that
satisfaction of customers was positively related to their willingness to recommend the
service. Indicators of customer retention that are invariably used to denote customers

35

intended loyalty include: the level of customer re-purchase (such as renewed

memberships), how customers willingness are to recommend the service to other
prospective customers, and customers intention to increase their frequency of
visitation.
Increased sales are often seen as the ultimate effect of corporate programs
which include sponsorship, promotions, advertising, and social responsibility. The
basis of a purchase intention is a positive and favorable attitude toward a product.
According to Fishbein and Ajzen (1975), a consumers purchase intention serves as
the mediator between their attitude toward a product and their actual purchasing
behavior. Consumer intentions have been used to investigate numerous variables
including satisfaction (e.g., Oliva, Oliver & MacMillan, 1992; Oliver R.L., 1993),
perceived value (e.g., Wood & Scheer, 1996), brand equity (e.g., Keller, 1993;
Srivastava & Shocker, 1991), and sponsorship recognition (e.g., Gwinner &
Swanson, 2003; Madrigal, 2001).
Several authors have noted that the increasing of sales are seen by many as an
important outcome of corporate involvement in sport sponsorship (Armstrong, 1988;
Meenaghan, 1999). In particular, Hoek, Gendall, Jeffcoat, and Orsman (1997)
assessed purchase probabilities of users and non-users of brands based on exposure to
advertising or sponsorship stimuli related to World Cup Soccer. Their findings

36

suggested that purchase probabilities for either group were unaffected by exposure
to either the advertising or the sponsorship stimulus material (p. 30).
Folkes and Kamins (1999) suggested that negative behavior diminishes
evaluations more than positive behavior bolsters them. They reasoned that because
people and companies behave ethically much of the time, unethical behavior is
thought to be more diagnostic of a person or company's moral character than ethical
behavior. Speed and Thompson (2000) reported that positive attitudes toward a
sponsor are positively associated with intentions to attend games, to look favorably
towards the organization, and to consider purchasing a sponsors product. These
studies underscore the importance of relating positively to the consumer and
cultivating connections that may subsequently lead to positive behavioral outcomes.
Netemeyer, Krishnan, Pullig, Dean, Ricks, Wang, & Yagci (2001) stated that the
organizational association of being a good corporate citizen was related to
willingness to pay a price premium for a brand as well as brand purchase. Ricks
(2005), using an experimental design, noted that consumers react positively to
corporate philanthropy with no alternative intentions (i.e., reactive to a negative
corporate event). Bhattacharya and Sen (2003) argued that consumers who identify
with companies are more likely to be loyal to those companies, promote them to
others, and be resilient to negative information about them. They went on to propose

37

that consumers were likely to identify with a company that offers them a positive and
meaningful social identity.
Mohr and Webb (2005) examined the influence of corporate social
responsibility and price on consumer responses. The authors created scenarios to
manipulate corporte social responsibility and price across two domains (environment
and philanthropy). Results from a national sample indicated that CSR in both
domains had a positive impact on evaluation of the company and purchase intent.
Furthermore, in the environmental domain corporate social responsibility affected
purchase intent more strongly than price did. The aforementioned studies suggest an
overall positive attitude toward companies associating themselves with causes that
benefit society, in that a company using their resources to benefit society is clearly
related to the concept of CSR. Media attention and technological advancements have
given the public virtually unlimited access to information regarding a broad range of
CSR customer behaviors (Wagner, Lutz, & Weitz, 2009). Some research has
suggested that certain attributions can directly influence consumer behavioral
intentions and customer attitudes. Purchase intent (Ellen, Webb, & Mohr, 2006),
repeat patronage (Vlachos, Tsamakos, Vrechopoulos, & Avramidis, 2009), and
recommendation intentions (Ellen et al., 2006; W alker et al., 2010) in these studies,
for example, have all been significantly influenced by the motives consumers assign
to a CSR initiative.

38

B. Conceptual Framework
Conceptual framework is developed to analyze the CSR events role towards
corporate reputation, customer identification and their purchase intention as follows:

H1
CSR EVENT

Corporate
Reputation
(X2)

H4

H3

Customer Purchase
Intention
(Y)

(X1)

H2

Customer
Identification
(X3)

H5

Figure 2. conceptual framework

C. Research Hypotheses
Based on literature review that has been discussed, the following is the
development of hypotheses that describe the influences between variables to be tested
in the study. Development of hypotheses based on the theoretical perspectives and
previous research that has been used by previous researches in the model constructs.
Each hypotheses is described in theoretical and empirical analysis based on the

39

results of which have been developed in previous research to be used as a theoretical

foundation in support of this research.
The way Corporations behave, talked about, reported and perceived by their
publics, influences greatly the management of their reputation. Kitchen and Schultz
(2001) support that there is a strong link between brand strength (reputation) and
company profitability. Belch and Belch (2001) stated that a positive corporate image
can not be developed from a few advertisements, it also depends on several factors
including good corporate citizenship. In essences, Corporate Social Responsibility
(CSR) can be used to build a strong brand.
Hypothesis 1: CSR Events will have positive influences on the reputation of
corporations.

CSR association reflect the organizations status and activities with respect to its
perceived societal obligations (Brown and Dacin, 1997). An increasing stream of
research proposes to study the effects of CSR associations on consumer attitudes and
behaviors emphasizing the identification of this collective with the company. Several
authors have identified a positive influence of CSR associations on consumer
identification with the company.
Hypothesis 2: CSR Events will have positive influences on the customer
identification.

