Marketing Communications and Brand Development in Emerging Markets Volume II: Insights for a Changing World (Palgrave Studies of Marketing in Emerging Economies) 303095580X, 9783030955809

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PALGRAVE STUDIES OF MARKETING IN EMERGING ECONOMIES

Marketing Communications and Brand Development in Emerging Markets Volume II Insights for a Changing World Edited by  Ogechi Adeola · Robert E. Hinson A M Sakkthivel

Palgrave Studies of Marketing in Emerging Economies

Series Editors Robert E. Hinson Department of Marketing and Entrepreneurship University of Ghana Business School Accra, Ghana Ogechi Adeola Lagos Business School Pan-Atlantic University Lagos, Nigeria

This book series focuses on contemporary themes in marketing and marketing management research in emerging markets and developing economies. Books in the series cover the BRICS (Brazil, Russia, India, China and South Africa), MINT (Mexico, Indonesia, Nigeria and Turkey), CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey, and South Africa); EAGLE economies (those which are expected to lead growth in the next ten years, such as Brazil, China, India, Indonesia, South Korea, Mexico, Russia, Taiwan, and Turkey) and all other African countries (classified under developing countries), taking into consideration the demographic, socio-cultural and macro-economic factors influencing consumer choices in these markets. The series synthesizes key subject areas in marketing, discuss marketing issues, processes, procedures and strategies across communities, regions and continents, and also the way digital innovation is changing the business landscape in emerging economies. Palgrave Studies of Marketing in Emerging Economies presents a unique opportunity to examine and discuss marketing strategy and its implications in emerging economies, thereby filling a gap in current marketing literature. All chapter submissions to the series will undergo a double blind peer review and all book proposals will undergo a single blind peer review. More information about this series at https://link.springer.com/bookseries/16591

Ogechi Adeola  •  Robert E. Hinson A. M. Sakkthivel Editors

Marketing Communications and Brand Development in Emerging Markets Volume II Insights for a Changing World

Editors Ogechi Adeola Lagos Business School Pan-Atlantic University Lagos, Nigeria

Robert E. Hinson University of Kigali Kigali, Rwanda

A. M. Sakkthivel School of Business Skyline University College Sharjah, United Arab Emirates

ISSN 2730-5554     ISSN 2730-5562 (electronic) Palgrave Studies of Marketing in Emerging Economies ISBN 978-3-030-95580-9    ISBN 978-3-030-95581-6 (eBook) https://doi.org/10.1007/978-3-030-95581-6 © The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature Switzerland AG 2022 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Palgrave Macmillan imprint is published by the registered company Springer Nature Switzerland AG. The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland

Preface

This book provides critical insights into marketing communications and brand development in a changing world and challenging times. Increasing industrialisation with associated environmental hazards, the pandemic, and an evolving digital environment have transformed the business landscape. These factors have influenced how organisations in emerging economies engage in marketing communications and branding activities. Three themes of this book: marketing communications and technology, branding and marketing communications during a pandemic, and corporate social responsibility and sustainability management in a time of crisis—offer contemporary marketing knowledge needed by researchers and practitioners in this changing world. The ravaging effects of COVID-19, the vulnerability of our planet to natural disasters, unsustainable living practices, and the changing digital landscape require businesses to strategically align with these realities by adapting and effectively communicating their offerings. The pandemic has posed significant social and economic challenges to people and the planet. To survive these challenges, business operations must respond with thoughtful branding and communications choices. Marketing communications through digital platforms provides the flexibility required to communicate the benefits of an organisation’s product offerings to consumers in uncertain times. v

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Authors of the chapters in this book draw from relevant literature and empirical evidence to emphasise the value of adopting digital technologies by businesses in emerging markets. Digital media creates an avenue for adaptive marketing, allowing businesses to effectively align their goals with consumers by communicating their brand values. Also, companies are capable of adapting to the changing world by utilising emerging technologies, such as artificial intelligence, augmented reality, and virtual reality, to understand customer needs and improve brand-customer communication. This book takes into consideration the growing importance of corporate social responsibility (CSR) in communicating value proposition messages to consumers and stakeholders. In the COVID-19 era, most firms are deploying CSR tools, including corporate philanthropy activities in the form of social support packages (food, face masks, hand sanitisers, and financial support), volunteering time and resources, and issuing solidarity messages. In addition to pandemic-triggered events, environmental sustainability issues require that marketing communications and brand development align with consumers’ new realities, both of which are crucial to sustaining market competitiveness. A key message of the book is the value of social responsibility and sustainability management as a critical strategic role in marketing communications and brand development. This volume’s core contributions and value propositions are focused on branding and marketing communications, extending theoretical knowledge to actionable business strategies that will communicate offerings to consumers in an uncertain and changing world. Finally, the book’s emerging market perspective takes into consideration a unique economic, social, and technological environment. Through conceptual and empirical studies, the authors reveal how brands can communicate their offerings to customers during a time of crisis, build loyalty, and increase engagement and patronage. Contributors include recommendations on how companies can revolutionise their branding and marketing communications strategies to meet the needs of a changing world. Lagos, Nigeria Kigali, Rwanda  Sharjah, United Arab Emirates 

Ogechi Adeola Robert E. Hinson A. M. Sakkthivel

Contents

Part I Introduction   1 1 Marketing Communications and Brand Development in a Changing World: Introduction, Issues, and Perspectives  3 Ogechi Adeola, Robert E. Hinson, and A. M. Sakkthivel

Part II Marketing Communications and Adapting to a Changing World Through Technology  23 2 SMEs’ Adoption of Artificial Intelligence-Chatbots for Marketing Communication: A Conceptual Framework for an Emerging Economy 25 Sany Sanuri Mohd Mokhtar and Maruf Gbadebo Salimon 3 Integration of Augmented Reality (AR) and Virtual Reality (VR) as Marketing Communications Channels in the Hospitality and Tourism Service Sector 55 Kandappan Balasubramanian, Puvaneswaran Kunasekaran, Rupam Konar, and A. M. Sakkthivel

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Part III Branding and Marketing Communications during a Pandemic (Covid-19)  81 4 #BankFromHome: Using Advertisement Campaigns to Change Banking Behaviour During the COVID-19 Pandemic in an Emerging Economy 83 Nguyen Phong Nguyen and Emmanuel Mogaji 5 Marketing Communications During a Pandemic: Perspective from a Developing Country109 Gloria K. Q. Agyapong 6 Brand Management During a Crisis: Lessons for Indigenous Hospitality Organisations in Africa131 Isaiah Adisa, Oserere Ibelegbu, and Blessing Chukwuka 7 Corporate Social Responsibility and Brand Development in Emerging Markets: Lessons from the COVID-19 Interventions in Nigeria157 Silk Ugwu Ogbu

Part IV Corporate Social Responsibility and Sustainability Management in a Changing World 181 8 Examining the Significance of Corporate Social Responsibility in Building Employee Value Proposition and Brand Value in the United Arab Emirates183 Kakul Agha and Jason Fitzsimmons 9 Corporate Social Responsibility and Corporate Brand Building in Africa’s Emerging Markets211 Abel Kinoti Meru and Mary Wanjiru Kinoti

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10 Brand Development Through Sustainability Certifications in Emerging Markets: Adoption of B Corporation Certification in Vietnam233 Nguyen Phong Nguyen and Emmanuel Mogaji 11 Critical Green Innovation Themes for Brand Development in Emerging Markets257 Mohammed Majeed 12 Marketing Communications: Embedding Sustainability Practices in a Changing World287 Ogechi Adeola and Evans Olaniyi Index309

Notes on Contributors

Ogechi  Adeola  is Associate Professor of Marketing and the head of Department of Operations, Marketing and Information Systems at the Lagos Business School, Pan-Atlantic University, Nigeria. Her multi-­ dimensional research focuses on the advancement of knowledge across the intersection of marketing, tourism, and gender studies. Her research has appeared in Annals of Tourism Research, Tourism Management, Journal of Business Research, Industrial Marketing Management, International Marketing Review, and Tourism Recreation Research. Her co-authored articles won Best Paper Awards at international conferences for four consecutive years (2016–2019). Adeola’s international marketing consultancy experience spans Africa, Asia, the UK, and the USA. Isaiah  Adisa is a management researcher and consultant based in Nigeria. He has co-edited book(s) with several other book chapters and journal articles in recognised outlets. He is affiliated with the Olabisi Onabanjo University, Ago-Iwoye, Ogun State, and his research interests cut across human resources management, organizational behaviour, marketing, and gender studies. Kakul  Agha  is an associate professor at Skyline University College, Sharjah, UAE.  She is a PhD from Aligarh Muslim University, India; MBA(HR); PG in Higher Education Professional Practice from Coventry xi

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University, UK, with over two decades of experience in India, Oman, and the UAE. She has published cases, book chapters, and research articles in management, work-life-balance, and education domains. She has a podcast channel, “The Business Bubbles”, for daily business tracks. She is a Certified Trainer for “Happiness” and “Work-life balance”, acquiring three certifications in the subject from the University of Berkeley, USA. Gloria K. Q. Agyapong  is a senior lecturer and currently the head of the Department of Marketing and Supply Chain Management at the University of Cape Coast. Her research areas are marketing communications, service quality management, and sustainability marketing. Her research works have appeared in refereed journals such as Journal of Financial Services Marketing, International Review on Public and Nonprofit Marketing, Journal of Social Marketing, and International Business Research, among others. Kandappan Balasubramanian  is an associate professor with the School of Hospitality, Tourism, and Events at Taylor’s University, Malaysia. He continuously empowers to innovate himself with the latest developments of technology to meet the changing needs of today’s learners. His recent research is in Industrial Revolution (IR) 4.0, service innovation, marketing in the hospitality industry as well as in higher education. He holds grants and has presented papers in conference proceedings. His articles have appeared in SSCI and Scopus-indexed journals. He is an active reviewer for Scopus journals and winning recipient of many International e-Learning Carnivals and Apple Distinguished Educators Awards. Blessing  Chukwuka is an enthusiastic researcher who is currently studying for her PhD in the field of management at Queen’s University Belfast. Her research interests span across development studies, gender studies, organisational and management studies. Prior to the doctorate studies, she worked as a research assistant at Lagos Business School where she rendered her research expertise to the advancement of faculty research work. Jason Fitzsimmons  is the Academic President at the Manipal Academy of Higher Education, Dubai campus. He has been involved in academia for more than twenty years. Originally from the Brisbane Graduate

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School of Business at the Queensland University of Technology, Australia, he has since lived and worked across a number of countries including Australia, Singapore, Malaysia, and India. He has a PhD in Physics and an MBA in Entrepreneurship and Strategic Management from the Queensland University of Technology, with research interests in entrepreneurship and new venture finance. Robert E. Hinson  is currently the deputy vice chancellor—Academic at the University of Kigali with additional responsibility as interim vicechancellor of the same University. His main research interests lie in the academic areas of marketing and communications, information and technology management, service management, and social responsibility and sustainability management. He has 25 monographs/edited volumes and over 150 peer-reviewed journal papers/book chapters to his credit. He was ranked by the 2021 and 2022 Alper-Doger (AD) Scientific Index as the #1 African Marketing Scholar and leading business and management scholar in Ghana. His book collection can be accessed at www. robertebohinsonbooks.com. Oserere Ibelegbu  is a management scholar academy-research assistant at Lagos Business School, Pan-Atlantic University, Nigeria. She obtained a master’s degree in Information Science and a bachelor’s degree in Economics, both from the University of Ibadan, Nigeria. She has academic publications in the areas of tourism, customer service and service quality, digital technologies, and corporate social responsibility (CSR), among others. Mary  Wanjiru  Kinoti  is Associate Professor of Marketing and acting Director, Intellectual Property Management Office, and the associate dean, Graduate Studies, School of Business, University of Nairobi. Her research interests are mainstreaming green marketing and customer care in public institutions and among micro, small, and medium enterprises in sub-Saharan Africa. Rupam  Konar is a senior lecturer with the School of Hospitality, Tourism, and Events at Taylor’s University, Malaysia. He specialises in the research area of service innovation, service delivery, and service design in the hospitality industry. He published over 25 International referred

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journal articles and has successfully completed many national and university level research grants. He also has been awarded the gold medal at the International e-Learning carnival 2019. He is currently the managing editor for the Asia Pacific Journal of Innovation in Hospitality and Tourism (Scopus-Indexed) and Certified Microsoft Innovative Educator. Puvaneswaran Kunasekaran  is a senior lecturer at the University Putra, Malaysia. He is an expert in the research areas of sustainable tourism, service marketing, tourism entrepreneurship, organisation changes, and management practices. He has published books, articles, proceedings, and countless research output in referred journals and has mentored graduate students in research. He has successfully completed and is currently leading many national and community research grants and projects. He also serves as Honorary Treasurer of the ASEAN Tourism Research Association (ATRA) and is a Certified Action-Learning Trainer. Mohammed Majeed  is a lecturer (PhD) at Tamale Technical University, Tamale-Ghana. His current research interest includes branding and social media in service organisations. He holds Doctor of Business Administration (DBA), MPhil and MBA Marketing, Postgraduate in Management Practice, and HND in Marketing. He lectures part-time in many Ghanaian public universities and is a reviewer for many journals in management, hospitality, and marketing. He has also published in good journals like Journal of Hospitality and Tourism Insights and Cogent Business and Management. Abel Kinoti Meru  is Associate Professor of Business Management; acting deputy vice chancellor, Academic Affairs, and dean, Riara School of Business, Riara University, Kenya, and first chair of Academy of International Business, Africa Chapter. His research interests are in social innovation and business incubation, entrepreneurship and marketing. Emmanuel  Mogaji  is Senior Lecturer in Advertising and Marketing Communications at the University of Greenwich, London, UK.  His research interests are in artificial intelligence, digital marketing, and brand management. He has previously worked as a marketing communication executive, responsible for creative designs and managing market-

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ing campaigns, liaising and building relationships with a range of stakeholders. He has published peer-reviewed journal articles and book chapters and presented his works at many national and international conferences. His articles have appeared in International Journal of Information Management, Journal of Product and Brand Management, Australasian Marketing Journal, and International Journal of Bank Marketing. Sany  Sanuri  Mohd.  Mokhtar is a professor at School of Business Management, Universiti Utara Malaysia. He is the director of Institute of Quality Management, Universiti Utara Malaysia. Before this, he was the dean of Student Development and Alumni, Universiti Utara Malaysia. His areas of research include strategic marketing, total quality management, service quality, customer relationship management, Islamic marketing, and consumer behaviour. He has presented in various International conferences and has published numerous articles in top international journals including but not limited to Total Quality Management and Business Excellence, International Journal of Bank Marketing, and Journal of Islamic Marketing. Nguyen Phong Nguyen  is a lecturer of the School of Accounting at the University of Economics Ho Chi Minh City, Ho Chi Minh City, Vietnam. He is also a member of Certified Practising Accountants, Australia. His publications have appeared in Journal of Accounting and Public Policy, Industrial Marketing Management, European Journal of Marketing, Public Management Review, Journal of Product and Brand Management, Asia Pacific Business Review, and Australasian Marketing Journal. Silk Ugwu Ogbu  is a public affairs and political communication strategist. He holds a PhD in Political Science (International Relations) and another PhD in Marketing (Public Relations). His research interests are in the areas of political communication, conflict resolution, change management, rhetorical communication, negotiation, leadership strategies, development communication, brand management, and stakeholder relations. He is an associate professor at the School of Media and Communication, Pan-Atlantic University, Lagos.

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Evans Olaniyi  is a Nigerian economist and a university lecturer at PanAtlantic University, Nigeria. He is known in academia for his work on the digital economy, financial inclusion, and tourism. He obtained his BSc first class, MSc distinctions, and PhD, all in economics from the University of Lagos. He is the author of a substantial number of scholarly articles in top academic journals. He is the editor of BizEcons Quarterly. A.  M.  Sakkthivel is Professor of Marketing in School of Business, Skyline University College, United Arab Emirates. He holds MBA and PhD in Business Administration and possesses 25  years of academic, research, industry, consulting, and training experience. He is a member of Global Academic Council, DMAT Global, UK. His research interests include online consumer behaviour, smartphone usage patterns, marketing, and branding communications. His articles have appeared in journals such as the International Journal of Mobile Learning and Organisation, International Journal of Mobile Communications, Journal of Promotion Management, to name a few. Maruf  Gbadebo  Salimon is an international senior lecturer at the Department of Marketing, School of Business Management, Universiti Utara Malaysia. He received his PhD marketing from Universiti Utara Malaysia, MBA from Ambrose Alli University, Ekpoma, Nigeria, and a Master in Managerial Psychology from the University of Ibadan, Ibadan, Nigeria. He worked with four commercial banks in Nigeria for almost a decade, where he held different positions. His research interest and expertise include technology adoption, marketing, service quality, and consumer behaviour. He is a member of the American Marketing Association; associate, Chartered Institute of Marketing (UK); and associate, Nigerian Institute of Management (Chartered).

List of Figures

Fig. 2.1 Fig. 2.2 Fig. 3.1 Fig. 3.2 Fig. 4.1 Fig. 4.2 Fig. 4.3 Fig. 4.4 Fig. 4.5 Fig. 4.6 Fig. 7.1 Fig. 7.2 Fig. 7.3

How chatbots work (Source: Ahmad et al., 2018) 28 Conceptual framework 40 Key technologies of IR4.0 for the tourism and hospitality industry (Osei et al., 2020) 60 Famous AR and VR activities and immersive experience in “The Rift”, Mid Valley Shopping Mall, Malaysia. (Source: https://therift.com.my) 63 Summary of results 93 Advertisement by Banks reminding customers about alternative banking through mobile app and money agents 94 Advertisement by Banks reminding customers to stay alert and avoid being scammed during the pandemic 95 Advertisement by Banks reminding customers about social distancing when coming to the Banking Hall 96 Advertisement by Banks providing incentives for customers using their digital channels 97 Conceptual framework of advertising and COVID-19 in the banking industry 99 Pyramid of Corporate Social Responsibilities. (Source: Helg (2007))161 Relationship between Stakeholder Theory and CSR. (Source: Freeman and Dmytriyev (2017)) 167 CSR effects on brand trust. (Source: (Aimie-Jade, 2011)) 173 xvii

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List of Figures

Fig. 8.1 CSR models. (Adapted from Ferrell et al., 2018) Fig. 11.1 Components of GI. (Source: Chen et al. (2006) and Seman et al. (2019)) Fig. 11.2 Drivers of GI. (Source: Author’s compilation) Fig. 11.3 GI and branding. (Source: Adapted from Aaker (1991)) Fig. 12.1 Six levels of integrating sustainability marketing communications. (Adapted from Šķiltere & Bormane, 2018b)

189 265 269 273 292

List of Tables

Table 1.1 Table 1.2 Table 3.1

Some notable brands and their rhetoric Brand rhetoric in India Some of the best AR and VR practices in the Hospitality, Tourism and Events—Asia and Hawaii, USA (created by the Authors) Table 4.1 Summary of the methodological approach Table 5.1 Television advertisement during COVID-19 Table 5.2 Cases on the use of websites to communicate to target audience during COVID-19 Table 5.3 Online shopping during COVID-19 pandemic Table 5.4 Use of Social Media for Marketing Communications during COVID-19 Table 6.1 Approaches used in dominating the African market Table 6.2 Services provided through the Marriot Bonvoy Application Table 6.3 Innovative practices implemented by Hilton Hotel during the pandemic Table 10.1 B Corp certification representatives from Vietnam

11 12 69 90 114 117 119 122 135 144 145 245

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Part I Introduction

1 Marketing Communications and Brand Development in a Changing World: Introduction, Issues, and Perspectives Ogechi Adeola, Robert E. Hinson, and A. M. Sakkthivel

Introduction Change is a dominant phenomenon in the business world today. Evolutionary changes in the social, economic, and political realities of nations across the globe can be attributed to technological innovation, climatic conditions, and the COVID-19 pandemic. These changes demand adaptative marketing approaches that align product and service offerings in a way that conforms to the new normal in  local and

O. Adeola (*) Lagos Business School, Pan-Atlantic University, Lagos, Nigeria e-mail: [email protected] R. E. Hinson University of Kigali, Kigali, Rwanda A. M. Sakkthivel School of Business, Skyline University College, Sharjah, United Arab Emirates e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 O. Adeola et al. (eds.), Marketing Communications and Brand Development in Emerging Markets Volume II, Palgrave Studies of Marketing in Emerging Economies, https://doi.org/10.1007/978-3-030-95581-6_1

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international markets (He & Harris, 2020; Taylor, 2020; Hoekstra & Leeflang, 2020). Marketing strategies play a critical role in the efforts of businesses to gain a competitive advantage in the marketplace, and marketing communications and brand development are at the core of these efforts. Marketing communications, a fundamental aspect of strategic marketing, refers to the techniques by which information about goods, services, or brands reach the final users (Todorova, 2015). Brand development, a concept closely linked to marketing communications, refers to the ways a company distinguishes itself from competitors (Lucid Advertising, 2021). Brand development is a priority for marketers and businesses because it gives customers the knowledge they need to respond positively to their products or services (Ateke, 2017). Marketing communication, the voice of the company, shapes that knowledge, enhancing the formation of a positive brand image and the means by which a company can build a relationship in the minds of its customers. The goal of marketing communication is to create a strong link with customers in order to establish well-known and valued brands. Brand development can create economic, environmental and reputational advantages for companies; marketing communication is the means by which companies build their brands (Banerjee, 2009). Duncan (2002) explains that marketing communications and brand development are a circular process that enhances brand value and increases sales and profits. In this era of globalisation, the marketing landscape is changing very quickly due to increasing consumer purchasing power, more accessible technology, and varied media outlets. These factors have made it more challenging to establish a foolproof brand development strategy in the long term. This is where marketing communication plays a crucial role; through it, marketers position their brands in the minds of targeted customers to increase top of mind awareness and willingness to make a purchase decision. This first chapter of the book aims to convey an understanding of the role of marketing communications and brand development in a changing world, with a particular focus on emerging economies.

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The Context: Emerging Economies Emerging economies (also known as emerging markets) are mostly characterised by a low income population but show evidence of greater economic growth in recent years (Bruton et  al., 2013) with a growing population and an increasing number of middle-class consumers (Cheng et al., 2017). Most emerging economies are found in Latin America, Asia, Africa, and the Middle East, with the fastest-growing being Brazil, Russia, India, and China, otherwise known as the BRICs. Emerging economies are regarded as growth engines in the world, attracting new and varied businesses (Nkamnebe, 2011). There is growing interest among marketing researchers in the dynamics of marketing communications and brand development in emerging economies; however, the bulk of the research on marketing communications in those economies draws from ideas and theories from developed economies. The question must be asked: do these ideas and theories accurately pertain to the realities of emerging markets given the distinct differences in their business landscape? (Schultz & Patti, 2009; Wei et al., 2014). Variations in the levels of institutional and economic development suggest that current marketing strategies in developed markets do not sufficiently capture the realities of emerging economies (Ofori-­ Dankwa, 2013; Sheth, 2011). Emerging markets are characterised by economic uncertainties; and firms in these markets face numerous unpredictable conditions that may threaten their survival (Bruton et al., 2013). Therefore, consumers need clear and unambiguous information to trust regulators, determine company reputation and make purchase decisions. Uncertainties and questions could arise: “How do the market regulators enforce regulations on consumer protection?” “What options do customers have against defective products?” “How easy is it for customers to get objective information about the quality of the goods and services they wish to purchase?” When such information cannot be easily obtained, customers’ perceptions of risk increase, prompting them to search for more reliable information before making a purchase. Marketing communications and branding play critical roles in determining consumer purchase behaviour and preferences.

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Marketing Communications and Branding Effective marketing communications offer a customer-centric approach to product and service offerings, building consumer engagement and influencing consumers’ consumption patterns. Marketing communication closes the gap between the consumers’ needs and an organisation’s product offerings (Finne & Grönroos, 2017). Appropriate marketing communications will consider not only what consumers need, but how they want those needs to be fulfilled and how they can provide feedback about their purchase experience. Through marketing communications, organisations build and sustain brand images and positioning. As strategies and techniques for branding change, the tools of marketing communications are also altered. It is important to emphasise that activities involved in marketing communications cannot be separated from the branding process. Keller (2009) described marketing communications as the process through which firms inform, persuade, and remind consumers, either directly or indirectly about their products and brands, creating awareness about their product characteristics in a way that will stimulate purchases. Through marketing communications, consumers’ knowledge of an organisation and its product is enhanced, and a platform for business and consumer interaction is established. Branding is directly linked with marketing communications, and brands’ objectives over time determine the context and tools of effective marketing communications messages. Given that branding involves establishing product values and offerings in the mind of target consumers, marketing communications offers the tools and processes associated with achieving branding objectives (Reid, 2002). As market demands evolve, branding objectives and product characteristics also change to meet consumer priorities and consumption patterns (Arora et al., 2020). The recent pandemic crisis, for example, forced marketing practitioners and brand managers to alter their marketing communication strategies to fit a new reality, developing tools and brand content that aligned with the public’s social, economic, and health challenges (Ketter & Avraham, 2021; Hoekstra & Leeflang, 2020). At the

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peak of the pandemic, some business brands seized the opportunity to influence consumers’ perceptions and emotions through digital platforms and various intervention packages (Hoekstra & Leeflang, 2020). Though some of these strategies have been criticised as exploitative (Yang & Mundel, 2021), many messages were well received, especially those brands that developed Corporate Social Responsibility (CSR) activities that contributed to the urgent needs of the consumers while also addressing global social and economic challenges (He & Harris, 2020). Brands re-strategised and adopted new digital media aimed at building customer engagement and remaining relevant in the middle of the pandemic (Bettiol et al., 2021; Pham et al., 2020). Content with educative, solidarity, and safety precaution messages during a crisis builds consumer engagement (Bettiol et al., 2021). By adopting appropriate marketing communications during a crisis, businesses contribute to alleviating the struggles of their consumers and the larger society (Hoekstra & Leeflang, 2020). Likewise, appropriate branding ensures that marketing content adapts to the consumers’ changing consumption patterns (Danciu, 2021). New consumption patterns have been identified as efforts to reduce expenses, changes in priorities to meet basic needs, increased dependence on digitalisation and home delivery services, preference for local shopping, and increased interest in green content (Danciu, 2021). Digital media was identified as a crucial tool that brands must utilise to fit into current market realities during the pandemic. Digital marketing tools that convey brand marketing messages to consumers during the crisis include influencer marketing, search engine optimisation, content marketing, content automation, social media marketing, campaign marketing, direct e-mail marketing, e-books, and display advertising (Yamin, 2017).

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Issues and Perspectives on Marketing Communications and Brand Development in Emerging Economies Three themes have been identified in this book as shaping marketing communications and brand development in emerging economies in the changing world: marketing communications and technology, branding and marketing communications during a pandemic, and corporate social responsibility and sustainability management in a time of crisis.

Marketing Communications and Technology The marketing environment has witnessed the introduction of novel, non-traditional media in the marketing arena. Information and Communications Technology (ICT), the internet, search engines, and mobile devices are major interrelated building blocks driving changes in the marketplace and thus enhancing marketing communications and brand development. As a result, the challenges faced by marketers two decades ago differ from those faced today. The rapid evolution of ICT and digital technologies is significantly impacting how people communicate and interact. Since the world wide web explosion as a medium for business, one of its primary uses has been for marketing (Vukasović & Strašek, 2014). The internet provides an interactive tool that allows companies to access and build relationships with a wider market. Digital marketing is gaining traction and attracting customers to buy goods and services with increasing acceptance in emerging markets (Zhazira et al., 2019). Search engines now make it easy for customers to compare products, making decisions based on product descriptions and previous consumers’ reviews of those products. Online shopping via mobile devices has also become a trend in emerging economies and has changed buying and searching behaviour. Overall, the web and mobile devices have given customers easy access to detailed information on products and services made available at any place, at any time, and in any desired digital format

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(Larivière et al., 2013). This has implications for companies as effective utilisation of technology in communicating product benefits becomes a key source of competitive advantage in an increasingly digitalised world. Companies use of new technology-enabled services such as virtual assistants, service robots, and chatbots have also transformed the customer experience (Buhalis et al., 2019). In the tourism and hospitality industry, particularly, Augmented Reality (AR) and Virtual Reality (VR) are being integrated into marketing communications channels to improve customer experience (Serravalle et  al., 2019). With these digital tools, businesses in emerging economies can improve customer interactions, enhance overall customer experiences, improve brand image, and achieve business goals.

 randing and Marketing Communications During B a Pandemic 2020 was a peculiar year for the global economy due to the rapid spread of the COVID-19 pandemic. Unprecedented economic and public health concerns harshly affected stakeholders across all local and international economies. Consumers were frustrated with the changing economic environment and the “new normal” to which they had to adapt. Businesses were challenged to find a way to sustain operations while growing or, at minimum, maintaining their brand and customer base. Many industries, particularly tourism, hotel, aviation, and hospitality, suffered great losses during this period (Song et al., 2020). Despite falling economic activity globally in 2020, the pandemic led to a surge in the use of e-commerce. As lockdowns became the “new normal”, businesses and consumers became more dependent on digital transactions. There was a shift towards trust-based communication strategies. Many businesses had to formulate innovative ways to sustain their brand and also develop new products that aligned with the new reality. The lockdown also encouraged the growth of online shopping in emerging markets where there were movement restrictions, and consumer anxiety discouraged physical transactions. The share of e-commerce in global

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trade had grown from 14% in 2019 to about 17% by the end of 2020 (UNCTAD, 2021). The pandemic led to the rise of what could be called “the trust economy” (LSE, 2020), a phenomenon that is increasingly important in emerging markets. The world is currently at a stage where information found on the internet is influential in shaping customers’ purchasing decisions, and with rising concerns over fake news and false information, trust is starting to play a key role in attracting customers rather than just product descriptions or advertisements. Forbes (2020) reported a rise in influencer marketing in 2020 with reference to emerging economies. Compared to conventional marketing efforts, influencers typically prepare and record content from the comfort of their homes or scenic locations. Thus, many businesses and organisations have modified their content delivery context to focus on sports, nature, healthy diets and exercise, social gatherings, and other attractive settings. Influencers have very large followership on social media networks like Instagram, Facebook, and YouTube. This creates an opportunity for them to ‘influence’ or spread more information about a company’s products and services, especially at a time when consumers were socially restricted, had to stay at home, and communicated with loved ones through digital tools and social media platforms. Before the pandemic, technology was already in use for product and service marketing; however, limitations to movement and social distancing meant that businesses had to accelerate their adoption of digital processes in product and service delivery (Hu & Olivieri, 2021; Priyono et al., 2020; Vapiwala, 2020). The COVID-19 pandemic altered consumers’ purchasing behaviours with a negative effect on economic stability around the world. Organisations were forced to change their marketing strategies to better understand current consumption patterns and find ways to remain relevant even in the middle of the pandemic (Hoekstra & Leeflang, 2020; Taylor, 2020). Current narratives, across sectors, reveal that market ecosystems are changing, and businesses must abandon traditional marketing practices and substitute these with contemporary marketing techniques (Alshaketheep et al., 2020). Techniques and strategies adopted for positioning and communicating brands must

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reflect the realities of the market and conform to the consumers’ needs (Reid, 2002). Understanding the nature and content of marketing communications during the COVID-19 pandemic has been important for managers and marketing practitioners as they worked to build and sustain their brand image. Notably, brand communication content and messages were altered to fit the pandemic conversation and collaborate with government authorities to combat the effects of the virus (Huang & Liu, 2020; Jiménez-Sánchez, Margalina & Vayas-Ruiz, 2020; Ketter & Avraham, 2021). For instance, some brands in the hospitality industry embarked on CSR activities (Huang & Liu, 2020), while others worked to incorporate messages of encouragement or health protections in their marketing rhetoric (Mangiò et al., 2021; Naxera & Stulík, 2021; Sobande, 2020). The nature of the pandemic required brand management teams to develop messages that communicated care and togetherness, creating emotion-based connections with their consumers. Brands’ most used rhetoric to connect with their customers is some variation of “#We Are All in This Together” (Atkinson et al., 2021; Sobande, 2020). Katsoulieri (2021) identified several examples of global brands’ rhetorical efforts to connect with their customers (see Table 1.1). Similarly, Shah and Tomer (2020) identified rhetoric used by brands in some emerging economies, such as India, to connect with their customers (see Table 1.2). Interestingly, brands’ connections with customers have been enabled by digital platforms, with brands improving their digital footprint across the globe (Bettiol et al., 2021). For example, Mogaji et al. (2021) revealed Table 1.1  Some notable brands and their rhetoric Brand name

Rhetoric

McDonald’s (Brazil) “Separated for a moment so that we can always be together.” Burger King “Stay Home of the Whopper.” Chiquita “I’m already home. Please do the same and protect yourself.” Coca Cola “Staying apart is the best way to stay united.”

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Table 1.2  Brand rhetoric in India Brand name

Rhetoric

Savlon India Samsung India LG India

#ChainOfProtection, #GetActiveWithSavlon #GetThroughThisTogether, #MakeMemoriesAgain #StayHomeStayEntertained #LGCaresForYou #MultiTaskFromHome #StayInStaySafe. #staysafe #savewater

Suzuki Motorcycle India Harpic India

how banks engaged with consumers in emerging markets through chatboxes, though infrastructural challenges inhibited full adoption. Similarly, Atkinson et al. (2021) demonstrated how alcohol brands in the UK used social media platforms to communicate with customers, stimulate sales, and partner with the government to fight against the virus. Alcohol brands in the UK, through Facebook and Instagram, communicated their online sales and delivery strategies while also stimulating consumers’ purchases by encouraging them to stock their homes with alcohol as an essential product. They supported government restrictions on social gatherings by encouraging consumers to drink from home. These alcohol brands also made philanthropic donations to support the fight against COVID-19, efforts which were communicated via social media platforms. Recognising the changing marketing space, these brands rightly positioned themselves by communicating their offerings on digital platforms and also ensuring that their marketing content appealed to the consumers’ reality.

 orporate Social Responsibility and Sustainability C Management in a Time of Crisis Traditionally, the role of businesses was viewed through economic parameters of maximising sales and profits. However, over the past few years, due to globalisation and pressing environmental issues, the view of businesses within the broader social context has changed. Today, the role of businesses and companies has been redefined to take account of broader responsibilities beyond economic performance to include care of the

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community and the environment. The concept of corporate social responsibility of businesses has emerged from this shift from the purely economic to a social dimension. There is no consensus regarding the definition of Corporate Social Responsibility, so the concept has been accorded various meanings but is generally understood as a firm’s obligation to improve social welfare through various social actions. In other words, it is a firm’s duty to improve the society by its contribution. CSR involves companies going over and beyond their legal obligations to manage their activities in a way that integrates and values the social, economic, and environmental impact of their businesses (Nadeem, 2013). In more advanced economies (e.g., USA), CSR is an integral part of corporate communication and marketing efforts; comparatively fewer CSR efforts are found in less developed countries. Given that emerging economies are expected to account for an increasing share in world GDP in the coming future, it is imperative that they adopt more sustainable ways of doing business (Cambra-Fierro et al., 2020). Companies in emerging economies are becoming more concerned with the positive reputational rewards of CSR opportunities, and they are striving to align their corporate behaviour accordingly. Businesses with sound CSR practices are more likely to have a favourable brand image that boosts employee morale, and they are able, therefore, to convert these intangible assets into marketplace advantages (Krishnan & Balachandran, 2008). Socially responsible firms are building their competitive edge and brand image among customers, leading to an uptick in brand loyalty and referrals. Cambra-Fierro et al. (2020) noted that strong bonds arise between customers and a brand when companies carry out their CSR consistently and over time. A theme related to CSR is sustainability management: businesses’ application of processes and practices that protect the environment and ecosystems, safeguard human welfare, and build a good reputation. Sustainability marketing communications  is becoming increasingly important for the promotion of contemporary themes and practices such as cause-related marketing, corporate philanthropy, green innovation, green advertising, and environmental public relations.

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 arketing Communications and Branding M in a Changing World Uncertainty has become a familiar element of our current society, the most recent evidence being the devastating effect of COVID-19 on the global economy and businesses. Marketing is not the same as it was prior to the pandemic; consumers’ realities have been altered, and consumption patterns have changed, both leading to a reduction in advertising expenditures (Arora et  al., 2020; Kirk & Rifkin, 2020; Mason et  al., 2020; Taylor, 2020; Sheth, 2020). Despite the challenges presented by the pandemic, digital platforms and tools have offered businesses the opportunity to continually engage with their customers (Alshaketheep et al., 2020; Bettiol et al., 2021), particularly during national lockdowns and other restrictions introduced to curtail the spread of the pandemic. The pandemic has shown that to build brands and communicate product and service offerings in a period of crisis and a world of uncertainties, businesses must invest in digital media and tools (Bettiol et  al., 2021; Hoekstra & Leeflang, 2020; Ketter & Avraham, 2021). Technology offers organisations an avenue for adaptive marketing communications that effectively align their goals with consumers’ needs and expectations. CSR and sustainability initiatives are needed to reassure public confidence in corporate efforts to fight environmental hazards. In a changing world, marketers must adopt unique strategies to create value for customers and revolutionise practices that reflect new stages in the consumer journey.

Book Themes To properly communicate the offerings in this book—Marketing Communications and Brand Development In a Changing World—chapter contributions are categorised under three main themes: marketing communications and technology, branding and marketing communications during a pandemic (Covid-19), and corporate social responsibility and sustainability management in a changing world.

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Marketing communications and technology. Sany Sanuri Mohd Mokhtar and Maruf Gbadebo Salimon in Chap. 2 examined “SMEs’ Adoption of Artificial Intelligence-Chatbots for Marketing Communications: A Conceptual Framework for an Emerging Economy.” The chapter proposes a conceptual framework based on an integrated TechnologyOrganisation-Environment Model to predict the adoption of chatbots among SMEs. The chapter offers insights to both academics and practitioners. Kandappan Balasubramanian, Puvaneswaran Kunasekaran, Rupam Konar, and Sakkthivel Annamalai Manickam explore virtual marketing applications in Chap. 3: “Integration of Augmented Reality (AR) and Virtual Reality (VR) as Marketing Communications Channels in the Hospitality and Tourism Service Sector.” The chapter explores the integration of AR and VR as highly effective marketing tools among hospitality service providers seeking to gain a competitive edge with the adoption of proactive changes offered by the digital business world. Branding and marketing communications during a pandemic (COVID-19). In Chap. 4: “#BankFromHome: Using Advertisements Campaigns to Change Banking Behaviour During the COVID-19 Pandemic in an Emerging Economy”, Nguyen Phong Nguyen and Emmanuel Mogaji analyse banks’ advertisements through exploratory qualitative research among customers and bank managers to understand how advertising can be used to change banking behaviour (e.g., online banking) and promote socially desirable actions such as social distancing (i.e., in the banking halls and elsewhere). A conceptual framework for advertising and COVID-19 in the banking industry was developed. Gloria K.Q. Agyapong authored Chap. 5: “Marketing Communications During a Pandemic: Perspective from a Developing Country”. The author assesses the importance of marketing communications to businesses using the signalling effect and the stimulus organism response theory. The chapter highlights strategies and tactics adopted by businesses during the COVID 19 era. Isaiah Adisa, Oserere Ibelegbu, and Blessing Chukwuka, in Chap. 6, “Brand Management During a Crisis: Lessons for Indigenous Hospitality Organisations in Africa”, draw out lessons from multinational hotel

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brands in Africa’s hospitality industry through the lens of desk research. The chapter proposes an appropriate recommendation for local hotels in Africa and concludes that brand management in the hospitality industry during a crisis is a subject hotel owner, marketers, and managers must take seriously in the current uncertain business environment. Silk Ugwu Ogbu rounds off this thematic section in Chap. 7: “Corporate Social Responsibility and Brand Development in Emerging Markets: Lessons from the COVID-19 Interventions in Nigeria.” This chapter, from a conceptual perspective and application of the Stakeholder Management Theory, examines the conception and practice of CSR in emerging markets. Focusing on CSR practices in Nigeria, the chapter notes that CSR is still largely inspired by philanthropy rather than strategy. Corporate Social Responsibility and Sustainability Management in a changing world. Kakul Agha and Jason Fitzsimmons authored Chap. 8: “Examining the Significance of Corporate Social Responsibility in Building Employee Value Proposition and Brand Value in the United Arab Emirates.” This chapter provides a conceptual understanding of CSR and the perceived social benefits to stakeholders, including brand building and reputation management. Abel Kinoti Meru and Mary Wanjiru Kinoti, in Chap. 9: “Corporate Social Responsibility and Corporate Brand Building in Africa’s Emerging Markets”, emphasise that a firm has to leverage CSR activities if it expects to contribute to the growth and development of stakeholders. Chapter 10: “Brand Development Through Sustainability Certifications in Emerging Markets: Adoption of B Corporation Certification in Vietnam”, authored by Nguyen Phong Nguyen and Emmanuel Mogaji assesses Vietnam’s emerging economy to understand brands’ efforts towards sustainability and brand communication strategies by exploring their adoption of B Corp as a sustainability certification. Mohammed Majeed, in Chap. 11, unveils the critical Green Innovation (GI) and branding themes in emerging markets. The chapter discusses insights from the literature review, which documents findings related to enablers, drivers, and categories of GI. Ogechi Adeola and Olaniyi Evans, in Chap. 12, conclude the book with “Marketing Communications: Embedding Sustainability Practices in a Changing World”. The chapter discusses the connection between sustainability and marketing communications  and highlights strategic

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practices that help build a reputable image for businesses, protect the environment, and create value for consumers. The chapter also considers how the COVID-19 pandemic has forced businesses to revise their marketing communications and branding strategies and the implications for strategy development.

References Alshaketheep, K. M. K. I., Salah, A. A., Alomari, K. M., Khaled, A., & Jray, A. A. A. (2020). Digital marketing during COVID 19: Consumer’s perspective. WSEAS Transactions on Business and Economics, 17, 831–841. Arora, N., Charm, T., Grimmelt, A., Ortega, M., Robinson, K., Sexauer, C., Staack, Y., Whitehead, S., & Yamakawa, N. (2020). A global view of how consumer behavior is changing amid COVID-19. McKinsey & Company. Ateke, B. (2017). The marketing communication-brand awareness nexus. Business Master, 5(1), 210–221. Atkinson, A. M., Sumnall, H., & Meadows, B. (2021). ‘We’re in this together’: A content analysis of marketing by alcohol brands on Facebook and Instagram during the first UK Lockdown, 2020. International Journal of Drug Policy, 98, 103376. Banerjee, S. (2009). Market communication through brand placement: A strategic roadmap. Journal of Marketing & Communication, 5(2), 5–22. Bettiol, M., Capestro, M., Di Maria, E., & Micelli, S. (2021). Reacting to the COVID-19 pandemic through digital connectivity with customers: The Italian experience. Italian Journal of Marketing, 1–26. https://doi. org/10.1007/s43039-­021-­00031-­y Bruton, G., Filatotchev, I., & Wright, M. (2013). Entrepreneurship and strategy in emerging economies. Strategic Enterpreneurship Journal, 7(3), 169–180. Buhalis, D., Harwood, T., Bogicevic, V., Viglia, G., Beldona, S., & Hofacker, C. (2019). Technological disruptions in services: Lessons from tourism and hospitality. Journal of Service Management, 30(4), 484–506. https://doi. org/10.1108/JOSM-­12-­2018-­0 Cambra-Fierro, J., Alfredo, F.-H., Lourdes, P., & Guadalupe, V.-B. (2020). CSR and branding in emerging economies: The effect of incomes and education. Corporate Social Responsibility and Environmental Management, 27(6), 2765–2776. https://doi.org/10.1002/csr.2000 Cheng, W., Jiaxun, H., & Bradley, B. (2017). Brand management and consumer experience in emerging markets: Directions for future research.

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Kirk, C.  P., & Rifkin, L.  S. (2020). I’ll trade you diamonds for toilet paper: Consumer reacting, coping and adapting behaviors in the COVID-19 pandemic. Journal of business research, 117, 124–131. Krishnan, S. K., & Balachandran, R. (2008). Corporate social responsibility as a determinant of market success: An exploratory analysis with special reference to MNCs in emerging markets. Marketing Strategies for Firms in Emerging Markets IIM K – NASMEI International Conference. http://www.ecrc.org.eg/ Larivière, B., Joosten, H., Malthouse, E. C., Van Birgelen, M., Aksoy, P., Kunz, W. H., & Huang, M. H. (2013). Value fusion: The blending of consumer and firm value in the distinct context of mobile technologies and social media. Journal of Service Management, 24(3), 268–293. LSE. (2020). Shifts in strategic communication, branding and promotion ­during the COVID-19 pandemic. Retrieved from https://blogs.lse.ac.uk/ medialse/2020/09/07/shifts-­i n-­s trategic-­c ommunication-­b randing-­ and-­promotion-­during-­the-­covid-­19-­pandemic/ Lucid Advertising. (2021). What is brand development. Retrieved from www.lucidadvertising.com: https://www.lucidadvertising.com/blog/what-­is-­ brand-­development/ Mangiò, F., Pedeliento, G., & Andreini, D. (2021). Branding rhetoric in times of a global pandemic: A text-mining analysis. Journal of Advertising, 50(3), 240–252. Mason, A., Narcum, J., & Mason, K. (2020). Changes in consumer decision-­ making resulting from the COVID-19 pandemic. Journal of Customer Behaviour, 19(4), 299–321. Mogaji, E., Balakrishnan, J., Nwoba, A. C., & Nguyen, N. P. (2021). Emerging-­ market consumers’ interactions with banking chatbots. Telematics and Informatics, 65, 101711. Nadeem, M. (2013). Emerging markets: Corporate sustainability or maximise stakeholder value? International Journal of Humanities and Social Science, 3(5), 91–107. Naxera, V., & Stulík, O. (2021). ‘I will handle it personally’: The neo-­patrimonial rhetoric of the Czech Prime Minister in the times of COVID-19. Journal of Contemporary European Studies, 1–13. Nkamnebe, A. (2011). Sustainability marketing in the emerging markets: Imperatives, challenges, and agenda setting. International Journal of Emerging Markets, 6(3), 217–232. Ofori-Dankwa, J. (2013). Dynamism, capital structure, and performance in a subSaharan economy: Extending the institutional difference hypothesis. Organization Science, 24, 1422–1438.

