Iranian Agricultural Economics Society (IAES)

Document Type : Research Article-en

Authors

1 PhD student, Department of Agricultural Economics, Faculty of Agriculture, Faculty of Agriculture and Natural Resources, University of Tehran, Karaj, Iran

2 Associate Professor, Department of Agricultural Economics, Faculty of Agriculture, College of Agriculture and Natural Resources, University of Tehran, Karaj, Iran

3 Assistant Professor, Department of Agricultural Economics, Faculty of Agriculture, Faculty of Agriculture and Natural Resources, University of Tehran, Karaj, Iran

4 Professor, Department of Agricultural Economics,, Faculty of Agriculture, University College of Agriculture & Natural Resources, University of Tehran

5 Professor, Department of Agricultural Economics, Faculty of Agriculture, Faculty of Agriculture and Natural Resources, University of Tehran, Karaj, Iran

10.22067/jead.2024.89411.1290

Abstract

Introduction

Today, maintaining and strengthening customer loyalty in line with a company's products or services is generally the main and central point of marketing activities. Ethical marketing is one of the things that can affect the improvement of customer loyalty to the brand/product. Ethical marketing is a field of applied ethics that deals with ethical principles hidden in marketing behavior, promotion and regulation. Ethical consumerism has become important in the last two decades due to these social and environmental issues.

Materials and Methods

A CLV-based segmentation model allows a company to identify the most profitable group of customers, understand the common characteristics of those customers, and focus more on them. One of the approaches of the CLV model is the RFM analysis model, which is one of the most powerful customer lifetime value models for customer loyalty. By using customer loyalty, it groups customers and shows their level of loyalty. In order to make RFM model more practical and improve, weights are used for model variables and these weights are determined by AHP method and Expert Choice software. Considering that grouping based on products is one of the objectives of the present study, the model used in this study to calculate the lifetime value of the customer is the Group WRFM model. To achieve the goal, 710 questionnaires were completed in Tehran and the GWRFM method was used by extracting the information needed to calculate the customer's life cycle. For this purpose, first the products were grouped and then the customer's transactions were considered separately in relation to each group of products, and GWRFM values were calculated for each group of products purchased. Finally, to measure the impact of each of the ethical components on the loyalty variable, which is a multi-level variable, the multiple logit method can be used.

Result and Discussion

According to the results of completing 710 questionnaires from the consumers of dairy products in Tehran, after standardizing the results related to the parameters of the RFM model and based on the value of the statistician, the customers were divided into 5 clusters. Using the AHP method and the opinions of experts in this field, the weights of the parameters were calculated, and the calculations indicate that the amount of money paid for each purchase is more important than other parameters. Customer lifetime value was calculated with customer information and weights calculated from the WRFM model, and the clusters were ranked based on the calculated CLV score. The highest frequency percentage belongs to clusters with low customer life cycle value for milk product, very low customer life cycle value for yogurt product and medium customer life cycle value for cheese product.

In the next step, multiple logit was used to measure the impact of ethical components on CLV value and customer rating. The results for each of the components are described below. In order to investigate the component of brand adherence to the rules of its field of activity, this component was not significant for all the studied products (milk, cheese, yogurt and ayran) in all clusters, but according to the results, it is significant in the clusters with lifetime value. Customers have a positive and significant effect and increase the probability of being placed in these clusters compared to the base cluster, and vice versa, they have a negative and significant effect in clusters with low lifetime value, and according to the RRR statistic, the probability ratio of being placed in these clusters reduces By examining the component of respect for ethical norms by the brand, this component was not significant for all products in all clusters, but unlike the previous component, it had a positive and significant effect in clusters with low customer lifetime value and increased the probability for this cluster. is On the other hand, for clusters with high customer lifetime value, it has a negative effect and reduces the probability of being placed in this cluster compared to the base group. People who are in the lower categories of customer lifetime value give importance to this component, and this importance may after some time cause them to be placed in the higher category of customer lifetime value. By discussing and examining the social responsibility brand component, this component, like the rule compliance component, has a positive and significant effect in the valuable clusters of the customer's life cycle and increases the probability of being placed in these clusters compared to the base cluster and vice versa. In clusters with low lifetime value, they have a negative and significant effect, and according to the RRR statistic, it reduces the probability of being placed in these clusters.

Conclusion

For ayran product, in the order of severity of impact, compliance with the rules of the field of activity and acceptance of collective responsibility, causes placement in a cluster with higher customer lifetime value, but the importance of respecting ethical norms causes placement in clusters with lower value. Regarding the clustering of cheese product customers, this influence is related to the acceptance of social responsibility, respect for norms and adherence to the rules of the field of activity. The intensity of respect for moral norms leads to placement in lower clusters. For our yogurt product, the intensity of influence is related to compliance with the rules of the field of activity, respect for ethical norms and acceptance of collective responsibility, and like other products, the component of respect for ethical norms causes it to be placed in a cluster with a lower customer lifetime value. Finally, by examining the components for the milk product, the effect of the ethical components is not the same as for other dairy products, and the importance of complying with the rules of the field of activity has caused it to be placed in clusters with lower value, and acceptance of social responsibility has caused it to be placed in clusters with higher lifetime value. Dairy industry activists can move them to higher clusters and include them among their loyal customers by assuring customers of adhering to the rules of the industry and also accepting social responsibility. If positive measures are taken in the field of respect for ethical norms, it will affect a significant part of the consumers of cheese, yogurt and ayran products, and cause them to react positively to the industry and these products, and because of that move towards being among valuable customers. This is the industry. Because most of the customers of these products are in clusters with lower lifetime value.

According to the results, it can be said that customers who are considered as loyal customers for dairy products and have a high customer lifetime value, attach importance to accepting social responsibility and adhering to the rules of the dairy products field as ethical components. In today's competitive world, factors affecting the decisions of consumers should be addressed in order to turn consumers into regular customers for their products and brands. One of the things that should be addressed is the ethical components, because in recent years, this category has strongly influenced people's purchasing and consumption decisions, and as a result, this issue should be addressed and necessary measures should be taken in this field.

Keywords

Main Subjects

CAPTCHA Image