40

Goldsmith, Lafferty, & Newell (2000) suggested that the reputation of a company
may well be foremost in consumers minds as they process an advertisement for a
firms products.
Hypothesis 3: Corporate reputation will have significant influences on customer
identification.

Customer loyalty has a tendency to be higher when perceptions of corporate

reputation are strongly favorable (Nguyen & LeBlanc. 2001). Customers value
associations and transactions with highly respected firms (Roberts & Dowling, 2002)
and failure to meet customer expectations is likely to have a negative impact on a
reputation (Vendelo, 1998). Alternatively, a positive corporate reputation prompts
consumers to believe advertising claims and trigger intention to purchase (Goldberg
& Hartwick, 1990).
Hypothesis 4: Corporate reputation will have significant influences on the customer
loyalty (purchase intention).

Customer identification with the company is an important but under utilized

construct. This is similar to trust, Corporate to Customer identification also influence
the loyalty of the customer (Bhattacharya and Sen, 2003; Martin et al, 2009; Perez et
al. 2012). C-C identification originates consumers to become psychologically

41

attached to and care about the company (Bhattacharya and Sen, 2003), which can
stimulates their loyalty in a positive way (Marin et al, 2009; Perez et al, 2012).
Based of these ideas about C-C identification , below is the proposed hypothesis:
Hypothesis 5: Customer identification will have significant influences on the
customer loyalty (purchase intention).

42

CHAPTER III
RESEARCH METHODOLOGY

A. Research Design

This research was conducted to further similar studies earlier about The
Relationship CSR and Customer Loyalty: The Roles of Trust, Customer
Identification, With The Company and Satisfaction conducted by Martinez and
Bosque (2013) and Lacey, Close and Finney (2010) about The Pivotal Roles of
Product Knowledge and Corporate Social Responsibility in Event Sponsorship
Effectiveness. Previous research done in Spain suggested for further research
involved suggest that company should invest more in socially responsible initiatives
since customers tend to support and reward those companies that are perceived as
socially responsible by developing a greatest CSR Event . To know and find out
whether there are similar results from this replication research. In accordance with the
suggestions of previous studies, that the scope of the research should be more
specifically in the tourism related service industry in Indonesia as the one of the
Asian Country especially in hospitality and tourism industry. A structural equation
model is used to verify the relationship among variables. In this study based on its
function, the variables are grouped into two: independent variable and dependent

43

variable. The variables used are: (1) CSR Event. (2) Corporate Reputation. (3)
Customer Identification. (4) Customer Purchase Intention.

B. The Variable and Measurement

The following is the variable and scale of measurement that are used in the
preparation of the thesis:
Table 1.
The Indicator / Observed Variable in Research Questionnaire
No
1

Variable
CSR (x1)

Indicator
1. The Company (Quiksilver) is committed
to share profits to help community by

Measurement
Likert Scale

Source
Lacey et al (2010)

"1-6"

doing events.
2. The Company (Quiksilver) is involved with
the communities where it does business.
3. Local events benefit from Quiksilver
contributions.
4. Quiksilver puts charity into its business
activities.
5. Quiksilver is involved in corporate giving.
2

Corporate

1. The company is highly-regarded company.

Likert Scale

Reputation (x2)

2. The company is a successful company.

"1-6"

Doukakis, 2005

3. The company is a well-being company

3

Customer
Identification (x3)

1. When someone critizes Quiksilver, it feels

like personal insult.
2. I am very interested in what others think
about Quiksilver.

Likert Scale

Martinez

"1-6"

and Bosque (2013)

44

3. When I talk about Quiksilver, I usually say

"we" rather than "they".
4. When someone compliments Quiksilver
then it feels like a personal compliment.

Purchase
Intention (Y)

1.I am more likely to consider buying

Quiksilvers products.
2. I would like to buy or to have Quiksilvers
products.
3.I would buy Quiksilvers product if it
happens to be easily available.
4. I would actively seek Quiksilvers product to
be my first product choice.

Likert Scale

Lacey et al (2010)

"1-6"

Validity and Reliability Test of Measurement Tools

This research using primary data. The data collected with a questionnaire, i.e.
by providing a written statement to the respondent. Furthermore the respondents
provide responses to a given statement. The validity of a social research results
largely determined by measuring instrument being used. To address these need two
kinds of testing i.e. the reliability test and validity test.

45

CSR1
1

CSR2
CSR
EVENT

CSR3
CSR4
CSR5
1

Corporate
Reputation

CR1
CR2
CR3

CI1
CI2

Customer
Identification

CI3
CI4
1

Customer
Purchase
Intention

PI1
PI2
PI3
PI4

Figure 3. Confirmatory Factor Analysis Test

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1

e1
e2
e3
e4
e5
e6
e7
e8
e9
e10
e11
e12
e13
e14
e15
e16

46

Explanatory test of the validity of each variables are described as follows:

Table 2.1
Validity Testing of CSR Event
Item
Description
CSR1
CSR2
CSR3
CSR4
CSR5

Confirmatory
Factor
Loading
.905
.761
.814
.866
.881

Conclusion
Valid
Valid
Valid
Valid
Valid

Based on the validity of CSR Event testing table, the factor loading value is
known > 0.3 so that it can set the validity of all CSR Event indicator.

Table 2.2
Validity Testing of Corporate Reputation
Item
Description
CR1
CR2
CR3

Confirmatory
Factor
Loading
.805
.813
.948

Conclusion
Valid
Valid
Valid

Based on the validity of the Corporate Reputation testing table, the factor
loading value is known > 0.3 so that it can set that all Corporate Reputation indicators
are valid.