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Part II Marketing Communications and Adapting to a Changing World Through Technology

2 SMEs’ Adoption of Artificial Intelligence-Chatbots for Marketing Communication: A Conceptual Framework for an Emerging Economy Sany Sanuri Mohd Mokhtar and Maruf Gbadebo Salimon

Introduction Marketing communication (MC) is central to the success of any organisation. It mediates the relationships between an organisation and its stakeholders (Duncan & Moriarty, 1998; Hänninen & Karjaluoto, 2017) and has become an alternative competitive strategic instrument to promote businesses and win customers (Gorlevskaya, 2016). Through an effective MC, value is created and delivered, while customer satisfaction, trust, affective commitment, and loyalty are earned (Cannon & Perreault, 1999; Mohr et al., 1996; Morgan & Hunt, 1994). MC determines the

S. S. M. Mokhtar (*) • M. G. Salimon Department of Marketing, School of Business Management, Universiti Utara Malaysia, Kedah, Malaysia e-mail: [email protected]; [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 O. Adeola et al. (eds.), Marketing Communications and Brand Development in Emerging Markets Volume II, Palgrave Studies of Marketing in Emerging Economies, https://doi.org/10.1007/978-3-030-95581-6_2

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financial success of Small and Medium Enterprises (SMEs), especially in this digital-technologies-driven environment (Falahat et  al., 2020; Ramasobana et al., 2017). The SME sector is contributing to the economic prosperity of many nations (Abdul-Halim et  al., 2018). For instance, in the emerging economy of Malaysia, the sector constitutes 98.5% of established businesses and contributes 38.9% of the country’s total Gross Development Product (GDP) Department of Statistics Malaysia, 2019. SME Corp Malaysia categorised Malaysian SMEs into the manufacturing and service sector, with the former having a maximum of 200 employees and the latter 75 full-time staff. Likewise, the sales turnover of the manufacturing and service SMEs must not exceed RM 50 million and RM 20 million, respectively (SME Corp, 2019). Artificial intelligence (AI) is one of the recent digital technologies that has been adopted by several large organisations to communicate with their customers (Davenport, 2018; Venkatraman, 2017). AI provides an intelligent substitute to human intervention as it assists in developing valuable and automated solutions to everyday problems being faced by organisations (Martìnez-López & Casillas, 2013). Within the marketing arena, AI has been established as an important trend that has a major influence on marketing strategies (Githui, 2019; Pillai & Sivathanu, 2020) as SMEs in emerging economies have the opportunity to adopt AI to create customised solutions, predict demand, and develop advertisements to achieve competitive advantage (Payne et al., 2021). Considering the importance of AI, Field (2020) argued that any SME that fails to adopt this technology trend will not be able to compete favourably. This, therefore, indicates that SMEs must learn how to use AI variants such as chatbots to communicate with their customers as AI has recently become an important verve of any business organisation to succeed (Panetta, 2018). Chatbots as one of the domains of AI “…is an acronym for chat robot and it establishes communication with humans utilising AI technology and underlying computer program[mes] inbuilt in it” (Pillai & Sivathanu, 2020, p. 3200). Devices such as Siri and Amazon Alexa, Google, smartphones, and computers provide an interface for chatbots (Pillai & Sivathanu, 2020). Today, the accelerated adoption of chatbots by different sectors like tourism, retailing, insurance, stock market, telecommunications, and others provides conversational platforms for marketing,

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sales, and customer service purposes through instant feedback (Ukpabi et  al., 2019). The chatbots have the capacities of “self-­consciousness, humor, purity, Intelligent Quotient (IQ), Emotional Quotient (EQ), memory, self-learning and charisma” (Ahmad et al., 2018), to communicate with users. Likewise, the chatbots can perform different functions of (1) arithmetic, (2) logical reasoning and comparison, and (3) heuristics-­ learning, memorising, and perceiving (Khanna et  al., 2015) to reduce response-time, enhance customer service, increase satisfaction, and boost customer engagement (Radziwill & Benton, 2017). This is in line with Ukpabi et al. (2019), who asserted that chatbots are deployed to reduce emotional damage, customer dissatisfaction, and customer turnover that are often associated with the traditional desk services instituted by most organisations (Grace, 2009), like SMEs. Dreyer (2016) and Price (2018) argued that when consumers can channel their requests by conversing with machines, they will feel delighted. This is in line with the argument of Bernazzani (2018) cited in Trivedi (2019) that chatbots could engender the right experience by providing appropriate information, fast system accessibility, and customised solutions. Ahmad et  al. (2018) argued that through a simple process, chatbots users can key in text messages into the chatbots user interface (UI) after which the chatbots chunk the text into phrases, choose keywords, match the keywords into a pattern, and provide responses to meet customer expectations (See Fig. 2.1). This underpins the fact that chatbots can communicate with the customers and underscore their adoption by organisations like SMEs. The chatbots market is projected to reach USD 102.29 billion by 2025 Market Insight Reports, 2020. Despite the benefits of AI-chatbots as a tool of communication, recent evidence revealed that its adoption among SMEs in emerging economies is abysmally low (Abdullah et al., 2013; Campbell et al., 2020; Ikumoro & Jawad, 2019). Knight (2019), for instance, asserts that “For a lot of smaller companies, AI isn’t part of the picture—not yet, at least”. The situation is not different in Malaysia, as many SMEs are still grappling with the adoption of digital technology generally (Lee et al., 2020), and chatbots in particular (Ikumoro & Jawad, 2019). Huawei (2018) in a regional study covering 2033 SMEs from all sectors in Malaysia equally affirmed that the SMEs have not taken advantage of digitalisation to

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Chatbot User interface (UI) User

Text input Chunking text into phrases Choosing keywords Match the keywords with pattern (BOT LOGIC) Making a response

Fig. 2.1  How chatbots work (Source: Ahmad et al., 2018)

improve operations (Wong et  al., 2020). Likewise, Abu et  al. (2015) asserted that SMEs operating in Malaysia utilise technology minimally and have been unable to compete favourably at the global level. Okundaye et al. (2019) in a study conducted in Nigeria recently argued that adoption of ICT among SMEs in developing countries is low when compared with that of developed nations which accounts for why the majority of them have been contributing less to the GDP of the country. Similar arguments have been advanced in other various studies conducted among scholars from emerging and developing countries (e.g., Chege & Wang, 2020; Ocloo et  al., 2018; Yadav et  al., 2020) thereby, indicating that adoption of technology in emerging economies among SMEs is still at a low ebb. This poses a critical challenge to the SMEs sector in emerging economies, especially with the resources being expended by various governments to ensure that the sector competes favourably (Ikumoro & Jawad, 2019). Such a challenge necessitates the need to conduct further studies that can provide a mechanism and framework to drive the adoption of chatbots among SMEs. Thus, this study used an integrated Technology-­ Organisation-­Environment (TOE) model to predict the adoption of

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chatbots among SMEs. The technology context comprises perceived usefulness, perceived ease of use, and perceived security threat (Davis, 1989; Ischen et al., 2019; Salimon et al., 2017). Organisational context comprises perceived organisation resources (Sun et al., 2018), while environment context comprises pressure from customers and competitors (Awa et al., 2015). The study integrated two moderators: anthropomorphism (Pillai & Sivathanu, 2020) and organisational culture (Gorondutse & Hilman, 2019; Zarouali et  al., 2018) on the constructs of the TOE model. The TOE model has been employed in many studies, but it is less applied in chatbots adoption among SMEs. Thus, the objective of this study is to discuss factors that influence SMEs to adopt chatbots to communicate effectively with their customers. Hence, this study contributes to the body of knowledge by proposing a framework that may assist managers of SMEs in this regard. This is in line with Blut et al. (2021), who affirmed that clear management guidelines on how AI should be deployed to engage customers strategically are lacking. Likewise, literature shows that the majority of studies have been conducted on how individual customers adopt and interact with chatbots (e.g., Trivedi, 2019), while lesser attention has been paid to the adoption among SMEs. The rest of this chapter is organised as follows: The section that follows the introduction discusses the literature on factors propelling the adoption of AI-chatbots among SMEs and presents propositions and the conceptual framework of the study. The last part concludes with the contributions, conclusion, and future direction of the study.

L iterature Review and Conceptual Model Development This study employs an extended TOE model to explain the adoption of chatbots by SMEs. The TOE model has three contexts: Technology, Organisation, and the Environment context (Tornatzky & Fleisher, 1990). Tornatzky and Fleisher (1990) conceptualised the TOE model to evaluate technology adoption due to the deficiencies in other adoption models (e.g., Innovation Diffusion Theory (IDT), Technology Acceptance

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Model (TAM), and Theory of Reason Action (TRA)) by integrating constructs of the environment to explain the adoption of technology (Awa et al., 2016; Ngah et al., 2017). The TOE model has been widely used to predict technology adoption (Azadegan & Teich, 2010) and can be employed to elucidate different forms of technology inventions (Zhu & Kraemer, 2005). The technology context used in this study comprises TAM’s core variables: perceived usefulness and perceived ease of use, with perceived technology security as an additional variable (Davis, 1989; Ischen et al., 2019; Salimon et al., 2017). Organisational context comprises perceived organisational resources (Sun et al., 2018), while environmental context has pressure from customers and competitors. Anthropomorphism and SME organisational culture are used as moderators on the selected variables of the TOE (Gorondutse & Hilman, 2019; Pillai & Sivathanu, 2020; Zarouali et al., 2018). TAM’s core variables are embedded in the framework as chatbots are regarded as successful when users accept them (Chen et al., 2020; Nikou & Economides, 2017). Therefore, TAM is relevant because acceptance is based on its two core variables—perceived usefulness (PU) and perceived ease of use (PEU)—that have been widely used by many researchers (Salimon et al., 2017), especially in the adoption of chatbots (e.g., Chen et al., 2020; Pillai & Sivathanu, 2020; Zarouali et al., 2018). Likewise, perceived security has been widely discussed in the literature (Salimon et al., 2017) and evidence suggests that for the chatbots to be adopted by organisations like SMEs, they must be perceived as secure (Ischen et al., 2019). Perceived organisational resources are a significant factor that determines the adoption of technology generally (Sun et al., 2018) and among SMEs in particular. Scholars have argued that the SME sector is lagging concerning organisational resources, which accounts for why most of them see the adoption of technology as a cost instead of an investment (Sun et al., 2018). Pressures from customers and competitors have been advanced by previous studies as important factors that could determine the adoption of technology (Ngah et al., 2017) among large organisations, but lesser attention has been paid to this among SMEs, especially with the advent of chatbot adoption. Anthropomorphism has been used to discuss AI machine adoption among individuals (e.g., Pillai & Sivathanu, 2020), as users would prefer chatbots that are human-like for

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thorough engagement (Bartneck et al., 2009); therefore, its integration in the framework is justified based on the conceptualisation of the previous studies. SMEs’ organisational culture determines whether technology or any other novel invention would be adopted (Tseng, 2017).

Perceived Usefulness (PU) Perceived usefulness is regarded as the perception that a given technology provides benefits that would improve task outcomes (Davis, 1989). Salimon et al. (2017) asserted that PU refers to users’ subjective probability that a given technology like chatbots will be advantageous over other forms of chatting or conversational technology. Domiciled in Vroom’s expectancy theory, PU provides lenses to determine whether an innovation would be useful and adopted considering its short-period and long-­ period expected outcomes (Awa et  al., 2015; Triandis, 1980). SMEs would adopt chatbots if they believe that the chatbots would improve communication with customers and enhance their productivity both in the short term and in the long term (Awa et al., 2015; Chen et al., 2020; Pillai & Sivathanu, 2020; Zarouali et  al., 2018). To consider chatbots adoption, SME operators need to be convinced that the chatbots are beneficial to interact with their customers and that the advantages surpass the costs and risks involved (Kim & Pae, 2007). PU has been examined across different studies, contents, and contexts such as banking, hotel booking, Facebook chat, and online travelling in developing and developed countries (Agag & El-Masry, 2016; Rese et al., 2020; Yaseen & El-Qirem, 2018). However, the results across these studies have been inconsistent (Scherer et  al., 2019). For instance, while Liébana-Cabanillas et al. (2018) and Kim et al. (2010) found that PU positively influenced intention to use mobile technology, Ramayah and Ignatius (2005) reported a non-significant relationship between PU and intention. These inconsistencies, which might be due to various factors such as sample selection, the strength of association, and consistency of associations across the populations (Wellman & O’Loughlin, 2015), necessitate further investigation. Hence, the following proposition is presented:

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P1  : Perceived Usefulness has an effect on the adoption of Chatbots among SMEs. Perceived Ease of Use (PEU) Perceived ease of use refers to the degree to which a prospective user believes that a particular system is difficult or easy to use. It is the mental assessment of the extent of rigorousness involved in the operations of a given application (Awa et al., 2015; Davis, 1989). When an IT system can be operated with less mental and physical efforts, it will be adopted by prospective users (Salimon et al., 2017). However, a novel technology that is perceived as challenging to learn and use would be thought to be risky to adopt (Awa et al., 2015; Opia, 2008). The Perceived Usefulness of a system may be seen as mere rhetoric if it gives the users extra and unnecessary tasks (Davis, 1989). This importantly indicates effortlessness or ease-to-do by configuring the system with features that make it easy to interact with (Safeena et al., 2011; Salimon et al., 2017). Thus, when chatbots are perceived as useful and task-free, they will be adopted (Ashfaq et al., 2020). The manner of the configuration of chatbots in terms of interactivity, navigation, and ability to respond to customers’ queries with ease will determine whether SMEs will adopt it. Though a larger number of previous studies have established a positive relationship between PEU and adoption intention in various contexts such as banking, e-commerce, and mobile commerce (e.g., Moslehpour et al., 2018; Salimon et al., 2017), contrary findings have been reported by others (e.g., Ahmad & Khalid, 2017). This necessitates a further investigation. Hence, the following proposition is presented:

P2  : Perceived Ease of use has an effect on adoption of Chatbots among SMEs. Perceived Security Perceived security may be regarded as the users’ subjective feeling of security threats (Kumar et al., 2018). This feeling is more aggravated with the advent of technological inventions that have brought so much insecurity, as the confidentiality of information is one of the essential factors

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determining the adoption of IT (Eze et al., 2019). In developing countries generally, there is a lack of effective legal framework supporting online businesses (for instance, regulations for online transactions, digital signatures, arbitration, intellectual property rights, exports, and imports, etc.) (Kannabiran & Dharmalingam, 2012). This deficiency creates a barrier to adopt information systems, such as chatbots (Koshy, 2011). Previous studies reveal that many enterprises and individuals refuse to accept information systems majorly because they perceived that the platforms are not secured (Grandon & Pearson, 2004) and are full of risk (Kasilingam & Soundararaj, 2020). Due to their nature of operations, SMEs may lack the facilities to protect themselves from cyber-security issues, which may include, but are not limited to, privacy and confidentiality of the information sent through the platforms (Cenamor et al., 2019; Watad et al., 2018). Følstad et al.’s (2018) study noted the importance of chatbots security as users want a secured chat platform that supports both their transactions and provides answers to their frequent queries. Følstad et al. equally argued that service providers, such as SMEs, should be responsible for the security functionality of the chatbots and not the users. Tofugear (2019) reported that 56% of retailers in Asia raised a major concern about their consumers’ data and privacy protection (Ikumoro & Jawad, 2019). This challenge has been further echoed recently that the rate of cybercrime in developing countries, like Malaysia, has been increasing (The Star, 2020), while individuals and organisations are vying to protect their data. Since SMEs need to supply personal information to operate the chatbots (Følstad et al., 2018; Ischen et al., 2019), the risk seems to be high as cases of phishing and data intrusion are surging in the contemporary technology-driven business environment (The Star, 2020), especially among SMEs (Watad et al., 2018). Though previous studies have treated the perceived security of other technology platforms such as Facebook, mobile banking, and e-banking (e.g., Salimon et al., 2017), users’ privacy concerns might differ for chatbots, especially when conveying a human-­ like appeal (Ischen et al., 2019). Extant studies have established significant positive relationships between perceived security and adoption intention (Johnson et al., 2018; Salimon et al., 2017), while others find a negative relationship (George & Kumar, 2013). These inconclusive findings necessitate further investigation, especially for a new invention like chatbots. Hence, the following proposition is presented:

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P3  : Perceived technology security has an effect on the adoption of Chatbots among SMEs. Perceived Organisational Resources Every organisation has the resources it uses in its daily operations. Perceived organisational resources refer to the perception of whether these resources are available or not (Sun et al., 2018). Previous studies noted different resources, including information technology, human, and financial/business resources (Hassan et al., 2017; Sun et al., 2018). The availability of these resources is essential for the success of any organisation. Studies have shown that SMEs are lagging in the possession of organisational resources, and this hinders their adoption of technology generally (Awa et al., 2015). Nevertheless, having such resources would assist SMEs to adopt technology to pursue business growth (Sun et al., 2018). For instance, Hassan et  al. (2017) affirmed that having IT resources indicates technology readiness, which points out that an organisation, like an SME, is ready to adopt innovation. The readiness provides a platform through which the technology is developed or executed (Hassan et al., 2017). The technology resources could also facilitate or hinder the adoption of technology (Chau & Jim, 2002) depending on how they are handled. Financial or business resources indicate the availability of resources to develop and adopt technologies to conduct business activities or relate with business partners. The capital resource is highly fundamental for the success of any organisation and determines the type of technology to be adopted (Sun et al., 2018). Human resources refer to the workforce that has the skill and knowledge to innovate and develop technology initiatives required to improve business operations consistently (Kurnia, 2008; Zhu & Kraemer, 2005). Though extant studies suggest that the availability of these aforementioned resources could determine the adoption of technologies generally (Tan et  al., 2007; Zhu & Kraemer, 2005), less attention has been paid to how they can be used to predict the adoption of chatbots, especially among SMEs. Besides, evidence in literature equally suggests a lack of agreement among scholars about the significance of these resources towards the adoption of technology (Awa et al., 2016). Hence, the following proposition is presented:

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P4  : Perceived Organisational Resources have an effect on the adoption of Chatbots among SMEs. Pressure from Customers Customers can press organisations to adopt a novel technology to meet their expectations. This is in line with the institutional theory, which asserts that organisations should engage in certain activities that align with their customers’ requests (Berrone et al., 2013). If customers became aware of specific new technology, they might inform and demand their organisations like SMEs to adopt it (Chen et  al., 2019) to meet their service requirements. Meeting those service requirements will make the customers happy and is in line with the marketing slogan: the customers are always right (Ngah et al., 2017) as organisations such as SMEs need to provide “…electronic customer services, which allow better interactive communication with customers” (Abed, 2020, p.  4). Chong (2008) argued that organisations could only earn profits if they are sensitive to their customers’ requests and needs. The requests or needs may be an adoption of a technology that could improve customer loyalty (Yin et al., 2018). Moreover, coming from the stakeholder theory, studies have equally argued that customer pressure is an important driver of technology innovation as organisations must actively manage their stakeholders’ interests (in this instance, chatbots adoption) and proactively respond to stakeholder pressures (Buysse & Verbeke, 2003). Consequently, organisations are adopting novel but innovative technologies because their customers want them to do so (Abed, 2020) and to have a better share of the market. Though studies have used customer pressures to predict adoption of technology in various contexts and contents with varying and inconsistent results (e.g., Chen et al., 2019; Elmualim & Gilder, 2014; Neirotti & Paolucci, 2013; Ngah et al., 2017), review of the literature shows that researchers rarely apply customer pressure for chatbots adoption among SMEs. Hence, the following proposition is presented:

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P5  : Pressure from customers has an effect on the adoption of Chatbots among SMEs. Pressure from Competitor Various scholars have acknowledged the importance of competitive pressures towards the adoption of technology (e.g., Sun et  al., 2020). The pressure from the competitors is part of external environmental factors. It is equally an important insight of institutional theory that is related to an institutional environment that is capable of pushing certain enterprises to conform with the new events as complied by other organisations (Berrone et al., 2013). Obal (2017) reiterates this by affirming that the competitive pressures are part of external environmental factors capable of pushing any organisation to adjust and adopt new technologies. Competitive pressures indicate the extent of pressure mounted by competitors within the same industry on an organisation to adopt a recent technology (Sun et al., 2020; To & Ngai, 2006). In line with Missi et  al. (2003), the intensity of pressure felt by an organisation would determine the speed at which a given technology is adopted. Organisations do comply with competitive pressures so that they would not be left behind or be seen as inferior to their competitors as doing so would equally reduce panics that are associated with loss of competitive advantages, and uncertainties that are present in the turbulent external business environment (Currie, 2012). Usually, earlier technology adopters do have a leapfrog advantage by getting to the market before others. Since they are the first-movers, they could mount pressure on other organisations to adopt similar technologies, especially in the open-market place (Chau et al. 2021). This aligns with Radaelli’s (2004) argument that most enterprises are incentivised to benchmark other organisations within their industry. This has also been espoused by other recent scholars that industrial competition has a specific influence on a firm’s initiation and novel technology adoption (Lai et al., 2018). Effectually, with the intense competition, enterprises more often find new methods, resolutions, and resources to improve service rendition, minimise costs, and be more effective (Kannabiran & Dharmalingam, 2012; Kumar et al., 2018). Chatbots

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are novel technology inventions being adopted by large organisations (Androutsopoulou et al., 2019). SMEs are, therefore, pressured to adopt these conversational platforms to communicate and serve their numerous customers (Ghobakhloo & Ching, 2019). Previous studies concerning competitive pressures have been conducted from the perspective of large organisations with varying results; nevertheless, less attention has been paid to how it should be used to drive the adoption of chatbots among SMEs. Hence, the following proposition is presented:

P6  : Pressure from competitors has an effect on the adoption of Chatbots among SMEs. SME Organisational Culture Organisational culture refers to the shared beliefs, values, and acceptable patterns of behaviours to solve organisational problems (Gorondutse & Hilman, 2019). It denotes philosophies, beliefs, ideals, norms, principles, expectations, attitudes, and customs shared by the members of an organisation (Isensee et al., 2020). Such common beliefs engender an invaluable resource that organisations use to solve the problem, harness competitive advantage, implement new business strategies, and realise organisational objectives (Gorondutse & Hilman, 2015). To this extent, numerous studies highlight the crucial role of organisational culture towards achieving high competitiveness, efficiency, and profits in all firms (Cameron & Freeman, 1991; Prasanna & Haavisto, 2018). This leads top managers to comprehend new ways and methods to manage and change (Gorondutse & Hilman, 2019). Such change could be in the form of adopting a recent technology invention, such as chatbots that could be used to communicate with customers and subsequently improve business performance. Romm et  al. (1991) asserted that the connection between organisational culture and information technologies is important for enterprises to accomplish the possible benefits and given system promises. Therefore, organisational culture could be a propeller or an inhibitor of an inventive technology

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adoption such as chatbots and could also influence their successful execution (AlBar & Hoque, 2019). The execution requires the managers of an organisation, like SMEs, to deploy culture as a moderating and important instrument to guide the paths of their enterprises (Daft & Lane, 2018), thereby leading to the creation of an appropriate business environment that can influence business and operational organisational success (Eniola et al., 2019; Tseng, 2017). Although scholars have reported varying relationships between organisational culture and IT usage intention (e.g., Mohtaramzadeh et al., 2018), Tseng (2017) established a moderating effect of organisational culture on IT adoption. This, therefore, implies that an organisation with the appropriate culture would create an enabling environment where innovative technologies could be implemented (Gorondutse & Hilman, 2019). We, therefore, infer that such a culture could moderate the relationship between technology context, organisational context, environmental context, and the intention to adopt chatbots by SMEs. Hence, the following proposition is presented:

P7  : SME Organisational culture moderates the relationships between (a) perceived usefulness, (b) perceived ease of use, (c) perceived security, (d) perceived organisational resources, (e) pressure from customers, and (f) pressure from competitors and the adoption of chatbots among SMEs. Anthropomorphism Anthropomorphism refers to the attribution of human features and behaviours to non-human entities, such as robots and chatbots (Bartneck et al., 2009). It is regarded as the extent to which users perceive non-­ human entities such as chatbots to be human-like (Pillai & Sivathanu, 2020). When a human being interacts with a non-human object, the individual will examine the features and attitude of the object to

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ascertain perceived similarity (Sheehan, 2018). Previous studies asserted that when humans use chatbots for conversing with their service providers, they often raise issues regarding the integrity, cleverness, trustworthiness, and degree of involvement of the chatbots (Cassell & Bickmore, 2003). Thus, to enhance interactions between customers and robots such as chatbots, marketing managers frequently favour anthropomorphic service robots to increase customers’ social presence perceptions (Niemelä et al., 2017). This, therefore, implies that organisations like SMEs would prefer to deploy chatbots that effectively possess these features to communicate with their customers. Sheehan (2018) confirms the positive correlation of anthropomorphism with behavioural intention to use chatbots as some other marketing studies equally found that anthropomorphism can increase service-brand liking and customer engagement (e.g., Duffy, 2003; Stroessner & Benitez, 2019), while others report the contrary (e.g., Broadbent et  al., 2011; Mende et  al., 2019). This indicates that the deployment of anthropomorphism as an intervention in service robots to enhance customers’ experiences is still unclear (Blut et  al., 2021), and therefore demands further investigation. The investigation is required to stem the discord among scholars and to provide a strategic framework that may give a clearer picture of how to deploy the concept among business organisations (Huang & Rust, 2020) such as SMEs. Importantly, it is essential to determine whether anthropomorphism features have a specific moderating influence on chatbots’ perception of usefulness, ease of use, and perceived security among SME users. Hence, the following proposition is made: P8 : SME Anthropomorphism moderates between the relationship between (a) perceived usefulness, (b) perceived ease of use, (c) perceived technology security, and (d) the adoption of chatbots among SMEs.  Based on the above discussions, the conceptual framework of the study is presented below (Fig. 2.2):

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SME Organisational Culture Perceived Usefulness Intention to adopt AI Chatbot to communicate

Perceived ease of use Perceived Security Perceived org Resources Pressure from Consumers Pressure from Competitors

Anthropomorphism

Fig. 2.2  Conceptual framework

Contributions The SME sector has been recognised as a viable sector that is contributing to the economic development of many emerging and developed countries through job creation, the supply of raw materials to big industry, and GDP generation. In the recent past, these contributions are possible by rendering services to their customers using some communication platforms that are somewhat capable of engaging their clients. Nevertheless, with the emergence of novel Artificial Intelligence and related Internet of

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Things (IoT), SMEs need to face a new reality to secure competitive advantage by ensuring that customers are handled differently. Chatbots are AI-enabled conversational platforms that many big organisations have recently begun adopting to enhance communication with their numerous customers and to enjoy a competitive edge. However, studies have shown that even though the SME sector has advanced in computerisation, the majority of them are still lagging in the digitisation of their operations. Specifically, a huge number of SMEs, especially, in developing countries generally are still grappling with digitisation, perhaps because they felt that the adoption of the new platform may contribute less to the success of their organisations, while some others are still precepting that digital technology is tedious to use and not secured. Evidence has equally shown that SMEs are lacking in resources, thereby, constituting one of the reasons why they find it difficult to allocate a financial budget to technology adoption despite the pressure from their customers, competitors, and other stakeholders. Generally, SMEs’ culture towards technology, especially in developing countries, is inertia, as most operators are still feeling that technology is a burden instead of an opportunity. Importantly, this is connected with their norms, beliefs, and shared values and the manner in which they conduct their operations. Hence, this study contributes to the body of knowledge by conceptualising a TOE framework that integrates organisational culture and Anthropomorphism as moderators. Though a series of studies have been conducted on how large organisations adopt technology generally, and chatbots, in particular, less attention has been given to SMEs. Particularly, we are not aware of any study that has proposed a holistic framework based on our integration among SMEs. Considering this, the proposed conceptual framework provides a new lens for academics and other researchers that may want to conduct similar research. Since the framework systematically integrates the core constructs of TAM-perceived usefulness, perceived ease of use as well perceived security (all otherwise treated in the context of technology); perceived organisational resources (the domain of organisation); pressure from competitors and customers (external environment context); and anthropomorphism and SME organisational culture, the study offers richer theoretical bases for explaining and predicting the adoption of chatbots as we provide more

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comprehensive propositions to promote and facilitate improved explanatory and predictive lenses of IT adoption generally. Additionally, based on the propositions of this study which are anchored on the three contexts of the technology, organisation, and environment, we practically provide appropriate guidelines on how SMEs can adopt chatbots to communicate with their customers. Considering the technology context, it is important for the providers of the chatbots system to ensure that the chatbots are secured, useful, and easily used. Recent studies have shown that when technology like a chatbots system is designed securely against information breaches and intrusion, easily used and interacted with, helpful and relevant in solving problems such as facilitation of communication with clients, they will be adopted both by individuals and organisations like the SMEs (Pillai & Sivathanu, 2020). It is, therefore, exigent to say that a chatbots system with these qualities will be adopted effectively as enterprises like SMEs are willing to use the system to enhance their customers’ satisfaction. Moreover, the organisational context suggests that the adoption of technology, like the chatbots system, will largely be determined by the resources available to the SMEs. Therefore, SMEs operators such as the CEOs must strive to make the resources available to their enterprises by exploring every accessible opportunity through government, partners, and other organisations that are ready to support the SMEs. This is in line with Awa et al. (2016), who noted that government policies should be drafted to give SMEs some support that will encourage the organisations to invest in technology, like chatbots. In an emerging economy like Malaysia, the government has been supportive by making available to the SMEs the necessary support and facilities to facilitate the adoption of technology generally; therefore, it is important for the SMEs to harness such opportunity within the context of financial, technology, human resource, and other resources that will facilitate the adoption of the technology. Likewise, the propositions from the environmental context of the study suggest that pressures from customers and competitors are essential to driving the adoption of chatbots among SMEs. Previous studies have argued that the pressure from customers and competitors are important driving factors for the adoption of technology for organisations like SMEs to serve their customers appropriately and to have a substantial

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market share, thereby implying that the sector should respond positively to these pressures (Abed, 2020). Based on our propositions, therefore, we are of the view that SMEs need to consider the adoption of technology like chatbots systems to serve their customers better and not be left behind.

Conclusion and Future Research Recommendation This study holistically presents a conceptual framework that elucidates factors that influence how SMEs can adopt chatbots to communicate with their customers. In line with this, we presented propositions based on the contexts of the framework and the moderating factors, thereby making this study contribute to bodies of theory and practice. However, since this study is conceptual, we recommend that future researchers should empirically test its framework by collecting data from our proposed sector and subsequently analyse the data. When that is done, researchers will be able to give further directions about how SMEs could adopt the chatbots by emphasising which of the contexts of the framework of this study has the strongest impact on the chatbots adoption. Additionally, future studies may extend the framework of this study by incorporating other adoption determinants such as digital capability, personalisation, customisation, interactivity, and hedonic motivation, which may improve the communication effectiveness of SMEs when adopting chatbots.

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3 Integration of Augmented Reality (AR) and Virtual Reality (VR) as Marketing Communications Channels in the Hospitality and Tourism Service Sector Kandappan Balasubramanian, Puvaneswaran Kunasekaran, Rupam Konar, and A. M. Sakkthivel

Introduction The tourism and hospitality sector contributes immensely to social and economic activities in a nation. According to Ranasinghe et al. (2020), tourism is one of the largest and fastest-growing industries in the world, and it is a social phenomenon of significant importance. Doh (2010)

K. Balasubramanian (*) • R. Konar School of Hospitality, Tourism and Events and Centre for Research in Tourism and Innovation (CRiT), Taylor’s University, Subang Jaya, Malaysia e-mail: [email protected]; [email protected] P. Kunasekaran Department of Social and Development Sciences, Faculty of Human Ecology, University Putra Malaysia (UPM), Malaysia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 O. Adeola et al. (eds.), Marketing Communications and Brand Development in Emerging Markets Volume II, Palgrave Studies of Marketing in Emerging Economies, https://doi.org/10.1007/978-3-030-95581-6_3

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postulated that the rapid growth of the industry has resulted in a favourable position for various parties involved in the industry. According to Theobald (2005), the tourism industry, which began on a massive scale in the 1960s, has grown rapidly and progressively for the past 30 years in terms of the income it generates and the large number of people who travel abroad. In many countries, tourism is known as an important engine of economic growth (Aslan et al., 2021). The industry generated a total of 1.5  trillion USD in 2019 before the pandemic (UNWTO, 2020). Growing demand has also created various issues of changing customer preferences and overtourism. Sustainable tourism intervention is seen as an initiative to neutralise the growth of the industry. Systematic tourism operation is universally agreed as a mechanism to sustain the rapid growth of the industry (Cave & Dredge, 2020). Technology has escalated the growth of the tourism and hospitality industry to reach a different level, which made the industry develop holistically. Realising the importance of marketing communications, tourism and hospitality industry players tend to focus on social media as a primary platform for utilising marketing communications technology. However, specific studies on social media usage lack ample attention from academics in many fields of hospitality and tourism (Lu et al., 2018). Lu et al. (2018, p. 11) stated, “throughout the entire tourism experience, the collaborative role of social media has been disregarded, while social media effects have been examined at every level of decision making on the journey.” In the tourism industry, the use of social media has also been expanding rapidly, not only in the fields of information technology (Sarkar & George, 2018). It has been embraced, and the use of social media (Hossain et al., 2020) is increasing significantly since many travellers use the web to access information on travel and schedule their journeys in advance (Hua et  al., 2017). The primary means of planning their trips are social media. Social networks, picture and video-sharing pages, wikis, blogs, and online review sites have emerged in the last couple of years with the A. M. Sakkthivel School of Business, Skyline University College, Sharjah, United Arab Emirates e-mail: [email protected]

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introduction of Web 2.0. The broader social media landscape comprises all aspects of social media, including conventional networks and news media platforms (Hanna et al., 2011). As Internet competencies advance, Luo and Zhong (2015) have reported that the Social Networking Platforms offer a forum for contact between visitors through electronic word of mouth (EWOM) as a marketing tool. Pabel and Prideaux (2016) have pointed to the need for more exposure to social media, their distribution structure, and their smartphone networks as “the rise in the usage of social media coupled with increased ownership of smartphones.” Social media gain attention at a period in which the public sector cuts their financing, forcing them to look for greater meaning in the way marketing and budgets are used as part of the Destination Marketing Organisation (DMO) marketing campaign. Social networking provides DMOs with a tool for reaching a small global public (Hays et al., 2013). The scope of this chapter focuses on how the integration of new technology advancement in marketing communication relates to the effects of ICTs on destination marketing in emerging economies. The chapter also elaborates on the different components of e-marketing of tourist destinations, augmented and virtual reality for the promotion of emerging destinations. The chapter also discusses the challenges and opportunities for ICT utilisation for destination marketing in emerging economies.

Evolution of Marketing Communication In recent years, incredible developments have been observed in relation to new marketing communication tools that can be classified into several traditional platforms—E-mail, word of mouth, and social media. On the other hand, guerrilla marketing, marketing automation, time marketing, social trade, management of social consumer connections tend to forecast performance (Ahmed et  al., 2020). The other developments include remarketing, social networking, viral marketing, mobile commerce, and video marketing which fall under contemporary marketing communication. Word of mouth, QR codes (QRC), real-time marketing (RTM), social media marketing (SMM) are the most common marketing communication platforms and tools used by the industry stakeholders.

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Word of Mouth (WOM) Word of mouth (WOM) is a well-known traditional marketing method and proven to create a more significant impact than other techniques. WOM usually raises modern, new, or various subjects. WOM can be either pessimistic or positive (Hennig-Thurau et  al., 2002). Electronic Word of Mouth (eWOM) is essential in the hospitality and tourism industry, as it enables potential customers to read the review of intangible services before making any decision.

QR Codes (QRC) The method is also commonly used in advertisement and product communication. The potential customers may refer to websites, discounts, and have a full e-card. Mobile phones and QR-generating software are the most needed gadgets to perform marketing via QR codes (Dou & Li, 2008).

Real-Time Marketing (RTM) Real-time marketing (RTM) is a practice that is focused on using current affairs to connect with the online community. Real-time marketing creates a strategy that focuses on recent, applicable trends and consumer input instead of designing a marketing campaign in advance. Real-time marketing seeks to connect customers to the product or service they currently need.

Social Media Marketing (SMM) Social networking is one of the Internet environment’s fastest-growing communication technologies (Cutshall et al., 2021). Social media marketing refers to online media in which people with joint interests, objectives, and practices participate in social interactions and build personal profiles and share information and experiences. Social media includes many different forms of media, such as social networks (e.g., Facebook);

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photo sharing, video creation, and sharing of sites (for instances, YouTube and Ustream); online communities and microblogging instruments (e.g., Twitter); social tagging (for instance, Digg); newsreaders (e.g., Google Reader); forums and public Internet boards and review/rating websites (for instance, TripAdvisor); and blogs/moblogs. The most important role of social media is to generate and upload a wide range of content in the forms of text, images, videos and so on, through the web-based application (Kang & Schuett, 2013). Social networking itself is an all-round concept for platforms that can have social activities that are fundamentally new. For example, Twitter is a networking website that allows users to exchange brief or updated messages with others. In comparison, Facebook is a comprehensive social networking platform that enables alerts, photographs, attending events, and a few other information to be shared (Garg & Pahuja, 2020). The introduction of online social media technology has enabled travellers to share their experiences easily and comfortably. Shared content on social networking platforms is recognised as an important source of information that could affect future travellers’ decision-making. Results found that identity and internalisation are key factors that positively improve the sharing of social media travel experiences through perceived pleasure (Kavoura & Stavrianea, 2014).

Industrial Revolution 4.0: Transformation Across H&T Marketing Communication Given the focus from all companies worldwide towards Industry Revolution 4.0, the hotel and restaurant businesses also transformed as this industry became more diverse, highly competitive with significant potential for the development of digital technologies (Verevka, 2019). The hospitality and tourism (H&T) industry is one of the earliest industries that embraced the technological developments associated with the previous industrial revolutions. In the hospitality literature, some scholars have identified key technological components of this revolution for the industry. Three forms of Industrial Revolution 4.0 technologies present a very strong base to build Smart Tourism destinations: cloud

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computing, Internet of Things (IoT) and end-user Internet service system (Buhalis & Amaranggana, 2015). The other forms of ICT important for setting up smart systems in the hospitality and tourism industry are cloud computing, Internet of Things, mobile communication, and Artificial Intelligence (AI) technology (Wang et al., 2016). Some advancements, such as 3D printing, self-driving cars, service automation, artificial intelligence and robotic technologies, were also presented as the key technological components of the Fourth Industrial Revolution (IR) that influence the industry (Ivanov et al., 2017). Hence, based on the current application of advanced technologies in the industry, the proposed six (6) key technologies of IR 4.0 technologies for the hospitality and tourism industry were Cyber-Physical Systems (CPS), IoT, Cloud Computing, Big Data, AI, and Advanced Robotics, as shown in Fig. 3.1 (Osei et al.,

Fig. 3.1  Key technologies of IR4.0 for the tourism and hospitality industry (Osei et al., 2020)

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2020). These IR 4.0 technologies promised to fulfil the demand and supply of the hospitality and tourism organisations and consumers with more relevant information, greater mobility, better decision support, and more enjoyable experiences (Gretzel et al., 2015).

 se of AR and VR in the Hospitality U and Tourism Sector Prominent among all the twenty-first-century world-changing technologies are Virtual Reality (VR) and Augmented Reality (AR), both regarded as the top of the chain. As it simulates immersive experiences to our senses with computer-generated images or motions, our human brain is deceived into accepting those experiences temporarily as a real version of reality. The key to success behind AR and VR lies within the powerfully created 3D interactive immersive visuals (Diamandis & Kotler, 2020). When it comes to the global tourism and hospitality industry, creating such experiences could be the key to open a whole new agenda for this industry. Through this approach, showcasing tourist destinations and attractions on location is much easier without the hassle of travel for tourists. VR is considered a promising technology for the Hospitality and Tourism industry, which has a powerful effect to trick the senses into believing one is present in a virtual world. Even for tourist destinations, such virtual simulations can depict any tourist location in an immersive environment using powerful computers that the tourists feel like being in such an environment (Ozdemir, 2021). According to a report published in May 2017 by Grand View Research, Inc., the VR industry is expected to reach USD 692 billion by 2025. The implications for the tourism and hospitality industry are the creation of alternative tourism and hospitality products and services, higher revenue per product and service, accessibility, and tourism for all, which is one of the goals of the United Nations. Similar to the tourism industry, the hospitality sector needs to stay ahead of the changing guest expectations and captivate new consumers. With the accessibility to such technologies, propelling the services of hospitality and its products are just considered as reaching the evolution or

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edging the technological limits (Atsiz, 2021). A plethora of brands are already into this and have started offerings services and products infused with AR and VR capabilities. The emerging market of hospitality and tourism is already starting to embrace such a technological leap. For hospitality brands, using such technologies to differentiate products and services is becoming common. Especially in the hotels’ front operations, VR can be used to visualise rooms, meetings rooms, and event spaces of their brands. Particularly for their customers, to visualise their upcoming events in VR or potential setup for a conference within the event hall, or maybe visualising event spaces for a wedding through VR prior to the events are just unprecedented experiences for the clients or customers. Leveraging the AR tool within the tourism and hospitality industry, many hotels and travel online booking sites have already integrated such a tool to enhance the booking experience (Wei, 2019). A hotel’s guest experience during such booking is to have a 3D feel of the room or the type of room they are trying to book, which greatly increases suitability and choices from both sides. Alternatively, for travellers going around a tourist destination, it is now much easier to use the AR tool, which can easily direct the tourists to the most happening places or places of attraction within their vicinity, turning the reality to be more interactive and immersive. With the Visit Malaysia Year 2020, the Shopping Mall Association Malaysia (PPK) has aimed to attract visitors and tourists by embracing advanced technologies using AR and VR as their experiential settings of “retailtainment” within mall premises. (MIDA Insights—Services, 2018). In Malaysia, the largest hybrid VR/AR theme park is “The Rift” which has an array of 20+ high technology fun immersive experiences from free-­ roaming virtual reality shooters, scream-filled thrill rides, HADO’s player-vs-player augmented-reality dodgeball, river ride, Terminator-­ themed laser battle, Raceroom, and Zero Latency’s 3 which is their award-winning free-roaming VR environments as shown in Fig.  3.2 (www.therift.com.my). The VR theme parks and AR museums were expanded with their popularity of location-based entertainment at VR Labs and Future Land Fun in Bandar Sunway, The Void in Genting Highlands, Pahang as well as the Trick Art/Eye/3D museums in Central Market, I-City-Shah Alam, Lebuh Penang, Johor Bahru City Square,

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Fig. 3.2  Famous AR and VR activities and immersive experience in “The Rift”, Mid Valley Shopping Mall, Malaysia. (Source: https://therift.com.my)

Melaka Megamall and WeGrow Global’s pioneer project, Dinosaurs Encounter at the National Science Centre (MIDA Insights— Services, 2018). The virtual tour can be enjoyed even though it is different and cannot replace the real experience. In one of the great platforms named “Explore Malaysia Virtually”, the visitors can immerse themselves in virtual excursions with the support of real tour guides through live streaming or they can watch the recorded segments (Melody, 2020). The CEO and founder of LokaLocal’s virtual tours provided a 360-degree interactive experience using virtual reality technology to transform the way people discover Malaysian destinations during the new normal and to inspire globetrotters to visit Malaysia when travel restrictions are lifted. The founder of LokaLocal’s explains that virtual reality will empower businesses who want to take their stories and marketing message to a new dimension. Since the commencement of the platform’s virtual reality division, the Mah Meri Cultural Village is now regarded as a virtual tour outlet where visitors can have a glimpse of the indigenous heritage centre. Virtual tours have also enabled hotels like The Edison George Town and KLoe Hotel to showcase the unique features of the leisure spaces. The available virtual tours enable the travellers to try the immersive experience of destinations to make better decisions for their future vacations in Malaysia. (Digital News Asia, 2020).

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One of the well-known VR-commerce and VR content innovators in Singapore named “VResorts”1 launched a VR booking platform, which enabled the travellers to choose their destinations and purchase their vacations from within the virtual reality space. The purchased vacation will allow travellers to experience high-quality immersive experiences before purchasing, ensuring a competitive edge for hotels and resorts on the platform. VResorts platform enables users to ‘pre-experience’ the destination and facilities, thereby eliminating the need for lengthy, unnecessary content; this is expected to positively impact the customer’s experience in their decision making.2 On the other hand, hotels and resorts benefit from this immersive experience that can be used as powerful sales and marketing tools, elevating the brand offering and personalisation of the product—making sales conversion more likely during this pandemic. It is regarded as the first VR-commerce platform in the world that is making a user’s vacation research experience as natural and intuitive as possible (Tatiana, 2020).

 hallenges and Opportunities of Using AR/VR C in the Hospitality/Tourism Sector While the world is continuously evolving with new technological innovations, integrating them into businesses is not always easy or convenient. According to Rafael et  al. (2020), at the forefront, it is important to understand how ready businesses are to adopt these technologies. This is the most fundamental question which revolves around every industry or sector, and it does not matter if it is a product-based or service-based industry. However, on the demand side, the consumers are always in search of new experiences either in a tangible or intangible manner (Mariani & Wamba, 2020). Consequently, this is no different in the case of the tourism and hospitality industry, more specifically when most of the products are too intangible in nature. New consumers of today are confused and yet curious about the huge surge in tourism products  https://www.vresorts.io.  https://www.vresorts.io.

1 2

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offerings and its varieties from any tourism destination; the entire customer journey across the touchpoints has become very demanding. Szalavetz (2020) argued that integrating AR and VR into services and products for the hospitality and tourism industry is not an easy task as there is a huge upfront capital investment, and the hotel investors are uncertain concerning how it may impact the future. From the demand perspective, the customer segments vary from demographic characteristics to purchasing power and their technological know-how levels; the hospitality and tourism industry is serving numerous segments of consumers, and they are aware of this (Zhao et al., 2021). This is where the various challenges have started to emerge from both the supplier and demand aspects. The challenges are specifically, what are the capacities and capabilities of the current businesses operating in their respective markets to integrate AR-VR services? Moreover, do their respective markets have the demand for AR-VR-infused services? These are the most fundamental questions that need to be understood first. AR travel is significant even within the tourism market, but the biggest setback is the huge cost of developing content for it. AR-VR content is certainly expensive in today’s current environment, which demotivates the investors widely. As Alex Bainbridge, CEO of Autoura, explained, “Technology teaches us something. 10 to 15 years ago a content management system was $1  million now you can use systems such as WordPress for free. When technology is expensive, it’s winner takes all which means the big intermediaries.” (Sanders, 2017) Currently, huge challenges for the hospitality and tourism industry are from the supply and demand side, as much groundwork is required in delivering the optimal VR or AR experiences. Notably, technical issues posed by AR are of a very different nature than in other technologies; though these challenges can be overcome, companies delving into these technologies will need to stay focused on the emerging expectations of today’s travelers and guests to successfully develop relevant offerings and meaningful content (Sanders, 2017). The companies will also need to understand both the technological and human engineering requirements necessary to create engaging solutions that provide value and reach mass adoption (Sanders, 2017). With technologies changing so rapidly, transitions to those new technologies through industrial revolution 4.0 are becoming popular but not at such a rapid pace that consumers expect.

