Perceived and Evidenced Credibility-based Trust and Financial Donors’ Loyalty to Charities: A Relationship Marketing Perspective

Jennifer O'Loughlin Banks; Maria Raciti

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Perceived and Evidenced Credibility-based Trust and Financial Donors’ Loyalty to Charities: A Relationship Marketing Perspective

Jennifer O'Loughlin Banks and Maria Raciti

e-Journal of Social & Behavioural Research in Business, Vol.5(1), pp.25-35

2014

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Abstract

Marketing

Cognitive Sciences

credibility trust

financial donors

loyalty

charities

relationship marketing

Purpose: Charities rely on financial donations from the public to sustain their charitable activities. Relationship marketing is regarded as a mechanism to generate loyalty between financial donors and charities. Such relationships are built on trust and credibility-based trust is most salient in the charity context. Thus, this study examined the effect of perceived and evidenced credibility-based trust on financial donors' relationship loyalty to the charities to which they give money. Methodology: The two-staged methodology comprised of a qualitative study of 32 convergent interviews with Australian financial donors to charities; and a subsequent quantitative, online, Australia-wide survey (n = 396) of financial donors to charities. Factor analysis and multiple regression were the primary data analytic techniques used. Findings: It was found that financial donors perceived credibility-based trust positively influenced their relationship loyalty. Similarly, evidenced credibility-based trust positively influenced financial donors' relationship loyalty to the charities to which they give money. Implications: In addition to theoretical contributions, our study has practical implications for charities. In particular, the findings suggest that marketing communications that convey attributes of credibility-based trust may enhance perceptions of the charity as being competent and acting in the best interest of the cause; ultimately enhancing donor relationship loyalty. Furthermore, charities actions in terms of responsiveness and providing feedback as to how donor's money has been used generate evidenced credibility-based trust that also leads to relationship loyalty. Value: This study empirically demonstrates that both perceived and evidenced credibility-based trust can enhance financial donors' relationship with charities.

Details

Title: Perceived and Evidenced Credibility-based Trust and Financial Donors’ Loyalty to Charities: A Relationship Marketing Perspective
Authors: Jennifer O'Loughlin Banks (Author) - University of the Sunshine Coast - Faculty of Arts and Business
Maria Raciti (Author) - University of the Sunshine Coast - Faculty of Arts and Business
Publication details: e-Journal of Social & Behavioural Research in Business, Vol.5(1), pp.25-35
Publisher: Australian Business Education Research Association
Date published: 2014
ISSN: 1838-8485
Organisation Unit: School of Business and Creative Industries; Indigenous and Transcultural Research Centre; University of the Sunshine Coast, Queensland; USC Business School - Legacy; Sustainability Research Cluster
Language: English
Record Identifier: 99448729902621
Output Type: Journal article

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