47

Table 2.3
Validity Testing of Customer Identification
Item
Description
CI1
CI2
CI3
CI4

Confirmatory
Factor
Loading
.943
.723
.711
.978

Conclusion
Valid
Valid
Valid
Valid

Based on the validity testing table of the Customer Identification is known

that the factor loading value is > 0.3 so that it can set that all indicators of Customer
Identification are valid.

Table 2.4
Validity Testing of Purchase Intention
Item
Description
PI1
PI2
PI3
PI4

Confirmatory
Factor
Loading
.845
.908
.854
.700

Conclusion
Valid
Valid
Valid
Valid

Based on the validity testing table of Purchase Intention is known that the
factor loading value is > 0.3 so that it can set that all indicators of the Purchase
Intention are valid.

48

Reliability Test
The researcher uses reliability test in order to measure answer consistency from
respondents. Therefore, it is important to note that the instrument used to measure all
items of the variables is the questionnaire with a number of questions that should be
submitted for the reliability test from among variables concerned using the
Cronbachs coefficient alpha as the coefficient of reliability. The Cronbach's
Coefficient alpha can be explained as positive relation between items with the other.
According to Sekaran, (2006 : 312), the closer the reliability coefficient gets to 1.0,
the better the result. In general, if the result is less than 0.60, then it being considered
to be poor, if the result is at the 0 .70 range, then it being considered to be acceptable,
and if the result is over 0.80, then it being considered good. Moreover, the decision
establishment is:
If Cronbachs alpha > 0.60 construct reliable (acceptable)
If Cronbachs alpha < 0.60 construct reliable (unacceptable)

49

Table 3
Realibility Testing Result

Construct

Items

CSR Event
Corporate Reputation
Customer Identification
Purchase Intention
Source : SPSS attachment

5
3
4
4

Cronbachs
Coefficient Alpha
0.925
0.892
0.912
0.890

Conclusion
Reliable
Reliable
Reliable
Reliable

In the table above, Cronbach's Alpha coefficients for each variable meets the
reliability criteria recommended by Sekaran (greater than 0.60). Therefore, the
respondents' answers to the statements that are used to measure each of these
constructs is consistent and reliable.

C. Operational Definition of Variable

1. CSR Event
This CSR Event is the Balis Big Eco Weekend, an event organized by PT.
Quiksilver Indonesia as a special reward for the local community for the hard work
the local people put in towards PT. Quiksilver Indonesia CSR program commitment.
The company spends part of its Marketing budget to do this CSR program.

50

This year, Quiksilvers environmentally-friendly roots was held again in Bali

on 21st June 2014 through the Big Bali Eco Weekend. Through a multitude of events,
Quiksilver raised awareness for clean Bali beaches, protecting the environment and
local turtles, along with promoting sustainable tourism.

2. Corporate Reputation
The corporate reputation is the reputation and perception of PT. Quiksilver Indonesia
by the tourists/customer as a result of its CSR program & initiative in Kuta Beach
Bali. The customer regarded the company to be successful in its CSR program and
give a positive impression on its reputation.
3. Customer Identification
The customer are both domestic and international tourist, local resident who already
know and wear Quiksilvers product and have a sense of belonging and proudness
towards the brand.
4. Customer Purchase Intention
The Customer Purchase Intention, in this research is the willingness of the customer
to purchase Quiksilvers product as a result of the Quiksilvers CSR program
implementation in the society.

51

This customers intention appears because they appreciate and trust what the
company (PT. Quiksilver Indonesia) have done and support the environment as well
as the community.
The customer will chose and buy the Quiksilvers product before other companys
product.

D. Sampling Procedure
There are six steps in sampling process, such as: (1) determine the population, (2)
determine the sampling framework, (3) choose the sampling method, (4) decide the
sample size, (5) decide the sampling plan, (6) sampling collection.
1. Population
The population of this research are local people, surfing industry, and tourist both
domestic and international who attend Big Bali Eco Weekend. The venue is at Kuta
Beach, Bali.
2. Sample Research
This research was conducted through a quantitative study using a questionnaire
that was given to the respondents. The sample research used purposive sampling with

52

respondent characteristic:
1. Age between 20 and 60 years old
2. Local People, Surfing Industry and both domestic and international tourist.
3. Having income.

Respondent Profile
Of the 125 respondents, a return of 103 respondent, but there were 10 respondents
who was ignored because they returned the questionnaire after the data processing
deadline was passed. So therefore the number of respondents whose data can be
processed as many as 93.

Table 4.1.
Recapitulation of Research Questionnaires
Questionnaire Total Sent
Media
Questionnaire
(Percentage)

Non Return Return

(Percentage)

Booklet

22 (17.6%)

125 (100%)

Returned
Questionnaire
and not
processed
(Percentage)

103
10(9.7%)
(82.4%)

Total
Returned
Questionnaire
and
Processed
(Percentage)
93(90.2%)

The number of respondents who returned and processed reached 93 or the

overall response rate of 90.2% of the total questionnaires returned.