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 enefits of Using AR/VR in the Hospitality B and Tourism Sector During the COVID-19 Pandemic With the recent pandemic, the global tourism and hospitality industry was adversely affected. Re-evaluating, rethinking, and reimaging the entire industry are the toughest challenges that businesses need to go through. With improved practices, businesses are ready to attract and gain the trust of prospective and existing customers. With the new normal in place, businesses within the tourism and hospitality industry had to rethink the alternative consumption strategies for their customers. Within the tourism industry, the desire to travel and escape from everyday life still prevails, with novel possibilities offered by VR, it had enabled users to somewhat immerse themselves in a travel alternative simulated real-life experience. For many consumers, this is the gateway to break the monotonous lockdown life. As mentioned earlier, the proliferation of VR has transformed different industries, such as healthcare, recruitment, training, and education for the last few years. Especially for tourism industry businesses during this crisis time, VR content played an important role to keep the businesses running with nominal revenue. The World Travel and Tourism Council (WTTC) is pledging the government’s support to protect the industry, whereby one suggested measure is increased budgets for promoting travel destinations. This is where the growth and promotion of the use of virtual reality (VR) can be seen once the travel restrictions have been eased and consumers have confidence in traveling again (Rogers, 2020). Alternatively, within the hospitality industry, especially the hotels remained relatively stagnant since 2020, with the travel ban extended at the global level, the most affected were those countries whose economy entirely depends on this industry. The hotels started selling their rooms for quarantine purposes at nominal prices, boosted the food production department for food deliveries and cloud kitchen purposes, chefs and employees started alternative hospitality service offerings. Customers are likely to accept these services if offered or made available. Notably, these technology tools are very effective in showcasing intangible services and products offered by the hospitality

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and tourism industry and can also be used to achieve social distancing, customisation, and market targeting (Zhou, 2020). Implementation of smart tourism, smart hotels, and smart food service is the ‘next big thing’ that was accelerated by the pandemic.

 est Practices of AR and VR Integration B in the Hospitality and Tourism Service Sector Globally The technical evolution of Virtual Reality (VR) and Augmented Reality (AR) over the last few decades can be seen in tourism, hotel, restaurant and destinations to improve the immersion and the feeling of telepresence as well as on the tourist experience, travel and tourism-related products and services (Loureiro et  al., 2020). During the initial stage, the potential of Virtual Reality (VR) and Augmented Reality (AR) integrated marketing is mainly applied in sci-fi films and video games, whereby now its potential has been unleashed in many hotels to integrate into their marketing strategies. It is considered one of the advanced, powerful marketing tools to create an immersive experience for the customers as the costs have come down in recent years.

Augmented Reality in the Restaurants Researchers have explored a number of ways in which Augmented Reality can provide value in restaurants. What these applications have in common is that there is an emphasis on providing timely, localised information, a 3D sensory experience or a combination of both. An example of these applications is real-time recommendation systems (Balduini et al., 2012; Chatzopoulos & Hui, 2016), where customers can look around them through their phones and obtain restaurant recommendations. Another example is entertainment, where AR games can be played on the restaurant table (Ilhan & Çeltek, 2016; Shabani et al., 2019), or a story is told and projected on the table (Le Petit Chef, 2019). A third example is the translation of menu items and their prices to the customer’s own

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language and currency using AR (Yuan, 2018). Yuan has a four-step process in which Augmented Reality is used in different phases of the dining experience. First, the tourist is introduced to the restaurant (similar to a recommendation system). When a tourist enters and would like to explore the menu, AR is used to translate the menu. In the idle time when tourists are waiting for their food, AR is used to inform and entertain the customer on the local food culture. Finally, AR is used during checkout to provide the receipt and price in the tourist’s own language and currency (Yuan, 2018).

Augmented Reality in Urban Heritage Tourism Although the application of AR is beyond experimental research, it has been hindered due to the limitation of technology since the 1960s (Kounavis et al., 2012). After the debut of modern smartphones during the year 2007, AR was mostly used in the industrial setting by considering it as a replacement under the exceptional products such as cameras, gyroscopes, solid state compasses, and accelerometers (Haugstvedt & Krogstie, 2012; King, 2009). With the development and expansion of increased use of AR applications, it provides destinations and tourism organisations with the avenue to explore the potential opportunities in order to enhance the travel’s immersive experience in an enjoyable and interactive manner (Han et  al., 2014; Jung et  al., 2015; Linaza et  al., 2014; Rodriguez Fino et al., 2013; Yovcheva et al., 2013). The focus of newly developed applications such as TimeWrap or Urban Sleuth is to create an enjoyable tourist experience among the historic events and buildings (Herbst et al., 2008). This engagement will transform the learning of historical sites among the tourists and enhance the tourism graduates’ learning process from the education perspective. The integrated digital content about the heritage sites in the AR application allows the tourist to access the information through visual effect for more awareness about the historical events or architecture, which results in a greater experience and brings history to life (Holler & Feiner, 2004; Kalay et  al., 2007; Jung & Han, 2014).

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Virtual Reality (VR) in Malaysian Tourism Virtual Reality (VR) has gained attention and recognition with the appreciation of technological innovations that significantly have an impact on the tourism industry (Pankaj et al., 2020). Recently in Malaysia, some states have considered Virtual Reality (VR) as an emerging marketing tool to promote their destination. For instance, the use of digital technology is emphasised by the Sarawak state government as the vision and goal to promote tourism globally. This interest is due to the recent development of VR and AR content for various attractions in Sarawak by some of the local companies (Assiqin, 2019). Last year, a 360-degree VR travel app was launched in the Sarawak state to promote their destination virtually to the global market (Bong, 2020). Furthermore, Malaysia Travel has also featured 360-degree videos of various destinations and attraction within Malaysia. To help hotels discover the unlimited marketing potential offered by VR and AR, the best practices are shown in Table 3.1 as eye-opening methods to start exploring these advanced technologies in future for the hospitality, tourism, and events industry. Table 3.1  Some of the best AR and VR practices in the Hospitality, Tourism and Events—Asia and Hawaii, USA (created by the Authors) Picture of VR and AR technology

Description of the picture

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Korean tech giant is offering its Gear VR gadgets to restaurants that want to ‘stand out from the crowd’ where restaurants can “create a complete experience around a meal, not just serve a plate of food.” Mine Train, one of Ocean Park’s most popular roller coaster rides, has recently received a VR update, elevating it to become Hong Kong’s first-ever VR roller coaster.

Jeff Parsons (2016)

AspirantSG (2017)

(continued)

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Table 3.1 (continued) Picture of VR and AR technology

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Arcritic (2018) AR Restaurant Menu App: In the restaurant, they will serve you a marker which is printed on paper. You then launch Menu3 app, point your phone in 45-degrees towards the market and then the menu appears in augmented reality. Heritage and Virtual interactions with historical Royal heritage and historical figures will Experience— enhance visitor’s experience Virtual Reality, 2017 McDonald’s Malaysia new Portugese Chicken Burger, the fast food chain launched a new AR game called “Catching Nonando” In the game, customers would need to catch as many Nonando Chickens as they can in 60 seconds to collect points to be redeemed. Glide into paradise through an immersive virtual reality experience with the world’s first VR experience that combines interactivity with live-action footage.

Annie (2019)

VR Simulator—Discovering the majestic beauty of Hue Imperial City with the VR simulator model, with which visitors can see every corner of the Imperial City (Press Review, 2018)

Press Review (2018)

AR Ways provides navigation from InCheon International Airport to PyeongChang Olympic Stadiums. Using AR is the fastest and the most convenient route to your destination

PyeongChang ICT Olympics Guidebook, 2018

Hawai’i VR | Framestore, Katie Murar (2016)

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Conclusion The global ongoing pandemic and lockdown appear to have changed the technology’s fortunes; embracing emerging technologies such as AR and VR, companies provide an avenue for the consumers to entertain, engage, and connect with others as well as position themselves to create a brand image among the customers in this challenging competitive edge. With the constant development of AR and VR integrated concepts across all sectors, it has grown to an advanced stage whereby it positions itself as a vital marketing tool to allow businesses to reach potential customers. This development has shifted consumer behaviour, and their attitude towards the environment changes with the integration of AR and VR marketing tools to accelerate the perceived value to the service sector, such as the hospitality industry. Transformation in the marketing tools will have a significant impact on all aspects of businesses, ranging from strategic objectives to infrastructure. Therefore, the implementation of AR and VR in the hospitality and tourism industry requires a clear understanding of the interaction and direction of top management through a well-developed strategy. The need for transformation is to sustain and grow the organisation strategically without leading to the closure stage. Today, more and more hotels have integrated AR and VR elements in their customer experience touchpoints to enhance their hotel experience and attract diverse market segmentation. The hotel that cannot transform will fight for its survival. Hence, the digital advantage in the hospitality industry lies not only in the ability to adapt products and services to the needs of individual customers—but also in creating strategies and structures that would better fit the features of the establishment. Looking at the current scenario where most of the borders were closed, it is important to harmonise the human and technological resources by developing new marketing communication tools using AR and VR to attract and reach the global customers with attractive contents that will provide an immersive experience. Innovations in the service will open up new opportunities to extend the maturity stage of the hospitality and tourism product’s life cycle. The maturity stage will help to maintain the competitiveness of the tourism product and achieve a long-term competitive advantage among the

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competitors. The success of any new tourism product is always measured by the success rate of customer adaptation and rapidly changing needs among the customers with some rewarding system. The game-changer in this virtual business world through the advancements in the face and spatial recognition integration with Web—AR and VR allow the customers to seamlessly access interactive and realistic AR and VR content in the hospitality and tourism products. Within the next few years, more and more hotels will allow experience virtually, the pre-arrival experience such as check-in, facilities in the hotel, local attractions to have a sense of the hotel experience. This virtual selling will influence the hotel brand to transfer their marketing campaigns over the globe with more lucrative opportunities to attract the customers and distinguish themselves from competitors through interactive photos, videos, marketing collateral and branding campaigns borderless.

Implications and Future Suggestions This chapter contributes to the existing literature on industrial revolution 4.0 and the evolution of emerging technologies such as Augmented Reality (AR) and Virtual Reality (VR) compared with traditional and other digital marketing communication or tools in the hospitality and tourism sector. Theoretically, the discussion emphasises the immersive and interactive experience in various tourism and hospitality products from the global market, although the immersive environment is critical in nature. This chapter enhances the understanding and knowledge of integration of AR and VR as a marketing tool to improve the overall customer experience and to create an enabling environment, which ultimately influences the revisit intention. This chapter provides practical implications for hotel managers, tour operators, destination promoters, and tourism development associations in leveraging advanced technologies such as AR and VR to attract more visitors to a museum and to improve marketing materials through marker-based AR. This would act as an alternative marketing tool to engage the customer immersively, improve tourist appreciation of destinations and comprehensive information in a novel and captivating way to promote the heritage and urban tourism destinations and cultures.

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The future direction of AR and VR in hospitality and tourism marketing should focus on promoting the traditional and indigenous community to empower them and improve their income to have an impact on their quality of life as an initiative to support the Sustainable Development goals (SDG) of the United Nations. With the advancement in VR and AR, future research should also focus on creating a memorable experience using high-tech to both customers and businesses in the hospitality and tourism context to enhance brand image and positioning of the tourism destination. Lastly, it is important to study the design and evaluation of children-friendly AR and VR immersive in all feasible hospitality and tourism touchpoints as the current generation’s technology readiness is at a greater level, and they will be the targeted customers in the future to experience and access the advanced marketing communication tools.

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Part III Branding and Marketing Communications During a Pandemic (COVID-19)

4 #BankFromHome: Using Advertisement Campaigns to Change Banking Behaviour During the COVID-19 Pandemic in an Emerging Economy Nguyen Phong Nguyen and Emmanuel Mogaji

Introduction The advent of the coronavirus disease (COVID-19) has resulted in devastating effects on human activities and other spheres of life. High contact services are also not an exception. (Batat, 2020). While people can afford to seek alternative means of buying groceries or avoid staying in a N. P. Nguyen School of Accounting, University of Economics Ho Chi Minh City, Ho Chi Minh City, Vietnam e-mail: [email protected] E. Mogaji (*) Department of Marketing, Events and Tourism, University of Greenwich, London, UK Department of Research Administration and International Relations, University of Economics Ho Chi Minh City, Ho Chi Minh City, Vietnam e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 O. Adeola et al. (eds.), Marketing Communications and Brand Development in Emerging Markets Volume II, Palgrave Studies of Marketing in Emerging Economies, https://doi.org/10.1007/978-3-030-95581-6_4

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hotel, financial services provided by banks in emerging economies is an essential service that may not easily be substituted. Even when banks are trying to introduce technologies to aid financial transactions, there is low adoption as people do not trust the technology. They prefer to physically interact (Wayne et  al., 2020) and go to the banking halls for their transactions. While people were asked to stay safe at home and restrict their physical connections, the lockdown spurred economic challenges to many of the banks’ customers in emerging economies (Mogaji, 2020). It is, therefore, not surprising to see banks make special arrangements and provide concessions to their customers to alleviate their economic challenges during the lockdown. This is carried out through their advertising campaigns that also involve health and safety via cognitive and behavioural engagement. Studies have recognised the dearth of theoretical understanding about advertising practices from emerging markets as there is an uneven concentration of studies from developed countries (Oyedele & Minor, 2012; Zubcevic & Luxton, 2011; Abdulquadri et al., 2021) and a lack of understanding of how emerging economies are coping with the pandemic (Mogaji, 2020). In response to the demand to having a better understanding of advertising and COVID-19 in emerging economies, this study investigates the role advertising plays in helping the Nigerian society and financial service providers cope and recover during the pandemic. Our conceptualisation and execution of the research is in Nigeria, an emerging economy, the largest economy and population in Africa (Mogaji, Balakrishnan, et  al., 2021). Customers’ experiences are being affected as they get frustrated because banks’ branches are not opening, and those that are open are in major cities, with short operating hours. To further avoid this frustration, many of the Nigerian banks had to develop campaigns to create awareness and advertise different banking options for their customers. The primary objective and key theoretical contribution of this article is to examine how advertising has helped persuade consumers to change their banking behaviour by adopting online banking and comply with desirable health behaviours such as social distancing and movement restrictions while accessing financial services. To achieve these aims, this

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study adopts the affect–reason–involvement (ARI) model by Buck et al. (2004), which recognises the value of emotional and rational involvement in attitude, change, and persuasion. Initial and follow-up qualitative semi-structured interviews were conducted among customers and top bank managers. In addition, content analysis of selected banks’ advertisements was carried out, to understand the types of messages they were communicating. This is aimed at triangulating these findings to understand better how pro-social advertising boosts the brand and changes consumers’ behaviours and what tactics and strategies are likely to persist after COVID-19. This study presents evidence of how advertising can be used to promote socially desirable/responsible behaviours and change consumers’ behaviour while they engage with financial services providers. The second section discusses the previous literature, highlighting the relationship between advertising and public policy. This is followed by the third section, which contains the methodology and research design. The results are presented in section “Results”. The subsequent section discusses the results and presents the theoretical and managerial implications. Section “Conclusion” concludes the study.

Literature Review Advertising and Public Policy A strong relationship between advertising and public policy has been established (Mogaji, 2021b). Kees and Andrews (2019) noted that this relationship presents key implications for customers and can influence business practices. Advertisement has been found to change consumer behaviour (Czarnecka & Mogaji, 2020), some of such behaviour include to drive slowly, donate to charity, or eat healthy food. Can et al. (2020) identified tourists’ behavioural responses to search advertisements, and Sama (2019) established an impact of media advertisements on consumer behaviour. Likewise, organisations have also adopted cause-related marketing advertisements to change their business’ practices (Schmuck et al., 2018; Coleman et al., 2020), and the growing drive for green marketing

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with advertisement playing a key role has been identified (Bailey et al., 2016; Mukonza et al., 2021). All these highlight the role of advertisement and how it can be effectively managed to achieve an objective. Extant literature reveals that advertisement campaigns that focus on health- and safety-related issues are well-coordinated, repetitive, and often generate the desired result (Chang, 2013) because they lead to metacognitive fluency which influences customers’ attitude, behaviour, and disposition (Alter & Oppenheimer, 2009). As a result, customers often have the impression that these consistent and regular advertising campaigns are more believable, and they ultimately produce the desired effect (Dechene et  al., 2010). Generally, advertising campaigns that focus on health and safety issues or concerns are usually aimed at creating or stimulating subjective feelings (Aparna et al., 2015), but these feelings do not affect every customer in the same way. This is because more often than not, health and safety advertising campaigns that involve cognition may also involve emotions (Maio & Esses, 2001), and different customers or individuals have different levels of emotions. Given the differences in the emotional levels of customers, it is, therefore, essential to focus on the emotions of these customers because it helps advertisers to be able to influence their focus on subjective feelings prior to appeal exposure (Aparna et al., 2015).

Advertising Appeal in Time of Pandemic The COVID-19 pandemic has brought a different dimension, albeit unknown, to reiterate further the role of advertisement in brand communication (Mogaji & Nguyen, 2021). Many countries and organisations have had to advertise and raise awareness about the pandemic and its impact on society and individuals. Bank customers in Nigeria are confronted daily with several economic and socio-cultural challenges that have been worsened by COVID-19, and it is understandable to recognise how the banks have effectively communicated with their customers. However, like any other heavily regulated industries, such as telecommunications and healthcare, it is important to recognise the complex policies and regulations that they will have to navigate (Kees & Andrews, 2019),

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despite the pandemic. Mogaji et al. (2018) found that UK banks were using rational appeals and informative advertisement strategies to reach out to customers, they highlight that because of the highly involving nature of financial services, emotional appeals may not be applicable. The suitability of an advertising appeal, however, presents a unique conundrum (Mogaji & Danbury 2017). While the banks may want to adopt a rational appeal, which fits their regulated business practices, the challenging times and impact of COVID-19 on human endeavour necessitate the need for empathy, understanding, and emotionally appealing advertising campaigns. Chang (2013) found that emotional appeals have commonly been used in charitable contexts to persuade consumers to donate or to purchase a product. Zikmund-Fisher et al. (2008) also reiterate the presence of emotional appeals in health advertising as consumers have difficulty processing information-laden rationally appealing advertisements. The pandemic presented an opportunity for the banks to communicate and engage with the customers, importantly to make them change their behaviour such as physically coming to the bank branches or dealing with cash which exposes them to catching the virus. There has been a need for health campaigns from different governments to advice citizens about social distancing, hand washing, and even getting their immunisation (Bourassa et al., 2020; Mogaji, 2021a), and this has led to a new consumer behaviour paradigm shift (Gangadharbatla, 2021; Mehta et al., 2020), as some people choose to ignore campaigns about COVID-19 and its health implication because they felt they were not at risk and the media is creating unnecessary anxiety (Van den Broucke, 2020). Notwithstanding the consumer attitude towards advertisement in this time, it is considered important for organisations to engage and communicate with their customers (Park et al., 2021).

Theoretical Framework This study adopts the affect–reason–involvement (ARI) model to explore the effectiveness of banks’ health, safety, and well-being campaigns among their customers during the COVID-19 lockdown. The ARI model

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postulates that attitude formation emerges from two qualitatively different but simultaneous mechanisms of persuasion, which are rational cognition and effect (Beck et al., 2004). Schmuck et al. (2018) adopted this model in their study on how consumers perceive advertisements and form attitudes towards misleading advertising and green washing. They recognised that features of advertising campaigns that are being communicated to customers have an impact on attitude formation, and advisedly, this attitude formation is based on the dominant influence of rational cognition, the dominant influence of effect, or the influences of both mechanisms (Schmuck et al., 2018). Furthermore, the ARI model suggests that customers’ involvement and responses to advertising campaigns influence the depth and quality of their responses which interact with the advertising campaigns and ultimately influence the success of the advertising messages. Unlike other dual process models such as the elaboration likelihood model and the heuristic-systematic model, the ARI model distinguishes between two conceptually different types of persuasion mechanisms because it assumes that the influences of both rational and affective persuasions occur interactively and simultaneously (Sohn, 2009; Schmuck et al., 2018). Indeed, the ARI model explores the subjective experience of emotion or affect as a type of knowledge cognition that is not subordinate or inferior to rational cognition. Therefore, if emotional persuasion is based on holistic syncretic cognition, then it implies that rational persuasion is based on linear and sequential analytic cognition (Schmuck et al., 2018). Using the ARI model, we investigate the effect of the advertising campaigns of Nigerian banks on customers’ attitude and lockdown during the COVID-19 pandemic. Specifically, we explore how the attitude towards bank brands, banking and public health are being influenced by emotional (the pandemic) and rational (highly regulated industry) appeals, which are two qualitatively different but simultaneous mechanisms of persuasion (Schmuck et al., 2018).

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Methodology An online qualitative and exploratory study was deployed by using a mixed-method approach, combining online interviews with 26 bank customers and 7 bank top executives and social media data. Two initial interviews were conducted in May 2020 during the lockdown and an additional two follow-up interviews were conducted in September 2020 during the partial lockdown. These interviews helped the researcher to gain a comprehensive understanding of advertising in time of COVID-19, an unexplored complex phenomenon (Batat, 2020). In addition, and to triangulate the findings, advertisement from four banks related to the pandemic, social distancing, and awareness and education about digital technology for banking on social media profile were extracted for analysis. Following research protocols approved by the university research ethics review board, we followed a script of questions which included three topics, namely, banking behaviour pre and post COVID, banks’ advertising strategies and impact of advertisement on banking behaviour, and public health safety. The data recorded, including verbatim and the researcher’s comments during the initial and follow-up interview, were transcribed and analysed (Batat, 2020) by the researcher using Braun and Clarke’s guidelines (2006) through NVIVO 12, a qualitative analysis software tool. Disconfirming evidence was sought throughout the analysis process as researchers met virtually to review and combine preliminary codes and themes in an iterative process that continued until all the themes could be defined, named, and explained (Caulfield et al., 2020). Representative quotes were integrated into the result to provide evidence of the themes and framework of relationships. To guarantee the validity of our results, we asked participants, researchers, and experts in the field to review the script of questions, raw data, and findings (Batat, 2020). This also followed the idea of member check, which is considered the most critical step that can be made to bolster a qualitative study’s credibility (Farinloye et  al., 2019). Table  4.1 presents a summary of the methodological approach.

May 2020

Sample Participants were Recruitment recruited through money agents, personal contacts and information shared on social media. Frequency 26 Customers

Date

Customers

Initial interview

7 Bank managers

Participants were recruited through personal contact

May 2020

Managers

Table 4.1  Summary of the methodological approach Customers

Follow-up interview

Banks— Ecobank, First Bank, Sterling, Stanbic IBTC

4

24 Customers

April to May September 2020 2020 Banks where the Same as the initial interview interviewed managers are working.

Social media data extraction Managers

Seven bank managers

Same as the initial interview

September 2020

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Participants

The participants were predominantly between ages ranged from 18–35 (n = 13, 50%), 14 were female (54%) and 12 male (46%) participants. Twenty participants had a formal education, at least a secondary school certificate.

Customers

Initial interview Managers

Social media data extraction 3 executive directors, 2 managing director/chief executive officer, a group head, microfinance and inclusion and a group head, micro banking. 5 men and 2 women participated in the interviews.

2 participants were not available for the follow-up interview The final samples were 12 female (50%) and 12 male (50%) participants.

(continued)

Managers

Customers

Follow-up interview

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Questions

Managers

Social media data extraction Customers

Follow-up interview Managers

Follow-up interview Follow-up with the Extraction of They provided us They provided us bank managers with customers to social media with information with an overview of to reflect on the understand how posts that are about challenges their banking effectiveness of their banking related to the in financial behaviour, their their campaign; behaviour pandemic, services provision, engagement with adjustment made changed over the social their advertising the bank’s to adapt to the strategies, and key distancing, and 5 months, the marketing crisis, and any effectiveness of awareness and messages being communications evidence of a the banks’ education communicated and actions in advertisement and change in about digital because of the staying safe during banking financial services technology for pandemic. the pandemic. behaviour and provision banking public health safety.

Customers

Initial interview

Table 4.1 (continued)

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Results The findings for each research question are summarised in this section and presented in Figures. The first question addresses what the banks are communicating. The second question identifies consumers’ perception and understanding of the messages. The third question presents the impact of the advertisements (Fig. 4.1).

Banks’ Communications Banks were reiterating the messages of the government and health officials, warning the customers to stay at home and observe social distancing. These are pro-social and public health campaigns beyond the technology and security messages that the banks are sending. These were being targeted to emotionally appeal to the customers, to make them feel responsible for their well-being and public safety. As illustrated in Fig. 4.2, the customers were reminded to use financial technology such as internet banking and mobile apps within the comfort of their homes instead of coming to the branches which are closed.

Fig. 4.1  Summary of results

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Fig. 4.2  Advertisement by Banks reminding customers about alternative banking through mobile app and money agents

The managers reiterated that these technologies were available before the pandemic. Yet, due to the reluctance of the customers, it has not been well accepted the way it was anticipated. Nevertheless, this pandemic has necessitated the need to advertise further, educate and keep customers aware about technologies which will not only make their transactions faster, but will also save time and, importantly, ensure public safety.

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Fig. 4.3  Advertisement by Banks reminding customers to stay alert and avoid being scammed during the pandemic

Recognising that there may be several people using these technologies for the first time and maybe vulnerable to scam and frauds, Fig. 4.3 shows advertisements from banks warning customers to be ‘scam smart’, ‘scam alert’, and be mindful of how they manage their information. This was also reiterated by customers who shared that they have been receiving different fraudulent messages from numbers that are posing to be banks. The managers noted that fraudulent people are intensifying their strategies when everyone seems vulnerable, and the advertisements from banks serve as a reminder to be always careful and mindful. When the lockdown was relaxed in the first week of May 2020, banks were beginning to open and offered skeletal services. There was a sight change in their communications strategy as managers reported huge crowd who came to transact business in the banking hall. Although the lockdown was just being relaxed, people were not observing social distancing, and there was a need to develop other marketing campaigns to educate customers about following the social distance safety measure and the need to be generally safe. Ecobank had the ‘Staying safe is as simple as ABC’ campaign. They advised customers to observe social distancing, wear a mask, and use hand sanitisers while using the ATM, inside the branch, and at the counter. First Bank asked their customers to take responsibility for their safety and do the right thing, asking them not to come to the branch if there is no need and if they have to come, they should use the respected marked

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Fig. 4.4  Advertisement by Banks reminding customers about social distancing when coming to the Banking Hall

spaces at their branches when queuing. Stanbic IBTC said if customers need to visit branches, they must adhere to instructions while at the branch. As illustrated in Fig. 4.4, these banks had a coordinated message to reinforce social distance and ensured the public safety of their staff and customers. Beyond social media, there were other campaigns on broadcast media to create awareness and educate the customers on safety measures to avoid the coronavirus. These campaigns can be considered corporate actions by the banks to check the spread of Coronavirus in Nigeria. Ecobank Nigeria had the ‘StaySafeNigeria’ campaign broadcasted on radio, and it was presented in Pidgin, Igbo, Hausa, and Yoruba. These are local languages in Nigeria (apart from English, being the official language). This was to ensure the message gets to the grassroots; customers who may not be conversant with English or have access to technology are

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still able to get the ‘StaySafeNigeria’ campaign. Also, banks were showing forms of empathy to reinforce the idea that the pandemic is also impacting the banks as the rest of the customers. Banks are showcasing their struggle when it comes to staffing, suggesting that their staff also work remotely, using technology, and hoping the customers will use the same as well. Some banks showcased their donations and palliative measures put in place to support their customers.

Customers’ Perception The customers acknowledge that there was an increase in the form of communications from the brand during the pandemic; they feel the banks are doing well to communicate and introduce them to the new technologies. They acknowledge advertisements on broadcast media, especially on social media and text messages from the banks. They felt they were reminded about the different technologies and, therefore, made them want to explore it. There were consumers who felt that using the technology was a hasty decision; they acknowledge that they would not have used the technology if not for COVID-19 and the advertisements they have received, but they feel reassured that they are making a right decision. Customers, especially the underbanked who have previously had little

Fig. 4.5  Advertisement by Banks providing incentives for customers using their digital channels

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engagement with bank technology, acknowledged that they are new to it and it feels different. They do not have an option than to use it, but they felt reassured that even if they make a mistake, the bank can sort them out. Those who were conversant with some of these financial technologies also recognised that they had been incentivised to use the technology, which is to the advantage of the banks and for their conveniences. Considering transaction charges as a pain point in Nigeria’s financial services provision, Fig. 4.5 shows banks introducing incentives for the customers to change their banks and their banking behaviour, especially with regards to their digital channels. Six customers indicated that the incentives have made them change their bank.

Advertisement Impact Change in banking behaviour was the significant impact of the banks’ advertisements during the lockdown. Participants that were interviewed during the first stage reported during the second stage how they have adopted the technology, albeit without no option or alternative. They acknowledge it was a difficult shift, but the bank’s communication strategy kept them in the loop, reassuring and educating them. The bank managers recognised an increase in the number of people using technology such as the mobile app, internet banking, and ATM. They observed that there is reduction in the number of people coming to the banks to make transactions and engage with customer services. Customers now feel they can stay at home and carry out their transaction without being physically present in the banks. These advertisements have also contributed to the changing behaviour of Nigerian banks’ customers who would have had to go to the bank to carry out transactions. For those who have decided to come to the banking hall, the bank’s campaign has reminded them to make conscious effort to protect themselves and others when in public places. Also, with fewer queues at the bank, it has become easier for the bank to manage the number of people in the banking hall and easier to maintain and enforce social distancing. Though the managers acknowledge that in some big branches in the

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cities, it is still necessary to remind people and enforce social distancing. The managers acknowledge that there is a recognisable change in behaviour of customers. The positive attitude to the banks is also recognised as evident by the comments of the participants and those who have opened an account because of how the bank has communicated their products and services during the lockdown. Customers recognised the human nature of these bank brands and easily formed a positive attitude.

Discussion This research note explored the role of advertisements in changing the banking behaviours of customers in Nigeria, one of the largest emerging economies in the world. Before the pandemic, consumers filled the banking halls trying to make financial transactions, and banks built more branches to meet the growing need as customers were reluctant to adopt technologies. The pandemic has, however, brought a change which has necessitated the need to explore alternatives when assessing financial services. The Nigerian banks have yet developed different integrated campaigns to address the needs of the customer, create awareness about

Fig. 4.6  Conceptual framework of advertising and COVID-19  in the banking industry

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different technologies which will dissuade them from leaving the house and changing their social behaviour with regards to social distancing in the banking hall and protecting themselves using a face mask. Evidence from the customers and bank managers that were interviewed suggested that customers are aware of the advertisements on different media and are gradually changing their behaviours to reflect banking services in the new normal. Figure  4.6 presents a conceptual framework of Advertising and COVID-19 in the banking industry. It recognises banks’ effort in communicating key messages around technology, safety, and social distancing to the consumers through different media. There was increased communication reaching the customers as banks tried to engage and reiterate their diverse messages continually. Notably, the figure illustrates how advertising messages changed during the pandemic and the impact it had on the consumers’ behaviour. The partial relaxation of the lockdown, which made people want to continue their old banking behaviour necessitated the need for the banks to update their campaign strategies. The evidence suggests that consumers changed their banks (to more technological driven banks), their banking behaviour (more online transaction and less visits to the bank), and their public health safety (avoiding large gatherings and ensuring social distancing). There are key features that have made these advertisements effective, especially when explored in the context of an emerging economy with diverse customer base with different languages, levels of literacy, and financial inclusion. First, the advertisements tapped into peoples’ struggles. The banks know about this inherent behaviour within their customer group, the need for them to always come to the bank because they do not trust the technology or the unreliability of the technology. Though the banks have continually been raising awareness about technology to enhance financial services, the pandemic provides an opportunity for customers and banks to reflect on the banking process and enforces a behavioural change. Banks recognised how their customers may be affected due to the lockdown and had to intensify their campaign to communicate alternative means of banking. This is more like speaking to the customers at the right time with the right message. The customers are stranded, and they need alternative ways to access their money.

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Also, the banks used different tones in the campaigns to appeal to a diverse audience. Nigeria is a country with over 500 languages, even though English is the official language, there are different campaign adverts using different languages. There were advertisements in pidgin, a derivative of English language, and also, there were many advertisements in many local languages to appeal to the diverse customer base, especially many of the unbanked and underbanked customers who may not be conversant with technology and not understand English. Effectively communicating with them through the medium and language they understood made the campaigns very effective. In addition, the banks got many celebrities and influencers to endorse and amplify their messages. This builds on the idea of using a language that people can understand. These individuals were able to reinforce the messages from the brand, reaching out to their followership and communicate the message. To further amplify the messages, there were different hashtags from different banks. Guaranty Trust Bank (GTB) was using #SimpleBanking, First Bank had #EasyBanking and #EnablingYou, while IBTC Standard Chartered had #BankFromHome. This strategy can also build on the notion of social media for marketing communications and engaging with the stakeholders (Gökerik et  al., 2018; Gbadegeshin et al., 2021) Furthermore, this was a general campaign by all the banks to raise awareness about technology and advice people to stay at home. Unlike previous campaigns that were being developed by different banks at different times, the pandemic necessitated all the banks to communicate the same message at the same time. It became a coordinated campaign to make people safe, use technology for their financial transactions, and for customers to avoid large crowds in the banking halls. This synchronised campaign across the industry, due to the pandemic, made the advertisement very effective. Customers are receiving the same advertisements from different banks at the same time. Lastly, there was a form of rational and emotional appeals integrated into the advertisements. While the banks were raising awareness about their technology and advising customers to be alert about scams, they were also appealing to the customers’ emotions. They were sharing their struggles, their staff working from home, the donations they have made

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and measures they have put in place to support their customers. This aligns with the ARI model (Buck et  al., 2004), which recognises how attitudes can be changed through cognitive processing and depth and quality of processing information by the banks. The customers had the cognitive ability to reason with the advertisements meeting their needs while still emotionally attached, and likewise, the banks were not only selling their technology but also showing empathy in their communication, using a different medium to raise awareness and educate the customers.

Theoretical Contribution This research makes several notable contributions. As Taylor (2005) and Oyedele and Minor (2012) called for future research to explore advertising issues from emerging markets and Mogaji (2020) highlighted the dearth of theoretical understanding about how developing countries are coping with the pandemic, this study provides insight into the effectiveness of advertisement during the pandemic from an emerging economy. This study recognises the inherent feature of an emerging economy and how it shapes their advertising practices (Soetan et al., 2021). The study further iterated the choice of language in the advertisement campaign, the dissemination of the advertisement on different media, especially on radio, reached those in the grassroots and addressed their needs (Soetan et al., 2021). Findings from this study contribute to the literature on the effectiveness of advertising appeals. It provides evidence of how banks have adopted both rational appeals (security and technology) and emotional appeals (empathy, endorsement, and humour) in their advertisements. While the main aim was to educate customers about available technology, the creative choice to integrate emotional appeals in the campaign made the campaign more relatable and engaging. The customers were able to effectively perceive and process different types of advertising from the campaign and change their bank and banking behaviours. This finding further extends the ARI model (Buck et  al., 2004) beyond green

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marketing (Schmuck et al., 2018; Urbański, 2020) and cause marketing (Attwell & Freeman, 2015). This study also extends prior work on pro-social marketing (Ballings et al., 2018) by showing its positive effect on changing customer attitude towards a brand and public health. These banks have invested a considerable amount of money for their pro-social advertising to raise awareness about the pandemic, and there is evidence to suggest that there is a boost to their brand perception. Consumers indicated that the empathy shown by the banks and a physical demonstration through palliatives and incentives as part of their integrated pro-social campaign made them have a positive attitude towards the brand. In addition, there are evidence of corporate social responsibility on the part of the banks (Mogaji, Hinson, et al., 2021); even though they were creating adverts to change banking behaviours, these campaigns also contribute to creating awareness about the public health issues raised by the pandemic (Mogaji, 2021a). This study presents insights and contributes to the theoretical understanding of how advertising messages can change during the pandemic and what impact they have on behaviours. During the lockdown, banks were communicating messages about the use of technology and digital banking, advising customers to stay at home, to be safe, and use digital banking. However, when the lockdown was relaxed, the old behaviour post-pandemic—customers thronging into the banking hall emerged, and that made banks to change their advertising message. They were informing customers about social distancing, wearing a mask, protecting customers and staff. This change in the advertisement campaign was, therefore, able to achieve a shift in banking behaviour (online banking) and public health (social distancing)

Managerial Implications The empirical results from this study also provide important managerial implications for advertising practitioners, bank managers, policymakers, and other stakeholders in financial services provisions, especially in emerging economies. The pandemic has provided an opportunity for all banks and other organisations to reflect on their marketing strategies and

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use different media to effectively engage their customers, highlighting their struggles, showing empathy, and providing solutions to their problems. As Mogaji et  al. 2021 noted, Brands should not also hesitate to adjust their advertising strategies to address the audience’s behaviour. A combination of rational and emotional appeal in the advertisement was found to be effective in reinforcing the need for a behavioural change. Consumers were provided with solutions to their problems while still pulling their heartstrings through emotional appeal. Like many other emerging economies, Nigeria is a country with over 250 cultural/ethnic groups and 500 indigenous languages (Oyedele & Minor, 2012), and it was considered effective to feature advertisements in many of these local languages. The provision of advertisements by banks to customers in a language that they are comfortable with could lead to a better understanding and improved trust in the altruistic intentions of banks towards their customers. Beyond just communicating about change in behaviour, banks should also endeavour to communicate about their digital transformation strategies and technological measures put in place to enhance banking operations (Mogaji et  al., 2021). As Abdulquadri et  al. (2021) and Mogaji, Balakrishnan, et  al. (2021) highlighted, chatbots are essential banking technology that should be communicated to the customers; in addition, access to mobile money, online transaction, and accessing banking services on mobile app should be communicated to customers.

Conclusion Before the Coronavirus pandemic, Nigerian customers would often throng the banking hall for financial transactions, but with the pandemic and the subsequent lockdown, many had to stay at home and had difficulties in accessing their money because they have often relied on visiting the banks to get their money (Soetan et al., 2021). To address these challenges, banks had to create advertisements that remind customers about digital banking tool, to encourage them to stay safe at home while still able to do transactions. This study analysed these advertisements, engaged with customers and bank managers to understand how advertising can be

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used to promote socially desirable actions such as social distancing (in the banking halls) and change in banking behaviour (to use online banking). This study makes vital contributions to the literature on advertising, especially pro-social advertisement (Ballings et al., 2018; Schmuck et al., 2018), and financial services advertisement from emerging economies (Soetan et al., 2021; Mogaji, Adeola, et al., 2021). In addition, it provides important managerial implications for advertising practitioners and other stakeholders. This study has several limitations that suggest potential areas for further research. These evaluations were based on qualitative insights from the participants and therefore, may not be generalisable. Hence, future studies can adopt quantitative research to quantify the effectiveness better. Also, though participants were from a major city in Nigeria, the findings may not be generalised and therefore future studies can examine these behavioural changes in different cities and countries.

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5 Marketing Communications During a Pandemic: Perspective from a Developing Country Gloria K. Q. Agyapong

Introduction The emergence of the COVID-19 pandemic has changed the way companies communicate with their customers (Verbeke & Yuan, 2021). Before the COVID-19 pandemic, marketing communications was dominated by face-to-face contacts with customers, placement/point of purchase, and physical print (Adetunji et al., 2018). Some companies also used traditional media, notably radio, newspapers, and TV adverts, to send customers messages about their products and services (Malecki et  al., 2021). Regardless of technological advancements, companies largely relied on these traditional tools to exchange information with their customers. Katz (2008) revealed that traditional communication tools are more visually appealing to customers. However, marketing

G. K. Q. Agyapong (*) Department of Marketing and Supply Chain Management, School of Business, University of Cape Coast, Cape Coast, Ghana e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 O. Adeola et al. (eds.), Marketing Communications and Brand Development in Emerging Markets Volume II, Palgrave Studies of Marketing in Emerging Economies, https://doi.org/10.1007/978-3-030-95581-6_5

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communications in the face of the COVID-19 pandemic has shifted from the traditional methods to more advanced and technology-inclined systems at a faster pace. The emergence of this pandemic was shocking and highly unexpected; thus, greatly affecting the activities of modern businesses, which in turn pushed them to embrace technology. As such, the use of digital media (i.e., websites, email, digital advertising, content marketing) and social media (i.e., WhatsApp, Facebook, Ipsy, Twitter and Instagram) to communicate a company’s products and or services to its customers have become common and generally accepted (Cheng et al., 2020; Dkhar et al., 2020). In developing economies, there were various strategies from governments to increase the awareness of the deadly COVID-19 virus as well as calls to find out other creative and innovative ways to reduce the spread of the disease (Thompson et al., 2021; Seytre, 2020; Wolf et al., 2020). When the first positive cases of the coronavirus were officially reported in Ghana in March 2020, there were calls for awareness creation on the safety protocols as well as restriction of movements within the country. This was followed by a lockdown of the major cities (Accra, the capital city, and Kumasi, the second largest commercial city), where the first cases were detected. While the Government of Ghana, for instance, used the ministry of information and its communication agencies to create and increase awareness, business organisations also had to embed COVID-19 awareness messages and safety protocols in their marketing communications strategies, which played an integral role in organisations’ strive for a steady income and competitiveness. Thus, in the view of Fill (2009), marketing communications provides an avenue for an organisation and its various stakeholders to pursue their varied interests through engagements that involve the use of different communication tools and media to captivate consumers’ attention as well drive traffic. To this end, while organisations should use messages that inform and assure customers of their availability and support for consumers during the pandemic, they also need to emphasise trust and customer intimacy. Like other developing economies, COVID-19 has changed how Ghana’s businesses, including Micro, Small and Medium-sized Enterprises (MSMEs), communicate with their customers (Korankye, 2020). With the country still lagging behind in technological advancements notably,

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quality internet connectivity, individuals, and companies were pushed to embrace social media to communicate with their customers. According to Bai et al. (2021), the total number of internet users increased by 6.4 per cent (943,000) between 2020 and 2021. Similarly, social media users increased by 37 per cent (2.2 million) between 2020 and 2021; thus, about 26.1 per cent of Ghana’s total population currently use social media (Tabong & Segtub, 2021). These reports are clear indications of an increment in technology adoption in the face of the COVID-19 pandemic in Ghana. Based on the above statistics, it could be argued that most social media users engaged in online marketing, notably online shopping. In the face of the pandemic, marketing communications in Ghana has shifted from traditional marketing communications to the use of technology-­oriented communication tools. This chapter sought to expose readers to the benefits of marketing communications to businesses, business support for marketing communications and expand the discussion on digital media, particularly the dominance of social media usage by both businesses and consumers. It also provides some theoretical background to underpin marketing communications in the face of the COVID-19 pandemic. The chapter provides examples of marketing communications used by Ghanaian firms during the COVID-19 pandemic. Based on the findings of this study, some recommendations are proposed on how to conduct marketing communications during pandemics, such as COVID-19.

Methodology The author focused on studies related to marketing communications and its associated benefits during COVID-19. The chapter compiled related studies on forms of marketing communications that are valuable to firms during the COVID-19 pandemic. The study also identified evidence of the use of various marketing communications during the pandemic by searching Google using keywords such as marketing communications, types of marketing communication tools, companies’ responses to COVID-19 through marketing communications, and other relevant terms. The chapter also included online sources of marketing communications by firms in Ghana.

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Marketing Communications During COVID-19 The COVID-19 pandemic pushed both developed and developing economies, including Ghana, to provide various financial supports to businesses to protect them from collapsing. In the era of this pandemic, business activities must evolve rapidly to meet customers’ changing and uncertain needs. Although some businesses anticipated stable operations and rising income, others also predicted negative operations, services, and revenues in the face of the pandemic. Crick and Crick (2020) asserted that the emergence of this pandemic had brought shocks to global activities, including businesses. Crick et al. (2020) added that COVID-19 has changed how businesses are conducted, largely inducing employees to work virtually with minimal or no face-to-face contact with customers. Customers, for instance, were forced to stay at home (lockdown), which made it extremely difficult for them to do their regular personal shopping. Businesses made innovative efforts to support marketing communications to address customers’ needs without personal contacts. One of the notable efforts of businesses to support marketing communications was the adoption and quick development of technology, notably, online and digital marketing. According to Chronopoulos et al. (2020), consumers’ choices became extremely limited and they were forced to adjust to services and products which could never have been used under “normal periods”. Practically, demand for necessary products increased tremendously, and customers had to stockpile these items to survive this pandemic. Although customers and governments made numerous efforts to survive the pandemic, the efforts put in by businesses to communicate virtually with their customers were very crucial. Businesses had to invest heavily in the digitilisation of marketing communications. Some large businesses were already developing electronic communication platforms, but the pandemic pushed them to achieve this at a faster pace. On the other hand, medium and small businesses were left with no choice but to spend their limited resources on digitalisation to keep pace with the COVID-19 pandemic. By and large, businesses have provided innovative support to improve marketing communications; however, only time will tell whether these small businesses will continue to invest in modern communication tools during this pandemic.

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The Stimulus-Organism-Response (S-O-R) framework has been utilised by marketing researchers to better comprehend environmental influences (Xu et  al., 2014). The framework is based on the work of Mehrabian and Russell (1974), who conceived behaviour as taking place in a stimuli-rich environment. The inputs affect the organism, specifically the cognitive and affective processes of the consumers, which results in a behavioural reaction. This three-part paradigm has allowed the development of models that contain affective and cognitive intermediate layers rather than direct causal linkages between stimulus and action (Xu et al., 2014). We propose that in the case of a worldwide pandemic, the stimulus should be the information sources from which people learn about the pandemic. The signalling theory is strongly anchored on the need to reduce and explain information asymmetry between signallers (in this context, the firms that are using marketing communications) and the signal receiver (Kharouf et al., 2020). The signalling theory posits there are five distinct dimensions which include signal’s observability, cost, credibility, frequency, and consistency (Connelly et al., 2011). Observability measures how receivers are given the intended signals, frequency measures how often the receiver gets the signal, consistency deals with the perceived similarity across multiple signals sent out by the same signaller, cost measures the resource costs of sending the signal, whilst credibility captures the perceived ability of the signaller to follow through with the signal (Kharouf et al., 2020. Signalling theory’s foundation has strong relevance to marketing communication with customers (Bergh & Gibbons, 2011). Firms relying on signalling theory to manage the uncertainty concerning the fears regarding the COVID-19 pandemic should use the appropirate communication tools to avoid information asymmetry. Ultimately, the focus of marketing communications during pandemics such as COVID-19 is for businesses to increase customer satisfaction and loyalty through marketing communications. However, the threats to the survival of modern businesses continue to remain vibrant, making marketing communications still necessary in this COVID-19 era. The next section discusses advertising during COVID-19, followed by digital media marketing, which are vital marketing communication tools in the era of the COVID-19 pandemic.

