O'Loughlin Banks, Jennifer, and Raciti, Maria M. (2014) Perceived and evidenced credibility-based trust and financial donors' loyalty to charities: a relationship marketing perspective. e-Journal of Social and Behavioural Research in Business, 5 (1). pp. 25-35.

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Abstract

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.

Item ID:	37146
Item Type:	Article (Research - C1)
ISSN:	1838-8485
Keywords:	credibility trust, financial donors, loyalty, charities, relationship marketing
Related URLs:	Publisher
Date Deposited:	15 Mar 2015 23:09
FoR Codes:	15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1505 Marketing > 150503 Marketing Management (incl Strategy and Customer Relations) @ 50% 17 PSYCHOLOGY AND COGNITIVE SCIENCES > 1702 Cognitive Science > 170299 Cognitive Science not elsewhere classified @ 50%
SEO Codes:	97 EXPANDING KNOWLEDGE > 970117 Expanding Knowledge in Psychology and Cognitive Sciences @ 30% 97 EXPANDING KNOWLEDGE > 970115 Expanding Knowledge in Commerce, Management, Tourism and Services @ 70%
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