53

Table 4.2.
Demographic Profile of Research Respondents
Respondent Characteristics

Frequency
Gender
Male
45
Female
48
Age
18 - 25 Years
8
26 - 35 Years
36
36 - 45 Years
39
46 - 55 Years
8
> 55 Years
2
Origin
Foreign
18
Domestic
42
Bali Resident
33
Education
High School
12
Bachelor degree
54
Graduate
24
Post Graduate
2
Doctor
1
Respondent Characteristics
Frequency
Employment
Government Employee
5
Private Company Employee
54
Entrepreneur
21
Post Graduate
6
Lecturer
1
Housewife
4
Student
2
Monthly Income
> IDR10,000,000 (below US$ 1,000)
24
IDR10,000,001 20,000,000 (between
28
US$ 1,001 US$ 2,000)
> IDR 20,000,001 (approx more than
41
US$2,001)

Percentage
48.4
51.6
8.6
38.7
41.9
8.6
2.2
19.4
45.2
35.5
12.9
58.1
25.8
2.2
1.1
Percentage
5.4
58.1
22.6
6.5
1.1
4.3
2.2
25.8
30.1
44.1

54

Reason
Tourism
Big Bali Eco Weekend
Cultural & Education
Others

14
68
6
5

15.1
73.1
6.5
5.4

Of the total sample of 93 respondents who gave the response consisted of 45

(48.4%) male, while 48 respondents (51.6%) were female. The difference between
male and female is not huge. The reason is because female is more easily distracted &
influenced compare to male. For example: female going to the shop to buy certain
things but once they got to the shop they will buy a lot more than what they originally
plan while male usually consistent with what they plan to buy. Quiksilver brand,
originally was more favored by male who like the challenge to live an outdoor
lifestyle. Nowadays, female becoming more and more attracted to the brand, thanks
to the social media.
Occupations dominated by private company employee with total of

54

respondent (58.1%). Private company consists of various work of field, which covers
a lot of different type of business. Private company employees have a lot of flexibility
compare to others. In a lot of cases, private company employees can express their
opinion and creativity where encouraged by their superior to always look into a new
things.
In the term of age majority 41.9% of respondents aged between 36 45 years and
38.7 % aged between 26 35 years. From this data we found that there are two

55

ranges of respondents age that have small total percentage difference. In other
words we can say that the average age demographic range of respondents that
gravitate to the brand are between 26 45 years. With average education level is
Bachelor Degrees. In term of income can be seen that approximately 44,1 % or
respondents having income more than US$2,001.
Thus this study respondent tend to be mature consumer respondents (age between
26 45 years) with a good education and having capability to make decision,
judgment towards purchasing the product because they already earn a certain amount
of income to spend.
For the number of parameter, the research model is planned to have 16 observed
variables (indicators), the minimum required sample is 16 x 5 = 80 respondents, see
Hair et al (2010).
The sampling methodology in this study was judgment sampling involves the
choice of subjects who are most advantageously placed or in the best position to
provide the information required at Hospitality and Tourism Industry (Sekaran
2003:277).
E. Data Collection Procedure
Some of data collection techniques can be defined, as follows:
1. Primary Data

56

Data which is collected directly by the researcher from the source of data.
Primary data can be obtained by using:
a. Testing method: data collection directly from the source of data by performing
test in laboratory, in class, or in field.
b. Questionnaire: data is obtained directly from the data owner by using
instruments (tool of data collection) like list of questions. This instrument will
be filled in by the selected target.
2. Secondary data
The secondary data is an information which is obtained indirectly by the
researcher. This kind of data is obtained from third party data or proceeds data, like
literature, documents, internet, journal, etc.
In this research, the data collection technique is using the primary data and
secondary data as well. The primary data is obtained by using questionnaire to
selected target. Beside the primary data, secondary data is also being used in this
research, like journal international, literature documents and internet also being used
in this research as references and guideline.

57

F. Method of Analysis
Method of data analysis used in this study is structural equation model (SEM)
using LISREL 8.72 program. According to Ferdinand (2000), SEM is basically a
collection of statistical techniques that allow testing of a series of relationships that
are relatively "complex" simultaneously. SEM is a multivariate technique which
combines aspects of multiple regression and factor analysis to estimate a series of
dependence relationships simultaneously (Hair et al, 2010). To analyze hypothesis,
suitability model of as a whole (overalls fit models) must assessed in advance for
guarantee that the model can describe all the influence cause and effect. According to
Hair, Anderson, Tatham and Black (2010), testing the suitability of the model
goodness of fit is done by looking at several measurement criteria, namely:
Absolute Fit Measure
Which measures the overall model fit (both structural models and measurement
models simultaneously). The criteria by looking at the value:
a. The Likehood Ratio Chi-Square Statistic
The minimum accepted level of significance was set at 0.05 and 0.01. Chisquare measurement depends on the number of samples, therefore some
researchers

suggested

measurements.

to

combine

these

measurements

with

other

58

b. Model Goodness of Fit Index (GFI)

The higher the value of GFI, the more fit as a model. There is no model as a
reference, but some researchers recommend GFI value of 0.90 or more.
c. The Root Mean Square Error of Approximation (RMSEA)
Is an index that can be used to compensate for the chi-square statistic in a
large sample. RMSEA values indicate goodness-of-fit can be expected when
the model estimated in the population, RMSEA can be used when a
significant chi-square value. RMSEA values needed to be said to fit is <0.8.

Incremental Fit Measure

Which is a measure to compare the proposed model (proposed model) other
models specified by the researcher. Criteria by looking at the value:
a. Adjusted Goodness-of-Fit Index (AGFI)
This index is the development of Goodness Of Fit Index (GFI), which was
adjusted by the ratio of the degree of freedom. Analogous to R2 in
multiple regression. Recommended value is AGFI 0.90, the greater the
value, the better suitability AGFI owned models.
b.