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Advertising During COVID-19 Advertising plays a major role in normalising behaviour, specifically in advocating for socially responsible behaviour (Shoenberger et  al., 2021). Consumers may consider organisations advertising socially responsible behaviours as engaging in activist advertising (Shoenberger et  al., 2021). From a signalling perspective, this new form of marketing communications is a form of brand activism and can play a huge role in the era of COVID-19. Practically, many organisations in developing countries attempt to use advertising messages to educate and encourage consumers to follow COVID-19 protocols and perform very important health behaviours. Some common health behaviours included in these advertisements are wearing masks, hand washing, and social distancing (Shoenberger et al., 2021) (Table 5.1). However, some important issues must guide organisations seeking to use advertising messages to advocate for COVID-19 health-related behaviours: Table 5.1  Television advertisement during COVID-19 HISENSE Hisense Ghana had its media communications focusing on addressing and also reminding the public on the COVID-19 safety protocols either at the start of each video advertisement or at the end, and sometimes both at the beginning and end of the video. The company has a TV advertisement, which is on YouTube,1 that appreciates all their customers for doing business with them amidst the COVID-19 pandemic. The company also expresses gratitude to their customers for observing COVID-19 precautionary measures to protect the health and well-being of customers and staff. The television advert has a message that seeks to offer a special sales promotion for all products during the pandemic. ANGEL GROUP OF COMPANIES: ADONKO HAND SANITIZERS Angel group of companies, manufacturers of Adonko bitters in Ghana, embarked on an aggressive television, outdoor, and radio advertisement for its new product—Adonko Hand Sanitizers during the COVID-19 pandemic. Using television advertisement,2 the company placed an advertisement on major television stations in Ghana to market its hand sanitiser product. The advert is also used to educate their target audience on COVID-19 protocols. A very popular Ghana Movie Actress was used in the advert, which made the advert very appealing. The advert was very effective as Adonko Hand Sanitizers become the first locally manufactured hand sanitisers to be distributed by the government and private companies. https://www.youtube.com/watch?v=1KRsUNKUPls https://www.youtube.com/watch?v=Y3f5JJ4-p2A

1 2

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1. Threat to Freedom Advertising—The literature on psychological reactance has been a concern in advertising portraying COVID-19 health and safety behaviours (Shoenberger et al., 2021). It is believed that consumers may see some advertising as a threat to their freedom. The study of Shoenberger et  al. (2021) provides an example of the “No Mask, No Ride” advertisement by Uber, which suggests that a person can only ride in an Uber if they have a mask on regardless of their personal feelings about the necessity of such behaviour. Another message, “socialize responsibly to keep bars open” also indicates a threat to the freedom of consumers. Consumers may feel restricted when the advertisement advocating for healthy behaviour may not align with their attitudes and beliefs. 2. Perceived Authenticity of COVID-19-related advertising— Organisations must be concerned about the perceived authenticity in advertising since this influences brand image and reputation. Shoenberger et al. (2021) explain that the authenticity of advertisements relating to COVID-19, which are regarded as truthful, genuine, and demonstrative that the brand cares about the spread of COVID-19 and its customers, must be pursued.

Digital Media Marketing Digital media tools can be valuable to businesses in the face of the COVID-19 pandemic. Any media encoded in a machine-readable format is referred to as digital media (Boulianne & Theocharis, 2020). Digital media transmits information notably video, audio, and graphics between or among people and or entities (Habes et al., 2020). It can also be viewed as the exchange of information through a digital screen or device. In the face of the COVID-19 pandemic, digital media has made it easier for businesses to easily access, modify, and share information with stakeholders, especially customers (Al-Maroof et al., 2020). It has also improved brand awareness by serving as a marketing communication platform to reach a large audience. The era of COVID-19 has pushed businesses to embrace digital marketing as one of the innovative ways of communicating and doing

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business with customers. The chapter identified that the following digital media platforms are being adopted:

W  ebsite Websites, according to Li et al. (2015), are usually preferred by firms in service industries that are involved in selling information-based products. These firms are likely to provide more information on their websites than retail businesses (Li et al., 2015). This is because retail businesses that rely more on the transfer of tangible products are, therefore, likely to use point of sale systems. However, during the COVID-19 pandemic, most businesses involved in retail resorted to using their websites to take orders and deliver them to clients. In Table 5.2, some examples of the use of websites for marketing during the pandemic has been provided. The use of websites in marketing communications enables firms to use videos to commercialise their activities. During pandemics such as COVID-19, organisations can use their websites in a way that enables the effectiveness of marketing content. The effectiveness of using a website, in the view of Charlesworth (2018), can enable firms to perform the following functions: (a) Introduce the organisation—websites can have links to the home page of an organisation to give personality and character to the organisation. (b) Give testimonials—firms can make real people talk about their experiences with the firm’s products to give the information on the website some human interpretation. (c) Product demonstration and instructions—firms can use videos on their websites to describe their products, and how to use them. For services, firms can use videos to provide a visual of the services.

E  lectronic Commerce The presence of the internet has presented several opportunities to sell online. Electronic commerce entails conducting online business

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Table 5.2  Cases on the use of websites to communicate to target audience during COVID-19 MTN GHANA MTN Ghana provided a waiver for mobile money services during the COVID-19 pandemic. On the website1 of the company, a revised charge was communicated to its target audience. Due to the COVID-19 pandemic, the company waived charges for a daily transaction of 100 Ghana Cedis from July 2020 to September 2020. On the website2 of MTN Ghana, the leading telecommunication company in Ghana, a communication was provided during the COVID-19 pandemic on what initiatives the company has engaged in to support the fight against the pandemic. The company, using its internet services, provided online learning resources to the government and other public universities. The telecommunication company provided a free 500 MB for students to access the electronic learning platforms of their universities. MTN Ghana also has on its website,3 the information that the company has entered into a partnership with Opera to provide Opera Mini and Opera News users on the MTN network up to 20 MB of browsing everyday information for customers. This partnership is to enable MTN service users to connect to families and also access information during the COVID-19 pandemic. FIDELITY BANK GHANA The bank had a message on its website dubbed “Fighting Covid-19: Together we are More”,4 that provided details about how COVID-19 has impacted the banking sector. During the difficult times of COVID-19, the bank decided on Thursday, 26 March 2020 to move its service delivery from banking halls using a bundle of electronic banking solutions and sanitised ATMs across the country. The bank also announced that it would offer a waiver on fees for all digital bank transactions, lower interest rates on personal loans, a dedicated mobile banking app (Fidelity Mobile App) with new features such as salary advances and loan top-ups from the comfort of the home of customers, and relief packages for the government and individuals. NEWMONT GHANA On the Website of Newmont Corporation Ghana, 5 the company has communicated to its target audience an initiative it embarked on during the COVID-19 pandemic. The company supported children who were affected by the closure of schools using a reading programme organised together with the Ghana Library Authority. ABSA BANK GHANA On the website of ABSA GHANA,6 the bank provided customers with an alternative route to perform banking services since there was a total lockdown in the country. The bank encouraged its customers to register on its online banking service platform to ensure banking services were delivered. Customers could register on the online platforms to access services such as overdraft, personal loans, insurance, home loans, and savings and investments. Also, on the website, people who visit the page are encouraged to share this information on Instagram, Facebook, and Twitter. https://mtn.com.gh/mtn-momo-extends-free-transactions-and-revised-limits-until-september30th/ 2 https://mtn.com.gh/personal/covid-19/ 3 https://mtn.com.gh/millions-of-mtn-customers-can-now-browse-for-free-with-opera-mini-andopera-news/ 4 https://www.fidelitybank.com.gh/news/258-fighting-covid-19-together-were-more 5 HYPERLINK“https://www.newmont.com/investors/news-release/news-details/2020/Newmont-Ghana%20%20Launched-Literacy-Programs-in-Response-to-COVID-19-School-Closures/default.aspx” https://www.newmont.com/investors/news-release/news-details/2020/Newmont-GhanaLaunched-Literacy-Programs-in-Response-to-COVID-19-School-Closures/default.aspx 6 https://www.absa.com.gh/media-centre/press-statements/2020/digital-banking-services/ 1

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including marketing, sales, and recruitment. (Charlesworth, 2018). In the e-learning context, there can be three main categories of e-commerce namely pure-play (where the organisation trades online only), multi-­ channel (where the firm sells goods both offline and online); and those firms that have an online presence, but do not sell online (Charlesworth, 2018). During the COVID-19 pandemic, most businesses that were not selling online or operating offline (bricks) and online (clicks) have now moved most of their sales activities online. Globally, e-commerce accounts for 4.1 per cent of total global sales of FMCGs (Statista, 2021). In 2020, e-commerce recorded a growth of 25.7 per cent worldwide (Statista, 2021). In Africa, e-commerce penetration has witnessed an increase from 24 per cent in 2020 to 27.9 per cent in 2021 (Statista, 2021). Also, Statista (2021) reports that during the COVID-19 pandemic, the share of consumer shopping online is 81 per cent in Nigeria, 79 per cent in Kenya and Ghana respectively, 72 per cent in Egypt and Tanzania, and 68 per cent in South Africa and Ivory Coast. According to UNCTAD (2020), the COVID-19 pandemic has accelerated the shift towards a more digital world. Online shopping purchase has gone up from six to ten percentage points across many product categories including electronic goods, pharmaceutical, household products, education, and online products (UNCTAD, 2020). According to the OECD (2020), sales on the internet increased by 30 per cent as compared to 2019, while total retail sales reduced by 17.9 per cent. These results indicate that during the COVID-19 pandemic, online sales have increased compared to the pre-Covid era. Therefore, it is evident that firms have resorted to selling more using online channels during the COVID-19 due to restrictions in physical interactions. One of the main marketing channels adopted by organisations during the COVID-19 pandemic in Ghana were online shopping platforms. Companies that were delivering products in retail outlets quickly moved their operations online, offering the opportunity to customers to access products. Online shopping in Ghana became the most viable means of generating revenue at the onset of the COVID-19 pandemic due to the restriction placed on the movement of people. In Table 5.3, some examples of online shopping platforms launched by firms in Ghana are provided.

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Table 5.3  Online shopping during COVID-19 pandemic KFC GHANA KFC Ghana, a food service provider that traditionally operated in retail store services, encouraged their customers to register for online delivery services. On Facebook,1 the company provided a telephone number for customers to call to receive delivery services. Also, the company introduced a WhatsApp platform to engage with customers who wish to patronise their products. This online marketing communications was to promote the sales of the products of the company during the lockdown. Consumers are, therefore, encouraged to use different communication media to access the products without physically being present. SHOPRITE GHANA Shoprite Ghana is a major food retail outlet operating in Accra, the capital of Ghana. During the COVID-19 pandemic, the company aggressively pursued online delivery services to customers. On Jumia,2 which is one of the largest online markets in Africa and Ghana, Shoprite engages in online delivery services to customers for all the branches (Osu, Achimota, Accra, and West Hills) in Accra through Jumia. During COVID-19, Jumia online platform was used to sell food products to customers across the country. On the website of Jumia, potential and existing customers can engage with Shoprite to order products and also make payments for deliveries to be made. Thus, online marketing played a key role in the sustainability of the company during the lockdown. This marketing approach was successful because retailers were allowed to operate their delivery services during the lockdown since this was regarded as an essential service. Consumers resorted to online markets since it served as a convenient means to get access to essential products. 1 2

https://touch.facebook.com/KFCGhana/?__tn__=%2Cg https://food.jumia.com.gh/supermarket?user_search=shoprit

S  ocial Media A common digital media marketing channel is social media. Social media is generally a computer-oriented technology that fast-tracks idea sharing, information and thoughts through virtual communities and networks (Tuten, 2020). It is also defined as an internet-based platform that gives faster electronic communication to users (Cornelissen, 2020). Social media has evolved tremendously from merely interacting with family and friends to providing a platform for businesses to communicate products and services to customers and other users. Social media possesses the enviable power of connecting and exchanging valuable information with several people at any time. The contents on social media include documents, personal information, photos, and videos. Users engage in social

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media through tablets, computers, Ipads, laptops, and smartphones (Appel et al., 2020). According to Castillo et al. (2021), over 3.8 billion of the world population are active users of social media; in the USA, an advanced economy, for instance, the number of users of social media has been projected to rise by 257 million users in 2023. Similarly, in Ghana, a developing economy, the emergence of the COVID-19 pandemic has led to an unexpected rise in social media users (Tabong & Segtub, 2021). The continuous rise in social media users has provided a huge platform for businesses to communicate with millions of customers through virtual networks. Social media, dominated by Facebook, Twitter, WhatsApp, YouTube, and Instagram, has become one of the powerful marketing communication tools in the era of the COVID-19 pandemic. Social media continues to change and evolve with new apps, including Clubhouse and TikTok, gaining global acceptance. Businesses, for instance, use social media to provide valuable information about their products and services to customers. Social media also serves as a platform for businesses to engage or interact with their customers, and improve brand positioning and loyalty. A recent report by Digital Ghana in 2021 revealed that users of social media are relatively young, with almost 76.4 per cent of the users between the ages of 13 and 34 years. The report also found that the most used social media platforms were WhatsApp, 83.9 per cent; Facebook, 70.8 per cent; YouTube 69.7 per cent; and Instagram 56.3 per cent, justifying why businesses continue to embrace social media in a bid to capture these groups. It could, therefore, be argued that social media serves as an indispensable tool to modern-­day competitive businesses affected by a global pandemic. Social media is a key platform for interacting with customers, determining customers’ needs, and gauging changing marketing trends while increasing sales through promotional activities. Also, social media has the strength in collecting and storing information which helps businesses to improve their marketing efforts and research. Therefore, social media is justifiably an indispensable tool in today’s COVID-19 era; strengthening businesses’ need to continuously improve it. Some cases on the use of social media platforms for marketing communications during COVID-19 in Ghana are presented in Table 5.4.

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Content Marketing During Pandemics In the era of the COVID-19 pandemic, content marketing is very important because it enables brands to create a deeper connection with customers. Kotler et  al. (2017) posit that, unlike advertising that is used to convey information to sell products, content marketing, on the other hand, contains information that helps customers to achieve their personal and professional objectives. Content marketing, which refers to advertising using digital media, is an integral part of digital marketing. According to Kotler et al. (2017, p. 121), “content marketing is a marketing approach that involves creating, curating, distributing, and amplifying content that is interesting, relevant, and useful to a clearly defined audience group to create conversations about the content”. During the COVID-19 pandemic, the objective of firms was to engage with customers consistently that might not directly contribute to improvement in sales but to maintain a valuable relationship with customers. In developing marketing communications during pandemics such as COVID-19, organisations can follow these steps proposed by Kotler et al. (2017) in delivering content marketing: 1. Goal Setting—firms need to clearly state their communication objectives during the pandemic. The objectives can be related to sales goals to generate enough sales and brand-related goals, such as brand awareness, advocacy, and brand association. 2. Audience Mapping—organisations must determine the audience for the communications. One way to do this is not to broadly classify customers, but organisations could focus on geography, demography, behavioural, and psychographic  parameters. Deciding which customer segments a particular communication focus on makes it possible to create effective content. 3. Content Ideation and Planning—this stage entails putting ideas together to develop a relevant theme, narratives, and formats for the campaign. During the COVID-19 pandemic, messages that are relevant to the lives of customers and messages that reflect the brand character must be highly regarded.

MTN t MTN, one of the giants in the African telecommunications industry, has added its voice to other companies in the global drive to raise awareness about the importance of wearing a face mask and observing the COVID-19 safety protocols. MTN Ghana has currently launched a marketing communication message with the theme “WearItForMe campaign” across all of its 21 Middle Eastern markets. This message is centred on helping to drive the much-needed change in the behaviour and as a support to governmental efforts in the fight against the pandemic. In addition to this, MTN has another marketing communications campaign with the message: “#onemorepushafrica/everywhere you go” on all of its social media platforms, where all the top executive members of the firm were spearheading the COVID-19 message. Some of these platforms used by MTN to propagate the message include their Facebook,1 YouTube,2 Twitter,3 and Instagram channels.4 ABSA GHANA ABSA Bank, a commercial bank in Ghana, used Facebook extensively to communicate during the COVID-19 pandemic. On its Facebook page,5 the bank organised a weekly series of webinars that aimed at educating and supporting clients and businesses on how to thrive in times of crisis. Dubbed “Absa Business Connect Series”, the virtual sessions sought to provide practical advice and solutions to business owners on how to ensure business sustainability and growth amid the challenges being faced as a result of COVID-19. HISENSE Hisense Ghana, a leading electronic appliance manufacturer, has aggressively pursued marketing communications to educate customers on COVID-19 protocols. On Facebook,6 the company has the following communication: “In the wake of this deadly coronavirus, let us all adhere to the WHO and the Government of Ghana’s COVID 19 directives. As part of the efforts to control the spread of COVID-19, Hisense wishes to inform our cherished customers that our offices, showrooms and service centres are closed. Kindly visit our official Facebook page for updates at www.facebook.com/HisenseGhanaOfficial. Any inconvenience caused is deeply regretted. Stay Home, Stay Safe. Stay healthy”. KFC GHANA KFC Ghana used its Facebook page7 to run a sales promotion on giving a free Soft Twirl to customers who got vaccinated against COVID-19. The campaign on Facebook aimed at encouraging people to get vaccinated and also to encourage more vaccinated people to visit their outlets across the country.

Table 5.4  Use of Social Media for Marketing Communications during COVID-19

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2

1

https://web.facebook.com/MTNGhana/videos/wear-it-for-me-everywhere-you-go/368106327685807/?_rdc=1&_rdr), https://www.youtube.com/watch?v=DyYBrTWw32I 3 https://twitter.com/mtnghana/status/1301828228370190336?lang=en 4 https://z-p3.www.instagram.com/p/CKlWzFisugo/ 5 https://web.facebook.com/AbsaGhana/videos/absa-business-connect-series/359575662013439/?_rdc=1&_rdr 6 https://web.facebook.com/HisenseGhanaOfficial/videos/in-the-wake-of-this-deadly-corona-virus-let-us-all-adhere-towho-and-the-governm/915403788892811/?_rdc=1&_rdr) 7 https://touch.facebook.com/KFCGhana/?__tn__=%2Cg 8 https://en-gb.facebook.com/gcbbanklimited/videos/covid-19-awareness/767905787452057/

GCB BANK LIMITED GCB, a leading bank in Ghana, on its Facebook page8 had a detailed marketing communications message regarding COVID-19 protocols. The message educated customers on social distancing, wearing face masks, washing of hands regularly, and using hand sanitiser. Also, the message encouraged customers to stay away from the banking halls, as well as limit cash transactions. The company made a strong case for the use of electronic banking platforms and point-of-sale devices at shopping centres. Thus, the bank used this medium to encourage its customers to use more of their electronic platforms. Consequently, the bank aggressively introduced a new product known as G-Money, which offers the chance for customers to perform financial transactions using their mobile phones.

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4. Content Creation—to ensure good content, there is a need to act like good writers, publishers, and editors. Marketers must be able to create entertaining and compelling content. The content must be a continuous process with consistent messages. Also, firms can use external content creators who are professionals. 5. Content Distribution—the organisation must make sure the content created must reach the intended audience. Company-owned media channels, including websites, corporate publications, email newsletters, and social media. Also, paid social media placements can be used. Using multiple sources of content communication will ensure coverage and exposure of the message firms send to their target audience. 6. Content Amplification—the creative content that has been distributed must be supported with content application strategy. Firms must target audiences that are influencers in an attempt to influence their followers and audience. There is also a need to observe the conversations around the content and try to participate. 7. Content Marketing Evaluation—the assessment of the performance of content marketing is crucial. The content marketing strategy must be evaluated to examine whether it meets sales-related goals and brand-related goals. Some common metrics to use in evaluating content marketing communication include page views per visitor, the percentage of people who leave after visiting just one page, and the duration spent on the page. 8. Content Marketing Improvement—the evaluation of the performance of content marketing can lead to identifying ways to improve communication. There is an opportunity to introduce new content formats, themes, and distribution channels.

Conclusion This chapter concludes that marketing strategies are important to organisations’ growth and sustainability. The issue is how organisations can redefine their strategies, including their marketing communications strategies and tactics, in the era of a pandemic. There is evidence to show

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that firms in Ghana adopted innovative marketing communications to ensure the sustainability of their businesses and to contribute to the fight against the COVID-19 pandemic. For businesses in a developing country such as Ghana to get the best out of their marketing communications, they are required to deeply understand their customers and deliver information that is relevant to their values and has the tendency of influencing their behaviours positively.

Recommendations for Firms Marketing communications must be regarded as a major strategy by firms in managing the impact of pandemics. To do this successfully, organisations need to effectively identify the marketing communication avenues to use. It is proposed that using multiple marketing communication channels, including traditional (TV, radio), and new media (digital), must be pursued. The COVID-19 pandemic brought about changes in the way people live, and therefore, the communication needs of customers were also affected. Therefore, innovative ways of communicating to the target audience must be the focus of firms seeking to achieve marketing success. Due to the uniqueness of communication channels, it is recommended that firms must attempt to use as many communications channels as practicable. Another important issue to consider during pandemics, such as COVID-19 is content marketing. Content marketing is a form of marketing communications that seeks to affect the behaviour and knowledge of customers as well as to attain sales objectives. Due to the uncertainty characterising the COVID-19 pandemic and even post COVID, businesses need to shift from just driving sales of their product to brand and image building. To do this, marketing communication strategies should adopt an integrative approach in developing solution-generated content for their messages. Businesses are therefore expected to adopt responsible and empathetic approaches in communicating with their customers. For example, “Adonko Bitters and Kasapreko Company Limited” ventured into the production of hand sanitisers and used celebrities to endorse the products as well as communicate about the new product. There was a

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shift from their usual marketing communications of alcoholic beverages to focus much more on the pandemic and safety protocols. These companies, as part of their marketing communication strategies, also engaged in sponsorships and donations of COVID-19 related items such as personal protective equipment (PPE) to support in fighting the disease. Organisations must undertake marketing campaigns on the COVID-19 pandemic in a cost-effective manner with a strong sense of source credibility of message through the appropriate medium that reach the intended receivers to create a lasting positive impression about such firms. Marketing communications serves as a conduit for building customer relationships; hence, sending the right signals about COVID-19 to inform, educate, entertain, and persuade customers to patronise their services is the way forward. The use of advertising campaigns in communicating COVID-19 health behaviour must have authentic information (truthful, genuine, and demonstrable). This is important because consumers may consider authentic COVID-19 related messages as a representation of the brand’s image and reputation. Therefore, care must be taken in designing and communicating COVID-19 related health behaviours in advertisements. In developing countries, organisations must act as sources of authentic health-related behaviours. The implication of this in marketing is that the authenticity of the health behaviour messages is key to enhance brand positioning and message recall. Another important issue to consider is the threat of freedom to consumers in health-related advertising messages. Organisations must, therefore, ensure that advertising messages on health issues are not seen as imposing restrictions on consumers.

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6 Brand Management During a Crisis: Lessons for Indigenous Hospitality Organisations in Africa Isaiah Adisa, Oserere Ibelegbu, and Blessing Chukwuka

Introduction Considerable research on brands and brand management has been recorded in literature by researchers and practitioners (Dev et al., 2010; Kotler et  al., 2010; O’Neill & Mattila, 2010). This is because of the value, which emanates from effectively and efficiently managing a brand. Hence, according to Kwun (2012), brand management has long-lasting implications on firms’ decision-making processes and influences all brand-related outcomes. Branding is pervasive in various sectors and

I. Adisa (*) Olabisi Onabanjo University, Ago-Iwoye, Nigeria O. Ibelegbu Lagos Business School, Pan-Atlantic University, Lagos, Nigeria e-mail: [email protected] B. Chukwuka Queens University Belfast, Belfast, UK © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 O. Adeola et al. (eds.), Marketing Communications and Brand Development in Emerging Markets Volume II, Palgrave Studies of Marketing in Emerging Economies, https://doi.org/10.1007/978-3-030-95581-6_6

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industries as it serves as a strategy for competitiveness as well as to drive performance and success even within the hospitality firms (Kotler et al., 2003). As defined by Kotler et al. (2003), a brand is “a name, term, sign, symbol, design, or a combination of those elements intended to identify the goods and services of a seller and differentiate them from competitors” (p. 239). Notably, branding has gone beyond the mere reflection of the company’s name or product logo to include the firm’s ability to provide valuable services to clients (Keller, 2003), making it a vital intangible asset available to companies. For brand management to be efficacious, it must depict a brand identity that differentiates a firm’s products and services from those of its competitors (Kapferer, 1997). The value of branding is recognised in the hospitality industry (Kim & Baker, 2021; Olsen et al., 2005; Rai & Nayak, 2019), as institutions and nations develop goods and services that will attract and retain their target consumers in the industry (Beldona et  al., 2020; Gursoy, 2018). The hospitality industry offers goods and services that are sought after globally; the major determinant of hospitality organisations to attract customers around the globe is the uniqueness of their offerings (Beldona et al., 2020; Gursoy, 2018). Globally, there is increasing national investment in the hospitality industry because of its contribution to GDP and socio-economic development (Thommandru et al., 2021). The sector generates 10% of economic output and contributes to 1 in 11 jobs, globally (Ferroni, 2017). In Africa, the hospitality industry generates about 266  million jobs and contributes 9.5% of gross domestic product (GDP) (Nwanne, 2020). Countries such as Nigeria, South Africa, and Egypt are said to have attracted top hotel brands globally as investors see opportunities for growth in the sector and region (Nwanne, 2020). These statistics provide significant information to affirm that the hospitality industry in Africa has positioned itself as a brand that attracts investors as well as indigenous and foreign consumers. The effect of the novel coronavirus, which affected nations in 2020, is quite visible as it has affected different sectors in diverse ways. Prior to the pandemic, available data shows that the hospitality industry in Africa was one of the promising sectors, which suffered most from the pandemic

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(Page, 2021). It is estimated that the industry might not recover the rate of tourist inflow recorded pre-Covid until the year 2023. Furthermore, there is a high rate of job loss for women in hotel businesses (Page, 2021). Despite the effects of the pandemic on the hospitality industry, hotel brands such as Marriott, Hilton, Accor, and Radisson Hotel Group are optimistic about the growth of the industry post-Covid.1 However, it is crucial to highlight that while the world was on lockdown, these brands were managing the situation and preparing for the post-Covid world— this is rather strategic and should be documented for indigenous brands and other sectors to learn (see González-Torres et  al., 2021; Knowles et al., 2020; Mahmoud et al., 2021). Indigenous brands in this chapter are African-owned hospitality brands (Nwoka, 2020). Consequently, there are limited studies on the analysis of brand management during a crisis and its implications on the hospitality industry in Africa (Ngoasong et  al., 2021; Pongsakornrungsilp et  al., 2021; Wut et al., 2021), especially within the context of Covid-19 (González-Torres et al., 2021; Pongsakornrungsilp et al., 2021). This chapter focuses on this area of research to bridge the gap in existing literature, particularly when it is interrogated by African scholars within the African context. This chapter aims to examine how organisations in the hospitality industry in Africa have been able to manage their brands during the Covid-19 pandemic. The specific area of focus in this chapter is the hotel subsector, a subsidiary of the hospitality industry, where there exist multinational brands investment in Africa. First, we discussed brand management, thereafter, hospitality brands and Covid-19 in Africa. We evaluated the challenges hospitality brands faced during the Covid-19 lockdown in Africa and discussed how some of these brands were managed during the pandemic. Adopting the tenets of the contingency theory, we argued for the relevance of a context-specific action plan in a time of crisis. Lastly, we provided relevant recommendations for other sectors in the hospitality industry in Africa and concluded the chapter.

 https://www.borgenmagazine.com/africas-hotel-industry/.

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 rand, Brand Management, and Hospitality B Industry in Africa The business environment, including the hospitality industry, is becoming more fierce and highly competitive (Tien et al., 2019), and for any organisation to keep dominating its market space, it must ensure that its product and/or service offerings consistently and persistently showcase the quality of what it truly represents (i.e., brand value). Thus, building a very strong and long-lasting brand clearly ascertains greater revenue for the organisation (Kapferer, 2004; Keller, 2003) and generates a competitive advantage. A brand simply refers to a promise being offered to customers (Roman et  al., 2003); it is the perceptions about a company’s product or service in the mind of the consumers, which also represents a trademark (Thoma, 2007) that differentiates a branded identity from others (Schiffman et al., 2005). A brand is also referred to as “a valuable intangible asset of the business” (Tien et al., 2019, p. 58). Branding is the process of creating a lasting impression in the minds of the target consumers. It involves more than just a name but rather encompasses an organisation’s tangible and intangible corporate values and image. For instance, when “Aliko Dangote” is mentioned, what comes to mind is more than the nominal image of the person but rather the values he has created. Similarly, Radisson Hotel Group, in the mind of its customers, is way beyond its name. The name offers a nominal means of brand identification, after which the value propositions are remembered. This is because the values of a brand create a long-lasting impression (Mogaji, 2021). The process of ensuring that these values are created is called branding. Similarly, a more encompassing task for businesses in various sectors is brand management. In other words, businesses must endeavour to manage their brands effectively and efficiently. Brand management is creating a perfect picture and representation of how a particular brand is being perceived in relation to how it should be perceived by users, other brands, and investors. It is an effort to ensure that the brand is perceived in accordance with the company’s objectives and ensuring that the brand does not deviate from its expected goal (Mogaji, 2021). It is the process of building a connection or link between a company’s products/services and the perception of its customers

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(Hislop, 2001). This process entails the use of marketing strategies to maintain, improve, and bring awareness to the broader value and image of a brand and its products over a period (Mogaji, 2021). Building a loyal customer base will cause a brand’s reputation and related products to be perceived more positively. King (2017) averred that in uncertain times, remaining a sustainable and viable entity requires that a hospitality brand distinguishes itself in meaningful ways to its target market. However, it is not sufficient to be simply different, particularly when that difference is easily imitated. Thus, the challenge is how the hospitality industry develops its brand management strategies to demonstrate the perception that a brand is more than a logo, symbol, design or name or a combination of them with the intention of identifying the products or services of a seller and to distinguish them from other competitive brands (King, 2017). Brand management studies, with focus on the hospitality industry is not new in literature (Ngoasong et  al., 2021; Pongsakornrungsilp et  al., 2021; Wut et  al., 2021), particularly in Africa (Chinomona, 2013; Chinomona & Maziriri, 2017). The top four brands, Marriott, Hilton, Accor, and Radisson Hotel Group (Emelike, 2020), are dominating the African market based on four strategic approaches, namely, air connectivity, better economic growth, currency, and demographics.2 These approaches are further described in Table 6.1. Table 6.1  Approaches used in dominating the African market S/n Approaches

Description

1

Air connectivity

2

Better economic growth

3 4

Currency Demographics

Additional flight connection which eased movement from and to West Africa Economic growth of many West African countries attracts investors and increases investment in infrastructure which yields more prosperity Having a unifying legal tender across member countries Young population, fast-growing and with a hunger to learn

Source: How we made it in Africa (https://www.howwemadeitinafrica.com/ whats-­fueling-­the-­rapid-­hotel-­growth-­in-­westafrica/64093/)

 https://www.howwemadeitinafrica.com/whats-fueling-the-rapid-hotel-growth-in-westafrica/64093/..

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The approaches identified in Table 6.1 are classifications of how the top four hotel brands in Africa have been able to position themselves in the hospitality industry and hotel sector in Africa. The top four brands have been able to utilise opportunities presented by the identified variables. For instance, through improved air connectivity from and to, more branches of the hotels are being established knowing full well that when people travel, they will need accommodation. Profit made in most African countries is also used as re-investment in infrastructures, thereby building a positive brand image for organisations. Having a regional currency and a target demography has also been leveraged in their policies and adopted practices. This understanding is in addition to other brand initiatives of symbol, logo, culture, and internal branding activities. The brand management activities of a hospitality organisation are all-­ encompassing and permeates every unit and department of the organisation. It is not only limited to internal innovation towards service quality but also involves taking into consideration consumers’ needs (Kayaman & Arasli, 2007; Šerić et al., 2014). Achieving the desired outcome, for instance, will require that the human resource unit develops a template of action behaviour that employees must constantly follow in the hotel organisation while also considering a temporary work condition in accordance with the reality of a pandemic (Lai & Wong, 2020). The service culture is an essential aspect of brand management that must be developed and tailored towards the target consumers within a market (Du Preez et al., 2017). Intangible factors in branding create lasting experience than tangible factors of logo, name, and design (de Chernatony & Segal-Horn, 2003; Latif et al., 2015). The tangible factors or elements are mission, vision, behaviour, business values, philosophies, and actions (Miao, 2021). Branding in the hospitality industry in Africa encompasses tangible and intangible factors (Marić et  al., 2016), but more emphasis must be placed on intangible elements towards establishing service experience that will influence a perceived quality of service delivery and customer loyalty (Kayaman & Arasli, 2007). For instance, taking advantage of the continent’s youth population and adopting technology-­driven service will lead to a positive brand management outcome (Šerić et al., 2014). The crux here is that brand management in the

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hospitality industry in Africa must take into consideration, aside from the lesson from the top four brands in Africa, tangible and intangible brand elements.

Hospitality Brands and Covid-19 in Africa Hospitality brands in Africa had greatly contributed to the economy of African nations prior to the pandemic (Page, 2021). Though multinational brands are gradually finding their path to the promised land again, there is no doubt that the hospitality industry in Africa was affected by the pandemic. An important feature of brands is that they tell stories that fit their social realities and ensure that they communicate what they want the consumers to perceive of them. It will be erroneous for an organisation to tell a story that does not fit into the reality of their immediate environment or consumers and expect engagement (Yousaf & Huaibin, 2014). To this end, branding also involves understanding and communicating the need of the consumers and embedding such in product management—for instance, advertising, packaging, and consumer engagement. Events shape branding, and events can be branded, just as in the case of the Covid-19 pandemic (Mogaji & Nguyen, 2021). Organisations are building reputations in the pandemic, and there are arguments on whether the pandemic can be branded (Mogaji & Nguyen, 2021). Some businesses have taken advantage of the pandemic to position their brands as consumer-centered, while others have been affected and are struggling to survive (Yang & Mundel, 2021). The Covid-19 pandemic has further emphasised the reality that events and social issues can be considered in the branding process and also affect brands (Poljanec-Borić, 2017; Yousaf & Huaibin, 2014). For instance, Mahmoud et al. (2021) revealed that fashion brands in sub-Saharan Africa capitalised on the pandemic to build their social media engagements as the pandemic pain was turned to Instagram gains for fashion brands. Similarly, consumers’ consumption patterns changed from luxury purchases to essentials such as household supplies and groceries due to the uncertainties that surrounded the duration of the pandemic (Arora et al., 2020; Knowles et al., 2020).

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Globally, hospitality brands are one of the most affected industries by the pandemic, and because of their contributions to social and economic growth in Africa, the pandemic still affects the economic opportunities available in the industry. Brands in the hospitality industry had very low patronage during the pandemic resulting in a huge loss of profit and unemployment (Knowles et al., 2020). In Africa, the hospitality industry is one of the key contributors to the continent’s economic development (Leuenberger, 2017), and the devastating impact of the Covid-19 has had severe implications not only on hospitality brands but also on the economic progression of the continent. In West Africa, hospitality brands counted their losses during the lockdown, and many are still struggling. For instance, hotels in Nigeria were on the verge of collapsing due to the Covid-19 lockdown and famous brands such as “Ikeja Hotels (Sheraton), Tourist Company of Nigeria (Federal Palace), Capital Hotels (Abuja Sheraton), and Transcorp Hilton Hotel Plc all lost 90% of their revenue in the three months preceding June 2020”.3 Dwomoh et  al. (2020) observed that hoteliers in Ghana considered laying off most of their staff as they could no longer cope with the continuous payment of salaries while their businesses were shut down. Other human resource strategies were, however, adopted in the long run. Corroborating the echoed challenges of hotels and their contribution to the economic loss in Ghana, Amewu et al. (2020) revealed that the hotel industry in Ghana contributed 50.9% to agri-food GDP loss due to the limited activities of hotels. In Sierra Leone, the turnover of hotels was largely affected. Hotels experienced staff redundancy, while foreign exchange earnings from the sector reduced drastically (Johnson-Sirleaf et  al., 2020). The Azalai Group, a multinational hotel in Ivory Coast with nine branches across six West African countries, was inflicted by the pain of the pandemic and had to adopt a survival strategy rather than rebranding (Monnier, 2021). The hotel furloughed some of its staff, negotiated debt relief with leaders and reduced salaries, while some of their leaders let go/forfeited their salaries to keep the organisation afloat for about one year (Monnier,  https://nairametrics.com/2020/09/24/hotels-in-nigeria-are-on-the-verge-of-collapse/.

3

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2021). Even as they resumed operations gradually, some staff were being called back with pay cuts (Monnier, 2021). In South Africa, hotels were at risk of bankruptcy, while some were permanently closed due to the effects of the pandemic. Jobs were lost and wages were reduced; also, several staff were made redundant during the lockdown and at the pandemic’s peak (Sucheran, 2021). In Zimbabwe, hotels were on the brink of collapse and recorded huge financial losses (Vinga, 2021). Top brands in Zimbabwe experienced severe financial choke due to Covid in 2020, and brands such as African Sun Limited (AfriSun) had a revenue loss of around $1.5 billion, Meikles Limited had a $122.7 million loss, while Rainbow Tourism Group (RTG) recorded 66% loss in revenue and a 21% fall in occupancy rate (Vinga, 2021). In Egypt, the hospitality industry had contributed immensely to the nation’s economic growth in the last five years; however, an economic loss estimated at 2.6 billion dollars was recorded as a result of the pandemic (Thay, 2020). Moreover, hotels were shut, with the majority of staff losing their jobs, and the closure had multiplier effects on other sectors of the economy of Egypt (Thay, 2020). East Africa had the worst hit hospitality industry in Africa and is adjudged the second most impacted region, globally (Sippy, 2021). The hospitality industry in East Africa is yet to recover due to the third wave of the pandemic. Employees in the hospitality sector are reportedly faced with difficulties in a bid to make ends meet, while the sector is estimated to contribute 9.3% to total economic loss in the region (Sippy, 2021). In Cote d’Ivoire, the hospitality industry drives the economy of the nation, and it was badly hit by the Covid-19, though the sector is gradually recovering due to several Covid-19 rebranding activities implemented by multinational hotels in the country (Monnier, 2021). The impact of the pandemic on every region of Africa deeply permeates as central African countries are still trying to ensure the confidence that is needed to receive guests in hotels and other hospitality actors. Despite the challenges experienced by brands in the hospitality industries in Africa, it will be unjust to conclude that crucial measures have not been taken to ameliorate the challenges faced within the sector to enhance their full resumption of operation, especially among multinational brands.

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 heoretical Underpinning: The Contingency T Approach to Brand Management During a Crisis The contingency approach to management posits that management techniques should be determined by the circumstances (Contingency Approach of Management: Definition & Example, 2014). This school of thought opposes the one-size-fits-all approach to getting things done and resolving issues. Rather, emphasis is on the reality that there are internal and external environmental factors that determine the approach that best fits a particular situation (Moniz, 2010). For example, an organisation’s response to its employee’s constant lateness to work is different from its response regarding a fraudulent act by an employee. Therefore, the nature of the problem, the resources available to the organisation, the corporate values, and objectives determine the reaction. This study corroborates this argument and extends the applicability of this school of thought to emphasise that the management of brands in a crisis situation is not the same as when there is no crisis. Hotels in Africa differ by work environment and market; hence, they cannot afford to conduct their businesses in ways that do not conform to the present market reality. Implementing human resource policies that will make the organisation adapt to the current crisis was inevitable because doing things the old way and expecting new results in a pandemic-ravaged world would be unproductive (Lai & Wong, 2020). Hence, it is not surprising that several hospitality brands changed their marketing communication approach, offered new products and services, and also engaged in Corporate Social Responsibility (CSR) activities to remain relevant during the Covid-19 crisis (Ketter & Avraham, 2021). Consequently, a crisis such as the Covid-19 will always require that organisations evaluate the situation, re-examine their pre-pandemic policies and plans, assess their resources, and make decisions that will ensure that the business brand is still rightly positioned in the course of the crisis, howbeit, through a different action plan. The advertising content, for instance, switched to accommodate messages of hope, togetherness, and assurance, even while the brand name and logo are displayed (Ketter &

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Avraham, 2021). The adoption of digital platforms for communication increased, while new products and services were introduced by multinational brands such as Radisson Hotel Group, Hilton, Accor, and Africa Marriott. Indigenous brands such as Sheraton hotel are also looking into such perspectives. Managing a brand in a time of crisis will require context-­specific solutions that fit the nature of the crisis, the goals of the organisation, and the available resources.

 anaging Hotel Brands During Covid-19 M in Africa Managing brands’ offerings during a crisis requires that there must be an understanding of the crisis, how it affects the brand values while appropriate plans are taken to ameliorate challenges and build the platform for business adaptability and growth. Keller and Brexendorf (2019) described brand management to involve the design and implementation of marketing tactics to grow, evaluate, and manage brand equity. Brand equity refers to the measure of the values offered by a product and/or service to the people involved. Hence, multinational brands in the hospitality industry in Africa were able to understand the challenge and put in place an appropriate strategy for adaptability and growth during the pandemic. The hospitality industry is most vulnerable to pandemics, and as a result of the unforeseen event of the pandemic, hospitality industries are more affected with issues of low consumer spending, travel restrictions, cash flow, and guest cancellations in Africa (Sucheran, 2021). The hospitality industry contributes immensely to the African economy, and as a result, total lockdown restrictions on hospitality organisations were for a limited period. Although there are several uncertainties associated with the pandemic, the invention of vaccines has ensured that hospitality organisations such as hotels can resume business, howbeit with caution. Consumer spending in hotels is yet to return to what it was prior to the pandemic; nevertheless, hospitality organisations across Africa continue to survive and manage the offerings of their brand such that they remain competitive even in these turbulent times (Monnier, 2021).

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Ensuring that the trust of their customers is secured and preserved to stimulate revisits after the pandemic experience, is pertinent. We take into consideration the hospitality industry, specifically, hotels in examining the brand management strategy adopted by the hotels to survive the pandemic despite the lockdown. We also take into consideration the activities they engaged in to position their brands during the pandemic. The hotels we consider in this analysis are the top four hotels in Africa, namely Marriott, Hilton, Accor, and Radisson Hotel Group (Emilike, 2020).

Radisson Hotel Group Despite the challenges of the pandemic, many multinational hotel brands in Africa have maximised the pandemic situation to position themselves as a global and people-centered brand (Wexler, 2020). Radisson Hotel, for example, had about 50 hotels in 32 countries in sub-Saharan Africa and planned to add 50 more which includes one in Johannesburg, South Africa, and Bamako, Mali, before the end of 2020, with an additional six (6) to eight (8) in 2021 (ibid.). Prior to the pandemic, it was estimated that by the end of 2022, Radisson hotel will have about 130 hotels and 23,000 rooms in Africa (Toesland, 2019), an estimation which might increase due to Radisson’s adaptation to the realities of the pandemic.  Radisson Hotel, Lagos, tapped into the pandemic by making themselves available for quarantine arrivals of oil workers coming in from overseas and the isolation of health workers (Wexler, 2020). In the heat of the pandemic, Radisson Hotel, Lagos, rebranded their organisation as a safety and security conscious hotel that seeks after their customers’ health. This was echoed by the Managing Director of Radisson Hotel, Mr Ahmed Raza: We are a proud partner with SGS globally; one of the leading hotel safety brands. We are also proud to be the first hotel in West Africa to have passed the comprehensive safety protocol test. We have the required sanitization stations in the hotel which we give utmost attention. (Vanguard News, May 11, 2021)

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Therefore, a crucial aspect of Radisson Hotel’s strategy was more of rebranding to position their brands during the pandemic as a customer-­ centered organisation that makes the safety of customers a top priority. Also, the brand has introduced a cashless payment policy and online method of check-in and check-out. Through the company’s website, customers can request a room, select their preferences, and also make a request for whatever they want prior to their arrival in as much it is within the company’s offerings.4

Marriot International Marriot International is also a multinational hotel group with over 140 hotel branches in Africa with plans to have more before 2025  in sub-­ Saharan Africa. During the pandemic, the hotel introduced what they tagged as the “hero discount rate” which was offered to doctors, nurses, hospital workers, and those in charge of ambulance services in East Africa between 1 June 2020 and 28 February 2021.5 Additionally, the hotel’s employees helped local communities by expressing the hospitable, warm, and caring nature of the brand (Ibid). The organisation also supported with Corporate Social Responsibility activities such as donation of food and face masks, assisting the less privileged in their communities and supporting medical staff (Ibid). This approach by Marriot International is poised at positioning the Marriot brands in the hearts of the general public and also establishing awareness of the values they offer as a hospitality brand. Despite the efforts made by the brand, the challenges of the pandemic led to the permanent exit of three hotels of the organisation in South Africa, namely Protea Hotel by Marriott Hazyview, Protea Hotel by Marriott Durban Edward, and Mount Grace Country House & Spa (Buthelezi, 2020). Marriot International hotel adapted to the pandemic and adhered to government restrictions on reopening and socialisation as they closed some services, opened some temporarily, while others were moved online.  https://www.radissonhotels.com/en-us/health-safety.  https://www.manutd.com/en/partners/covid-19/marriott.

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Table 6.2  Services provided through the Marriot Bonvoy Applicationa S/N Offerings

Description

1

Let us know via the app when you are planning to arrive and once you have departed. Forgo the front desk altogether and go straight to your guest room. Order your private, in-room dining through the app. Connect with us via the app to request items you would like delivered to your guest room

2 3 4

Mobile Check-In/ Check-Out Mobile Key Mobile Dining: Mobile Guest Requests

https://whattoexpect.marriott.com/jnbmc

a

The brand created the Marriott Bonvoy Application, which offered services as presented in Table 6.2:

Accor Hotels Accor hotels plans to open 34 hotels in addition to the previously owned 70 hotels across sub-Saharan Africa; the Accor brand intends to focus on countries such as Ivory Coast, Ethiopia, and Rwanda for their brand expansion in Africa. The organisation also ensured that safety protocols and policies were initiated, with staff members also sent on training on safety and hygiene in handling Covid-19 related viruses.6 Accor Hotels also engaged in CSR activities and collaborated with the government to support local communities. Women affected by domestic violence were also supported as they worked closely with healthcare services, government agencies, and pandemic support teams.7 In Africa and other regions, the brand suspended its physical activities and moved online using Taskworld (Sens, n.d.). Taskworld enabled the brand to monitor its properties and collaborate with external stakeholders. Adopting technology and engaging in CSR activities while collaborating with the government was an important strategy adopted by the brand to stay relevant during the Covid-19 pandemic.  https://all.accor.com/middle-east/thematic/stay-information-covid-19.en.shtml.  https://www.heforshe.org/en/accor-provides-accommodation-solutions-vulnerable-communitiesimpacted-covid-19.

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Hilton Hotel Hilton Hotel is a global brand with branches in Africa. Despite its biggest challenge in over a century of existence, it was able to navigate the pandemic and even achieved a milestone of one million rooms in the fourth quarter of 2020 (Va, 2020). The brand responded to the pandemic with innovative practices to meet customers and community needs. This is summarised in Table 6.3. In light of the above discussion, it is evident that multinational and indigenous hotel brands in Africa engaged in various activities to ensure they survived and remained relevant during the lockdown. Depending on the resources available to the various hotel brands, most multinational brands were more interested in their brand positioning and enhancing competitive advantage through digitalisation and corporate social responsibility (CSR) projects. On the other hand, indigenous brands were more interested in surviving the pandemic rather than rebranding for competitive advantage (Dwomoh et al., 2020; Sucheran, 2021). Nevertheless, the pandemic affected the growth opportunities for indigenous hotel brands, while multinational brands such as Radisson and Marriot International Table 6.3  Innovative practices implemented by Hilton Hotel during the pandemic S/N Response to customers

Response to the community

1

Partnered with local communities and provided financial support and Covid-19 relief materials.

2

3 4

5

Introduced “Hilton Clean Stay” to educate customers on cleanliness and also ensure safety and collaborated with health organizations such as Mayo Clinic and RB, maker of Dettol Initiated new event standards of cleanliness and customer service with the tagged “Hilton EventReady with CleanStay” Established remote working Established the Hilton Honor App where customers can book their hotels accommodation, personalise their experience, check-in and check-out Driving new marketing campaign to build customers engagement

Source: Va (2020)

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utilised the opportunity to renovate, rebrand, and also extend their dominance in the hotel sector of the hospitality industry.

 ecommendations for the Hotel Sector R in Africa There are notions from multinational hotel brands that the hotel sector in Africa is still largely untapped and the pandemic offered a unique opportunity for brand positioning. However, indigenous brands in Africa did not consider the Covid-19 crisis as such. Multinational brands took advantage of the Covid-19 pandemic to further communicate their offerings to their target market in the hotel sector while meeting their emotional, social, and health needs (Dwomoh et al., 2020; Sucheran, 2021). Multinational hotel brands such as Radisson emphasise “customers’ safety and security” as their new product goal, while Marriot invests in charitable activities and partnerships with indigenous communities. It is important to note that these are rather strategic practices geared towards turning the pains of the pandemic into gains for stakeholders in the hotel sector of the hospitality industry. Though strategies adopted by indigenous hoteliers were geared towards survival during the lockdown, it is important that they consider other practices, even while survival strategies are still considered in a time of crisis. We, therefore, recommend the following practices to indigenous hotel brands and other sectors in the hospitality industry in Africa: 1. Adopt digital services A strategy that permeates all the multinational brands is their adoption and shift to a digital platform when it was evident that they could not continue having staff members on the ground. Digital tools paved the way for continuous operations, communications with customers, and innovating their service delivery process. Additionally, these brands partnered with digital service providers to ensure that their brands are rightly positioned to communicate and offer the needed service during the pandemic. Indigenous brands in Africa must take a cue and adopt this

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initiative too. Collaboration is not a sign of weakness but strength; hence, hotel brands in Africa should collaborate with digital organisations and develop digital platforms where most services rendered offline can also be requested. 2. Introduce new digital products and brand the pandemic As observed with some of the hospitality brands, it is crucial that hotels in Africa develop a new digital product that responds to the context-­ specific need of the African market and recognises the cultural differences of Africans. There can be a product that meets community needs. For example, Radisson making their hotels available for isolation and travelers was an interesting product that was hitherto not available—invariably, the organisation branded the pandemic, as suggested by Mogaji and Nguyen (2021). 3. Engage in monetary and non-monetary CSR Due to financial constraints that a pandemic or any other type of crisis might be associated with, brands must still ensure that they participate in CSR activities that might not require financial investments. Brands can educate their indigenous communities on safety protocols through public seminars. Brands must do this without verbally advertising their products or services as consumers could perceive the brand as exploitative (Yang & Mundel, 2021), thereby creating a negative brand perception. Engaging in CSR activities that  focus on education and enlightenment of indigenous communities will communicate the organisation’s brand values, this could lead to customer engagement with the brand if the consumers find their product and service offerings appealing. Hotel brands with resources that can take care of safety tools should also consider providing such for the community. For instance, safety tools associated with the Covid-19 such as branded hand sanitisers, face  masks, and liquid soaps for washing of hands. This will have an important implication on the hotel’s brand awareness and positioning in the mind of the consumers.

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4. Collaborate with indigenous communities Hotels in Africa can achieve desired outcomes when they to partner with indigenous communities—this is an interesting strategy to position their brands. Hotels can collaborate with their indigenous community in a time of crisis to jointly implement projects that will be of immense benefit to the community members. For instance, hotels can collaborate with the indigenous community to clean their environment while they sensitise them on the importance of having a healthy lifestyle. Collaborated community projects should be determined by the nature of the crisis and the need of the community. Hotels can avail their rooms for emergency cases, as it was observed with the Radisson hotel on the isolation of health officials. Participation and collaboration with the community communicate care, togetherness, and sincerity of purpose, which are crucial to properly positioning a brand. Collaborating with communities during a crisis towards achieving a mutual goal will likely result in a win-win outcome for hotels and the community. 5. Collaborate with government Hotels in African countries must take a cue from Egypt and partner with the government in a time of crisis. Hotels should communicate with either their indigenous or state governments, as the situation demands on how they can participate in salvaging the situation (Salem et al., 2021). A period of crisis is not a time for hotels to watch and observe how situations unfold but rather to participate—especially if they really want to be branded along with the occurring events (Mogaji & Nguyen, 2021). Collaboration with government requires participation in educating the general public, contributing to rescue procedures in whatever capacity available to the organisation, and ensuring that the situation is not escalated. It is important to understand that the core aim of collaboration during a crisis is not for corporate branding, but humanitarian purposes. However, the organisation would have created a lasting brand image while participating in the process.

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6. Adopt HR strategies that will keep the workforce Retaining the stock of manpower available to organisations during a crisis with so many social and economic implications, such as the Covid-19 pandemic can be challenging. However, organisations must ensure that they keep their workers through various human resource strategies. Retrenching employees, whenever there is a crisis in itself, portrays a negative brand image to the general public. Lai and Wong (2020), in their study on crisis management in the hotel industry observed that furlough became the culture of the day as hotels wanted to retain their workers and still control cost. Dwomoh et  al. (2020) identified other strategies that can be used during and post-crisis periods to preserve the employees and sustain the business image. Some of which include reducing working hours, converting full-time appointments to part-time, training employees in the adoption of alternate tools for similar roles, and establishing a pandemic fund. To implement some of these identified suggestions from Dwomoh et al. (2020), the hotelier must negotiate with the staff members and ensure they are carried along in the organisation’s economic situation—this is important to establishing trust in a time of crisis. Establishment of a pandemic/crisis fund for employees should be considered across all sectors, as the Covid-19 pandemic has shown that many employees are usually left unprotected during a crisis. Implementing the right HR strategy towards retaining the workforce is crucial to building the right brand image in the midst of a pandemic. 7. Preserve your brand image Hoteliers must practise what they preach during a crisis and ensure that they do not default government regulations and control measures; this can have a devastating effect on the brand image as this is also a way of partnering with the government. Hence, if hotels are unable to contribute through CSR activities or collaborate with the government, they should avoid situations that will portray a negative brand image (Salvador et al., 2017). Consumers have become more conscious of action and attitude in a time of crisis, and it is better to preserve the brand image that has sustained them over time.

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Conclusion This chapter emphasised the importance of brand management in the African hospitality industry and how the hotels under discussion were able to navigate the challenges that arose from the Covid-19 pandemic. Brand management in the hospitality industry is very key, particularly in a time of crises when the business environment is characterised by several uncertainties. Crises create a change in consumption pattern and consumer behaviour by creating a new trajectory of service delivery. Digitalisation presents numerous and unprecedented opportunities amidst uncertainties. This suggests the need for all sectors, including the hospitality industry to be digitalised, thus, introducing innovations in their product and service offerings. Hospitality firms should be abreast and prepare for uncertainties. They should be involved in proffering internal and external solutions to the main issue—herein lies their brand management during a crisis. Hotels can create and enhance their brand image in the midst of a crisis; however, it is necessary to take precautions to avoid creating a negative brand image that could affect profitability and sustainability in the longrun, after the crisis period.

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7 Corporate Social Responsibility and Brand Development in Emerging Markets: Lessons from the COVID-19 Interventions in Nigeria Silk Ugwu Ogbu

Introduction In the twenty-first century, safeguarding corporate reputation is a big conversation. The advances in media and communication technologies, especially the emergence of digital and social media networks, have significantly increased the vulnerability of corporate entities to reputational threats. Likewise, the opportunities for increasing brand awareness or visibility have never been greater for companies that prioritise engagement or relationships with their critical stakeholders. Therefore, it is not surprising that top global brands such as Amazon, Microsoft, AT & T, Google, Apple, Alibaba, HSBC, Facebook, and so on spend billions of dollars every year on social causes to enhance their reputational assets. While these companies appear to understand the link between social

S. U. Ogbu (*) School of Media and Communication, Pan-Atlantic University, Lagos, Nigeria e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 O. Adeola et al. (eds.), Marketing Communications and Brand Development in Emerging Markets Volume II, Palgrave Studies of Marketing in Emerging Economies, https://doi.org/10.1007/978-3-030-95581-6_7

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performance and financial viability, many companies operating in emerging markets do not seem to get that point. The weak regulatory environments in emerging economies enable companies to act with impunity or to disregard their social responsibilities without consequences, as can be seen from the cases of some oil companies operating in the Niger Delta of Nigeria (Daubry, 2020; Helg, 2007). Several studies have established the connection between Corporate Social Responsibility (CSR) and brand value (Adegbola, 2014; Akhigbe & Olokoyo, 2019; Chaudhry & Ramakrishnan, 2019; Daubry, 2020). The world has moved away from Friedman’s (1970) notion that businesses have no social responsibility in society apart from paying taxes and making more profits for their shareholders. However, how CSR can be deployed as a marketing or brand management tool depends on how managers and leaders of organisations conceive it. Globally, the philosophy behind CSR practice has changed from social responsiveness in the 1960s to social performance and corporate citizenship today (Youmatter, 2021). There has also been a shift from the principles of charity and corporate philanthropy as the basis of CSR initiatives to building collaborative partnerships with stakeholders, discovering business opportunities, and managing corporate social and financial performance. CSR is increasingly seen today as not just the ‘right thing to do’ but also the ‘smart thing to do’ by many organisations across the world. Indeed, most of the top companies in the world have become advocates of some sort for the expansion of social contributions and increasing the positive impact of corporate entities on society (Iwu-Egwuonwu, 2010; Akhigbe & Olokoyo, 2019). Although there has been an upward swing in the uptake of social responsibility in the West by different organisations, especially in the last three decades, the pace appears to be somewhat slower in emerging markets (Adeyanju, 2012; Hamidu et  al., 2015). One reason behind this trend may be that many companies in developing economies still see CSR as charity work or expenditure that only reduces their profit margins (Amaeshi et  al., 2006). Given the challenging operating environment that they work in, most of them struggle to survive and do not seem to understand the logic of spending very scarce resources on charity or projects that do not contribute directly to the bottom line. In that regard,

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the conception of CSR as an expenditure or add-on rather than an investment in brand equity could be responsible for the slow rate of its adoption in emerging economies. Another reason may be the difficulty in measuring the indirect impact of CSR on brand value. While several studies have been conducted on that subject matter, Small and Medium Enterprises (SMEs) that constitute the bulk of operators in emerging markets may need to clearly understand the metrics for these measurements and integrate them into their business models (Czubała, 2016). Beyond the lack of clarity around the philosophical impetus for CSR spending and result measurement criteria, another major hindrance to its effectiveness as a brand marketing tool remains the style of its practice in emerging markets. Many organisations embark on social projects without consultation with their stakeholders, perhaps, to satisfy reporting requirements or to outdo their competitors. Some companies ‘copy’ what other organisations have done in some parts of the world and ‘paste’ them into different places without regard to the differences in contexts or circumstances (Amaeshi et  al., 2006). These shortcomings around CSR implementation strategies are counter-productive because they hurt brand value over time. Undoubtedly, the COVID-19 Pandemic has had the most devastating impact on the world economy, perhaps, more than anything else in the last 100 years. Since COVID-19 was officially declared a Pandemic on 11 March 2020 (World Health Organization, 2020), several countries, organisations, and individuals have suffered unimaginable loss of lives and livelihoods. Although it has been a challenging time for everyone, it has also been the most fertile period for brands to expand their value. Across the emerging economies, corporate entities rolled out several CSR programs to support the fight against the Pandemic, led by national governments with severe resource constraints and inadequate health/emergency response systems. This chapter is interested in the lessons that can be learned from the CSR activities of organisations during the COVID-19 Pandemic in emerging markets and whether such activities contributed to the brand value. As one of the countries with the highest growth rate in population and market size, Nigeria was purposively selected for this investigation because of how it reflects the unique challenges faced by organisations and their stakeholders in most emerging economies. In

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Nigeria, just like other emerging markets, several brands took advantage of the COVID-19 era to distinguish themselves by reaching out to their stakeholders using various CSR initiatives. However, some organisations and individuals did not recognise the opportunity and, therefore, failed or develop a strategy to leverage the circumstance for brand development. This chapter also is an attempt to examine the opportunities and challenges of using CSR as a brand marketing tool in emerging markets. The first part of the chapter provides a background to the study. The second part examines the relationship between CSR and brand development from the prism of the Stakeholder theory, while the next part discusses some of the lessons learned from the CSR interventions of corporate entities during the COVID-19 Pandemic in Nigeria. From its findings, the chapter draws some conclusions and offers specific recommendations on how organisations can better leverage CSR for brand enhancement in the future.

 elationship Between CSR R and Brand Development Corporate social responsibility is a management philosophy that encourages integrating social, economic, and environmental concerns in business operations and the relationship with stakeholders. The European Union defines CSR as: The voluntary integration of companies’ social and ecological concerns into their business activities and their relationships with their stakeholders. Being socially responsible means not only fully satisfying the applicable legal obligations but also going beyond and investing ‘more’ in human capital, the environment, and stakeholder relations. (European Union, 2001, cited in Youmatter, 2021)

The concept of corporate social responsibility has attracted considerable scholarly interest over the years. The notion that businesses have obligations to society is widely accepted, but the dimensions and extent of such responsibilities have remained issues of contention among pundits (Daubry, 2020). The lack of agreement about the meaning of social

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responsibility is the primary reason why a common definition of CSR has remained elusive (Okoye, 2009). Therefore, different definitions have arisen because of the varied conceptions of the subject matter. While “some see CSR simply as corporate philanthropy; others see it as a subject that focuses on how firms should operate ethically, and some others see it as defining the concerns, respect and care firms bring to the physical environment” (Iwu-Egwuonwu, 2010, p.  9). Recently, scholars have started associating CSR with the concept of sustainability, mainly because of how it speaks to the management of the economic, social, and environmental responsibilities of businesses, popularly referred to as the ‘Triple Bottom Line’ (Elkington, 1997; Helg, 2007; Adeyanju, 2012; Tran & Nguyen, 2020). Amid the proliferation of definitions of CSR, Carroll’s (1979) description of the concept, which encompasses four fundamental responsibilities: economic, legal, ethical, and philanthropic, is, perhaps, the most popular. The reason behind the wide acceptability of this description may be because he did not attempt to define CSR as one thing or the other but merely as a collective of responsibilities that businesses must integrate into their operations to serve stakeholder interests. Carroll (1991) categorises these social responsibilities of business using a pyramid, wherein the economic responsibilities are at the base, and the philanthropic responsibilities are at the tip (Fig. 7.1).

Fig. 7.1  Pyramid of Corporate Social Responsibilities. (Source: Helg (2007))

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A hierarchical classification of social responsibilities in Carroll’s (1991) model indicates that economic responsibilities are the most important, followed by the legal and ethical obligations, while the philanthropic commitments though expected, are discretionary and the least important. From this perspective, the “fundamental responsibility of all businesses is the economic responsibility where a business must produce and sell what the society requires to fulfil the economic mission” (Gudjonsdottir & Jusubova, 2015, p. 6). Profit-making is, therefore, the most important social responsibility of business because every other responsibility rests upon it. However, in the pursuit of profit, companies should obey the laws or play by the rules. Beyond that, they are also expected to operate from the high moral ground by avoiding or minimising any harm to stakeholders (employees, environment, customers, community, etc.) and doing what is right, just, and fair. The philanthropic responsibilities though desirable, are regarded as discretionary (Tuan, 2012). That means that while a corporate entity is expected to be a good corporate citizen and to contribute resources towards the development or improvement of the quality of life in society, failure to do so is neither illegal nor unethical (Helg, 2007). Carroll’s pyramid offers a framework for categorising the different types of responsibilities businesses may have in society. Still, it does not provide a sufficient explanation about the components of each kind. It is important to note that the description of the ethical and philanthropic responsibilities has generated far more contestations among scholars than the economic and legal dimensions of the pyramid (Sheehy, 2015). At the heart of the raging debate is how the different types of responsibilities should be defined and whether CSR should be voluntary or mandatory. The difficulty in determining what CSR means arises from the fact that it covers a broad spectrum of issues, and to that extent, it means different things to different stakeholders. For example, governments and regulatory agencies may want to define it from the angle of corporate governance or compliance to laws and operating standards. At the same time, companies may prefer to describe it as voluntary or discretionary gestures of giving back to society. Also, the differences in cultural and environmental contexts imply that what is considered a significant social issue in one country may not necessarily attract attention in another. For

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example, some countries in the West may be pushing for more action in combatting climate change and deforestation. At the same time, those in Africa may be more concerned with the problems of unstable electricity, environmental degradation, and unemployment. Amid the lack of a shared understanding on the subject matter, many scholars insist that discretion as the foundation of CSR is nebulous and prone to abuse by some organisations whose operations may harm society (Ormiston & Wong, 2013). Sheehy (2015) argues that if CSR is defined behaviourally in terms of corporate philanthropy, then a billion-dollar oil company donating one million dollars to the COVID-19 relief fund, for example, while contaminating the environment in the Niger Delta, can claim to be practising CSR. In support of this viewpoint, Lantos (2003) reviewed Carroll’s (1991) pyramid of CSR responsibilities and re-­ categorised it into three: Ethical CSR, Altruistic CSR, and Strategic CSR. Ethical CSR encompasses all the considerations that define the conduct of corporate entities as responsible citizens that obey the laws and respect the principles of fairness, equity, and justice in society. Altruistic CSR refers to optional and discretionary activities that companies may embark on for personal reasons, such as to protect their ‘social contract’, which may or may not have a meaningful impact on society. On the other hand, strategic CSR is carefully implemented CSR initiatives to accomplish strategic business goals (Wan-Jan, 2006). According to Lantos (2003), CSR should be focused on two significant aspects: • preventing injuries and harm that could result from business activities; • accomplishing strategic business goals. Lantos’s (2003) classification of CSR is instructive because it speaks to the two main domains of CSR practice that have now emerged from contemporary studies: Ethical CSR and Strategic CSR. Ethical CSR encourages businesses to behave in ways that demonstrate their regard for the interests of all stakeholders. On the other hand, Strategic CSR enjoins organisations to deploy CSR as a tool for enhancing strategic objectives, such as brand development and reputation building. Although some scholars have argued that it is problematic for CSR to be exercised with the intention of obtaining strategic advantages (Aguinis & Glavas, 2012),

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a positive perception of a brand arising from its ethical behaviours is only natural. Therefore, the position that ethical conduct cannot be strategised appears unrealistic. The lack of consensus on the philosophy for CSR, notwithstanding, the contemporary practice of CSR in many countries of the world, especially in the West, has been moving decidedly towards a more ethical and strategic regime. In that context, CSR has become an instrument for driving reforms in the global standards of social responsibility and for enhancing corporate profitability. Several studies have affirmed the link between CSR on the one hand and corporate image, organisational performance, or corporate reputation (Hildebrand et al., 2011; Tuan, 2012; Gudjonsdottir & Jusubova, 2015; Mona et al., 2015). Nevertheless, some studies have found no connection between CSR and organisational performance (Aguinis & Glavas, 2012; Yaparto et al., 2013; Yang & Hsu, 2017; Daubry, 2020). The mixed findings indicate the need for further studies to unravel how some companies deploy CSR in practice and whether their approach is ethical and strategic. On the other hand, brand development is a strategic process of creating a distinguishable image for an organisation’s product/service in the market from its competitors (Hoeffler & Keller, 2002). It includes aligning a company’s brand with the desirable perception and emotions from its stakeholders to build trust, loyalty, and value for the brand (Staudt et al., 2014; Vasiukov, 2017). In that regard, brand development can be defined as encompassing all activities directed at enhancing a firm’s distinctiveness and the positive perception of its brand in the minds of its stakeholder (Keller, 1993). Thus, brand development is associated with the concepts of brand awareness, brand quality, brand trust, brand loyalty, and brand equity (Aaker, 1991). If properly executed, CSR can contribute to a positive brand perception (Osotimehin & Hassan, 2014), leading to the development of brand image, brand trust, brand association, brand quality, brand loyalty, and brand equity (Hamidu et al., 2015; Maldonado-Guzman et al., 2017). Several studies have found a positive correlation between social performance and these brand attributes (Aaker, 1991; Keller, 1993; Hoeffler & Keller, 2002). Any organisation with a good reputation among its stakeholders will be better positioned to develop a positive image for its brand, build trust with stakeholders,

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enhance its brand associations, increase loyalty or patronage from customers, and charge a premium price for its offerings. On the contrary, if an organisation is perceived as unethical in the workplace, marketplace, or community, it is unlikely that any strategic CSR manoeuvres will contribute to its brand trust, brand loyalty, or brand equity. Therefore, as a brand marketing or promotional tool, CSR initiatives should be strategic and ethical. Unfortunately, in Nigeria and other emerging markets, CSR as philanthropy has remained the dominant approach, signifying the need for dynamism in the conceptualisation and contextualisation of CSR strategy (Amaeshi et al., 2006; Adeyanju, 2012; Adegbola, 2014; Akhigbe & Olokoyo, 2019). Undeniably, this predilection about CSR has manifest implications for its current practice and outcomes. There is, therefore, a need to interrogate and, hopefully, rethink the approach to CSR in emerging economies, especially in Africa and Asia.

Stakeholder Management Theory The concept of stakeholder’s role in business has been around for a long time. Still, its development as a theoretical construct is widely associated with Freeman’s (1984) book: Strategic Management: A Stakeholder Approach. The traditional business model places priority on the interests of shareholders because they have invested their money in it and stand to lose more than any other stakeholder if anything goes wrong. However, Freeman (1984) argues that management has a responsibility to protect the interests of all other stakeholders in a business beyond that of shareholders or investors. He defines a stakeholder as “any group or individual who can affect or is affected by the achievement of the organisation’s objectives” (Freeman, 1984, p. 8). In this regard, the stakeholder management theory proposes that all individuals or groups that can affect or are affected by the operations of a business have a right to be treated fairly and generously by managers whether or not their ‘stake’ in the company is fiduciary. That means that business managers must seek to maximise value for all stakeholders, including shareholders, employees, customers, suppliers, and host communities. Thus, stakeholder management theory

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suggests that companies should address stakeholders needs by seeking to meet the following obligations: • • • • • •

Customers: satisfy customer needs Employees: empower the employees and treat them respectfully Government: meet the stipulated legal requirements Communities: empower and develop the communities Shareholders: realise profits for the investors Environment: avoid environmental degradation (Chaudhry & Ramakrishnan, 2019)

Stakeholder management theory argues that stakeholders are interdependent. It advocates for balancing the interests of stakeholders and pursuing solutions that simultaneously satisfy the needs of multiple stakeholders rather than trading off the interest of one for another (Freeman et al., 2020). In that respect, treating all of them well creates a synergy and collective benefit that propels performance and growth in organisations (Freeman et al., 2010; Freeman & Dmytriyev, 2017). A significant contribution of the stakeholder management theory to the discourse on business management is, perhaps, the comprehensiveness of its approach to business responsibilities. The idea that corporate responsibilities encompass social, economic, legal, and ethical obligations implies that business managers must endeavour to integrate social obligations with concern for all stakeholders’ interests apart from those of the host communities or the environment. In that regard, CSR represents an essential aspect of corporate responsibilities, but not its entirety. Figure 7.2 demonstrates the scope of CSR and its limitation to address the needs of all stakeholders. However, if strategised to respond to the interests of multiple stakeholders, CSR can become a more impactful tool, paving the way for brand trust, brand loyalty, and brand equity to rise. Freeman and Velamuri (2006, p. 12) believe that when an organisation delivers superior value to its multiple stakeholders, which include employees, customers, suppliers, investors, etc.) simultaneously, “then asking the additional question of whether or not it is socially responsible is meaningless—simply makes no sense.” The assumption here is that broadening the scope of corporate responsibilities and balancing the

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Stakeholder Theory

COMPETITORS

SPECIAL INTEREST GROUPS

Corporate Social Responsibility

EMPLOYEES SUPPLIERS GOVERNMENT

COMMU- SURROUNDING SOCIETY NITIES

THE FIRM

SOCIETY AT LARGE

FINANCIERS CUSTOMERS MEDIA

CONSUMER ADVOCATE GROUPS

Fig. 7.2  Relationship between Stakeholder Theory and CSR. (Source: Freeman and Dmytriyev (2017))

interests of many stakeholders will strategically address social issues and create value for the organisation and its stakeholders. According to Freeman and Dmytriyev (2017), organisations can strategise CSR in three practical ways to align with stakeholder expectations: purpose identification, value creation for all, and stakeholders interdependence management. In this context, they argue that the purpose of organisations must lie within the ethical domain. Thus, a company’s vision, mission, and values should be driven by a worthy goal—to fulfil an essential need in the world. Likewise, a company should aspire to create value for all its stakeholders in a way that transcends merely giving something back to society to integrating all its stakeholders’ interests in its operations. Additionally, it is essential to note that stakeholders’ interests are usually interdependent and not mutually exclusive. Freeman & Dmytriyev (2017, p. 13) note that: Stakeholders are interdependent. Thus, creating value for one stakeholder also contributes to creating value for others. Helping communities can make shareholders better off in many ways (more motivated and productive employees,

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better company reputation, bigger sales, higher corporate credit rankings); likewise, satisfying suppliers or employees is also beneficial for customers.

Notwithstanding its valuable contributions to understanding corporate responsibilities, the stakeholder management theory has been criticised for its idealistic stance and lack of prescriptive precision (Hamidu et al., 2015). For example, the definition of stakeholders as all those that can be “affected or can affect the achievement of an organisation’s objectives” has been described as too broad (Sheehy, 2015). The implication is that there may be no limit to the nature or number of stakeholders an organisation may have. Therefore, the burden or cost of creating value for an indefinite number of stakeholders could frustrate businesses and make it impossible for them to survive. Likewise, the idea of balancing the interests of all stakeholders and treating them as equals has been criticized as impractical (Ademola, 2014). Since stakeholders do not contribute an equal amount of value to the success of organisations, it appears sensible to prioritise attention given to their demands in alignment with the value they bring to the table. Regardless of these criticisms, the Stakeholder theory is a relevant construct in this chapter because it draws attention to the inadequacies of the CSR practice in emerging economies. The focus on philanthropic gestures as CSR by several companies, which was prevalent during the COVID-19 interventions in Nigeria, raises concern about how such organisations address the needs of other interdependent stakeholders. Disregarding the needs of some stakeholders, such as employees and communities, while attending to those perceived to be more critical or suitable for the company’s optics does not support developing a good brand image in the long run. The Stakeholder theory’s central proposition is that organisations should be strategic in dealing with the concerns of all their stakeholders to unlock business opportunities and the benefits of CSR investments. Since reputation and the development of a strong brand are dependent on a positive perception of a firm by interdependent stakeholders, it makes sense to carry all of them along in an organisation’s brand development journey. Therein may lie the key to unlocking CSR potentials as a brand enhancement tool.

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 nhancing CSR Practice in Emerging Markets: E Any Lessons Learned from the COVID-19 Interventions in Nigeria? The first case of Corona Virus in Nigeria was confirmed on the 27th of February 2020 (NCDC, 2020). A month later, the number of infections had risen to 93, forcing the Federal government to order a lockdown on the 30th of March, 2020, across the major cities in the country (Eribo, 2020). Soon after, the infections surged and brought the nation’s weak health system to its most significant test. With an estimated population of about 206  million in 2020 (Statista, 2020), there was palpable fear that Nigeria’s health infrastructure will be stretched beyond its limits in a few months, leading to the loss of many lives. On the other hand, the unexpected lockdown affected the livelihoods of many Nigerians. Most of them live by the day and are uncertain about where or when the next meal will be available. Unfortunately, the government could not offer meaningful assistance to the millions of people who were locked down without income, food, or access to healthcare, thereby creating a massive social void that corporate entities rose to fill. The response of corporate entities in Nigeria to the COVID-19 Pandemic was swift and impressive. Almost immediately, a private sector-­ led initiative, Coalition Against COVID-19 (CACOVID), was formed. The Central Bank of Nigeria donated a whopping sum of Two Billion Naira to set the ball rolling. Following that lead, many organisations and individuals donated billions of Naira to build a war chest for fighting the disease. As of the 30th of June, 2020, the CACOVID initiative had raised N30,148,637,264.27 ($77,903,455.46) from 180 corporate entities and individuals in Nigeria (CACOVID, 2020). Through the CACOVID initiative, several philanthropic interventions to support the government’s efforts in fighting the disease and assist millions of Nigerians in need of urgent medical and financial assistance were launched. Some organisations and individuals made other remarkable and generous donations to fight the pandemic outside of the CACOVID ingenuity in the form of cash, food, materials, medical supplies, facilities, research grants, welfare support, and so on. However, it is worthy of note that most of the

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interventions from corporate entities were conceived and implemented as a part of their corporate social responsibility. However, the concern of this chapter is whether such CSR projects were designed correctly to meet ethical and strategic standards. If so, to what extent was the brand value of the organisations enhanced through the CSR programmes? Indeed, giving back to society is a kind and noble gesture. It was heartwarming to see big and small companies, as well as rich and poor individuals, too many to name or describe what they did in this chapter, rise to support millions of Nigerians devastated by the COVID-19 Pandemic. Without a doubt, such gestures give organizations a human face. However, critics of philanthropic CSR allege that unethical organisations merely use it to siphon shareholders’ funds, create unnecessary dichotomies, and cover their wrongdoings (Freeman & Dmytriyev, 2017). From this perspective, businesses are regarded as maximisers of their economic self-­ interest. Therefore, business managers that deploy philanthropy as the basis for CSR are regarded as “gangsters going to church on Sundays” (Freeman & Dmytriyev, 2017, p. 8). Thus, discretionary CSR is referred to as moral licensing because it enables unethical organisations to pursue a seemingly ‘good cause’ in the community so that they can be excused or forgiven for mistreating some other stakeholders (Ormiston & Wong, 2013). During the COVID-19 private sector-led interventions in Nigeria, the CSR initiatives of several organisations portrayed the weakness and inadequacy of philanthropy as a brand enhancement tool. For example, many big telecommunication companies and banks that donated billions of Naira to the CACOVID Relief Fund were laying off their workers at that time. Some of them are alleged to be underpaying their workforce or outsourcing work to avoid paying certain benefits to their workers. Some of the CACOVID top donor list banks, for example, are widely known for making unjustified multiple charges or deducting money illegally from their customers’ accounts. A few of them have been sanctioned by the Central Bank of Nigeria already for crossing some legal and ethical lines. Therefore, no matter the amount of money such organisations donate to the COVID-19 relief effort, it is doubtful if it will significantly impact their reputation or brand value. Companies need to be consistent in how they behave or treat all stakeholders to generate goodwill that can

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transform CSR into brand equity. That is the central proposition of the Stakeholder theory. Aaker (1991) defines brand equity as the aspects of a brand that create visibility, associations, and loyalty in customers that impact the value of the offerings provided by that brand. From this viewpoint, the five key dimensions of brand equity are brand associations, perceived quality, brand awareness, proprietary assets, and brand loyalty. Along the same line, Keller (1993) identifies five predecessors of brand equity as brand awareness, brand association, perceived brand quality, brand image, and brand reputation. Hoeffler and Keller (2002) also confirm six routes through which corporate social responsibility can enhance an organisation’s brand equity: building brand mindfulness; upgrading brand image; setting up brand credibility; summoning brand emotions; creating a feeling of a brand group, and evoking brand engagement. The point being made here is that philanthropy is good but not enough for building brand equity, especially if an organisation is weak in some of the brand dimensions identified above. Perhaps, this is one lesson that can be learned from the COVID-19 interventions. CSR can catalyse a positive brand perception, but it needs to be woven strategically into business operations to enable organisations to treat all their stakeholders fairly and ethically in a consistent manner. Another important lesson that came out of the CACOVID initiative in Nigeria is that corporate entities can do a great deal of social good in emerging economies if they collaborate rather than compete or work in silos. Many of the organisations that donated to the CACOVID fund have been implementing different CSR programmes targeted at their stakeholders, worth billions of Naira. However, some design these programmes at their offices or corporate headquarters outside of the country or operational base without consultation with the beneficiaries. As a result, stakeholders neither participate in the design and implementation nor assume ownership of the projects, making them unsustainable in the long term. This approach to CSR is common in many emerging markets and does not allow organisations to leverage CSR for brand building. Nevertheless, the idea of collaborating with other corporate entities on CSR, as was seen in the CACOVID interventions in Nigeria, has proven to be more impactful, authentic, and responsive to the needs of multiple stakeholders as canvassed by the stakeholder management theory.

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Undeniably, working together helps generate more funds and ideas for CSR projects and enhances professionalism and accountability at every stage of the implementation process. The collective effort demonstrated through CACOVID points to the potential of corporate entities to transform society if they are united in purpose and committed to a good cause. In many emerging economies across Africa and Asia, corporate entities can fill the gap in infrastructural development created by the lack of funds, inept leadership, and weak governmental institutions. But they need to pull their resources together and agree on how to deploy them. As Nwagwu (2020) notes, businesses in emerging markets need to pursue long-term, systems-focused, and collaborative engagement to address structural poverty and related sustainable development challenges. The authenticity and altruism behind joint CSR initiatives, arguably, are far more likely to impact the reputation and brand value of the organisations concerned than the current outcomes of their solo efforts. An important revelation from the CSR interventions of corporate entities to combat the COVID-19 Pandemic in Nigeria is that the number of Micro, Small, and Medium Enterprises (MSMEs) that actively participated in the programs is significantly low. The list of donors to the CACOVID Relief Fund was dominated by the ‘big’ companies in Nigeria. However, pre-COVID-19, the number of MSMEs spread out across the 36 states in the country was estimated at 41.5 million (National Bureau of Statistics, 2019). A breakdown of this figure indicates that micro-enterprises constitute 99.8% (41.4 million) of the total. In comparison, small businesses are 71,228 (0.17%) in number, while medium enterprises comprise just 1793 of the total figure as of the end of 2017 (Adesoji, 2019). A Survey conducted in 2020 at the peak of the COVID-19 scourge in Nigeria indicates that Nigeria’s MSMEs contribute nearly 50% of the country’s GDP and account for over 80% of employment in the country (PwC, 2020). These statistics underscore the importance of MSMEs and their role in galvanising growth in Nigeria and other emerging markets if properly incentivised and mobilised. Similarly, SMEs can scale CSR interventions and impact society if they participate more actively in delivering social goods. Some may argue that MSMEs have little capital to invest in CSR projects, but what is more critical is integrating CSR initiatives with strategy and ethical

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consideration regardless of the size of their budget. Given that these enterprises account for over 80% of the employment in the country, their impact on the lives and livelihood of Nigerians must not be underestimated. Several studies have found a positive correlation between well-­ conceived and implemented CSR programmes and organisations’ performance and growth, some of whom are SMEs (Maldonado-Guzman et al., 2017; Staudt et al., 2014; Tran & Nguyen, 2020). Therefore, strategising CSR from the onset will likely benefit society and enable MSMEs at the same time to enhance their brand associations, perceived quality, brand awareness, proprietary assets, and brand loyalty.

Conclusion Brand development is a very arduous task. It takes a long time to earn the trust of stakeholders and only a second or single misconduct to lose it. For CSR to contribute to brand trust, brand awareness, brand loyalty, and brand equity, organisations must pay attention to how it is conceived, implemented, and communicated (Fig. 7.3).

Internal Employment

Ethics

Corporate Social Responsibility

Brand Trust

Economics Legal

Fig. 7.3  CSR effects on brand trust. (Source: (Aimie-Jade, 2011))

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In Nigeria and other emerging markets, problems arising from the faulty conception and implementation of CSR have hindered its efficacy as a brand development or management tool. Therefore, organisations need to rethink or re-evaluate the guiding philosophy behind their CSR practice. Although philanthropy or giving back to society is reasonable and expected, it should not be the primary or only basis for CSR initiatives. In the twenty-first century, any organisation that seeks to leverage CSR for brand building must be strategic and ethical. Apart from integrating CSR into their core business operations, such organisations must be fair and just in treating all their stakeholders. Unfortunately, the current practice of CSR in emerging economies significantly falls below this standard. Several banks, telecommunication, and multinational oil companies in Nigeria, for example, that declare billions of Naira in profit every year and spend billions on CSR are known for mistreating their employees, customers, suppliers, and competitors. As the stakeholder management theory contends, trading off the interests of employees, host communities, suppliers, or customers to satisfy those of shareholders or vice versa destroys brand trust and renders philanthropic or discretionary CSR ineffective as a reputation enhancement instrument. From the COVID-19 experience, collaborative CSR appears to hold more promise for the future than fragmented solutions to social issues. The CACOVID initiative may have imperfections, but it is an exciting and commendable development and should be explored further as a method for future CSR interventions in emerging economies. Perhaps, it is time for organisations in emerging markets across Africa to develop an indigenous approach to corporate and social responsibilities. The idea of organisations working together to solve social problems is sensible because of the capacity to generate better funding or upscale CSR impact. Besides, it resonates with the African notions of Ubuntu (I am because we are) and Igwebuike (Unity is Strength). This chapter opines that collaboration among corporate entities on CSR can change the dynamics around its current practice in emerging economies in a way that could deliver more excellent value for brands and society. Given the potential of CSR to impact brand value and organisational performance, this chapter recommends that governments in Africa and other developing countries should develop policies that will encourage

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MSMEs to come into the loop. All over the world, MSMEs are recognised as the engine of economic and social transformation. The Vice President of Nigeria, Prof. Yemi Osinbajo, was quoted in the 2017 NBS report as saying that “MSMEs are the bedrock of Nigeria’s industrialisation and inclusive economic development; and the most important component of industrialisation as set out in the Economic Recovery and Growth Plan” (National Bureau of Statistics, 2019, p. 2). However, it is time for the government to start walking the talk. Creating an enabling environment for MSMEs to prosper is a sensible thing to do. It should also be the priority of any government that is serious about lifting 100 million people out of poverty. Strategic and ethical CSR could contribute to the brand value and growth of MSMEs in Nigeria, while improving their responsiveness to social issues at the same time. This chapter recommends that future studies should be conducted in this area to uncover the opportunities and challenges of leveraging SMEs networks for expanding CSR and brand development outcomes in emerging economies. With the number of MSMEs operating in emerging markets across Africa and Asia, the impact of their active participation in CSR on society can only be imagined.

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Part IV Corporate Social Responsibility and Sustainability Management in a Changing World

8 Examining the Significance of Corporate Social Responsibility in Building Employee Value Proposition and Brand Value in the United Arab Emirates Kakul Agha and Jason Fitzsimmons

Introduction Corporate social responsibility (CSR) is a universally used term in the business world, with organisations finding innovative ways to add value to the society through the implementation of CSR-related activities (Goby & Nickerson, 2016). Although CSR has a long history among global and local organisations of all sizes, its value has not diminished over time as it is considered to have an impact on society. CSR creates a belief among members of the society that the organisation is taking care of the society while simultaneously rendering benefits to the organisation (Rettab et al., 2009). Internal benefits of CSR range from more engaged and committed employees in the organisation contributing to enhanced K. Agha (*) Skyline University College, Sharjah, United Arab Emirates J. Fitzsimmons Manipal Academy of Higher Education Dubai, Dubai, United Arab Emirates e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 O. Adeola et al. (eds.), Marketing Communications and Brand Development in Emerging Markets Volume II, Palgrave Studies of Marketing in Emerging Economies, https://doi.org/10.1007/978-3-030-95581-6_8

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word-of-mouth in society, consequently building a respected brand for employment (Wang et al., 2020). On the other hand, external benefits to the organisation range from brand and image building to positive reputation management for the organisation (Fatma et al., 2015). In recent times, CSR can be seen as diversifying to a broader range of stakeholders’ sustainability in comparison to just working around ethics, governance, philanthropy, and volunteerism (Brik et al., 2011). CSR has evolved from a payback approach or doing good or compliance activity, to playing a more central role in safeguarding the reputation of the organisation. Moreover, CSR is now used as a strategic approach fully embedded in the core business strategies of the organisation. The triple bottom line (typical measures being economic, environmental, and social) is seen as a sustainability tool supporting the measurement of performance for organisations pursuing a CSR strategy. Organisations tend to fall in different zones of the Corporate Sustainability Maturity Curve, namely (1) compliance, as a tactical approach to imposed regulatory requirements for CSR; (2) integration, where organisations become more sustainable with redesigned processes and products; and (3) transformation, where organisations reflect their commitment to CSR through their brand (Cohen et al., 2010). So some points to ponder are: • How can organisations reap the benefits of CSR in contemporary times? • What are the CSR models that organisations believe in and may want to deploy? • How can CSR help build strong brand equity or value and make the organisation “the most wanted employer” or a brand with high employee value proposition (EVP)? Simultaneously, there is a dearth of research pertaining to the value CSR adds to long- and short-term benefits for organisations in the Middle East Region. There is no significant number of case studies that highlight CSR in its relation to employee value proposition (EVP) and brand value. Therefore, this research focuses on establishing the importance and value of CSR in the region with special insights on UAE and highlights how CSR is being carried out. This chapter focuses on how

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organisations operate and practice CSR in the Middle East using case studies from the United Arab Emirates. Hess et al. (2002) elaborate on the concept and application of corporate social initiatives (CSIs) and inform that CSIs are grounded to the long-term corporate strategy of the organisation and are dependent on the core competencies of the organisation. CSIs tend to cater to specific societal problems adopted by organisations with an aim to solve these issues. CSIs are actively patronised by the top management and are systematically operationalised, evaluated for their value added to society and the organisation itself, and are carefully communicated to stakeholders. Today, CSR has evolved into a new concept titled “corporate community involvement”. Numerous organisations are pursuing opportunities to develop their own initiatives for solving societal problems with new technologies and ideas. There is a significant usage of an organisation’s resources related to core competencies and time. CSIs lead to heathier economies and improved organisational outcomes for businesses (Hess et al., 2002). CSIs take various forms, including marketing-based activities like sponsorships or agreements with non-profit organisations, volunteering activities, and any other activities that lie in the purview of the organisation. Organisations generally identify different types of initiatives and engage simultaneously in several CSIs (Hess & Warren, 2008). The CSIs adopted in the Middle East may be strikingly different from other countries in the world. Hence, an effort has been made to bridge the gap in research pertaining to CSR. The United Arab Emirates (UAE) is a unique country in the GCC (Gulf Cooperation Council), being a major benefactor, continuing to be one of the biggest providers of foreign aid in recent years. However, Rettab et  al. (2009) and Goby and Nickerson (2016) have referred to seminal and recent studies and informed the dearth of CSR-related research and organisational data about the UAE in particular and the Middle East in general. Currently, the country has a rich combination of people, businesses, and charitable civil-society organisations, including the UAE Red Crescent Authority, Dar al Ber Society, Beit Al Khair Society, Dubai Charity Association, Zayed Foundation for Charitable and Humanitarian Works, Khalifa Bin Zayed Al Nahyan Foundation, Mohammed bin Rashid Al Maktoum Charitable and Humanitarian

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Foundation, Al Maktoum Foundation, and Sharjah Charity International. Over a period of time, the CSR scenario has evolved in the country, with the synergy of the federal government and the private sector organisations (UAE, 2018). This chapter further makes an effort to fill the information gap pertaining to the type and level of CSR carried out in the country and highlights the corporate social initiatives (CSIs) of organisations from four different sectors. This supports an argument for CSR and CSIs, highlighting their benefits to organisations. The chapter flows with concept development, where models, approaches, and benefits of CSR and CSIs are briefly outlined. The chapter then highlights four case studies of organisational CSR in the UAE. An analysis of the findings is then presented to help generalise the application of CSR to other countries. Lastly, the chapter concludes with an explanation of key takeaways.