Normed Fit Index (NFI)

This index is also a measure of comparison between the proposed model

59

and the null model (Ghozali and Fouad, 2005). NFI recommended value is
0.90.
c. Turker-Lewis Index (TLI)
TLI is an index that compares the incremental conformance tested models
with baseline models. TLI is used to overcome the problems arising from
the complexity of the model. Acceptance of the recommended value is the
value of TLI 0.90. TLI is an index that is less affected by sample size.
d. Comparative Fit Index (CFI)
CFI is also an incremental suitability index. The magnitude of this index is
in the range of 0 to 1 and values close to 1 indicate the model has a good
level of fitness. This index is highly recommended to be used as the index
is relatively insensitive to sample size and less influenced by the
complexity of the model. Acceptance of the recommended value is CFI
0.90.

Parsimonious Fit Measure

Perform adjustment to fit measurements that can be compared between models
with different number of coefficients. The criteria by looking at the value of normed
chi-square (CMIN / DF). The recommended value is the lower limit or the upper limit
between 1 and 5.

60

CHAPTER IV
RESEARCH RESULTS AND ANALYSIS

A. INTRODUCTION TO QUIKSILVER
PT. Quiksilver Indonesia is a leading outdoor sports lifestyle company, which
designs, produces and distributes a diversified mix of branded apparel, footwear,
accessories and related products represents a casual lifestyle for young-minded
people that connect with its board riding heritage and culture of surfing,
skateboarding and snowboarding. It was started the business in Bali, Indonesia since
1994. The reputation of Quiksilver brands is based on different outdoor sports.
In the year of 2008, PT. Quiksilver Indonesia started the initiative and
conducted events related to Bali Beach Clean Up involving local communities,
Government and tourist.
The Bali Beach Clean Up program is a CSR program of PT. Quiksilver
Indonesia aiming to reduce rubbish along the beach in Bali, to strengthen the tourism
in Indonesia and to work together with the local people in Bali. This CSR program is
also supporting Bali government to reach their goal to make Bali yang Bersih dan
Hijau (Bali Clean and Green). Since it was started in 2008, the Bali Beach Clean Up
program has been operating daily to clean rubbish in Balis coastal area covering 9.7
km shore line of Kuta, Legian, Seminyak, Jimbaran and Kedonganan.

61

This Quiksilver CSR program in cooperation with Coca Cola and Garuda
Indonesia dedicated 75 beach cleaning crews to clean the beach along Kuta, Legian,
Seminyak, Jimbaran and Kedonganan. They are employed to keep the Bali beach
clean everyday so that the tourists can come and enjoy the clean beach.

Photo of the beach cleaning crew

With this CSR program, the company create the job for local people both men
and women, they supply the uniform to wear as well as the equipment to do work.
The beach cleaning crew always working hard from sun up until sun set to make sure
that they pick all the rubbish at the beach which sometimes the tourists that left
behind.

62

The program also provide 4 tractors, 3 rubbish trucks, 2 barber surf rake, life
guard and mobile mini van that goes to school in Bali to educate the young one to
throw their rubbish in the bin. The way of keeping clean and throw rubbish in the bin
starts from the early age of people.

Photos of the equipment to support the beach clean up program

There are over 1,200 rubbish bins placement along the area of Kuta, Legian,
Seminyak, Jimbaran and Kedonganan. The amount of rubbish picked up during the
month of May 2014 was 266,200 kg; with the year to date reaching 2,143,800 kg
which giving a total of 24,103,900 kg since the program was started in June 2008.
(source: Quiksilver display wall story, June 2014)

63

Having a clean beach make a lot more turtles come ashore to lay their eggs
compare to before. The turtle eggs collected during 2002-2008 (before the Beach
Clean Up program) was only 1,947 and the figure increased to 80,221 in 2009-2014.
(source: Kuta Beach Sea Turtle Conservation , 2014)
The achievement of Quiksilver CSR program as their corporate giving to the
society can be seen and enjoy by both domestic and international tourists as well as
the local people in Bali.

Photo of achievement postcard of the CSR program

64

This year, Quiksilvers environmentally-friendly roots was held again in Bali

on 21st June 2014 through the Big Bali Eco Weekend Event as a special reward for
the local community for their hardwork. Through a multitude of events, and in
collaboration with Coca-Cola and Garuda, Quiksilver raised awareness for clean Bali
beaches, protecting the environment and local turtles, along with promoting
sustainable tourist then followed by the surfing contest at Uluwatu beach, with 32
participant surfed against local Balinese pros and surfing legends from Quiksilver and
Roxy International team riders.
It is a weekend festival filled with environmental exhibitions & activities
Eco Village, Lifesavers Race, the famous Turtle Release, surfing competition as well
as beaches clean up.
The years Big Bali Eco Weekend event started in the early morning of
Saturday, 21st June 2014 with surfing contest at Padma Beach surf spot which runs
the whole day until sunset.

Photo of surfing competition at Padma, Legian

65

The event was packed with a lot of activities which involving the local
community, beach goers, government official, corporate employee etc. The location
of the event spread out along Padma beach where the surf spot to Legian beach.
Rubbish collection (beach clean up) by the Quiksilver crews, Coca Cola
crews, local people and tourists was also happening.

Photo of beach clean up at Legian beach on 21st June 2014

Poster signing by Quiksilvers surfing Indonesian and global athletes was held at
Padma beach before the official opening ceremony was started. Along side the poster
signing, there were other activities such as life guard race competition where they
have to run-swim-run, beach football, tree planting as well as activities at the eco
village.