Concept of Corporate Social Responsibility The term corporate social responsibility (CSR) was coined in 1771 and means “the idea that a company should be interested in and willing to help society and the environment as well as be concerned about the product and profits it makes”.1 Corporate social responsibility (CSR) has been elucidated in multiple ways. Since the early 1800s, CSR-related activities have been an integral part of organisations, and extensive studies have built various perspectives, alternative meanings, and investigations into the range of stakeholders impacted by CSR activities (Chouthoy & Kazi, 2016). Although most researchers do not give a concrete definition of CSR (Anadol et al., 2015), a general definition of CSR, given by Bowen (1953) conceptualises it as “The obligation of businessmen to pursue those policies, to make those decisions, or to follow those lines of actions which are desirable in terms of the objectives and values of our society”. Waldman et al. (2006) define CSR as “actions on the part of the firm that appear to advance, or acquiesce in the promotion of some social good, beyond the immediate

 Corporate Social Responsibility (CSR). (2021). Cambridge Press. https://dictionary.cambridge.org/ dictionary/english/corporate-social-responsibility 1

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interests of the firm and its shareholders and beyond that which is required by law”. The United Nations Industrial Development Organisation (UNIDO, 2021) describes CSR as a management concept helping organisations integrate their efforts to benefit its stakeholders through social and environmental initiatives. CSR enables organisations to achieve the “triple bottom line”, providing a balance between the economic, social, and environmental perspectives as well as addressing the needs of the stakeholders. Furthermore, CSR can also be classified as a tool for corporate governance and is used by contemporary organisations with an aim to ensure that a company’s actions are justified, ethical, and beneficial for the society as a whole. It is also important to understand the differences between CSR and charity, as the latter may look more explicit and visible to the society, bringing enhanced reputation and brand equity (Singh & Verma, 2017), whereas CSR is a long journey and brings implicit and sustainable benefits to the organisation. With this understanding some key questions arise: • What makes CSR so vital for an organisation that it wants to invest resources in CSR-driven activities? • What could be the key benefits for organisations in carrying out CSR-­ related initiatives? • What sort of corporate social initiatives (CSIs) do organisations prefer to undertake? • What sort of external and internal paybacks can be achieved by organisations? In contemporary times, CSR has become a prerogative for the countries in the Middle East, as all countries strive hard to implement initiatives related to social causes. Previously seen as a philanthropic act, CSR has now been integrated into the core business strategy of firms in the Middle East, especially in the UAE. Slowly but steadily, the ‘zakat model’ has been surpassed by concepts of sustainability and responsibility for the well-being of the planet (Cherian & Pech, 2017). Even though the UAE is making significant progress with the growing nexus between government and the private sector, the country still has to travel a long road to be on par with other countries in the Western world (Diab, 2020). The

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Dubai Chamber of Commerce felicitated 18 organisations in the UAE for their outstanding CSR and sustainability efforts that included Emirates Gas for the eighth time; Alpen Capital ME for the seventh time; Union Cooperative, Six Construct, Canon Middle East for the sixth time; Horeca Trade for the fifth time; TIME Hotels for the fourth time; ABB, ASGC, Centena Group, and Dulsco for the third time; Abu Dhabi Islamic Bank for the second time; and Dubai World Trade Centre, NMC Specialty Hospital-Al Ain, British Orchard Nursery, IBMC International, and DXB Entertainments PJSC for the first time (CSR Middle East, 2018). The Vice President and Prime Minister of the UAE and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, during the launch of the smart platform for CSR in 2019, urged private sector organisations to contribute to sustainable community development in the UAE, with an objective of achieving the national priorities of the United Nations’ sustainable development goals (SDGs) for the country. In doing so, it would guarantee stimulation in organisational giving and enhance the role of organisations in CSR (Sustainable Development Goals, 2020). Owing to these directives, private organisations have refocused their energies and strategised CSR in the UAE.  The remaining contents of this chapter attempt to answer the above questions in further detail.

 orporate Social Responsibility (CSR) C Approaches and Models Most companies seek to achieve CSR benefits based on the models discussed in this section. These models are widely recognised by organisations and shown in a diagrammatic format in Fig.  8.1 below. Many companies adhere to a purely economic viewpoint with no evident CSR, claiming to deliver the products and services within the framework of the prevailing law, as needed by members of the society. At the other end of the spectrum are organisations with an emphasis on philanthropy focusing on reputation management and image building. The economic

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Philanthropic Model Economic Model Seek profit through providing goods and services based on the demands of the society within the legal framework

Fullfil the demands of the society and "choose" to support the society, either for building reputation or public relations or based on the belief of doing good. They choose to do charity but not consider it their duty.

Models of Corporate Social Responsibility Integrative Model Their mere existence, the vision and mission in parts or whole are directed towards important social goals.

Social Web Model Organisations are a part of the society and hence the social web. They have mutual rights and responsibilities towards the society as they are embedded in the social web.

Fig. 8.1  CSR models. (Adapted from Ferrell et al., 2018)

viewpoint generally represents the CSR approach for smaller organisations. However, most organisations fall into the category of being philanthropic, as they devote some time and money to charity and social causes. Their direct aim is to secure an enhanced reputation and image of the company among its consumers and the society at large. Beyond this range lie larger organisations on the other side of the spectrum that understand their role in society and perceive how embedded they are in the society, owing to which they tend to follow the social web model of CSR. These organisations have a dedicated budget for societal activities or CSIs, which they run on an annual basis with scheduled calendar events. The main aim of undertaking CSR and related CSIs, in this case, is to make an impact on the society and the stakeholders. However, a few large and global firms are at the far end of the spectrum and tend to operate using an integrated model where either the whole or part of the organisation’s mission and vision is framed around CSR and serving the society in possibly generic and legal ways. The integrated model is adopted by organisations dedicated to societal causes, with plans geared towards making the world a better and more sustainable place to live (Ferrell et al., 2018).

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Most organisations have adapted different approaches of CSR that revolve around four perspectives of giving. It is imperative to note that organisations make a deliberate choice when it comes to giving, as it may be a matter of convenience, a social norm, a commonly accepted method in a country or a region, or even the belief or philosophy of the organisation itself towards CSR. Contemporary organisations may like to choose one or multiple approaches so that they can create value and harvest the benefits of CSR in a broader manner. The COVID-19 pandemic has taught organisations ways of balancing the needs of CSR in the society and what they can offer to the society. Money may not be the first option, as during the economic downturn, finances were hard hit for both individuals and businesses; however, this does not cancel organisations’ social responsibilities. During the pandemic, support was offered in extensive ways by organisations throughout the world. The most common ways are related to the four approaches given below: 1. Money: Giving cash is a great practice and has been an age-old technique of doing CSR. People connect cash-giving to charity in several countries where either they support the society by giving donations at an individual level or through foundations. A portion (such as 1% or 2%) of the profits by organisations may also be shared for suitable causes in the world like clean drinking water or children’s education. Cause-related charity in the form of monetary donations ranges from individual philanthropy to foundations like the Abdulla Al Ghurair Foundation for Education in UAE,2 or the Zakat fund provided by the UAE government which collects and distributes the funds among needy members of the society, including students, widows, and families (Duthler & Dhanesh, 2018). During the COVID-19 pandemic, several philanthropists made cash donations to needy families who lost their source of income or job due to downsizing in organisations. 2. Products and services: Several organisations tend to provide free of charge products and services to underserved individuals, communi-

 Our Story. (2021). https://www.alghurairfoundation.org/en/content/about-us

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ties, or even non-profit organisations. The offerings may range from non-perishable items (toothpaste, canned foods, rice, spices, flour, soaps and similar items) to non-technical or technical goods (like old computers, reusable gadgets, clothes, books, shoes, and similar sorts). One notable example is the fashion brand Timberland, which has an outstanding programme for giving products to the underserved sections of society, including the youth and homeless. Timberland also provides a service to help the environment as it also aims to plant 50 million trees by 2025, reduce carbon emissions, and lessen their environmental impact, making the world a greener and more sustainable place to live (Collins, 2018). In the UAE, Khalifa bin Zayed Al Nahyan Foundation and Red Crescent Authority (RCA) set up Iftar tents near mosques, open spaces, and residential areas for all members of the community to offer Iftar meals (food provided for breaking the Ramadan fast during the evening) to people in the country during the month of Ramadan.3 3. Skills: Another way that organisations can make CSR efforts is through skills sharing by an organisation’s employees. In this case, organisations encourage employees to spend a designated number of hours per month volunteering for the society in various ways. The United Way is a renowned example of a subscriber to the concept of skills sharing and supports non-profit organisations with the “Day of Caring” (Needleman, 2008). For instance, in the UAE, Dubai Cares has been a concentrated effort by the government that operates on the same concept and supports activities for the underserved population across the globe. The volunteers comprise residents of the country. Dubai Cares impacted more than 20 million individuals with more than 60 programmes designed in line with the UN’s Sustainable Development Goal (SDG) 4 focusing on inclusivity and equitable education for children and youth across the world (Dubai Cares, 2021). 4 . Job opportunities: In addition to giving money, products, and skills, some organisations support the society by offering job opportunities

 What is Ramadan? (2021). https://u.ae/en/information-and-services/public-holidays-and-­ religious-affairs/ramadan 3

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to needy people. Organisations worldwide tend to support war veterans, people with disabilities, and the elderly. Providing imprisoned inmates with training programmes is quite an effective way of helping the society as it assists in reducing crime rates by empowering people with some specialised skills or even basic reading and writing skills. In the UAE, the government is keen on supporting people who have served a jail term due to crime and those who return from rehabilitation centres of all types. Through the Khalifa Fund for Enterprise Development, the UAE government provides start-up funds in the likes of the Al Radda programme, which supports Emirati inmates to reintegrate into society and start businesses; and the Ishraq p ­ rogramme, which, in collaboration with the National Rehabilitation Centre, UAE, enables recovered drug addicts who are citizens of UAE, to enter the business sector (Financing Businesses, 2021). It is well accepted that CSR yields tangible and intangible benefits to organisations. Extensive ongoing research, including reports by industry experts has consistently highlighted the positive relationship between CSR and brand building, reputation management, and employee value proposition. It is through these ways of giving that organisations continually support individuals worldwide.

Benefits of Corporate Social Responsibility Undeniably, substantial research supports the benefits of conducting CSR for organisations. Duthler and Dhanesh (2018) elucidate the positive correlation of CSR with employee engagement and commitment. Deng and Xu (2017) mention that an employment brand creates an image in the minds of the people who seek employment and want to work for an organisation. Employment brand is “the persona an organisation presents to current or prospective employees; it is the value an organisation promises about the total employment experience”. The people and society at large, are attracted to such an employment brand. An exemplary employment brand offers several benefits to the organisation such as attracting great talent from the market, developing a bond with

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the employees as well as having a competitive edge in the market. In addition, employee value proposition (EVP) is the foundation of employment branding. Organisations hunt for great talent, and in the same way, talented candidates also tend to look out for organisations with which they want to work. When EVP is closely aligned to the strategic plan, mission, and vision of the organisation it helps create an image that attracts prospective bright candidates. Recent research conducted by PricewaterhouseCoopers indicates a significant relationship between strong employee value proposition (EVP) and employer brand (PricewaterhouseCoopers, 2013; Rupp et al., 2018). Organisations make efforts to achieve their strategic mission and vision through corporate objectives and in that process, embark on social and community-related activities which impact their brand image positively (Wu & Wang, 2014). It further explains how organisations commit to supporting the society they exist in, which consequently enables the organisation to reduce internal costs, enhance word-of-mouth for the brand and accomplish talent acquisition and retention (Chouthoy & Kazi, 2016). Organisations can invest in CSR initiatives as they provide “internal” benefits and support in achieving “external” benefits too. Investing in CSIs enables organisations to build a better competitive edge in the market and have internal positivity with word of mouth among employees; letting them develop more confidence in their own brand and work environment. Further, the investment in CSIs lets employees feel good about the brand, increases productivity, reduces turnover and absenteeism, and in the long-run, builds commitment and loyalty towards the organisation. CSIs impact brand reputation, buyer choice, and customer loyalty, creating employee value proposition (EVP) that leads to a better employment brand (Park & Kim, 2019). More consumers prefer to purchase brands that show commitment to social and community-related activities or CSIs (Hur et al., 2014). Research by Carlini et al. (2019) indicates that there is a strong impact of current employees’ CSR experience on prospective employees’ CSR journey, which creates enhanced employee value proposition (EVP) as organisations can attract superior talent. The organisations then move more strongly to becoming the choice of talented candidates in the

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market or the employer of choice. It leads to generating a bigger pool of qualified candidates, increasing the number of employee referrals, and facilitating the creation of a talent pipeline in the market (Carlini et al., 2019). This is quite significant for the sustainability of organisations in the society. Wu and Chen (2015) report a positive relationship between brand attachment by consumers and the type and level of CSR adopted by the organisation. They advise organisations to use various strategies to create awareness among consumers about the efforts made by and results of the CSR initiatives they adopted (de Jong & van der Meer, 2017). Giving back to the society by participating in community development, charities, and environmental campaigns creates an affirmative impression and greater trust among consumers, which in turn enhances brand loyalty (Kim, 2019). In a similar study, Kim et al. (2020) found that ethical and philanthropic CSR is an indirect investment in positive customer-brand relationship building. CSIs bring benefits like consumers’ involvement, more love towards the brand, along with higher trust for the brand. Therefore, CSR should be ingrained in the core brand strategy of the organisation. The CSR activities and initiatives that organisations adopt help create long-term networks and positive relationships with stakeholders like banks, government entities, suppliers, individuals, and consumers, to name a few. This has a direct impact on brand loyalty and helps gain extensive support from stakeholders in terms of innovative and creative ideas in research and development activities of the organisation (He & Lai, 2014; Khan & Fatma, 2019). In doing so, stakeholders collectively help leverage more output than a single organisation (Alexander et al., 2014). This helps us to understand the varied benefits that CSIs bring to organisations. Three CSR domains (environment, stakeholders, and society) have a paramount impact on brand choice and preference even though stakeholders have the strongest influence (Liu et al., 2014). A crucial stakeholder is the customer who should be involved actively in CSR-related initiatives of the organisation (Cha et  al., 2016). This research directs managers on how to engage customers in CSR activities like highlighting benefits of buying products in order to support underserved societies, education for children, or even reducing environmental hazards. Asking

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for active and visible participation from customers is a more versatile tool in comparison to passive support. Managers need to find ways to attract customers to participate in CSIs that can be visibly linked to benefits for society, and support organisations in brand building, customer engagement, and higher levels of customer loyalty (Cha et al., 2016). To conduct CSR, organisations can adopt four key stages as suggested by Lindgreen et al. (2012) in their study. Stage 1-“Sensitise” where organisations need to create awareness about CSR and CSIs among employees and assess organisational understanding and context; Stage 2-“Unfreeze” in which the organisation frames the CSR strategy after assessing the status of CSR in the organisation; Stage 3-“Move” where the organisation implements and evaluates the CSR strategies and communication that finally leads to Stage 4-“Refreeze” in which the organisation institutionalises CSR and CSIs. These four stages can be rolled out in nine steps in order to form a strong base of CSR in an organisation (Lindgreen et al., 2012). Thus, this informs us that CSR is a vital and doable activity that needs to be adopted by organisations worldwide. CSIs are deployed in most organisations already in multiple ways. To understand the CSR and CSIs, it was imperative that firsthand information was needed from organisations in UAE to ascertain the type and level of the work that was being undertaken. As case studies provide primary and real organisational information, it was ideal to include case studies of four organisations from the UAE with diverse growth paths and histories, belonging to four different sectors, namely the service sector, healthcare, education, and construction. The choice of organisations was based on parameters like market presence, width of operations, and willingness to share information related to their social initiatives. Detailed case studies were framed after primary (through interviews) and secondary (through the company website and informational documents provided by the company) data collection. For primary data collection, semi-structured interviews were planned. The initial request was made with the Human Resource Department and further upon being directed to the resource persons, the interviews were conducted. After multiple drafts and edits, the final draft of the case study was included in the chapter post-approval by the managers of the respective organisations. The details of the case studies are here:

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Case Study 1: EFS Facilities Services Group

EFS Facilities Services is an organisation with operations in 21 countries across the Middle East, Africa, Turkey, and South Asia, delivering integrated facilities management services. The company’s focus on quality service delivery and innovation has enabled it to sustain a track record of superior client retention and high customer satisfaction. EFS has a customer base of prominent clients ranging from Fortune 500 companies to companies working in oil and gas, banking, public sector, education, retail, and integrated workplaces. EFS is regarded as one of the Top 100 companies in the Middle East by Forbes Middle East. Additionally, it has several honours and accolades, including the prestigious silver award at the Sheikh Khalifa Excellence Awards in 2020 and the Dubai Quality Appreciation Award in 2020. Recently, EFS bagged the “The International Award”, one of the highest awards granted by the International Organisation for freedom, Protection of Human Rights, and World Peace (IOPHR). They were awarded for their humanitarian initiatives post the Beirut blast in August 2020.4 EFS has developed an understanding of focusing on corporate social responsibility (CSR) activities for employees within the organisation as well as for society. EFS boasts of a powerful strength of approximately 18,000 employees, and 60% of these are blue-collar workers. EFS is committed to reinforcing its role as a global citizen and continuously launches initiatives that empower employees, promote consciousness and gives back to the communities in which it operates. EFS Company Website The corporate social initiatives (CSIs) of EFS are encompassed in a broad portfolio and focus on bringing internal and external benefits to the organisation. For decades, EFS CSR Cell has been engaged with internal and external activities, namely: • Conducting the EFS Annual Carnival—giving cash awards and prizes to employees like Compassionate award, initiated in 2014 • Volunteering events with clients like Unilever—Omo Touch of Compassion clothes donation campaign (continued)  Who we are. (2020). https://www.efsme.com/

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(continued) • Supporting an individual epileptic patient by hiring his sister in a bid to support the family financially as well as with employment • Supporting Al Jalila Foundation’s Breast Cancer Awareness Month • Providing cash and in-kind donations for survivors of international calamities like the Australia Wildfires (2020), Beirut Blast (2020), Philippines (2013/2020), Kerala Floods (2018), and Nepal Earthquake (2015) • Supporting the Indian expatriate community during an Amnesty Drive by the Embassy of India in the United Arab Emirates (UAE) during 2018 • Engaging in an annual event with Al Marmoon Initiative, UAE, where employees spend quality time with children of determination, nurture plants at the nursery, clean the stable horses and so on, as part of dedicating time to the society • Pledging of over 3000 blue-collar EFS Staff to offer support towards the people of determination at the Special Olympic World Games held in Abu Dhabi 2019 • Supporting 500 displaced workers from fire incidents at a staff accommodation in 2019 • Participating in “Himmeh w Lammeh” the country-wide cleaning campaign with the aim of removing litter from forests of Jordan in 2019 • Partnering with Tkiyet Um Ali in Jordan to support needy families by parcelling monthly food packets in 2019 • Disinfecting around 12 places of Worship in the UAE and Jordan • Joining forces with “Awnak Ya Watan” for activities such as mask distributions and Iftar distribution during COVID-19 in 2020 • Providing part-time jobs through DAWAMEE, Emirates Foundation’s key flagship programme targeted at UAE Nationals, aged 18  years and above, who are facing distinct employment challenges (people of determination, low-income individuals and those living at remote locations) across the UAE in 2020 • Conducting Artificial Intelligence (AI) Literacy assessments for all blue-­ collar staff to bridge their training gaps in 2020 At the pinnacle of making an impact in the society is the “Ehsaas” Initiative by EFS.  The patron behind this initiative is the Chief Executive Officer (CEO), Mr. Tariq Chauhan, an ardent believer of CSR and its impact on employee commitment and trust. Ehsaas means feeling, which translates to feeling for the people and society. It has a spectrum of activities like supporting aged parents of employees, people of determination, upskilling and reskilling, reducing carbon footprint, creating sustainability, and protecting the environment. Ehsaas aims to be seen as a platform to promote CSR and to develop socially responsible individuals who showcase the values of EFS and make an impact on the society. During the COVID-19 pandemic, the zeal and fervor of the CEO, his team, and employees was not (continued)

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(continued) dampened. They continued to spread awareness through multiple drives in organisations related to health, safety, and protection from infection; and distributed masks to employees and the public in the country. Further, the company helped hundreds of jobless, blue-collar workers stranded in the country without food during COVID-19. The efforts of EFS Services have supported the building of employee commitment and loyalty. EFS has established itself as a People First organisation through its initiatives as well as its connections with the larger community. These initiatives have enabled EFS to become the employer of choice across the market, reduce recruitment costs, and improve staff retention ratios to further plummet costs for replacement staff. The company also benefits from having customers enjoy outstanding services levels provided by long-­ term employed staff. This directly culminates in customer retention and business continuance from new clients. EFS’s CSR activities have supported them in building an enhanced market presence, acquiring government support, and earning highly influential business contracts. Thus, EFS believes that CSR initiatives have enabled the creation of positive employee value proposition (EVP). Currently, they do not measure the impact of CSR in a quantitative manner, but soon intend to adopt statistical measures. The prime task for EFS would be actually measure the impact of their multi-­ pronged CSR approaches. In all, what is the main approach of CSR at EFS? What can be done more by EFS on similar lines to make a larger impact on the society?

Case Study 2: Skyline University College

Skyline University College (SUC) is located in Sharjah, UAE, and is a 30-year-old institution. In line with its vision of building a knowledge-based society, most of the corporate social responsibility (CSR) activities conducted by SUC revolve around academic support and an effort to inculcate human values among stakeholders in the society. The nature of the corporate social initiatives (CSIs) is diverse at SUC and this academic institution keeps identifying potential activities that have a wide impact on society, in line with the fervor of the Founder and Chairman, Mr. Kamal Puri.5 (continued)  Founder Chairman (2021). https://www.skylineuniversity.ac.ae/founder-president

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(continued) The most critical activity adopted by SUC is providing academic scholarships for a wide section of society through entering into Memorandums of Understanding (MOUs) with government bodies, social entities, consulates, and schools. They extend support to people through academics, sports, and need-based categories. They have long-term positive relationships with key stakeholders, namely clubs and societies through which they identify people who need support (not only UAE nationals, but also some Asian and Middle Eastern Country Clubs are supported for needy school children’s school fee payment). This effort is to ensure that quality education is made available to all, irrespective of diversity and differences among stakeholders. This in turn supports in creating a co-educational and multicultural academic environment in SUC. SUC conducts a gamut of free-of-charge CSIs under the umbrella of upskilling and reskilling the society under the able leadership of Mr. Nitin Anand, the Executive Director and Chair of the Executive Council. A host of workshops are carried out for government departments, consulates, school children, teachers, principals, and counselors on a variety of subjects, as a regular on-going CSI. SUC faculty train taxi drivers (Sharjah and Dubai) on communication skills and etiquette. Since 2018, SUC faculty offer Diploma in Travel and Tourism courses to Sharjah Prison inmates in an attempt to make them more employable on their release from jail. Blue-collar workers, in collaboration with different consulates, have undergone training with SUC faculty. Currently due to the ongoing pandemic, SUC has started offering online workshops and webinars on common and specific focal topics. A variety of other CSIs have been offered by SUC for more than a decade for underserved sections of the society, environment, and overall health of the society, including: • Hosting bi-annual events for people of determination (Children from schools for people of determination visit the SUC Campus and are engaged by faculty and student volunteers for fun and educational activities) • Visiting Old Age Homes and Orphanages with giveaways • Hosting Iftar dinner for blue-collar labour and distributing Ramadan Bags (non-perishable goods) to labour camps across Sharjah during the month of Ramadan • Donating clothes through Red Crescent Charity boxes • Conducting beach cleaning activity on Nelson Mandela Day in collaboration with the South African Consulate, UAE (continued)

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(continued) • Planting trees by student, staff, and faculty volunteers to support a greener environment • Conducting breast cancer awareness sessions for staff, faculty, and students • Conducting “SUC Holistic Fitness Challenge” bi-annually for faculty and staff. Skyline University College has complete focus on its stakeholders as the latter directly impact their existence and growth in student body. SUC is also able to sustain an enhanced organisational image, reputation, and market presence in the UAE with special emphasis in Sharjah. Students are encouraged to participate in volunteer activities so as to move closer to becoming better citizens in the future. Faculty are members of international charitable bodies. CSR initiatives and activities are measured during annual performance reviews for faculty and staff members at SUC.  Thus, SUC is inherently embedded in the societal web with planned and budgeted social initiatives. The question still remains—Can SUC do anything more to benefit the society? If so, how can it plan and deliver CSIs for the larger good of the society?

Case Study 3: Prime Hospital

Prime Hospital (PH) and Prime multi-specialty Medical Centers can be found in all major residential areas in the UAE (Dubai, Sharjah, and Ajman). Prime Health is one of the leading healthcare providers of UAE with more than 20 branches, has a great market presence, and offers a wide variety of services to patients. A host of doctors, experts, and consultants are available in the hospital.6 (continued)  About Prime Hospital. (2021). https://www.primehealth.ae/prime-hospital/about-the-hospital/ about-prime-hospital 6

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(continued) As an organisation, they show keen interest in welfare and charity activities. As they have in-house specialists, they offer CSIs primarily related to medical assistance. They set up Medical Service Camps to offer free blood pressure, sugar, and BMI check-ups in schools (Cambridge School and Repton School Dubai during 2019), where they place their hospital stalls on events or sports day. Prime Health also supports the Rashid Center for People of Determination, where even the artwork replicas made by students are showcased in all the branches of PH. They also engage with children of determination with schools like Al Noor Training Centre for Persons with Disabilities, and Senses Centre for special needs, Dubai. Beach cleaning activities have also been adopted in collaboration with the Dubai Municipality, where 250 PH staff volunteered to participate. Another remarkable project adopted by PH during 2019 was ‘Free Knee Camp’ at Kargil, India, where 900 patients were catered to over a span of two days. This was purely a time- and skills-related volunteering activity by the hospital doctors. For the last seven to eight years, PH has had an intense focus on Ramadan festivities in the UAE, where ‘Iftar packets’ are an annual charity offered by the hospital. They also support labour camps primarily occupied by blue-­ collar workers. Each year during the month of Ramadan, 8000–10,000 ‘ration kits’ are served to the needy. During COVID-19, Prime Hospital made a deliberate effort to support stranded individuals and families by offering 1500 lunch and 2000 dinner packets to dedicated building residents in Dubai. They also supported the Dubai Health Authority (DHA) in conducting massive COVID-19 screening across Dubai. Prime Health has made a consolidated effort in promoting corporate social initiatives over a period of time. Currently, they have a dedicated CSR Champion, Dr. Azam Badar Khan, a renowned knee replacement surgeon, who has been nominated to plan, design, and implement the CSIs in the country and abroad. In this way, the hospital is able to sustain market presence and leadership in the country as well as enhance its reputation. Further, the hospital aims to give back to the society with a primary belief that they owe it to society and their stakeholders. Based on PH’s activities, what is the role of a CSR Champion and how can CSR be enhanced in Prime Hospital?

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Case Study 4: Danube Group

The Danube Group is one of the most renowned and reputed businesses in the UAE. Established from very humble beginnings in 1993 by Mr. Rizwan Sajan, Founder and Chairman of the group, it is now the top organisation in building materials operating in several countries across the world, with a turnover of USD 1.3 billion. Mr. Sajan is ranked 12th among ‘Top 100 Indian leaders in the UAE’ by Forbes Middle East.7 Mr. Sajan is not only an extraordinary businessman, but also a philanthropist who is a strong enthusiast of ‘giving back to the society’ in multiple ways. With this belief, decades back he initiated the hiring of one Language Teacher to train his employees in spoken and written English. Slowly with his conviction, the Danube Welfare Centre was established about nine years ago. The Centre focuses on employee training and development, specifically with language training for blue-collar workers, as the latter hail from non-English speaking countries. The Danube Welfare Centre, steered by Ms. Shabnam Kassam, also trains employees to enhance computer skills for career development and personal growth among blue-collar workers within the organisation. Another feather in the cap of Danube Welfare Centre is the ‘Kamyaab Program’ that focuses on upgrading and reskilling employees within the organisation. These workers are then promoted to the supervisory level based on their merit and performance. “It has a great impact not only on the performance of employees, but also on the commitment and loyalty they have for the group”, by Dr. Sana Sajan, a doctor by profession, who also supports to raise awareness for Thalassemia patients. Dr. Sana serves the UAE population of blue-collar workers, visits labourers’ accommodations, and provides personality development classes. She is also a supporter of children with special needs (i.e. Special Needs Future Development Center and Al Noor Training Centre for Persons with Disabilities, UAE). The Danube group has also supported external organisations in UAE, such as the Roads and Transport Authority (RTA), the major independent government roads and transportation authority in Dubai, with training programmes on Road Rage/Anger Management and Customer Service Excellence Training. These programmes were offered by the Danube Welfare Centre to taxi drivers of RTA.  Danube as a group is substantially focused not only on continuously uplifting their own, blue-collar workers, but also on providing free-of-cost training to around 16,000 employees of external organisations housed in Jabal Ali Free Zone (JAFZA), UAE. Danube also carries out immense training initiatives for underserved sections of the society, like ladies in the slums of Mumbai, India. They train these ladies (continued)  The Business. (2021). https://www.aldanube.com/

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(continued) through cloth-stitching classes and offer their children classes for English speaking and computer skills. Danube has multipronged CSIs, namely: • Providing ration kits to workers • Catering Iftar during Ramadan to hundreds of blue-collar workers around the Gulf Cooperation Council (GCC) • Helping workers to practice yoga as a form of exercise by engaging with expert yoga practitioners • Engaging workers in Etiquette and Interview techniques training programmes for supporting their personal growth • Contributing to mosque building in various countries around the GCC • Supporting needy students with scholarships for their studies The group operates in line with the thoughts and vision of Mr. Rizwan Sajan revolving around giving back to the society in multiple ways, and with that belief, the group has received immense appreciation and support from the society and its stakeholders. So the key question is—how can the Danube Group spread its reach further in society? In which other CSR activities could Danube Group get involved?

Findings from the Case Studies Four organisations were investigated through gathering data pertaining to CSIs involving in-depth interviews with key officials within the chosen organisations. Secondary data was retrieved from company websites and informational documents shared by the company. In the post-analysis of the data, the findings reinforce the importance, value, and worth of CSR given by successful organisations during current times. These organisations follow at least one of the four models (namely economic, philanthropic, social web, or integrative) of CSR in order to carry out CSIs in the society in which they thrive. All organisations want to give back to the society in some way or the other. Mostly, the above-mentioned organisations focus on their strengths and create CSR strategies accordingly to develop related CSIs. Our findings suggest that corporate social responsibility activities are embedded in the organisations in the United Arab Emirates. Despite being a developed country, there are still significant segments in society

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that can benefit from additional support. With a substantial proportion of the population being comprised of migrant workers, corporate social responsibility directed towards this segment of society can have a significant impact on the wellbeing of this segment. All the organisations in the study focused on specific activities related to supporting this segment, and further work should be done on measuring the impact on this segment in particular. Each of the companies in our study directed CSR activities towards their own employees, providing additional benefits beyond financial remuneration. Evidence in support of the effectiveness of these activities can be seen in the high employee retention rates in each of these companies. It is also apparent from the study that many UAE companies have adopted integrative models of CSR, with leadership creating a vision within the organisation towards social goals. Danube, for instance, is a good example of a firm that has embedded CSR into the organisation through formal activities such as the establishment of the Danube Welfare Centre. This formal approach to CSR can allow the societal impact of these activities to be measured and assessed. One important area identified in the study is the positive impact of embedding CSR into higher educational institutions, such as the activities undertaken by Skyline University College. Given that current students will be the country’s future managers and business leaders, the direct exposure of students to CSR activities will potentially have a significant impact on future organisational CSR, and consequently, the integration of CSR activities into the curriculum could have substantial future benefits. Overall, our findings suggest that CSR is a strategic process for these organisations, informing us that CSR is now the new normal and not an intermittent activity or set of activities. Even though these organisations belong to four different sectors, it can be clearly understood that several common CSIs have been touched upon by them. All the selected organisations have made significant contributions during the COVID-19 crisis to effectively support society. The generic application of these cases informs us that although all organisations have been severely hit by the impact of COVID-19, it cannot be denied that most organisations made genuine efforts to support stakeholders, give back to the society, and

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make efforts to soften the heavy economic blow of the pandemic on society.

Implications for Theory and Practice Organisations across the Middle Eastern region are now recognising the positive benefits and competitive advantages that can be obtained from corporate social responsibility activities and are beginning to place increasing emphasis on such activities. The case studies highlighted in this study have identified a number of initiatives in specific areas that have benefitted firms in this region. These case studies can, thus, provide guidance to other organisations looking to initiate CSR activities. Governments’ efforts to engage in CSR and to promote organisations’ engagement with society can have positive benefits. This gives managers a clear direction on ways of strategising, conceptualising, and implementing CSR-related activities in their organisation. The CSR opportunities need to be identified by the managers quickly and effectively in a manner that focuses on regional and international situations. CSR demands managers to create a strategy and effective budgets to take care of the burdens of the society. This calls for organisations to be fast and strategic in their CSR approach and also to develop sustainable initiatives for long-­ term impact.

Conclusions In conclusion, it is viewed that CSR is one of the most important strategies being adopted by organisations in contemporary times as CSR is viewed as a business opportunity. The benefits from CSR activities outweigh associated costs (financial performance). CSR should be adopted for their long-term tangible and intangible benefits (customer loyalty, brand image, and employee value proposition [EVP]) that support organisations’ longevity. It has also been found that consumers prefer brands that are more socially conscious and showcase CSR initiatives.

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The CSR initiatives of organisations highlighted in the case studies can be supportive in generalising findings for global firms. COVID-19 has provided a fresh window for CSIs across the world, and most organisations, despite severe losses in businesses, and have given back to the society in manifold ways. Most organisations resorted to giving money, skills, and charities of all sorts to support displaced members of the society, with an understanding that CSR initiatives support organisations readily for being accepted by consumers. Organisations should strive to institutionalise CSR and make progressive strategies to support CSIs. The conspicuous benefits of CSR are both internal (brand loyalty by employees, better employee recruitment, retention and engagement, heightened productivity, and employee performance) and external (improved brand image, customer engagement and loyalty, better employee value proposition, and becoming the preferred brand for prospective employees). It is critical for organisations to offer CSR to stakeholders in the society in order to build a good reputation and brand equity. Acknowledgments  We would like to express heartfelt appreciation to all people who supported us in any minor or major way from the initiation till the completion of this book chapter. We wish to acknowledge the following personnel for their assistance in terms of time and information during the collection of primary data for writing out the case studies. Hence, special thanks go out to:  Mr. Rakesh Gaur, Director, Marketing and Communications, Skyline University College, UAE • Dr. Azam Badar Khan, Specialist Orthopedic Surgeon, CSR Champion, Prime Hospital, UAE • Ms. Charmin Nazereth, Manager, Corporate Office, EFS Facilities Services, UAE • Dr. Sana Sajan, Director, American Aesthetics Clinic, UAEWe give special thanks to Ms. Nadine Felix, Head of General Education, Skyline University College, UAE, for supporting us in proofreading and finalising the chapter.

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9 Corporate Social Responsibility and Corporate Brand Building in Africa’s Emerging Markets Abel Kinoti Meru and Mary Wanjiru Kinoti

Introduction Advancement of the marketing discipline over the years has contributed immensely to the growth and development of corporate marketing. Corporate marketing  practice incorporates  corporate communications, corporate identity, corporate reputation, and branding. Corporate branding, unlike product branding, speaks directly or indirectly to diverse key stakeholders (customer, supplier, investor, and society), all directly linked to CSR (Corporate Social Responsibility) activities (Vallaster et al., 2012; Hatch & Mirvis, 2010) in different parts of the world. Vallaster et  al. (2012) further posit that all corporate communications must at all times project to these stakeholders the firm’s core values and attributes or corporate image and reputation, which is a daunting task given diversities in

A. K. Meru (*) Riara School of Business, Riara University, Nairobi, Kenya M. W. Kinoti University of Nairobi, Nairobi, Kenya © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 O. Adeola et al. (eds.), Marketing Communications and Brand Development in Emerging Markets Volume II, Palgrave Studies of Marketing in Emerging Economies, https://doi.org/10.1007/978-3-030-95581-6_9

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a firm’s offerings and the social and business objectives. For instance, Geva (2008) captures three complex corporate social issues, bordering on corporate social responsibility (the philosophical orientation), corporate social responsiveness (the institutional orientation), and social outcomes (the organisation orientation), that to date, businesses contend with, given their core mandate of provision of goods and services. Shum and Yam (2011) add corporate citizenship, stakeholder management, and business ethics or ethical branding as other fields of interest to firm and institution researchers. This is true given the dilemma relating to a firm’s financial returns on investment (the business case) and the social returns (CSR) on investment (Blowfield & Dolan, 2010), as well as the bottom line and competitiveness in a globally vibrant environment. Newman et al.’s (2020) explanation of the CSR metaphor of organisations’ activities going beyond the law in addressing social, economic, environmental, ethical, and consumers’ concerns to create value for shareholders and stakeholders may be true for developed countries, but is met with mixed results in emerging markets where rule of law may be blurred, is the key concern for this chapter. The deep involvement of businesses, governments, non-governmental organisations, public sector enterprises, and religious institutions in the social issues in Africa is deeply rooted in the socio-economic development of the countries circa the 1800s with the rise of colonialism. Colonialism was a precursor to economic exploitation, leading to a historical mistrust of industry and businesses, and as Crane et al. (2014) observe, still there are diverse concerns for the role of businesses in society. A key notable megatrend today is understanding the relationship between CSR and corporate brand building in emerging markets with specific reference to Africa. The chapter first delves into examining the concept of corporate social responsibility and corporate brand building. It then links the concept of CSR to corporate brand building, followed by a broad overview of how CSR activities influence corporate brand building in Africa’s emerging markets; finally, the conclusion and recommendations are presented.

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The Concept Corporate Social Responsibility The philosophical inclination of corporate social responsibility (CSR) grapples with economic, legal, ethical, and philanthropic (discretionary/ voluntary/corporate citizenship) dimensions (Geva, 2008; Wulfson, 2001). CSR, from a normative perspective, addresses values and principles guiding the achievement of these dimensions/responsibilities, while from a descriptive perspective, CSR deals with observable aspects formulated through legislations (Ferrell et  al., 2019). Under the economic dimension, the profit-making concern is quintessential to the existence of a firm, which is expected of a business entity (Geva, 2008; Joyner & Payne, 2002), but not at the expense of other stakeholders or the society in general (Galant & Cadez, 2017). Economic dimension aims for a fair production and distribution of goods and services given the problem of scarcity of resources (Mahmood & Bashir, 2020). Galant and Cadez (2017) further note that the potential benefits of CSR range from economic growth of a country to better image and reputation of a firm, enhanced firm performance and brand image, as well as becoming a source of competitive advantage. As explained by Shum and Yam (2011), economic and legal dimensions are intertwined since the latter supports economic transactions (contract laws), economic interests (e.g., property rights, free market mechanisms), and resource allocation; thus, businesses are motivated to comply with laws and regulations for smooth operations. It is also true that the rule of law and regulations safeguards the environment, the consumer, and addresses safety concerns (Mahmood & Bashir, 2020). Shum and Yam (2011) further assert that profit-driven economic responsibility most often does not translate to social responsibility, but if legal and ethical measures are in place, they may compel firms to support voluntary CSR activities. As mentioned, since the legal and probably ethical dimensions are blurred in emerging markets, this chapter hopes to shed more light on the nature of deployed CSR activities in Africa, with more emphasis on Kenya. Joyner and Payne (2002) observe that ethical responsibilities pertain to conscientious and ideal behaviour of a firm. To understand this further, Pratt (1991) encapsulates three normative ethical theories, namely;

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deontological, utilitarian, and situation theories that articulate the key ethical values. Deontological ethics relates to the firm’s independent rationale to satisfy formal good intentions, regardless of the outcomes. Utilitarian ethics theory focuses on the social utility or common good, and underpins that a firm’s activities are justified if the outcomes are the most desirable, and that the social benefits outstrip the social cost. On the other hand, situation ethical theory addresses a firm’s context-specific issues, for instance, prevalent social or cultural norms. For instance, ethical entrepreneurship like fair trade deals by Kenya Tea Development Agency in the 1990s, where tea from selected factories was sold at a premium price to support small-scale tea farmers, draws on the ethics of equity to build a business case (Blowfield & Dolan, 2010). The same applies to Oserian flower farm in Naivasha, Kenya, that supports workers and neighbouring communities as well as protects the environment. Ethical brands are sometimes viewed as social responsibility dimensions, similar to sustainability, fair trade, or society welfare (Ferrell et al., 2019). Ethical deals with the moral values of the society, while philanthropic provides a variety of donations to the society (Mahmood & Bashir, 2020). CSR, as philanthropy, addresses the social, education, recreational, and cultural aspects (Adhikari et al., 2016) of a given community. Firms involve themselves directly in social initiatives (Hess & Warren, 2008), as opposed to a set of legal requirements in some cases. Crane et al. (2014) underpin six elements that encompass CSR, namely, voluntary, unintended consequences (externalities), stakeholders, socio-economic responsibilities, practices and values, and finally, the impact of business functions on the society (beyond philanthropy). As Mahmood and Bashir (2020) observe, whether CSR is for economic, legal, ethical, or philanthropic responsibility reasons, a key motive is to build the competitive advantage of any brand. The aim of a corporate social initiative may be to address moral obligation, competitive advantage, or purely for a legitimate purpose, but what is critical is if it is sustainable or not and its impact on the brand image of the firm (Hess & Warren, 2008). KPMG Advocate Services Ltd (2021) notes that a firm spends on CSR to build strong brands and corporate citizenship reputation, but the CSR strategy must be aligned to core values and mission,

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integrated with the brand strategy, and involve stakeholders directly to create shared value to build a trusted brand. McWilliams et al. (2006) sum up different theoretical perspectives in support of CSR activities from diverse viewpoints, including agency theory (examines CEOs personal agenda), stakeholders theory (aims to satisfy key constituents), stewardship theory (public trustees), institutional theory (that concerted efforts shape behaviour), and strategic leadership theory (CSR results in sustained competitive advantage). All of these theories further advance resource-based view theory and theory of the firm, which examines CSR as a form of strategic investment (reputation building or maintenance), with a cost and benefit to a firm. McWilliams et al. (2006) observe that CSR’s strategic implications might be predictable based on the focus, for example, investing in an environmentally friendly car. Even then, there is no agreed-upon definition of CSR as CSR lacks uniform motivation. For instance, externalities may yield positive (innovation) or negative (pollution) results, there is no specific format for the provision of CSR activities (bundled or separately) from a firm’s offerings, and cultural differences all lead to mixed results, questioning further whether CSR efforts are strategic, altruistic, or coerced (McWilliams et al., 2006). Key influential stakeholders researched include investors, employees, customers, suppliers, creditors, government, natural environment, and local community (Gangone & Ganescu, 2014). According to Gangone and Ganescu (2014), if stakeholders have the power (ability to exert influence), legitimacy (genuine claims), and urgency (immediacy), the higher the likelihood of support from the concerned firm. Although CSR has both internal and external dimensions, it is at times viewed as cosmetic and not as strategic or operational business activities (Belz & Peattie, 2009), as generally expected. Strategic CSR aims to benefit the society by transforming value chain activities and strengthening competitive strategy (Belz & Peattie, 2009). Mahmood and Bashir assert further that, as a strategy, CSR influences a firm’s performance, enhances brand equity by building a positive image in the mind of consumers, and ultimately contributes to profitability and overall growth of the company. Thus, CSR is a source of intangible competitive advantage (Melo & Galan, 2011). CSR touches on a firm’s brand, which is the intangible

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assets. The external dimension is the focus  of this chapter, specifically with respect to corporate brand building in emerging markets.

Understanding Corporate Brand Building In common parlance, the word brand name, in the marketplace to a large extent, connotes a degree of awareness, reputation, or prominence (Keller, 2002). A product or service brand strategy appeals only to the primary stakeholders (customers and business partners), whereas a corporate brand campaign includes secondary stakeholders (society, government, and environment) vital for the business operations (Vallaster et al., 2012). Lindgreen et al. (2012) observe that brand building is aimed at positioning and providing a source of competitive advantage for a firm, by harnessing the intangible assets (firm’s reputation), reinforcing the brand overtime through imagery and associations, and developing brand-­ building programmes like CSR that suit the needs of all stakeholders. Fan (2005) further alludes that at a corporate level, branding means building ties with stakeholders and the general public. Thus, branding is an economic (economic performance), and a social (social performance) construct (Fan, 2005) aimed at winning a favourable position in the heart and mind of stakeholders and gaining competitive advantage. Reputation, though based on perception (wholly subjective), is a valuable intangible asset used by firms to conjure desirable stakeholder-based outcomes and augurs well with CSR (Verčič & Ćorić, 2018). Brand intangibles exist as imagery or associations in the minds of stakeholders (Keller & Lehmann, 2006). The intangible emotive aspects of brand equity may result in competitive advantage (Lai et  al., 2010). Brand building and positioning may arise from intangible assets such as brand personality (traits), brand relationships (affiliations), brand experience and corporate image (ability, credibility), reputation (Keller & Lehmann, 2006), which can also be attributed to a firm’s corporate social responsibility activities. Brands serve as a valuable intangible asset to the customers, products, and finances, which are commonly referred to as brand equity (Keller & Lehmann, 2006).