Photo of Quiksilver Eco booth at Padma beach

66

The awareness ceremony of the Big Bali Eco Weekend event was held at
Padma beach stage at 3.40pm. During the ceremony, the officials deliver speeches
reporting the achievement of the Bali Beach Clean Up program so far and as a token
of appreciation to the community they presenting this Big Bali Eco Weekend event
for them to enjoy and celebrate. After speeches, entertainments, tree planting, they
invite all of the community, the guests as well as tourist to help releasing hundreds of
baby sea turtles back into their natural habitat before the sunset then followed by
Balinese blessing ceremony to thank God for life & universe He gave us.

Photo of turtle release, baby turtles and turtles eggs found buried under the sands

The crowning of the surfing competition winner was also held after the
Balinese praying ceremony then the whole event was ended with the Kecak dance on
the Padma, Legian beach.

Photo of Balinese praying ceremony

67

Event Rundown
Balis Big Eco Weekend, Saturday, 21st June 2014 at Legian Beach, Bali
07.00

Padma Challenge surf comp

08.00

Lifesavers Race
Coke Kicks (finish at 12.00)
Volleyball (TBA)
Surfing Lesson with Legends

09.00

Community Workshop on stage (finish at 12.00)

10.00

Media Tent Opening

Bali Beach Clean Up Story Wall Display
Coca-Cola , Quiksilver, & Garuda Booth Opening
Food stalls Opening

13.00 14.00

Autograph session with Legends & Pros

14.30 - 15.30

Big Beach Clean Up

Awareness Ceremony
15.40 - 15.50

Welcoming Dance

15.50 16.05

Performance by Millane Fernandez

16.05 - 16.20

Remarks by Coca-Cola, Garuda, Quiksilver

16.20 - 16.30

Testimonial by Bendesa Adat Legian & Miss Earth

68

16.30 - 16.40

Symbolic submission to Bendesa Adat Legian,

accompanied by Miss Earth Indonesia 2013 and Miss Earth
Indonesia-Eco Tourism 2013

16.40 - 17.00

Trees Planting

17.00

Closing Awareness Ceremony & announcement on turtle

release

17.00 - 17.30

Turtle Release

17.30 - 18.00

Press Conference

18.00 18.20

Blessing Ceremony & Kecak performance

69

B. THE HYPOTHESIS RESULT

Result of hypothesis is shown on the below figure:

,08

e1
1

Corporate
Reputation

,15
,35

,53

e2
1

,14
,17

Purchase
Intention

CSREVENT
,76

,26

Customer
Identification
1
,47

e3

Figure 4. The Hypothesis Result

70

Table 5
First Model Conformance Testing Result (Goodness of Fit)
Goodness of Fit
Measurement

Suggested Acceptance
Limit

Value

Conclusion

Chi Square

Chi square low X2 tabel df

= 15

3.027

Good Fit

p-value

Minimal 0.05 or above 0.05

0.082

Good Fit

GFI

> 0.9 or closer to 1

0.984

Good Fit

RMSEA

< 0.08

0.148

Not Fit

AGFI

> 0.9 or closer 1

0.841

Marginal Fit

NFI

> 0.9 or closer 1

0.967

Good Fit

IFI

> 0.9 or closer 1

0.978

Good Fit

CFI

> 0.9 or closer 1

0.976

Good Fit

Assessing fit model is complex and requires the most attention. An index
which indicates that the model is fit, is not a guarantee that the model is correctly fit.
On the contrary, an index fit which indicates that the model is very bad, its not a
guarantee that the model is absolutely not fit. In SEM, researchers should not only
depend on a single index or multiple indexes fit. But should consider all of the index

71

fit. (Ghozali and Fouad, 2008). In the first test of the Fit models, the model is still
acceptable by looking at the criteria of GFI, NFI, IFI, and CFI in Good Fit decision.

Hypothesis Testing Criteria

To find out the hypothesis test decision-making is done by comparing the
magnitude of the p-value with a level of significant with a confidence level of 95% (
= 0.05 level).
If p-value alpha 0.05

then the null hypothesis (Ho) is rejected

If p-value alpha 0.05

then the null hypothesis (Ho) is accepted

Hypothesis Testing Result and Discussion

The analysis and interpretation results was done based on the results of testing
on the hypothesis. The purpose of this hypothesis testing

is to reject the null

hypothesis (Ho) so the alternative hypothesis (Ha) is acceptable. Hypothesis testing is

performed using Structural Equation Modelling analysis (SEM) is a statistical method
that is most appropriate for this study. The purpose of this method is to predict
changes in the dependent variable (criterion variable) associated with the changes that
occur in a number of independent variables (predictor variable). The error tolerance
limit () used was 5% (0.05). The results of testing hypotheses by comparing the t

72

value with values of estimated beta coefficient () compiled in each table of

hypothesis testing.
Tabel 6
Hypothesis Testing
Hypothesis

Relationship

Beta

Sig

H1

CSR Event Corporate Reputation

0.573 0.000

H2

CSR Event Customer Identification

0.357 0.002

H3

Corporate Reputation Customer Identification

0.105 0.361

H4

Corporate Reputation Purchase Intention

0.251 0.006

H5

Customer Identification Purchase Intention

0.422 0.000

Hypothesis 1
Hypothesis 1 examines the effect of CSR Event towards Corporate Reputation
which was said that the null hypothesis (Ho) and alternative hypothesis (Ha) are as
follows:
Ho1: CSR Event have no effect towards Corporate Reputation
Ha1: CSR Event have effect towards Corporate Reputation
Based on table 6, it is known that the Quiksilver CSR Event have an effect
towards its Corporate Reputation with a significant value of 0.000 <0.05. The value