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Scholars have also conceptualised brand equity from psychological, economic, or sociological viewpoints (Keller, 2002). Consumer psychology influences brand awareness, association, loyalty, and perceived quality. The economic viewpoint touches on the value of unobservable attributes, while the sociological viewpoint, for instance, can hint at the cultural meaning of brands (Keller, 2002). Kotler and Keller (2006) observe that brand equity is the extra value added to a product or a service that has psychological and financial benefits based on consumers’ knowledge, that is, brand awareness (thoughts, feelings, experiences, beliefs) and brand image (their perceptions, preferences, and behaviour related to the brand). To Keller, brand value means establishing brand salience, performance, imagery, judgments, feelings, and brand resonance. Thus, incorporating corporate brand building with CSR activities positions a firm’s offering favourably among the stakeholders.

 orporate Social Responsibility and Corporate C Brand Building The main focus of CSR philosophy is to build the brand value proposition (Ben et al., 2018); hence, it is important for us to understand its role in the development of a corporate brand (a unified single brand). CRS activities focus on addressing these dimensions since the quality of a company’s investment in brand building is a key pillar in brand equity (Kotler & Keller, 2006). Lai et al. (2010) note that buyers’ perceptions of a firm’s CSR activities influence brand awareness/associations, perceived quality, brand loyalty, and brand satisfaction. Hypermarket consumers in Spanish markets reflect responsible behaviour, as an outcome of CSR activities (economic, ethical, legal, and discretionary), implying that CSR has an effect on consumer brand equity (perceived quality, brand loyalty, brand awareness, and brand association) (Rodriguez et al., 2017). Ethical branding (identity) revolves around morally right or wrong branding decisions, with a view to promote public good as opposed to harming it; similarly, corporate reputation addresses association with the firm, if good or bad (Fan, 2005). Corporate brand is core to all other

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dimensions, be it its reputation, image, equity, among others regardless of the level (corporate, functional, or technical). Fetscherin and Usunier (2012) broadly reviewed research on corporate branding and found studies relating to its relationship with product, service, sponsorship evaluations, financial performance, brand extension, corporate identity, and corporate image. Lindgreen et al. (2012) observe that corporate brand, which represents the corporate intangible assets, is useful to all stakeholders, whether internal or external. Yang and Basile (2019) found that a firm’s CSR activities on diversity of internal stakeholders (top management, board members, and employees) and governance (safer and more ethical) have a positive impact on brand equity, while employee-related CSR has a negative effect, and no direct relationship with the environment, community, and product-­ related activities. Torelli et al. (2012) observe that a brand is associated with concepts that position the brand in consumers’ minds based on inculcated values; for instance, CSR activities are associated with self-­ transcendence values that deal with caring for the society. There is a positive relationship between CSR (economic, social, environmental, and governance) and brand equity and firm performance (Wang et al., 2015). Building and implementing a CSR-based corporate brand is a complex phenomenon and thus needs further investigation (Lindgreen et  al., 2012), especially in Africa’s emerging markets.

 orporate Social Responsibility and Corporate C Brand Building in Africa’s Emerging Market There is evidence that in emerging markets, there is a strong link between CSR activities and brand building, thus this feature is not unique to the African market. For instance, Hur et al.’s (2014) study on consumers in South Korea found that corporate credibility mediates the relationship between CSR and the corporate reputation of a firm. Mahmood and Bashir’s (2020) study on fast-food chains in Pakistan found that brand reputation influences brand equity, which in turn enhances CSR activities. Similarly, Woo and Jin’s (2016) study on CSR activities on apparel

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companies in the USA and South Korea found that economic and environmental issues enhance brand equity. Lai et  al.’s (2010) study on Taiwan’s medium industrial enterprises found that CSR activities had a positive effect on brand equity and brand performance. Sharma and Jain (2019) found that there is a positive relationship between perceived CSR and consumer trust, brand loyalty, and consumer-based brand equity in India’s sportswear industry. Key countries that provide similar evidence in Sub Saharan Africa economies with the largest Gross Domestic Product in billion dollars terms include Ghana ($ 70), South Africa ($ 317), Nigeria ($ 466), and Kenya ($ 101). Hinson et al. (2016) found that CSR activities have an effect on the attitude and behaviour of selected retail bank customers in Ghana. Similarly, Abugre and Nyuur’s (2015) study on CSR activities among 193 private and public institutions in Ghana found that most consult stakeholders before engaging in CSR activities as a way of communicating with diverse stakeholders, but this is not done uniformly due to cost, accessibility of social platforms, and inadequate regulatory framework. Coffie (2020) observes that Vodafone and MTN deploy CSR activities as a service strategy in Ghana. Amoako (2017), in a similar study, noted that CSR activities improved Telco’s brand strength (image, perception, loyalty, position, and relationship). Alexander et  al.’s (2014) study on CSR and brand building in Ghana found that stakeholders who share the vision and mission of a firm are deeply committed and would help build new brands due to goodwill bestowed on the company; however, case-­ specific studies ought to be conducted to determine the relationship. Kodua and Mensah’s (2017) study on telecommunications in Ghana found that CSR responsibilities other than the legal dimension are associated with brand loyalty. CSR and corporate brand building in Ghana resonate the same with South Africa, despite their different backgrounds. Dapi and Phiri’s (2015) study on CSR and brand loyalty in South Africa found that knowledge of Vodacom mobile phone customers in South Africa enhances corporate image and brand loyalty, but they had little knowledge of the CSR concept. Ijabadeniyi’s (2018) study on consumers of three food manufacturing firms listed in the Johannesburg Stock Exchange found that CSR corporate activities entrench trust and legitimacy and promote corporate marketing in hitherto socially excluded

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communities. Ajayi and Mmutle’s (2020) study on ten reputable firms in South Africa found that CSR is positively correlated with a firm’s reputation, hence the need for effective communications to all stakeholders. Idomeh et al.’s (2019) study among tier one banks in Benin City, Nigeria, found a significant relationship between CSR activities and brand performance, but not on unbanked people. In the same vein, Ibrahim and Abubakar’s (2020) study on selected food and beverage firms in Nigeria found that CSR activities play a crucial role in corporate image building, same with studies by Kalejaiye and Adewusi (2021) and corporate reputation (Nwaonu & Ahamefula, 2017), hence the need to invest more in it. Manyange’s (2013) and later Mutavi’s (2020) studies on CSR and brand image in Kenya Commercial Bank (KCB) found that it enhances brand loyalty in the banking sector in addition to numerous other benefits to the stakeholders. Another study by Mburia (2018) on CSR and Corporate image in Kenya found that economically responsible firms foster corporate citizenship, which in turn promotes shared value and innovative business practices, but has significant impact on profitability. The author observed that CSR and brand image are intertwined and equally interesting is that the society expects firms to fully participate in philanthropic activities since it has an impact on community welfare, helps build relationships with stakeholders, and influences public perception of the firm, which results in competitive advantage. KCB social return on investment (SROI) report 2017 shows that KCB Mpesa’s initial investment of US$ 875,000 had realised US$ 2.5 billion in social value, US$ 1.15 million in economic impact, US$ 108,000 in environmental impact, and US$ 124 million in human resource impact over a span of ten years. Other KCB programmes, such as inua jamia (national safety net), which had an initial investment of US$ 18.8 million had realised US$ 199.2 million in social value, while, 2jiajiri (self-employment) under KCB foundation had invested US$ 166,000 that created US$ 1  million in social value. Rutto’s (2018) study on small and medium telecommunications firms in Kenya also found that CSR has a significant positive relationship with corporate identity. A similar study by Gathungu and Ratemo (2013) shows that CSR practice at Standard Chartered Bank in Kenya is aligned with the strategic intent (direction) and are embraced by employees, investors, and the community, albeit on a smaller scale.

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Schulz’s (2012) study on selected restaurants in Nairobi, Kenya, found that involvement in charity activities like cultural, sports, and other public events increase brand awareness among customers, and together with other promotional activities and trained service personnel, help build a good brand image and improve firm performance; however, restaurants must invest in quality brand names, consistent with the offering. The author further notes that brand image and positioning significantly contribute to the operational performance of restaurants. Gathungu and Karoki (2010) echoed similar sentiments that experience marketing builds a good reputation and powerful brand in the hospitality and tourism sector in Kenya. KCB Foundation’s 2019 Annual Report shows that strategic value activities had benefited over 34,000 youth in Kenya, spanning across agribusiness, building and construction, automobile engineering, beauty and personal care, domestic services, and ICT, with loans in excess of US$1.4 million and, in partnership with MasterCard foundation, secured US$125 m in 2020 in support of job opportunities in the next five years. Another initiative, ‘Mifugo in Mali’ had benefited over 80,000 pastoralists. Similar programmes ‘malkia wa nguvu’ women empowerment and ‘Igire’ youth employment programmes are in Tanzania and Rwanda, respectively. Njiru’s (2016) study found that national branding promotes the tourism sector in Kenya. Mary and Misiani (2017) further articulate that national branding of Kenya’s people (competence, behaviour, global athletes, expatriates), exports (flowers, tea) by Brand Kenya Board, tourism (flora and fauna, cultural/natural heritage sites, white sandy beaches) by Kenya Tourism Board, attractive investment destination by Export Processing Zone Authority (EPZA), Vision 2030 Delivery Secretariat, Export Promotion Council (EPC), Konza Technopolis Development Authority (KOTDA), LAPSSET Corridor Development Authority (LCDA), Kenya Association of Manufacturers (KAM), as well as the Kenya National Chamber of Commerce and Industry (KNCCI) builds a strong brand image of Kenya, which in our view is akin to corporate/ national social initiatives. However, in all cases, the sample sizes used are small or descriptive in nature, not subjectable to rigorous data analysis techniques.

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Safaricom brand changed the slogan from ‘the better option’, to ‘for you’ and later ‘twaweza (we can)’ aims to transform lives in all dimensions. Safaricom, 2020 sustainable business report, shows that the true value to Kenyan society stood at US$ 654 million, with sustained 192,747 direct and indirect jobs, economic value added US$ 358  million, while social externalities (on account of Mpesa) stood at US$ 234 million and environmental externalities were the lowest at US$ 406,000. Besides, Safaricom Foundation had so far committed over US$ 3 million to building communities and transforming lives in six sectors, namely education, health, economic, environmental, water, and disaster management (Safaricom Foundation, 2021). In addition, Mpesa Foundation (2021), was established as an independent charitable trust in 2010, which also supports health, education, environmental conservation, integrated livelihood, and philanthropic projects, and supports the Mpesa Foundation Academy. The Academy offers Kenya National Curriculum and International Baccalaureate Career-related programmes, all aimed at inculcating leadership, entrepreneurship, technology, and innovation among the youth (Mpesa Foundation Academy, 2021). Mwancha and Ouma (2017) empirically observed that Safaricom CSR activities made the brand reputable, enhanced financial performance, customer loyalty, and brand reputation. Cooperative bank branding bundled around ‘we are you’ is very close to the stakeholders and provides support in diverse ways. Cooperative Bank of Kenya wealth creation (economic growth) stood at US$36.6 million, while social investments through Coop Bank Foundation reached US$1.2 million since inception in 2007, Coop Consultancy & Insurance agency has conducted over 2700 business advisory services since 2002, and Coop Bank invested US$2.58 million on environmental sustainability programmes (wind, solar and tree planting among others) (Coopbank, 2021). The Foundation has been addressing sustainable social investment since 2007, under five pillars, namely agriculture, education, environment, health, youth and women empowerment (Coopbank, 2021). As a result, cooperative bank profitability has been steadily rising over the years, from 2018 ($18  m) to 2019 ($20  m), with a decline in 2020 ($14 m) attributed to the COVID 19 pandemic (Coopbank, 2021). Equity Group Holdings revolves around ‘your listening caring partner’ (transforming banking, investment, and insurance to a lifestyle) in many

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ways through Equity Group Foundation, which was established in 2008 to champion diverse CSR programmes dealing with education (wings to fly) which so far has provided scholarship to 26,304 students (13,775 university scholars), social protection that has transferred cash to the less fortunate worth US$24  million in partnerships with governments (Kenya, Uganda, Rwanda, and South Sudan), humanitarian and development agencies’ enterprise development has disbursed over US$44 million in Kenya alone, established over 33 health centres under the Equity Afia (health) programme, in addition to numerous programmes in agriculture and the environment (Equity Group Foundation, 2021). Equity Bank CSR activities contribute positive corporate image and enhanced customer loyalty; hence, more business opportunities (Muhumed, 2018; Mjomba & Rugami, 2017). Key examples drawn from the leading institutions in Kenya bear testimony of how CSR blended with corporate branding can be used to spearhead business development in Africa’s emerging markets.

Conclusion From South Korea to Pakistan and back to Africa’s emerging markets, it is discernible that linking CSR activities to corporate brand building maximises a firm’s economic and social benefits to both internal and external stakeholders. The example of Safaricom, Cooperative, and Equity bank serve as role models in integrating CSR activities and corporate branding activities in Kenya, which can be emulated by other countries. CSR plays a significant role in corporate brand building in emerging markets, specifically in Kenya, resulting in improved stakeholder engagement and good corporate brand reputation that resonate well with the firm’s core values, attributes, and business activities, even though the CSR activities examined are voluntary in nature and differ from one corporate to the other. Therefore, CSR efforts, whether strategic, altruistic, or coerced, are a source of competitive advantage used in emerging markets akin to developed markets to foster corporate brands and respond to economic, social, legal, and philanthropic concerns for all the stakeholders and ought to be emulated by all business entities for the sake of current and future endeavours.

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Recommendations Since CSR plays an important role in corporate brand building for both local and multinational firms in Africa, it is discernible that all CSR dimensions should be properly formulated and fully implemented by all firms in Africa. Further, if wholly integrated, business performance could be mutually beneficial since  CSR fosters corporate branding and vice versa. Whether or not sanctioned by an institution, CSR leads to a firm’s competitive advantage, good corporate image, brand reputation, and association, and ultimately to the economic growth of a country. CSR dimensions, like ethical responsibility, have over the years been used to sell and market African products through Fairtrade in developed markets, for instance, in the flower and tea sector in Kenya, and should thus be embraced and accorded full support and equally rolled out elsewhere. Thus, corporate branding is the core of brand development and, if well integrated with CSR, would yield optimal results for the firm and society since branding has both economic and social benefits. To achieve this, firms should endeavour to align core values, vision, and mission to be in tandem with CSR activities and engage all the stakeholders uniformly. At the same time, firms should clearly identify all intangible assets (firm’s reputation) and develop and reinforce them using CSR since it produces  desirable stakeholder-based outcomes. However, future in-depth analysis of the relationship between CSR and corporate brand building should be undertaken to fully isolate the effects of the variables under study.

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10 Brand Development Through Sustainability Certifications in Emerging Markets: Adoption of B Corporation Certification in Vietnam Nguyen Phong Nguyen and Emmanuel Mogaji

Introduction Corporate governance practices have changed drastically over the past few decades. Initially, they were based on the main premise of the business, which is maximising the shareholder value. Current changes have

N. P. Nguyen School of Accounting, University of Economics Ho Chi Minh City, Ho Chi Minh City, Vietnam e-mail: [email protected] E. Mogaji (*) Department of Marketing, Events and Tourism, University of Greenwich, London, UK Department of Research Administration and International Relations, University of Economics Ho Chi Minh City, Ho Chi Minh City, Vietnam e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 O. Adeola et al. (eds.), Marketing Communications and Brand Development in Emerging Markets Volume II, Palgrave Studies of Marketing in Emerging Economies, https://doi.org/10.1007/978-3-030-95581-6_10

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increased emphasis on other aspects of stakeholder value, mainly social and environmental concerns (Mogaji, Hinson, et al., 2021a). This corporate governance trend has led to the emergence of Certified B Corporations (B Corps). They are companies certified based on their value creation initiatives for the non-shareholding stakeholders. Some of the non-­ shareholding stakeholders include the local community, employees, and the environment. Corporations make amendments to the corporate charter on attaining certain predefined performance thresholds on the three dimensions to accommodate the interests of all stakeholders into the fiduciary duties of the officers and directors. B Lab launched the B Corporation certification in 2007. It provides the most formidable societal attempts to increase credibility and awareness of social entrepreneurship (Feng et al., 2020). B Corporation Certification entails a certification scheme developed by B Lab, an American non-profit organisation, in 2006. The adoption of B Corporation certification has increased continuously worldwide, and currently, there are over 3000 certified businesses. This study is contextualised in Vietnam as an emerging economy to understand its effort towards sustainability and its brand communication strategies. Vietnam is a country located in Southeast Asia. The capital city is Hanoi. The country is experiencing rapid demographic and social change, and the current population is 98,061,338 as of Friday, April 30, 2021, based on Worldometer elaboration of the latest United Nations data. The country is considered one of Southeast Asia’s fastest-growing economies. The World Bank recognises the country’s detrimental impacts on the environment and natural assets based on rapid growth and industrialisation. There has been increasing waste management and pollution challenges, the reliance on fossil fuels and increasing greenhouse gas emissions. The awareness about sustainability is, however, increasing as the Vietnam Business Council for Sustainable Development was established by the Vietnam Chamber of Commerce and Industry under the approval of the government in 2010 to promote the business community for the implementation of the Strategic Orientation for Sustainable Development in Vietnam. The country also joined 192 other countries in the United Nations in September 2015 to adopt the 2030 Agenda for Sustainable Development.

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There is evidence that businesses and organisations are shaping their brands to respond to the need for a sustainable business approach. While there are growing studies around sustainability and corporate social responsibilities in Vietnam, especially within agriculture manufacturing and fashion, Vuong et al. (2021) noted academic research in this area is still patchy and underdeveloped. This study, therefore, aims to contribute to this limited body of work by having a holistic view of companies in Vietnam, their sustainability initiatives, brand position, and marketing communications. Specifically, this study, firstly, aims to understand the adoption of B Corporation as a form of sustainability certification in Vietnam; secondly, to establish the types of industries adopting these certifications; thirdly, to identify how organisations are using these sustainability certifications to build their brands; and lastly, to understand their marketing communication around their sustainability certifications. This study makes a theoretical contribution to existing knowledge around sustainability certification, especially from an emerging economy like Vietnam. The study offers practical implications relevant for key stakeholders, including managers of organisations considering the certification, making efforts towards sustainability and managing sustainability, brand managers responsible for marketing communication and brand development. The subsequent section describes the literature review around sustainability certifications, focusing on B Corp and implications of these certifications on brand positioning, especially in emerging economies. The following section presents the methodology for the study, the data collection, and data analysis to arrive at the results presented in the subsequent section. The results of this research are further discussed in the discussion section. Finally, the practical implication of the study is presented in the concluding section, which also includes the limitations and agenda for future research.

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Literature Review Sustainability Certifications According to Harjoto et al. (2019), several factors influence organisations to obtain the B corporation certification. The firms’ decision to adopt Certified B Corporation status arises from the product market competitions and the owners’ demographic characteristics alongside geographical locality. These aspects draw from the gender socialisation theory, institutional isomorphism, and the ethics of care. Postulations from institutional isomorphism indicate that local communities tend to put coercive and normative pressures on the firms (Seyfried et al., 2019; Harjoto et al., 2019). The resultant pressure compels the firms to act responsibly by adopting Certified B corporation status. Competition in the product markets also triggers competitive isomorphism and mimetic isomorphism, which pushes businesses to adopt successful business models such as B corporations to gain legitimacy and earn a competitive advantage (Mogaji, 2021). Based on the gender socialisation theory, the scholars postulate that minority and female-owned firms are more likely to adopt Certified B Corporation status (Harjoto et al., 2019). It is also evident that the individual mechanisms of institutional isomorphism pose different impacts on the decisions by the small and medium enterprises (SMEs) to seek B Corporation certification (Grimes et al., 2018). Certified B Corporations are part of a global community of enterprises focused on meeting the highest social and environmental performance standards, legal accountability, and public transparency (Moroz et  al., 2018). These corporations utilise a set of empirically tractable social mechanisms that link social action and the resultant outcomes. They majorly capitalise on the uncertainty, open-endedness, and transformative nature of entrepreneurship. In this case, B Lab certification provides a temporal perspective based on distinct and impactful experiential events to reveal the opportunity processes and pro-social motivations within the specified entrepreneurial ventures (Moroz et  al., 2018; Morris et  al., 2018). As a pro-social certification, B Corporation Certification presents a host of benefits to the stakeholders. It presents a new set of choices that

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can be addressed by new bundles of resources. The pro-social certifications also mark a new beginning for many corporations (Conroy, 2007). It calls to attention the organisation’s actions and the interplay of its corporate values, social desirability, and the feasibility of the available opportunities. Studies indicate that Certified B Corporations update their previous opportunities through continuous sense-making and enactment. This process is procedurally initiated from the opportunity stratification stage, identity metamorphosis, and lastly, sedimentation or superseding work. The opportunity stratification stage is triggered by apprehension about the contradictions and apprehensions set against the accreditation process (Nigri & Del Baldo, 2018). The second stage of identity metamorphosis takes place within the temporal window. It entails continued competitive, historical, and comparative authentication processes to reconfigure the practices and broaden the organisation’s purpose based on internal distress and external feedback (Moroz et al., 2018). Lastly, the sedimentation stage helps the entrepreneurs develop new identities or combine the existing ones to establish the most appropriate opportunity to enhance the certification process.

F actors Contributing to the Adoption of B Corporate Certifications Firms operating in more competitive product markets mostly respond to competition by adopting Certified B Corporation status to portray an image of having better CSR performance (Harjoto et al., 2019). The willingness of SMEs to invest in becoming B Certified Corporations indicates the strategic nature of the move and its advantages. Many companies also focus on CSR initiatives to benefit the company and the immediate society by strengthening their competitive operational context (Harjoto et al., 2019). The increased propensity of the corporations to become B certified capitalises on the perceived advantages of external quality certifications. According to Goel and Nelson (2020), evidence from international manufacturing and service industries indicates that external quality certifications improve the firms’ overall conduct. B Corporation certifications offered by B Lab entail a special form of external validation that

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affects the firms’ conduct or general behaviour. These external validations positively impact the firm’s conduct, as it is compelled to engage in more meaningful CSR practices. According to Richardson and O’Higgins (2019), many organisations experience increased financial performance across all sectors following B Corporate Certification. The study further indicates that about 15% of the respondents have a likelihood of scaling to international status after the certification (Richardson & O’Higgins, 2019). It is in line with other responses indicating that B Corporation status contributes towards global growth through the networks established through the B Corporation network and increased consumer confidence following certification. Obtaining certification also enhances the reputation of the corporation and boosts its performance both directly and indirectly (Javorcik & Sawada, 2018). These impacts manifest through the gradual increase in the firm’s profitability. The resultant improvements in the firm are credited to the adoption of better and internationally recognised management practices, increased emphasis on quality assurance, and the implementation of continuous improvement processes (Nigri & Del Baldo, 2018). Disclosure of engagement in corporate social responsibility by organisations in emerging markets enhances the firm’s value. CSR engagement indicates the organisation’s initiative to broaden its purpose beyond maximising shareholder value (Wong et al., 2021). B Corporation sustainability certifications establish the organisations’ commitment towards the social and environmental aspects (Nigri & Del Baldo, 2018). The perceived increase in value of the firm arises from the observation that adopting B certification enables the consumers to identify the firm as truly sociable and environmentally responsible (Richardson & O’Higgins, 2019). This certification reduces the firm’s cost of capital while increasing the company’s market value, as measured by Tobin’s Q (Wong et  al., 2021). The increase in market valuation is beneficial to the stakeholders, especially in emerging markets, as it encourages responsible and activist investment (Mogaji, 2021). Despite lacking any significant impacts on the debts, B Corporation Certification, a common form of Environmental, Social and Governance (ESG) rating, benefits the cost of equity. These increments in the cost of equity are especially significant to the firm’s

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sustainability because the benefits accrue in three to five-year event windows (Wong et  al., 2021; Nigri & Del Baldo, 2018). The findings in emerging markets are consistent with similar studies in developed nations, indicating that stakeholders benefit from the firms’ adoption of Certified B Corporation status. Many enterprises are adopting B Corporation Certifications to demonstrate their dedication to managing the environmental and social aspects of the entity (Feng et al., 2020). Sustainability certifications in developing markets influence the firm’s market value through the establishment of legitimacy in operations (Chkanikova & Sroufe, 2021). Seeking legitimacy is meant to convince the stakeholders that the entity is focused on implementing sustainability within its operations. Sustainability mainly encompasses the environmental and social aspects of the business, which are mainly invisible to the general public. To this effect, adopting B Corporate Sustainability certification enables the enterprise to increase the legitimacy of their sustainability operations by making the sustainable management operations visible to the public. Empirical studies indicate that sustainable management practices positively correlate with the firm’s financial performance (Feng et al., 2020). The resultant financial performance implications are portrayed through the stock market performance. B Corporate sustainability certifications increase the organisation’s legitimacy on sustainable operations, which triggers positive reactions in the stock market. The market reactions depend on the different institutional contexts, such as sociopolitical legitimacy and cognitive legitimacy. Sociopolitical legitimacy is anchored on the stakeholders’ acceptance of the appropriateness of the organisation’s behaviours (Bitektine et  al., 2020). Among the essential sociopolitical stakeholders is the government, which determines the sustainable management practices implemented in the organisations (Feng et al., 2020). The second aspect of legitimacy entails cognitive legitimacy, which entails a social judgment of the appropriateness of sustainable management practices. It is derived from the initiatives to address the organisational practices to meet the appropriateness and desirability criteria in the given societies. Cognitive legitimacy accrues from the organisation’s publication of the information on the past sustainable development records. This

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move increases organisational acceptance by the society, and it is imperative on the stakeholder’s judgment of the enterprise. The perceived ethicality of a given organisation influences the job pursuit intentions of the job seekers and influences the ability to attract and hire quality content (Osburg et  al., 2018). This perceived ethicality is established through the ethical market signals such as sustainability certifications. Ethics in the corporations indicate its dedication to addressing social and environmental issues, making the firm an authentic advocate for all stakeholder benefits. This organisational aspect is especially significant among the millennials, who constitute a significant portion of the current job seekers (Osburg et al., 2018). Factors considered under ethicality entail the size of the organisation, type of working environment, and familiarity. These factors relate to the organisational culture and behaviour aspects which are among the most significant considerations by B Lab during the issuance of B Corporate Sustainability certifications. Previous studies have established a connection between sustainability and the economic performance of organisations (Nigri & Del Baldo, 2018; Bernal-Conesa et al., 2017; Shad et al., 2019). From the perspective of job seekers, economic performance determines the nature of working environments, competitive advantage, and development opportunities (Osburg et al., 2018). The working environment encompasses the impact of the organisation on the environment in such aspects as environmental pollution, eco-friendly production, and waste management. Thus, adopting B Corporate sustainability certifications is predicted to increase the chances of attracting quality talent. Adopting B Corporate Sustainability certification systems will increase awareness among the stakeholders on the need for environmental and socially sustainable systems (Poponi et al., 2019). These systems are based on the circular economy principles and other key requirements for the B Corporation certification process. Stakeholder awareness pertains to the uncertainty, volatility, and availability of natural resources. These three aspects entail the key compelling factors that have necessitated the adoption of circular economy systems. The circular economy is regarded as an industrial system, primarily regenerative by design and intention (Poponi et al., 2019). These systems have enabled the stakeholders to establish a match between reducing the number of natural resources and energy

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used in production and increasing the possibility of reusing the resources after the end of the product life cycle. Increasing public criticism towards the corporations regarding their relationship with society has compelled some entities to adopt Certified B Corporation status. This business structure is an ethical step towards empowering socially responsible commercial entities (Hiller, 2012). Certified B Corporations focus on socially aware business practices through the voluntary adoption of responsible decision-making standards. They deliver general public benefits through positive material impacts on the environment and society. The voluntary aspect concerning the corporations’ participation in socially responsible corporate actions suffices to categorise the actions of the Certified B Corporations under CSR.  This categorisation is based on the six-factor integrated framework devised by Crane et al. (2008). The Crane factors to analyze whether actions are characterized under CSR include whether (1) actions are primarily voluntary, (2) externalities are addressed, (3) multiple stakeholders are considered, (4) environmental and social interests are integrated, (5) CSR is adopted into value systems, and (6) CSR is operationalized (more than merely charitable acts) (Crane et al, p295)

The Proliferation of Corporate B Certifications Recent studies indicate that public interest in sustainability certifications has been increasing over the past few decades (Grimes et  al., 2018). However, significant differences have been observed between the social enterprises concerning the decisions to obtain B Corporate Sustainability certifications. Studies on the context and significance of gender on the differences between social enterprises also focus on an identity-based framework to account for the existing heterogeneity. The influence of gender on the adoption of B Corporation certifications arises from the increasing body of evidence indicating that gender is primarily imperative on entrepreneurship decisions and outcomes. Some scholars postulate that women social entrepreneurs face numerous liabilities based on gender stereotypes, institutional segregation, and patriarchy (Grimes et al., 2018).

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These institutional reasons compel them to adopt sustainability certifications as a suitable leeway to overcome the institutional liabilities. Gender-based identities also determine the propensity of the social entrepreneurs to adopt B Corporation certification. Studies indicate that women social entrepreneurs possess stronger pro-environmental attitudes than men, which increases the probabilities of adopting sustainability certifications in the business under their stewardship.

Methodology A qualitative methodology approach was adopted for this research. Multiple approaches were considered, which include content analysis, thematic analysis, and case study methodology. Specifically focusing on Vietnam as an emerging economy, this study recognises the insufficient documentation of sustainability certifications, particularly its prospect for building brand image and equity. To fill this gap, this paper explores the B Corporation directory and listed companies in Vietnam. The B Corp website (https://bcorporation.net) was considered the primary source of data for this study. The website has information about B Corps, contains the B Corp Directory, provides guidance on Certification and B Impact Assessment, and offers stories about B Corp companies worldwide. As of the time of writing (April 2021), there were 3928 companies on the B Corp Directory across 150 Industries in 74 countries, including Vietnam. The B Corp Directory was checked to identify companies from Vietnam which are certified and listed on the directory. The search revealed that only two companies from Vietnam were B Corp certified and listed on the directory. These two companies were considered for the case study analysis. Case study methodological approaches have now been adopted in business and management studies (Mogaji, Adeola, et  al., 2021b). It allows for enhanced understanding of complex inter-relationships and facilitates the exploration of unexpected and unusual findings (Palazzo et al., 2020). Though there is no ideal number of cases to use for a multiple case study method, Eisenhardt (1989) noted that a number between three and ten cases usually works well, but considering there are only two

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available companies from the B Corp directory, we used both companies’ cases to understand how Vietnamese companies are adopting sustainability certifications and communicating their brand values. The two units of analysis chosen are one manufacturing company and one agriculture company. Case 1 is Saitex International, adenim manufacturing company based in Bien Hoa, Dong Nai, while Case 2 is Les Vergers du Mekong JSC, Agriculture producer in Can Tho, Mekong Delta, Vietnam. Multiple sources of data were generated during the study, comprising B Corp profile, certifications, and a review of various social media and websites, all of which were put into a research database (Yin, 2015). These contextual data were the primary sources for developing the summary of findings presented within the findings section. The data was analysed progressively by the authors. Braun and Clarke’s (2006) strategy for thematic analysis was adopted to understand the messages and curate information from the company’s website and B Corp profile. This includes the familiarisation with and immersion in the data. This involved analysing the website repeatedly to identify the company’s statement around its sustainability. Olaleye et al. (2020)‘s social media analysis approach was also adopted to understand the brand’s marketing strategy on social media. The analysis stage also involved reiterative discussion between the authors; as Miles et al. (2013) suggested, a rigorous peer debriefing process bolsters our data credibility.

Results The research sought to understand the adoption of B Corp as a sustainability certification by companies in Vietnam. We anticipate that companies will be more inclined to work towards being certified as a sustainable brand and make an effort to communicate their satisfaction to stakeholders. With 3928 currently listed on the B Corp directories and only two companies (0.05%) from Vietnam are listed, there are indications that companies in Vietnam are not adopting sustainability certification. Even though less than 1% of the B Corp listed companies are from Vietnam, there are still many countries from emerging economies like Sri Lanka, Azerbaijan, Tajikistan, Lebanon, and Brunei that are not represented in the 74 countries on the B Corp Directory.

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These two companies from Vietnam are from two different industries. Saitex International is operating in the fashion industry, and it is a large-­ scale denim manufacturer. Les Vergers du Mekong JSC is a sustainable agriculture firm in the gourmet and healthy food and drink sector. Considering that fashion production and manufacturing have a huge impact on sustainability, the B Corp certification aligns with their values. On its B Corp profile, Saitex states that: SAITEX is on the path to change perceptions of how dirty the fashion industry can be. With the use of processes that are gentle to the planet and its people, they believe they have been given a tool that should benefit all and do no harm.

The profile further showcased their social enterprise’s initiatives, efforts towards champion diversity and inclusion and commitment towards achieving a circular economy throughout the supply chain. With their social entrepreneurship project named Rekut, they want to champion diversity and inclusion in Vietnam to inspire others to follow. The one-of-­ a-kind production line provides training and employment to differently able people who produce upcycled apparel, accessories, and home furnishing. Their new fabric mill in Vietnam, with interesting partnerships with cotton farmers and their first semi-automated factory in Los Angeles along with their Vietnam facilities, transforms Saitex into a vertical entity. SAITEX commits to achieving a circular economy throughout the supply chain.

Recognising their power of innovation and credit to their recycling system and green resources usage, the company reached high standards related to direct and indirect environmental impacts of their business operation. With 57.2 points, Saitex was better off than Les Vergers du Mékong with 23.3 points. Saitex International had an overall B Impact Score of 105.6 on the B Corp’s index out of 200. To put that in perspective, the median score for ordinary business is 50.9, while companies must reach at least 80 points to be certified. The other company is Les Vergers du Mékong, a food and drink production company classified under Agricultural producers. With its business operations—creating and locally processing natural products and

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the direct distribution in Vietnam—it recognised it has a responsibility to the planet and the community. This company takes pride in the trust it has built within a strong, sustainable value chain that integrates approximately 2000 small-scaled farms in Vietnam. This was evident by its Impact Area Scores for worker and community, which was higher than Saitex, considering it operates in the same country, albeit in different industries. On its B Corp profile, Les Vergers du Mékong states that: Real sustainability can only be achieved when all parts of the food supply chain work together and integrate small farmers into the food value chains. Sourcing for shared value reinforces the company’s contribution to preserving the environment; revitalising rural communities; improving the living standards of family farmers, and help the company produce healthy and traceable products.

The comparisons between both companies are presented in Table 10.1. Having the certification is one thing, but communicating it to stakeholders is also another effort towards building the brands. Both companies had a link to information about their B Corp certification on their websites. When the websites were visited in April 2021, Les Vergers du Mékong has their information on their About Us page. The site also contained information about their other certifications for their fruit juices. Les Vergers du Mékong took pride in its achievements as the first company in Vietnam to achieve B Corporation certification. On their website, they stated that: Table 10.1  B Corp certification representatives from Vietnam Name Founder Location Sector Date of certification Overall B impact score Impact area Governance scores Worker Community Environment

Saitex International Sanjeev Bahl Bien Hoa, Dong Nai Manufacturing June, 2019 105.6 7.8 17.5 22.9 57.2

Les Vergers du Mekong JSC Jean-Luc Voisin Can Tho, Mekong Delta Agriculture/growers June, 2019 85.7 8.3 24.5 29.5 23.3

Source: Compiled by Authors from the Company’s B Corps (2021) Profile

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First B Corp certification in Vietnam. Les Vergers du Mékong is the first company in Vietnam and Cambodia to achieve B Corporation certification, joining the community of more than 2800 B Corporation certified businesses in 150 different industries.

Saitex International, on the other hand, was more upfront with their information about their certification. There was a button with the B purpose that tells a story about their certification and their points for each of the certification criteria on the home page. On their website, Saitex International stated that: We want to be a key part of the global shift to better our world. We are proud to become the first factory in Asia and the only large-scale manufacture of denim with B Corporation™ Certification, a score of 105.6. Achieving B Corp™ certification is an opportunity for us to communicate, spread impact and help strengthen the community that is redefining responsible production.

Beyond their website, the social media profile of these companies was further examined to understand how they are communicating their brands considering their certification. Saitex International had both Instagram and LinkedIn, while Les Vergers du Mékong had LinkedIn and Facebook. Saitex International did not reference its certification on LinkedIn, while Les Vergers du Mékong flaunted it on LinkedIn. Its profile reads—purpose-driven food and drinks production company—First certified B Corporation in Vietnam and Cambodia. It took pride in its certification. Saitex International was, however, more active on Instagram. As of April 2021, it has made 272 posts. 2.84% (n = 8) of which were on its B Corp certification. Most of the posts (n  =  6) were between June and August 2019, when the company obtained its certification. On June 27, 2019, the company announced its certification on Instagram with this caption: We’re proud to announce that SAITEX is now a Certified B Corporation™ with an outstanding score of 105.6, making us the only large-scale denim manufacturer in the world and the only apparel factory in Asia to achieve B Corp™ distinction. We will also share more details in the upcoming posts! #ImpactTheWorld #bcorporation.

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There were 19 comments to this post, with a majority of them congratulating Saitex International and welcoming them to the B Corp family. Those commenting acknowledge that it was an excellent achievement for the company and extraordinary commitments. One of the comments was: Wonderful to see this come to fruition. Testament to your commitment and dedication. Congrats to the entire company. Keep leading from the front.

On July 9, 2019, there was another post, but there were no comments even though it had over 400 views. The caption was another announcement about the company’s pride in being a part of the B Corp community. The caption was: We’re honoured to be part of the B Corps community, where over 2,780 companies across the world join hands for a unifying goal, which ignites a systemic global change in business. #BtheChange #ImpactTheWorld

Almost one year later, on October 24, 2020, Saitex International reminded its followers about its other certifications, including B Corp, which received a special mention. The company captioned it with: Saitex is GOTS, BLUESIGN, ZDHC, GRS, Oeko Tex, C2C, FAIRTRADE certified. And also a B Corp. Being certified isn’t a destination but a beginning to a long journey of commitment, innovation and reinvention.

Saitex International also shared a press briefing announcing its B Corp certification on its Instagram. There was a Guest Editorial in Sourcing Journal, a global resource for news and information tailored for apparel and textile executives which iterates Saitex International’s journey to B Corp Certification. Here we see evidence of conscious marketing communications efforts from Saitex International to showcase its sustainability certification, the long and challenging process the company went through to achieve this and, importantly, position its brand positively. We see the company often claiming to be the only B Corp apparel factory headquartered in Asia and reassuring its customers that its products are made with the quality of the ingredients in mind and the lives of the people who made them.

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Discussion This study sought to understand the adoption of sustainability certification for brand development in emerging markets. With a specific focus on B Corp in Vietnam as an emerging market in Asia, we established that organisations in Vietnam are not fully adopting sustainability certification and showcasing their sustainability initiatives and advertently enhancing the positioning of their brands. We recognised numerous organisations in Vietnam across different industries, which raises concerns around their lack of adoption. We recognise key possible reasons why many companies in the country and even in many other emerging markets may not meet the tough requirements for the B Corp certifications. First, it is a very tough process that may take up to three years to complete, with processes questioning their business practises, which may not be up to accepted standard considering they are operating in emerging markets. Second, there could be a lack of awareness. Perhaps some business owners are not aware of such a certification program and therefore not inclined to adopt it. Third, there could be a lack of motivation and recognition for the values of being B Corp certified. Many brands may wonder why they must invest their resources into the certification if it does not add much value to their company. For those who have gone through the process and got certified, it was worth seeing them take pride in their achievements and document their achievement on their social media profile and website. These companies were willing to communicate these achievements to their stakeholders. They showed the B Corp logo on their website and social media, making an effort to effectively position their brand as a sustainable brand that is not afraid to be held responsible and willing to act continually. It is anticipated that these marketing communications and brand awareness may influence other brands, especially in emerging economies Abdulquadri et al. (2021), to take responsibility and work towards being certified. While the certification and the badge may not be the ultimate reward, brands need to recognise the need to do business that respects the environments and take care of stakeholders within the supply chain.

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These certifications are there to challenge bad practices and nudge brands towards doing the right thing. Findings from this study offer key theoretical contributions. Firstly, it contributes to the existing body of work on sustainability certification and impacts on brand management (e.g., Berghoef & Dodds, 2011; Harris, 2007; Vandergeest et al., 2015), and it recognises how organisations that have been certified are making an effort to flaunt their certification across their social media platform and websites, engaging with stakeholders and communicating their brand values (Grimes et al., 2018; Harjoto et al., 2019). Secondly, it provided evidence from an emerging economy of how their companies are adopting sustainability certification. The study recognises the inherent challenges with sustainable business practices in emerging economies and highlights the level of adoption for sustainability certifications (Chan et  al., 2019; Mogaji & Nguyen, 2021). There are also managerial implications as a result of this study. First, companies that have the B Corp certification need to communicate their achievements to their stakeholders further. Social media appears to be an essential platform, and it should be adopted to educate and engage with the stakeholders (Gökerik et  al., 2018; Farinloye et  al., 2020). There should be relevant content to stir up conversation and generate comments from the followers. The companies should also showcase their certification on their corporate website. As seen with many other B Corp certified companies, they often put the B Corp certification logo on their website’s footer, a form of endorsement and credibility. This logo was not visible on the website of the two companies in Vietnam. Companies should be aware of the brand guidelines provided by B Corp and adopt the logo on their marketing communications campaigns. It is an achievement that needs to be celebrated and showcased. Customers are more selective about whom they purchase from, and seeing their identity of B Corp may be the key difference that sets the brand apart. This is considered a recommendation for sustainable brand personalities (Paetz, 2021). Secondly, companies that have not been certified need to start considering it. It is undoubtedly a long process, and the criteria may be difficult to achieve in emerging economies. These companies should give it a try and explore the possible impact on their company. The effort towards

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getting certified may be an eye-opener for many organisations to improve their sustainable business practices and positively impact their customers. Even if the business is new, the owners can consider earning B Corp Pending status and publicly communicating their commitment to society and the environment. It is important to note that Pending B Corp status is available only to companies with less than 12 months of operations. Thirdly, B Lab Company, the company that created and awarded the B corporation certification for for-profit organisations, needs to communicate value to business owners in the emerging economies. There are possibilities that many business owners do not see value in getting the certification. Therefore, B Lab Company needs to reach out to businesses in this part of the world to understand what they stand to benefit from being certified as part of the B Corp community. The sustainability certification is not just for the developed countries. Businesses around the world must be supported to be sustainable. Lastly, this present practical implication for policymakers, government departments, and trade associations to support their companies in committing towards the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose (B Corps, 2021), as expected by the B Lab Company. These stakeholders can improve business practices, educate their members, and put the policy in place to ensure the companies are working sustainably. With these supports, they stand a better chance to get certified and improve their brand proposition.

Conclusion People want to work for, buy from, and invest in businesses they believe are sustainable and make an effort towards protecting the environment, their staff, and suppliers (Ho et al., 2018). Organisations have turned to sustainability certification to demonstrate these commitments, to earn credibility, and to build trust with their customers (Ponnapureddy et al., 2017). One of such sustainability certifications is B Corps which has a directory of companies that reduced inequality, leading to lower levels of poverty, healthier environment, stronger communities, and the creation

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of more high-quality jobs with dignity and purpose (B Corp, 2020). This study examined this directory to understand the adoption of sustainability certification in Vietnam and found that only two companies, each from agriculture and manufacturing, were B Corp certified. The study further found the marketing communication and brand-building strategies of these two companies as they flaunt their achievements across their website and social media profile. This study offers key theoretical and practical implications and opens opportunities for future research. This study has only focused on one country in Asia. Future studies can also explore how companies in other emerging countries are adopting sustainability certification, the industries that are adopting these sustainability certifications and how they are being communicated. In addition, further studies can seek to understand the motivations and limitations for the adoption of the certification to understand the challenges, especially in emerging economies. Lastly, consumers’ perception in the merging market is also worth considering, understanding if companies will be motivated to work towards their sustainability certification if the customers are mindful of it. Like any other studies, there are limitations to this study, and therefore, results should be interpreted in that knowledge. This study has only focused on one country and companies listed in the directory from the country; therefore, the information may not be generalisable. In addition, secondary data from social media and websites were collected to understand the brand positioning strategy. Future studies can seek to interview managers and customers to better understand the brands’ positioning strategies.

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11 Critical Green Innovation Themes for Brand Development in Emerging Markets Mohammed Majeed

Introduction As emerging countries expand, marketers must comprehend their distinctive qualities and question established marketing practices. Sheth (2011) recognised five fundamental features of emerging markets: market heterogeneity, socio-political governance, chronic resource scarcity, non-­ branded competitiveness, and poor infrastructure. It is crucial to emphasise that understanding consumers in emerging markets and meeting their needs demand careful articulation and communications of brand offerings to stimulate purchase. Hence, such distinct characteristics require new insights to help organisations better understand brand development in emerging markets (Burgess & Steenkamp, 2006). In recent times, attention has been given to green themes in emerging markets as a critical aspect of branding (Adisa et al., 2021; Ishaq & Di Maria, 2020;

M. Majeed (*) Marketing Department, Tamale Technical University, Tamale, Ghana e-mail: [email protected]; [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 O. Adeola et al. (eds.), Marketing Communications and Brand Development in Emerging Markets Volume II, Palgrave Studies of Marketing in Emerging Economies, https://doi.org/10.1007/978-3-030-95581-6_11

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Schaffmeister & Haller, 2018). Therefore, embedding sustainability practices in organisational activities towards product branding in these uncertain times has become more necessary. Adopting green innovations in the advent of the Covid-19 pandemic is more urgent than ever, especially in emerging markets with a generation cohort that is green conscious (Adisa et al., 2021) Green Innovation (GI) is a new-fangled way of thinking and entails practices that are transforming many industries, society, environment, customers, and firms. GI is seen as a critical strategy for dealing with growing environmental issues, strict environmental regulations, and increased stakeholder pressure (Tang et al., 2018). It can assist businesses in meeting customer demands, gaining a competitive advantage, and achieving long-term growth (Melander, 2018; Liao & Long, 2019; Pachecoet et al., 2018; Du et al., 2007). GI is the development of new markets, products, and processes that benefit both the consumer and the supplier to reduce negative environmental impacts and increase efficiency (Khaksar et al., 2016). GI refers to green products or processes, such as technological advancements in energy conservation, pollution prevention, waste recycling, green product design, or environmental management (Chen et al., 2006). Green innovation is a strategic need for firms, and it offers a great opportunity for meeting buyers’ wishes without harming the environment (Leal-Millán et al., 2016). As a result, the concept of GI has evolved from resource-focused descriptions to a more comprehensive framework that takes into account the firm’s compliance with stakeholders’ green requirements and demands. Yet, the critical themes such as the enablers, drivers, and categories of green innovation have received less or no attention in the literature. Also, despite growing academic awareness of these topics (Horbach et al., 2012), learners’ and researchers’ understanding of the themes and impact of green innovation has received limited attention. In fact, the theoretical expectations and observed results of their impacts on branding remain inconclusive (Yao et al., 2019). Hence, the goal of this chapter is to highlight for readers, the enablers, drivers, and categories of green innovation. The rest of the chapter is structured as follows: the next section will elucidate the literature review, which

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comprises branding, enablers, drivers’ categories of GI, and GI and branding. Finally, the last section presents the conclusions.

Green Innovation in Emerging Markets Davis et al. (2016) noted that enhancing productivity in organisations necessitates innovation. Organisations have been forced to modify and implement innovation processes to improve their performance as marketplaces have become more competitive. New or altered processes, services, and products implemented by organisational leaders are examples of organisational innovation. To be inventive, top managers must be proactive in resource allocation and participate in decision-making (Prasad & Junni, 2017). Organisational leaders, according to Prajogo (2016), can regulate or influence the innovations within the company. The actions of management in a firm and involvement in innovative activities are dependent and sometimes driven by market demand and external factors (Meng & Brown, 2018). The concept of green innovation is similar to the common definition of innovation, however, it also incorporates the goal of reducing the negative consequences on the environment (Carrillo-Hermosilla et al., 2010). Kemp and Pearson (2007) described green innovation as the development, implementation, or use of a product, manufacturing process, service, or management method that is original to the companies developing or adopting it. Throughout the product’s life cycle, this method is utilised to reduce environmental risks, pollution, and other negative repercussions of resource usage. Green innovation, according to Halila and Rundquist (2011), is a broad phrase covering a variety of inventive actions. It aids in the improvement of the ecological environment and contributes to long-term development. Different experts (Chen et  al., 2006; Chithambaranathan et al., 2015) have come to a consensus on the definition of green innovation after a thorough examination of these topics, which includes the following: (a) the entire product life cycle; (b) innovative items include products, processes, services, and methodologies; and (c) the goal of innovation is to decrease or eliminate environmental impacts.