73

of Quiksilver CSR event effect towards its Corporate Reputation is positive 0.573.
This means that any increase in the quality of Quiksilver CSR Event will increase the
value of Quiksilver Corporate Reputation.
The result shows that the Quiksilver CSR event was and still a success which
make the Quiksilver reputation higher than before. This can be found that more
people and Quiksilver customer come to the event to join the cause. Quiksilver CSR
Event not just attracts its customer but also attracts other companies such as Garuda
Indonesia to join in the program. Not to mention other companies who give
sponsorship during the Big Bali Eco Weekend. The more big company want to join
the program the better because can take the program to another level.

Hypothesis 2
Hypothesis 2 examines the effect of Quiksilver CSR Event towards Customer
Identification which was said that the null hypothesis and the alternative hypothesis
are as follow:
Ho2:

CSR Event have no effect towards Customer Identification

Ha2:

CSR Event have effect towards Customer Identification

Based on table 6, it is known that CSR Event have an effect towards

Customer Identification with significant value of 0.002 < 0.05. Influence on the value
of Quiksilver CSR Event towards its Customer Identification is positive 0.357. This

74

means that any increase in the Quiksilver CSR Event quality will increase the value
of its Customer Identification.
The Quiksilver customer will have better impression and more attachment
towards the brand by seeing or knowing of what Quiksilver have done in the CSR
Event.
This Quiksilver CSR event is also a tool to brainwash and showing its customer that
the company care about the environment and actively participate in the corporate
giving to the society.

Hypothesis 3
Hypothesis 3 examine the effect of Corporate Reputation towards Customer
Identification which was said that null hypothesis (Ho) and alternative hypothesis
(Ha) are as follow:
Ho3: Corporate Reputation have no effect towards Customer Identification
Ha3: Corporate Reputation have effect towards Customer Identification
Based on table 6, we found that this hypothesis of Quiksilver Corporate
Reputation towards Customer Identification with significant value of 0.361 > 0.05
indicate that Quiksilver Corporate Reputation have no effect/influence towards
Quiksilver Customer Identification.
Unlike the sport team player or music group fans who are very fanatics
towards their teams, Quiksilver fans/customer identification is not influenced by its

75

corporate reputation. This is because Quiksilver is an outdoor lifestyle company who

basically sells consumer products not a sports team player like soccer or basketball
nor music group such as Metallica, Slank etc which have huge of fans and followers.

Hypothesis 4
Hypothesis 4 examine the effect of Corporate Reputation towards Purchase
Intention which was said that the null hypothesis (Ho) and alternative hypothesis (Ha)
are as follow:
Ho4: Corporate Reputation have no effect towards Purchase Intention
Ha4: Corporate Reputation have effect towards Purchase Intention
Based on table 6, it is known that Quiksilver Corporate Reputation have
effect towards Purchase Intention with significant value of 0.006 < 0.05. The
effect/influenced value of Quiksilver Corporate Reputation towards Purchase
Intention is positive 0.251. Meaning that every increase on the Quiksilver Corporate
Reputation will increase the Purchase Intention value.
When the customer have faith and trust in Quiksilver from a successful
commercial relationship that Quiksilver build with its target market there is no doubt
that the customer will have a desire or intention to buy Quiksilver products.
The Quiksilver reputation is formed over time through companys activities,
such as doing the surf event in all parts of the world which have good waves,
involving the social community activities as part of their CSR program of the

76

corporate giving back to the society. This activities will make people & customer
think that Quiksilver is a responsible company that is not just thinking about profit
but also think about the society & environment welfare.

Hypothesis 5
Hypothesis 5 examine the effect of Customer Identification towards Purchase
Intention which was said that the null hypothesis (Ho) and alternative hypothesis (Ha)
are as follow:
Ho5: Customer Identification have no effect towards Purchase Intention
Ha5: Customer Identification have effect towards Purchase Intention
Based on table 6, it is known that Quiksilver Customer Identification have an
effect towards Purchase Intention with significant value of 0.000< 0.05. The value
effect of Customer Identification towards Purchase Intention is positive 0.422.
Meaning that every increase on the Quiksilver Customer Identification will increase
the Purchase Intention value.
The customer who already have faith & trust in Quiksilver brand will have
more intention to buy the product. This faith & trust can be obtained from the CSR
event where it has an exposure on the print & electronic media as well as social
media. So that the events news can reach not just Indonesia but also the whole
world knows about it as the good or bad news travel the world.

77

CHAPTER V
CONCLUSION, IMPLICATIONS AND RECCOMENDATIONS FOR
FUTURE RESEARCH

A. CONCLUSION
Based on the analysis result of testing hypothesis in chapter IV concerning the
role of Quiksilvers CSR Event towards corporate reputation, customer identification
and customer purchase intention, the conclusion obtained are as follows:
The Quiksilvers Corporate Social Responsibility (CSR) Event has a positive
and significant influence on Quiksilver corporate reputation. These results provide
support for the first hypothesis which states that CSR Events will have positive
influences on the reputation of corporations. This shows that increasing the quality
of Quiksilver CSR event will lead to a higher Quiksilver corporate reputation. By
doing the CSR activities event, Quiksilver give more awareness to more people or
customer especially in Kuta Bali of the Quiksilvers presentation in the area.
The Quiksilvers CSR Event has a positive and significant influence on its
Customer Identification. These result provide support for the second hypothesis
which states that CSR Events will have positive influences on the customer
identification. This indicates that increase in the Quiksilver CSR Event quality will
lead to the increasing of its Customer Identification.
There was no significant influence between Quiksilver Corporate Reputation

78

against the Quiksilver Customer Identification. These result do not provide support
for the third hypothesis which states that Corporate reputation will have significant
influences on customer identification. This indicates that the increase in corporate
reputation will not always lead to increasing the customer identification.
Quiksilver Corporate Reputation has a positive and significant influence on
Purchase Intention. These result provide support for the fourth hypothesis which
states that Corporate reputation will have significant influences on the customer
loyalty (purchase intention). This indicates that the increase in the Quiksilver
Corporate Reputation will lead to the increasing of the customer purchase intention
on the Quiksilver products.
Quiksilver Customer Identification has a positive and significant influence on
the Purchase Intention. These result provide support for the fifth hypothesis which
states that Customer identification will have significant influences on the customer
loyalty (purchase intention). This indicates that the increase in Quiksilver Customer
Identification will lead to the increasing of the customer purchase intention on the
Quiksilver products.

79

B.THEORETICAL AND MANAGERIAL IMPLICATIONS

1. Theoretical Implications
Referring to the findings on these results, then there are a number of
implications that can be applied in the industry, particularly in the tourism industry
for MICE.
Theoretical model and analysis presented in the result of this study indicate that the
CSR Event will impact the customer purchase intention when preceded by corporate
reputation and customer identification of Quiksilver as the sponsor/organisers of the
event.
Similarly, Corporate Reputation does not necessarily create Customer
Identification. This should be mediated by CSR Event in advanced. The reason is
because through the CSR Event customer will get an impression of Quiksilver which
will resulting on the customer perception of the Quiksilver corporate reputation
before they identified themselves as Quiksilvers customer. Once the customer trust
and have faith in the corporations reputation they will becoming the Quiksilver
fans/customer that will purchase the products.

2. Managerial Implications
Some managerial implications obtained based on the research result are as
follows:

80

CSR Event activity of Quiksilver positively influence corporate reputation.

Quiksilver are continuously trying to make effort to increase their reputation.
Queksilver using its reputation as their competitive power because corporate
reputation is the most important factor for the companys success and the most
valuable intangible resource for the company to attract the customer.
Corporate reputation is different from corporate image. The principal
difference between corporate reputation and corporate image is that reputation
formed over time. Therefore, Quiksilver as an outdoor sports lifestyle company since
1969, which designs, produces and distributes a diversified mix of branded apparel,
footwear, accessories and related products represent a casual lifestyle for youngminded people that connect with its board riding heritage and culture of surfing,
skateboarding and snowboarding has build a strong reputation in the industry. The
reputation of Quiksilvers brands is based on different outdoor sports and its activities
in the community. The Quiksilver CSR activity event in board riding sport can
contribute to the development of the relationship with local community and also can
increase Quiksilvers corporate reputation.
Quiksilver CSR Event become one method for promotion of its corporate
CSR activity, thus their CSR event could positively influence customers purchase
intention. However, this study showed that CSR activities do not always have a good
influence on customer behaviors (Customer Identity). The fact showed that

81

Quiksilver fans tend to just enjoy the CSR Event. Although many companies do
diverse CSRs as their marketing tools, there is no accurate data of efficiency of the
CSR activity yet. Therefore, the marketing managers of professional company need
to make programs for analyzing the effect of CSR event towards the companys
objection.
This thesis focused on various CSR activities related to the outcome variables
of Customer identification and fan loyalty including purchase intention, word of
mouth, and media consumption. In addition, the study investigated how corporate
reputation influences future behavioral intention of Quiksilver Fans/customers.
This study was also an attempt to understand that fans/customers know the
CSR activity of Quiksilver and how the corporations operating the event did not
affect its Customer Identification.

3. Research Limitation
Although the result of this study is interesting because almost all of them in
accordance with the hypothesis model, but still have limitation that should be known.
This study mainly focused on the environmental aspect of CSR. Although
researchers are developing many instruments measuring the effect of general CSR,
there are not enough instruments for specific CSR, especially outdoor sport
environment. Therefore, a new instrument, which must be specialized for the

82

customer, needs to be created and developed to measure the recognition of outdoor

sport lifestyle product in the outdoor sport environment.
This research method using a questionnaire method, beside having the
advantage also has its disadvantages. One disadvantage is the possibility of biased
answers from the respondents for using a Likert scale. Likert scale value chosen by
each respondent, treated to have the same perception of the CSR event.

C. RECCOMENDATION FOR FUTURE RESEARCH

Although quantitative research methodology was beneficial for this study,
below are some suggestions in order to enrich the findings in this research, based on
the various limitation of the above, for further research in the field of study which
was investigated:
For future studies, Qualitative research methods, including interviewing,
would be of use in analyzing the knowledge of outdoor sport lifestyle company
because of that methods tendency to dig deep into customer identity thinking from
the psychological perspective.
Long term study may reveal the trends of the CSR effect of sport teams and
changes on outdoor lifestyle behavior. The results of long term studies will be
helpful for the marketing managers or CEOs of company for their future operating
policy.

83

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