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According to Ma et al. (2017), green innovation is defined as new or modified ecologically safe processes, techniques, systems, and products. According to Hojnik and Ruzzier (2016), green product innovation consists of new or changed products, whereas green processes include new or changed production, equipment, or environmentally sustainable methods. Green innovation is defined as the decrease in energy consumption and pollutant emissions, trash recycling, resource sustainability, and green product design (El-Kassar & Singh, 2017). Green innovation refers to the modification of products and processes, as well as technological, managerial, marketing, organisational, and operational innovations that aid an organisation’s long-term viability (Weng et al., 2015). The introduction of green innovations into emerging markets will serve as a powerful catalyst for the expansion of markets and the development of sustainable businesses and economies. A number of novel techniques for accelerating the spread of innovation into poor nations are now being researched and tested (OECD, 2012). A key role for knowledge markets and networks in this transfer could be played by innovative intellectual property collaboration mechanisms (patent pools are just one example), which allow for a greater flow of green technology research,

Case: 2021 Ghana’s Green Innovation Challenge Ghana is a 30.8  million population nation (Ghana Statistical Service GSS, 2021), with so many resources, including gold, oil, timber, salt, cocoa, diamonds and so on. Since the Rio summit, Ghana has made significant strides in the formulation and implementation of sustainable development (SD) initiatives. Institutions for sustainable development have been developed, and the use of SD as a development tool has been recognised and is currently being applied in Ghana as an innovative challenge (Ministry of Environment Science and Technology, 2012). Ghana’s efforts to improve green innovation led to the introduction of Green Innovation. The main goal is to support green entrepreneurs and small and medium enterprises (SMEs) to enhance green operations in Ghana. It also aims to address the underlying reasons for irregular migration through green and climate-­resilient local economic development, as well as to improve the prospects of beneficiaries by generating job and entrepreneurial possibilities in certain sectors and areas of the country. The Boosting Green Employment and Enterprise Opportunities in Ghana (GrEEn) project is being led by the Ministry of Local Government and Rural Development (MLGRD). The European Union Trust Fund for Africa (EUTF) (continued)

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(continued) provides funding for the GrEEn Project. In this four-year project, the United Nations Capital Development Fund (UNCDF) collaborates with Netherlands Development Organization (SNV) and a number of other partners to bring learnings and best practices to the national discussion and, perhaps, to policymakers’ attention (UNCDF, 2021). A total of 25,000 Euros was set aside to award each SME participating in this challenge for 2021. The other objectives of the green innovation challenge in Ghana include to promote green and circular economy, promote green service/product innovation in Ghana, provide green jobs whilst strengthening green business skills of green entrepreneurs, and finally, to improve access to green markets for green products. The criteria for participation are: the SME activities/solution must positively influence the society/community, environment, and climate; must be related to water, sanitation and hygiene (WASH), energy efficiency, and renewable energy; the solution must have been developed and sent to the market; the developer must be between 18 and 35 years; and finally, priority is given to women. Source: GrEEn Innovation Challenge 2021 for Ghanaian entrepreneurs and green SMEs. | Opportunities For Africans|GrEEn Innovation Challenge 2021 for Ghanaian entrepreneurs and green SMEs. | Opportunities For Africans 2021 GrEEn Innovation Challenge | SNV World|2021 GrEEn Innovation Challenge | SNV World

development, and adoption in both the developing and developed worlds. For example, in Ghana, there are initiatives (see case) introduced by the Ghanaian Government to promote sustainable practices.

Benefits of Green Innovation (GI) Manufacturing firms’ current business practices contribute to critical sustainability issues, such as energy security, industrial pollution, noxious waste discharge, and climate change. In emerging markets, green innovation has emerged as a paradigm for dealing with the growing pressures of natural resource extraction. Green product and process innovation focus on improving financial return, which is regarded as a critical component for local business survival in emerging markets (Tukker et  al., 2006). Green innovation must be beneficial to all parties involved in its implementation. To be considered eco-innovative, the value related to a new

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product or process must make a clearly defined contribution in the environmental and/or social fields (Ryszko, 2016). Green innovation is believed to improve organisational effectiveness, competitive advantage, and environmental performance in companies that incorporate it into their business strategy (Cheng et al., 2014; Zhu & Sarkis, 2004; Chen et al., 2006). The adoption of green product and process innovation is linked to a company’s competitive advantage as well as its environmental performance (Chen et al., 2006). Green process, product, and organisational innovation all work together to improve a company’s synergy and efficiency, allowing it to enter new markets, increase sales and profits, and ultimately improve overall performance (Lau et  al., 2010; Zhu et  al., 2008; Kneller & Manderson, 2012). Green programmes are only implemented when businesses believe that doing so will result in financial gains, operational improvements, and a boost to their competitive advantage (Chiou et  al., 2011). Green programmes would almost certainly improve the organisation’s overall environmental performance (Chithambaranathan et al., 2015; Weng et al., 2015). Green innovation practices are valuable, inimitable, and non-substitutable resource that allows businesses to develop capabilities that lead to improved business performance (Cheng et al., 2014). Process innovation, product innovation, and organisational innovation all have characteristics that contribute to a company’s environmental and financial performance.

Components of Green Innovation In emerging markets, green innovation can be categorized as green product, green process, green organisational, green market, and green managerial innovation (Chen et al., 2006; Seman et al., 2019) (see Fig. 11.1).

Green Product Innovation (GPI) Green product innovation is when green innovation has been used to establish novelty in product development. Green product innovation is a mix of new and enabling better technologies aimed at shortening the

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product life cycle and gaining a competitive edge (Carrillo-Hermosilla et  al., 2010). Light-emitting diode bulbs, solar cars, and reusable jute bags are all good examples. Green product innovation is viewed as a differentiating factor in the production of environmentally friendly products and the firm’s market attractiveness. According to various studies, green product innovation may take some time to generate financial benefits (Rehfeld et al., 2007). It serves as an innovative tool throughout the product life cycle to reduce environmental and human health impacts (Christensen, 2011). Product improvements related to environmental innovation make up green product innovation performance (Chen, 2008). As a result, green products are created to provide a dependable solution for environmentally conscious consumers looking for low-cost, high-quality eco-friendly products (Chen et al., 2015). As a result, businesses should seek external environmental knowledge to meet environmental protection requirements and develop new, greener products or improve existing ones (Chen, 2008). Green products or services are intended to provide a dependable solution for environmentally conscious consumers looking for low-cost, high-quality eco-friendly goods or services. Customers’ green purchase criteria must be met by all green products or services (Chen et al., 2015).

Green Process Innovation (GPRI) Green processes are defined as newer and better mechanisms for reducing the environmental impact incorporated into the manufacturing process, such as closed loops for solvents, material recycling, or filters (Negny et al., 2012). Emerging markets have already adopted green processing as a mechanism for sustainability (Ni & Wan, 2017). Green process innovation helps to improve technological capabilities in the manufacturing process by maximising raw material utilisation, lowering production costs per unit, and producing high-quality products (Singh et al., 2016). Green process innovation technologies include end-of-pipe and clean technologies to eliminate carbon pollution, garbage, and pollution in the manufacturing system (Chen, 2008). Green process innovation is used as an additive measure in a manufacturing system to develop green products

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and services with positive environmental externalities and cost savings (Rennings, 2000). Process improvements related to waste and oil recycling, pollution prevention, and other aspects of green process innovation are included (Chen et al., 2015).

Green Organisational Innovation (GOI) Several businesses are compelled to engage in activities that produce and enhance revenue (Porter & Kramer, 2019). Rapid economic expansion has resulted in an overuse of non-renewable resources, harming the environment and raising several environmental concerns (Atlin & Gibson, 2017). It aids in the development of a wide range of activities, such as eco-learning, eco-product design, and eco-process design, to cultivate an environmentally friendly workplace (Afridi et al., 2020). Green organisational innovation improves firm performance by lowering transactional, administrative, and supply costs, while also increasing employee satisfaction (Feng & Chen, 2018). According to strategic theorists, green organisational innovation creates a unique mechanism for utilising all aspects in a well-coordinated manner, allowing the organisation to reap significant benefits.

Green Market Innovation (GMI) Green market innovation behaviours are acts taken by customers who are more likely to live a healthier approach, even if this means paying a higher price for green items (Gilg et  al., 2005) in green innovation markets. Cooperation with retailers (Hong & Guo, 2019) and distributors (Sellitto, 2018) are some of those actions concerning green innovation issues. Others include worker and consumer health and full regulatory compliance, which necessitates a thorough understanding of current local laws (Ferreira et al., 2017). Finally, green market innovation refers to the installation and operation of modern equipment in the entire supply chain that uses less energy and emits less carbon (Jabbour et  al., 2017), as well as the reduction of scrap, garbage, rework, burrs, and leftovers (Jabbour et al., 2017; Sivakumar et al., 2015).

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Green Managerial Innovation (GMGI) Green Managerial Innovation (GMGI) refers to firms’ management attention to green innovation, which increases the environmental performance and competitive advantage (Seman et  al., 2019). Accordingly, GMGI suggests that green innovation and stakeholder greening are significantly linked to organisational environmental performance and competitive advantage (Seman et  al., 2019; Skjøndal Bar, 2015). GMGI benefits organisations through cost-savings, improved environmental efficiency, and enhanced productivity and product quality, which directly contribute to an improved competitive advantage (Huang et al., 2016) (Fig. 11.1).

Green Product Innovation (GPI)

Green Process Innovation (GPRI)

Green Organizational Innovation (GOI)

GREEN INNOVATION

Green Market Innovation (GMI)

Green Managerial Innovation (GMGI)

Fig. 11.1  Components of GI. (Source: Chen et al. (2006) and Seman et al. (2019))

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Drivers of Green Innovation Technological System and Communication Tools Technology has taken the centre stage of the world and is more critical to developing markets since it is still inadequate in those areas. The first of these outcomes is motivated by the need for growing safety remedies that encompass the entire spectrum of aspects in the technological system (Horbach et al., 2012). Green growth promotion in most emerging economies is often focused on catch-up innovation and the distribution of already-existing technology rather than on the development of new technologies from the ground up. In terms of skipped greener development, the cost of not embracing, adapting, and utilising existing green technologies can be quite significant for all countries in the long run (OECD, 2012). The extent of empirical formalisation and the richness of the skills required for green innovations have been proposed as explanations for the latter (Cainelli et al., 2015). Additionally, technological tools help to improve consumer awareness creation about eco-friendly products and shapes consumer behaviour towards green offerings. Existing technology system solutions such as Big Data Analytics, artificial intelligence (He et al., 2020), internet of everything, internet of things, and cloud computing are utilised for organising and sharing information for firms. These technological tools started since the invention of the electric telegraph in 1831, the invention of telephone in 1849 and the mobile phone by Motorola in 1973 to the present technology transformation era where IT-based communications have superseded all other forms of communications. Green innovation communication has been easier and faster as a result of the internet, which has enabled firms to stay in touch with customers irrespective of time or place. It has increased the speed at which firms communicate, conduct business, and broadened the range of possibilities available in the green arena. Individuals have been able to establish their own voice and express themselves through social media platforms such as WhatsApp, Facebook, YouTube, Instagram, Imo, Ayoba, Twitter, and Telegram. A clear case is the use of digital tools by brands to communicate to customers during the Covid-19 pandemic (García-Santiago, 2021).

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Employee’s Knowledge Inside the production process, employees’ knowledge, skills, and experience are likely to play a large role in innovation initiatives. With this in mind, it appears that knowledge sharing can be viewed as a valuable input for innovation due to its firm-specific, socially complex, and path-­ dependent characteristics (Chiang & Hung, 2010). In some emerging markets, such skills are still lacking. Relationships with external partners provide a source of learning and allow for the creation of new knowledge. The organisation’s skills are combined with the unique and complementary competencies of the network’s other participants through these exchanges. These exchanges allow for the conversion of organisational capabilities as well as the creation of new knowledge to restore organisational capacities. A company’s ability to transform and exploit knowledge influences its level of innovation, such as new problem-solving programs and technologies products for quick market response (Goh, 2002).

Competitive Advantage Enablers Most emerging markets are trying to adopt generic strategies such as cost reduction and differentiation (Porter, 1985) as a result of green innovation make up the competitive advantage construct. Cost savings are primarily achieved by reducing defective parts, leftovers, and process losses (Dangelico, 2016). Differentiation is primarily based on unique and premium features (Tang et  al., 2018), as well as greater quality standards than competitors (Hojnik & Ruzzier, 2016). According to Fernando et al. (2019), even if inventive acts do not emerge from a formal, planned program or strategy, green innovation offers competitive benefits for a company within the sector. One result is a positive corporate image (Testa & Iraldo, 2010), which is linked to a desire to deal with relevant problems that have broader ramifications, even in the face of strict regulation. Rather than short-term compliance, a corporation that supports innovative, consistent acts may be granted client loyalty, which is more than just an economic preference (Sellitto et  al., 2020). Another result of GI is increased client satisfaction with products and services, which is achieved

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by providing products and services that are environmentally responsible (Chávez‐Dulanto et al., 2020; Tang et al., 2018). A third effect is expanding market share (Green et al., 2012) by bringing in new markets and customers (Tang et  al., 2018), which is frequently based on premium items and may imply a larger manufacturing scale (Dangelico, 2016; Fernando & Wah, 2017). Corporate image, customer happiness, and market share are all competitive enhancers (Sellitto et al., 2020). The business image, customer satisfaction, and increased market share are all part of the competitive enabler construct (Sellitto et al., 2020). Product and customer-focused innovation have been shown to improve corporate image, customer happiness, and market share (Darnall et  al., 2018; Kushwaha & Sharma, 2016). Similarly, Buzuku and Kässi (2019), Buzuku et al. (2018), Geng et al. (2017), Jabbour et al. (2017), Sellitto et al. (2019), Sivakumar et al. (2015) discovered that GI focused on eco-efficiency has an impact on competitive enablers (Buzuku & Kässi, 2019). Finally, competitive enablers have an impact on strategic concerns, as evidenced by prior research (Sellitto & Hermann, 2016, 2019), which discovered comparable linkages across goods and industries.

Resources Based View (RBV) From a theoretical standpoint, Resources Based View (RBV) refers to the firm’s resources that enable it to execute green innovation and the organisation’s ability to implement business strategies to achieve organisational goals (Almatrooshi et al., 2016). The RBV investigates and interprets the resources of the organisation to determine how it achieves long-term competitive advantage. The RBV focuses on the concept of the firm’s difficult-to-copy characteristics as sources of superior performance and competitive advantage (Takahashi, 2015). Another major concept in the RBV is that company executives exploit and optimise internal resources to achieve a competitive advantage over competitors (Campbell & Park, 2017). Green innovation necessitates the features of emerging markets such as new knowledge components, and the micro-firm frequently demands more resources than are available internally to handle this

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inventive process (Leonidou et al., 2017; Peng & Liu, 2016). To expand their knowledge base, managers rely on the knowledge available internally and through open sources of information (Kunapatarawong & Martnez-Ros, 2016), such as friends, family, close allies, support agencies, and higher education institutes (Kunapatarawong & Martnez-Ros, 2016; Kelliher & Reinl, 2014). External resources are frequently accessed through regular and close partnerships with others (Peng & Liu, 2016) to promote communication and sharing in search of new knowledge (Fig. 11.2).

Technological System

Employee's Knowledge

Big data

Drivers of Green innovation Corporate environmental ethics

Competitve Advantage enablers

The resource based view

Fig. 11.2  Drivers of GI. (Source: Author’s compilation)

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Corporate Environmental Ethics Corporate environmental ethics, a key component of the overall organisational structure, is one of the driving forces for green innovation and competitive advantage (Peng & Lin, 2008). Corporate ethics establishes the organisation’s expected ethical behaviour and values, as well as green innovation and competitive advantage (Chang, 2011). With the firm’s innovative capabilities, innovations are likely to breed more innovation. Organisational capabilities define a company’s ability to improve environmental quality by promoting an environmental management system (EMS). Barney (1986) demonstrated that a valuable and unique organisational culture improves long-term competitive advantage and development. Furthermore, sustainable development is achieved when green management and green innovation are integrated into the overall mission of the company (Marcus & Fremeth, 2009). Waste reduction, recycling, pollution reduction, and eco-product design are all made easier with the implementation of EMS. It is undeniable that green organizational capability stimulates product and process innovation in the pursuit of environmental goals and long-term development (Singh et al., 2016).

Big Data Big data refers to large sets of data gathered from a variety of sources (Wu et al., 2011). Clickstream data from the web, social media content and video data from retail stores are all examples of big data sources. Cloud computing is a crucial technological tool for dealing with large and complex computing without the need for costly hardware, software, or related space (Hashem et  al., 2015). According to Sivarajah et  al. (2017), big data analytics is a trend for developing credible sources of information from big data to support decision-making. They also found that using big data analytics can improve overall operational efficiency and strategic potential, as well as develop new revenue and competitive advantage strategies (Papadopoulos et al., 2017). Before purchasing and deploying expensive tools, businesses must first gain a thorough understanding of the big data landscape. Despite their flaws in accuracy and stability,

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traditional environmental evaluation theories and methods were challenged by the influx of big data in large quantity, high velocity, and high diversity (Song et al., 2016). Many researchers (Cajaiba-Santana, 2014; Dubey et  al., 2017; Huang et  al., 2017; Roßmann et  al., 2017; Papadopoulos et al., 2017) have shown that big data has an environmental and social impact on supply chain innovation and performance. Dubey et  al. (2017) investigated how and when large-scale data can improve supply chain environmental sustainability.

Green Innovation and Branding Green innovation is becoming more popular as companies realise the short- and long-term benefits of implementing environmentally friendly projects, that will increase efficiency, competitiveness, and profitability. Green innovation is a commercial imperative, not just a nice-to-have capacity (Dangelico & Pujari, 2010), especially in growing nations where enterprises want to minimise pollution, enhance resource utilisation, and build competitive advantages (Shafique et al., 2017). Non-financial performance factors, including customer satisfaction, consumer brand attitude, and brand image, are all affected by GI (Zhang et al., 2015). Because green innovation has the potential to alter consumer perceptions of a company’s reputation, image, and legitimacy (i.e., the foundations of brand equity) (Keller, 1993), the relationship between green innovation and brand equity is worth investigating. Brand equity is defined as the incremental preference endowed by the brand to the product as seen by an individual consumer, according to a consumer-based perspective (Park & Srinivasan, 1994). The customer-­ based brand equity (CBBE) model, proposed by Keller (1993), suggests that brand equity is formed by consumers’ brand awareness, feelings and experiences, brand images, and brand associations and is determined by consumers’ assessments of a brand’s strength, uniqueness, and favourability in comparison to its competitors (Keller, 1993). Although brand equity is a significant asset that plays a significant role in business growth and performance (Keller, 1993), the relationship between green innovation and brand equity has received little academic

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attention (Nørskov et al., 2015). As a result, three reasons green innovation might increase consumer perceptions of brands and raise brand equity, based on Keller’s (1993) CBBE model is presented. First, as public concern about environmental issues grows, customers are becoming more positive about company green activities (Pickett-­Baker & Ozaki, 2008). From the standpoint of social identity, green innovation makes it easier for consumers to recognise companies (Bhattacharya & Sen, 2003), which reinforces brand associations. Consumers’ techniques to evaluate market products have evolved due to the looming environmental catastrophe and its impact on public health, such that companies’ efforts to address environmental issues can influence consumers’ perceptions of brand positioning (Gupta & Malhotra, 2013). Because green innovation displays a company’s commitment to sustainability, it fosters strong emotional bonds between consumers and brands, resulting in brand differentiation based on sustainability (Chabowski et al., 2010; Chen, 2008; Connelly et al., 2010). Brand associations become more distinct as a result of this differentiation (Gupta & Malhotra, 2013; Keller, 1993). Second, green innovation is a customer relationship management (CRM) effort that addresses customers’ environmental concerns, resulting in greater customer satisfaction (Luo & Bhattacharya, 2006). Customer satisfaction has a beneficial impact on brand loyalty and trust, as well as resulting in increased brand preference and favourability (Thaichon & Quach, 2015). Green innovation also increases customers’ trust in brands’ ability to provide functional advantages (Du et al., 2007) and high quality (McEachern & McClean, 2002), resulting in increased brand favourability (Gupta & Malhotra, 2013). Third, GI sends a favourable message to customers that the organization cares about the environment (Cronin et al., 2010). It assists businesses in gaining an early-mover advantage by allowing them to enter new market niches or granting pricing premiums (Porter & van der Linde, 1995). Companies can use this advantage to build strong brand connections and client loyalty before competitors enter the market (Ries & Trout, 1986). In their communications, companies can strengthen their green images by emphasising the environmental, social, and economic benefits of sustainable products and manufacturing processes (Walker & Wan, 2012). Overall, green innovation can boost brand equity by increasing the distinctiveness, favourability, and strength of brand associations (Torres et al., 2012).

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Green product innovation is more visible in the marketplace since it is typically based on consumer data (Torres et  al., 2012). Green product innovations with visible environmental elements communicate increased value in terms of environmental and social advantages to consumers, making them more likely to be recognised as high quality and creating favourable brand connections (Horbach et al., 2012; Porter & van der Linde, 1995). Green process innovation, on the other hand, which aims to eliminate adverse environmental effects while increasing production efficiency, is less visible and less immediately relevant to customers. CSR programs that do not directly influence main stakeholders, such as consumers, do not produce additional value for the business, according to Hillman and Keim (2001). Consumers are constantly willing to pay more for environmentally friendly products with clear and quantifiable added value, according to Kammerer (2009), but they are not willing to pay more for green electricity because environmental precautions are implemented throughout the manufacturing process (Fig. 11.3).

BRAND QUALITY

BRAND ASSOCIATION

GREEN INNOVATION

BRAND AWARENESS

BRAND IMAGE

BRAND LOYALTY

Fig. 11.3  GI and branding. (Source: Adapted from Aaker (1991))

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Conclusion Aggressively pursuing the adoption and implementation of environmentally friendly activities, such as green innovation practices, is becoming increasingly important. To combat high costs, longer payback periods for technological investments, and poor flexibility involved in green product innovation, continuous investment in green innovation is required, with an initial focus on green process and organisational innovation. Reduced energy consumption and pollution emissions, waste recycling, resource sustainability, and green product designs are examples of green product innovation and green process innovation. As several recent studies have shown, understanding the drivers of green innovation practices is critical. The literature has looked into the advantages of adopting environmentally friendly activities. Previous studies have reported that greater organisational value and competitive edge via sustainability products may not be achieved without authentic leadership, proper HR practices, and the use of largescale data to solve the technological challenges of green innovation. Green innovation aims to generate new ideas, goods, services, processes, or management systems that can be used to deal with environmental problems, whereas traditional innovations focus on the development of new products, materials, processes, services, and organisational forms to gain a competitive advantage (Li et al., 2014). Meeting the environmental needs of stakeholders can result in green innovation and improved environmental performance, and enhanced brand image. Therefore, GI is not only a critical tool for businesses to achieve a competitive advantage in the future, but also a prerequisite for protecting and maintaining the environment. Customers are drawn to brands that share their beliefs; therefore, brand development leads to increased consumer loyalty. Hence, when a company develops a strong brand, it must communicate such values in order to create an emotional bond with customers. Brand loyalty can endure a lifetime, and it can even be passed down through generations. Therefore, firms are enjoined to be innovative, diversified, and make necessary adjustments in ensuring the sustainability of the businesses.

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Recommendations There should be educational outreach programs to raise the awareness of green innovation among all stakeholders  to make informed decisions. Managers must understand the value of green innovation and be willing to engage in green innovation techniques. Corporate commitment to environmental issues centralises this cause and, in turn, increases managerial environmental concern, which ultimately has a positive effect on firm performance. Finally, laws in emerging markets requiring the use of sustainable design methods must be enacted, enforced  and properly monitored.

Future Research Although this study provides valuable information, it has some shortcomings that should prompt more research. First, the study relied on a literature review of green innovation in emerging markets. Future researchers can conduct quantitative studies to test the variables (drivers) mentioned in the chapter. The knowledge of the phenomenon of corporate branding in an emerging market context from the viewpoints of those responsible for establishing and managing green activities is a gap in the literature (marketing managers and top management). Given the broad variety of potential antecedent variables of green innovation practices and the constricted conceptual and empirical research on the factors that lead to green innovation practices that have been conducted to date, future research studies may expand investigations to include other potential factors such as environmental readiness, green policy of the firm, and organisational capabilities.

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12 Marketing Communications: Embedding Sustainability Practices in a Changing World Ogechi Adeola and Evans Olaniyi

Introduction Awareness of how businesses are pursuing profitability without causing harm to the environment is on the rise. Integrating sustainability concepts into business strategies is vital to successful brand management (Brüggenwirth, 2006; Vural et al., 2021). Lubin and Esty (2010) assert that sustainability practices have been found to have a positive effect on the competitiveness and long-term survival of their businesses. Therefore, to attract consumers’ patronage to their products, businesses must communicate how greening is ensured in the course of their production. Lubin and Esty (2010) further describe sustainability as one of “business activities which incite societal and economic change”. O. Adeola (*) Lagos Business School, Pan-Atlantic University, Lagos, Nigeria e-mail: [email protected] E. Olaniyi School of Management and Social Sciences, Pan-Atlantic University, Lagos, Nigeria © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 O. Adeola et al. (eds.), Marketing Communications and Brand Development in Emerging Markets Volume II, Palgrave Studies of Marketing in Emerging Economies, https://doi.org/10.1007/978-3-030-95581-6_12

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In the wake of the COVID-19 pandemic, the definitions attached to sustainable business practices have been extended beyond the conventional intersection of economy, environment, and society to include human health (Hakovirta & Denuwara, 2020). In 2015, the United Nations introduced 17 Sustainable Development Goals (SDGs) to be achieved by 2030. Those goals included support of government policies and business practices that advance eradication of poverty, inequality, and harmful climate change and advocate for universal access to healthcare, education, and natural resource preservation. Despite the investment of businesses in sustainable practices, the UN Global Compact (2020) indicates that only 20% of business executives felt that they had played a vital role in achieving the SDGs. Only 39% of firms believed they had strategies ambitious enough to achieve the SDGs. This indicates that, while firms may invest in sustainable business practices, they are unsure of the importance of those efforts. It is, therefore, crucial that this chapter emphasises the continuous investments in sustainable business practices that are not only vital to the global sustainability agenda, but also strategic approaches to effective business branding  of the practices accomplished through marketing communications. Research into the role of marketing communications  in promoting sustainability practices has gained traction, not only in the sustainability literature, but also as a reaction to the pandemic and changing market realities (Hoekstra & Leeflang, 2020; Jianu et al., 2016; Reddy & Gupta, 2020; Šķiltere & Bormane, 2018a). Businesses cannot rely on traditional practices; as the world and market environment evolves, business practices must evolve too (Lowe et al., 2019). Marketing communication, an essential aspect of a brand’s marketing mix, focuses on promotion through diverse media such as newspapers, television, mail, magazine, radio, billboards, internet, and telemarketing (Kayode, 2014). An interesting aspect of marketing communication is its ability to change and adapt to consumption patterns with new marketing media predicted to reach their targeted audience (Eagle et  al., 2020). Because sustainability is an integral aspect of business goals, marketing communications support achievement of those goals when messages reinforce the public’s perception of a sustainability-conscious brand.

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Achieving this status is crucial for the brand positioning in competitive emerging markets where investors are jostling for their market share. Though ravaged by the effects of the COVID-19 pandemic, the virus has heightened the consciousness of the global community on the importance of sustainable practices and fostered innovative business practices that align with changing realities. The challenges of environmental degradation as a result of industrialisation and climate change, the ongoing risks associated with the pandemic, and the vulnerabilities of the global economy have forced businesses in emerging markets to adopt strategies characterised by resilience. This chapter offers recommendations to emerging market firms on ways to contribute to the sustainability agenda while staying connected and relevant within their environment, and advocates for businesses to rethink their marketing communication strategies to accommodate the “new normal” using digital platforms. This is important now more than ever because of the influence the pandemic has had on every sphere of livelihood and consumers’ patterns of living and communicating. In a survey by Bynder (2020), more than half of marketing and brand professionals expressed the belief that the pandemic will have a lasting effect on their branding and marketing efforts. For example, according to DiResta et al. (2020), 45% of customers across the globe have spent more time on social media platforms due to quarantine restrictions, online gaming traffic and food delivery have increased rapidly. In the face of the pandemic, managers need to carry out marketing and branding activities that assure sustainability and the welfare of future generations. Marketing communications are an ideal tool for promoting sustainability practices. They can increase awareness of a firm’s efforts to incorporate eco-friendly practices into their operations, such as environmental conservation and the adoption of green/eco-friendly products or services. These present a unique opportunity for companies to make significant contributions to the sustainability movement by encouraging the adoption of responsible behaviour and support of good causes, even in a time of crisis. This discussion that follows in this chapter will introduce the transformative influence COVID-19, technology, and corporate social responsibility have had and will continue to have on sustainable marketing

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communication and branding. Concluding topics will offer recommendations for managers in emerging economies, ideas for future research, and summary remarks.

Marketing Communications and the Sustainability Agenda Marketing communications or promotion is a vital intermediating point between organisation’s goods produced or services offered and its customers (Fill & Jamieson, 2014). It comprises advertising, sales promotion, public relations, and direct marketing (Eagle et  al., 2020). Marketing communications has evolved over the years, most recently with the advent of information technology, social media, and an increasing awareness of the need for sustainable business practices. In 1987, the Brundtland Commission report defined sustainability as the ability to meet present needs without compromising future needs. This report highlighted three main pillars of sustainability: economic, social, and environmental. The environmental pillar advances the provision that the qualities of a standard of living should not be detrimental to natural resources (World Commission on Environment and Development, 1987). Sustainability, as a business priority in marketing communications and branding, will require embedding the concept into the company’s overall strategy. This would be visible in various forms, for instance, the commitment of a percentage of the marketing and branding budget towards social impact and environmental sustainability. Sustainability reporting, social impact assessments, and training must be core aspects of the strategy for a long-term impact. For effectiveness, a governance committee can be set up to ensure the successful implementation of the strategy. The question is: How is sustainability integrated into marketing communications and branding activities? This is achieved by creating and promoting environment-friendly products and services without neglecting the functional needs of the consumers. Sustainability is integrated into marketing when consumers are informed of environmentally conscious behaviours and their role in transforming hyper-consumption into sustainable consumption (McDonagh, 1998).

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In 1988, McDonagh identified four principles of sustainability that can be embedded into marketing communications and brand management to promote sustainable consumer behaviour: ecological trust, ecological access, ecological disclosure, and ecological dialogue. Ecological trust shapes the stakeholders’ confidence in the value of conservation and recycling issues. Ecological access and ecological disclosure are similar concepts, each addressing issues of openness and disclosure of information concerning organisations’ sustainable practices. Ecological dialogue requires firms to establish long-term commitments to hold conversations with the public about their sustainability efforts. A business can communicate the quality of their product offerings and brand with assurance (ecological trust), establish procedures for getting products to consumers (ecological access), provide means for consumer feedback on the product (ecological openness), and provide a platform whereby consumers can share their opinions about a product (ecological dialogue). All of these principles can be applied on digital platforms, such as social media. Digital marketing platforms are uniquely capable of communicating organisations’ sustainability practices, given its outreach capacity during environmental challenges that prevent or discourage social gatherings. Advertising plays a key role in integrating sustainability messages in marketing communications. For instance, companies can consider green advertising—a form of promotion that conveys messages on the suitability of a product to meet the environmental wants and needs of customers (Kao & Du, 2020). Other advertising strategies that promote sustainable business practices include cause-related marketing, corporate philanthropy, ecologically responsible sales promotion, ethical selling, and environmental public relations; activities that help build a reputable image, protect the environment, and create value for customers. A study by Šķiltere and Bormane (2018a) found six actionable levels (stages) to infuse sustainability into marketing communications, which is broadly termed sustainability marketing communications (see Fig. 12.1). The first level is the formulation of a company marketing strategy prior to integrating sustainability into their marketing communications. Questions such as why are we engaging in this marketing? who is our target audience? what channel are we using? and do we have the resources to execute this strategy? must be aresponded to.

Fig. 12.1  Six levels of integrating sustainability marketing communications. (Adapted from Šķiltere & Bormane, 2018b)

Stage 6: Economic, Social and Environmental Benefits

Stage 5: Creating Awareness of Value Proposition

Stage 4:Marketing Communication Channels

Stage 3: Integrated Marketing Communications (IMC)

Stage 2: Marketing Mix

Stage 1: Company Marketing Strategy

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The second actionable level is the establishment of a well-defined marketing mix (generally referred to as the 4Ps—product, price, place, promotion) that will build a closer bond between the firm and its consumers. The third level is defined by the selection of marketing communications, such as advertising media, public relations, and sales promotion aimed at achieving the firm’s goal. The fourth level identifies the communications channels that will ensure engagement with a target audience and achieve marketing goals (e.g., television, radio, newspapers, magazines, and the Internet). The fifth level indicates that it is possible to influence consumers’ perception of the product through the selected channels. Positive influence is achieved when consumers are aware of the value integrated into the composition, origin, and health impact of products—information conveyed to them through product branding and marketing communication tools. At the sixth level, businesses venturing into sustainable branding should encourage ecological production aimed at product quality assurance, good pricing policies, and create strategies for inclusion of large and diverse social groups. Other sustainability strategies include biodegradable packaging, discounts on products with environmentally friendly packaging, and the use of environmentally friendly shopping bags. The sixth level shows the benefits (economic, social, and environmental) of consciously integrating sustainability goals into the marketing actions of the business. The integration of a sustainability agenda into brand imaging can help firms appeal to sustainability-conscious consumers, thereby achieving a competitive advantage. This integration could involve the communication of sustainability efforts in advertising, product packaging, and promotion opportunities. These strategies are in tandem with McDonagh’s four principles of sustainability in both company documentation and sustainability reports, a strategy that further encourages organisations’ creation of sustainability-based brands, and enjoy the accolades shared by returning customers. For instance, the annual report of the Best Global Green Brands published by Interbrand shows the sustainable business activities of major brands, efforts that contribute to the positive reputation and longevity of those firms (Kumar & Christodoulopoulou, 2014). When businesses ascertain the ecological and social needs of customers,

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they will have the information needed to premise their sustainable practices, helping the firm promote its objective towards sustainable development. This is increasingly important as the pandemic, and natural crises have stretched the limits of sustainability and forced firms to adapt to the “new normal” in business operations.

 arketing Communications, Branding, M and COVID-19 The coronavirus or the COVID-19 pandemic will stand as one of the greatest challenges the world has faced since the Second World War (Chakraborty & Maity, 2020; Gössling et  al., 2020). The devastating effect of the pandemic will continue to be felt far into the future and will have a particularly harsh impact on consumer behaviour, a reality which will force businesses to rethink their marketing communication and branding strategies (Eger et al., 2021; Mehta et al., 2020; Safara, 2020). Hoekstra and Leeflang (2020) reported that some consumers had been encouraged to re-evaluate their lifestyle and, of course, their spending habits. Various megatrends have been identified. Connected consumers, for example, reinvented shopping styles, a greater emphasis on healthy living, and middle- and lower-class financial cutbacks. Firms and their customers are showing more emotional connections in search of stability and value. Customers have attached greater value to familiar brands, such as Disney and IKEA, that have demonstrated greater engagement with consumers in the course of the pandemic (Hoekstra & Leeflang, 2020). The adoption of a healthy lifestyle is becoming more prevalent both within and outside the home (Hoekstra & Leeflang, 2020). Financially stressed social classes struggling to sustain their way of living have taken to sharing goods, and borrowing is becoming more common. Not all organisations have been harmed by changes in consumer behaviour: Data from Euromonitor International shows that the COVID-19 pandemic positively affected entertainment services. Streaming platforms such as Netflix attracted nearly 16 million global subscribers between April and June 2020. In Russia, spending on non-food items in 2020 increased by 10.1% over 2019, a change driven by household appliances and electrical

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items (Arzhanova et al., 2020). Global revenues of hygiene products, furniture, and consumer electronics rose by 3%, 8%, and 16%, respectively. On the downside, clothing and shoe-related businesses (e.g., G-star and Nike) experienced a substantial reduction in revenue, as have transportation and outdoor recreation services. A study carried out by Patil and Patil (2020) on consumer behaviour in India revealed a change in buying behaviour by approximately 85% of respondents. These changes in consumers’ buying behaviours have significant effects on marketing communication and brand development (Hoekstra & Leeflang, 2020). Whitler and Narula (2020) identified four phases of strategic marketing communication adjustments during a global emergency such as the pandemic: deal with the crisis, adapt to the crisis, create value for customers, return to normalcy. Deal with the crisis: When firms launch campaigns to convey health-­ related tips regarding hygiene practices and safety measures during widespread illness, or messages of togetherness and empathy during a natural disaster such as an earthquake, consumers respond with appreciation and loyalty to the brand. Firms like BMW in early March 2020 expressed the need for community, common purpose, and togetherness in emails sent to its customers. Adapt to the crisis: It is no longer sufficient for businesses to express sympathy or convey safety precautions: They must prove that they are resilient enough to withstand the adverse effects of the crisis. Organisations that stepped up to serve their consumers during the pandemic demonstrated an ability not only to adapt but to thrive. Companies such as Panera, for example, initiated contactless delivery by offering mindfully packaged meals on consumers’ doorsteps, removing any need for physical contact that would spread the contagion. Create value for customers: Firms need to go beyond adapting to a crisis to stay competitive. After all, the major aim of marketing is value creation, and firms need to assure customers that staying loyal to their brands is beneficial. For example, Hilton decided to abandon change and cancellation charges and pause point termination. They improved flexibility in accepting new reservations, a strategy that limited risks in bookings and earned customer loyalty.

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Return to normalcy: According to Whitler and Narula (2020), business emails or newsletters will, when the post-pandemic time is right, go back to the conventional marketing fare, such as a “50% OFF” coupon or other benefits derived from a promotion. Carefully utilised humour can raise the retention capacity of the message communicated to consumers. It should be noted that digital media and internet sources were the consumer communication channels studied in the Whitler and Narula analysis; they were found to be essential communication tools to adopt during a pandemic or time of crisis. It is crucial to emphasise that firms generally face great economic hardships during a pandemic (though the economic performance varies from one firm to another). As a result, several businesses tend to reduce spending on advertising and brand management. Hoekstra and Leeflang (2020) assert that spending on marketing communications has been sensitive to economic fluctuations (that sensitivity being greater during a contraction than in an expansion). However, businesses that are more resilient and maintain their expenditure on marketing communications during a period of economic downturn tend to obtain a greater market share than competitors who decrease communication expenditures. Marketing communication methods have to adapt to present circumstances. The pandemic crisis, for example, influenced organisations to curtail outdoor advertising and increase online and electronic media buys (e.g., email, website ads, television, and radio). Firms lowered advertising costs by utilising “contact advertising” to connect with high-value prospects (e.g., vlogs, blogs, newsletters, press releases, and online articles). Firms’ products and brands benefit when their marketing efforts convey sincere concern for victims of a crisis and when they carry out the brand-related regulations imposed to tackle challenges like the pandemic. For instance, one of the major challenges associated with the pandemic was food shortage. Starbucks, as a food and beverage business, was able to utilise its basic functions to address the crisis by donating 700,000 meals to food banks across the United States and applied company logistics to support the food banks distribution efforts (Starbucks Stories and News, 2021). Apart from a business engaging, directly and/or indirectly, in combatting a crisis, some brand efforts lay more emphasis on helping customers

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cope with the challenge. Atal and Richey (2020) referred to the latter as “covid-branding”, mechanisms which can take three forms: coping through practicality, coping through pleasure, or coping through denial. Coping through practicality is a type of support for consumers seeking adaptive techniques related to work practices. An example of this mechanism is the provision of private office spaces by Zoku, a real estate company, for office workers needing a socially-distanced workplace away from their homes, emphasising “peace and quiet” for their customers. Another example is computer manufacturers promoting tools suitable for remote working and learning. Coping through pleasure relates to fashion, fitness, and beauty brands with messages based on self-care. For example, make-up brands such as Rare Beauty and Fenty Beauty offered online make-up tutorials for those spending more time at home due to quarantine restrictions. Fashion brands such as Anthropologie also promote loungewear as a “self-care style”. Manufacturers of exercise equipment turned to promotion of home fitness routines. Coping through denial, as evidenced by pandemic realities, suggest that some consumers purchase goods and services as if the crisis is happening. Most businesses avoided this mechanism, not wishing to risk making light of the pandemic, choosing instead to offer future cost-­ saving benefits. This was especially true of travel and hospitality businesses.

 orporate Social Responsibility C and Marketing Communications Research shows that CSR and sustainability are sometimes treated as synonymous terms and sometimes as distinct. In the latter case, the contention is that CSR focuses on social issues, while sustainability focuses on environmental issues. Both concepts can be understood as “umbrella constructs” (Strand et al., 2015). An umbrella construct is defined as a “broad concept or idea used loosely to encompass and account for a broad set of diverse phenomena” (Strand et al., 2015, p. 2). In this chapter, CSR is construed as a sustainability practice that focuses on enhancing the welfare and greater good of the society.

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CSR addresses the obligation of an organisation to safeguard and improve societal welfare through business actions that guarantee fair and long-term benefits for stakeholders (Li et al., 2010). The prevalence of CSR in extant research reflects managerial contentions that doing good is not only an ethical thing to do; it also leads to doing things better (Lindgreen & Swaen, 2010). Certain CSR advocates assert that there is a business case for enhancing social welfare (a win-win situation for the organisation), while others discuss it in terms of giving up some profit for social well-being (Benabou & Tirole, 2010). An organisation’s motive for CSR can be either extrinsic or intrinsic. The extrinsic reason for CSR is viewed as an attempt by an organisation to enhance its bottom line. The intrinsic motive arises from a sustainability agenda—a sincere concern from the business towards the society and environment. Sustainability can be integrated into marketing communications through the promotion of and engagement in CSR activities (Robinson et al., 2012). For instance, Unilever Ghana’s CSR activities focused on improving quality of life by helping people improve hygiene habits and providing access to sanitation facilities and clean drinking water to reduce the incidence of diseases like diarrhoea (Hinson et al., 2020). The interesting aspect of integrating sustainability into marketing communications is that it allows the business brand to be properly positioned in the minds of the targeted consumers. The usual approach to influencing consumers and raising market share is to integrate CSR into marketing communications with the “green” messages, a concept that can be traced to the early 1980s with the adoption of eco-friendly products and energy preservation (Nielsen & Thomsen, 2012). Firms can unveil their CSR activities through official reports, social media networks, broadcast advertising (television and radio), and print media. Organisations can also strengthen relationships and foster communication with stakeholders through well-designed and up-to-date corporate websites, an effort that can turn customers into advocates for the cause and the company. Examples of companies who take advantage of social media to engage in CSR marketing communications include Ben & Jerry’s and Timberland. Through social media engagement, Ben & Jerry’s raises awareness about

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their ice-cream products and donates a portion of proceeds to historically black colleges and universities in neighbouring states and communities. Timberland, an organisation known for its environmental stewardship, launched a digital marketing campaign called Earthkeeper to recruit one million persons to form an online community that would inspire environmental progress. Social media tools and highly populated blogs can serve as a platform for companies to describe their commitment to preserving the environment. The use of digital tools to promote CSR and also communicate product offerings is a strategic dimension of integrating sustainability, marketing communications, and branding. A study by Huang et  al. (2019) shows that social networks such as Twitter are used to obtain general information about sustainability, while LinkedIn is used to receive advice on the implementation of sustainable marketing plans. This can also be applicable to CSR. Social media, therefore, provides good marketing communication platforms for firms by enabling access to larger audiences at a very low cost. Though CSR is a more established effort among firms in developed countries, it is becoming vital to organisations in developing countries. Africa is a prime example as the continent combats high levels of poverty and inequality, hence the growing importance of CSR activities by organisations. For instance, Senwes, an agricultural company based in South Africa, adopted CSR marketing communications that disclosed assistance to farmers offered by the company (Kloppers & Fourie, 2014). This includes technical and financial support and training to improve productivity for farmers who are the major stakeholders in the company. As part of their strategy, Senwes ensures that the information requirements of their clients (farmers) are confirmed before the CSR communication is released, and bidirectional communication with the farmers makes room for feedback and engagement. CSR communication with the farmers is transparent and comprehensive, with material disclosures of information (Kloppers & Fourie, 2014). The effectiveness of this communication strategy will be determined by the goodwill of commercial farmers. A conventional brand development strategy focuses on the primary stakeholders (clients, customers, shareholders, partners) without whom the business cannot engage in productive activities. However, a good

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corporate organisation will anticipate the issues of potential stakeholders, even if those persons or businesses that are not currently connected with the firm, or secondary stakeholders such as social and political entities. According to Vallaster et  al. (2012), there are four methods by which firms link CSR to their branding efforts: they give feedback to initiators and drivers who indicate interest in CSR, they aim at achieving various objectives, they find ways to incorporate CSR into their brand identity, and they measure CSR branding efforts from various perspectives. For example, IKEA, a Dutch-based furniture company, has built a brand identity around its mission statement—“To create a better everyday life for the many people”. Through collaboration with groups such as UNICEF and the World Wildlife Foundation, IKEA has procured a strong brand identity embedded in sustainable social and environmental preservation, an effort that the company believes will bridge the gap between profit functions and CSR. CSR has enabled several brands to look beyond profit maximisation to concern for secondary stakeholders. Despite these attempts, some developing countries and emerging economies are lagging in their pursuit of CSR and sustainable business activities due to poor economic performance compared to developed nations, regulatory framework-related constraints, as well as a misunderstanding of how CSR can be incorporated into marketing communication and development of a brand identity. The importance of social responsibility does not necessarily mean that all firms should be leaders in CSR. Rather, each business must identify the social, compliance, and environmental issues that are unique to its value chain and address those issues in a way that increases market share and encourages sustainable development.

Suggestions and Recommendations for Managers in Emerging Economies Building a case for embedding sustainability in brand development and marketing communications has taken on new dimensions with the continuing rise of ICT capabilities, the disastrous impact of the coronavirus pandemic, and the social benefits attached to corporate social

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responsibility. Marketing communications managers and practitioners in emerging economies are encouraged to adopt the following strategies and recommendations for embedding sustainable practices into their marketing communications and branding strategies in a changing world. Begin with the Product: Integrating sustainability into marketing communications strategies may focus on more significant issues, but it is important to begin by ensuring that the good or service is of commendable quality and holds value for customers. Firms should endeavour to examine the value chain to ascertain potential consumer demand for sustainability features. Also, firms should be able to embark on product development, where vast consumer demand is linked to economic advantages. Maintain the Brand’s Integrity: After developing a product or service that is characterised by sustainability, it is crucial to maintain honesty when disclosing a firm’s sustainability strategy. Organisations may be tempted to “pad” their sustainability efforts to coincide with public expectations related to promises of improved climate- or health-related challenges. It takes a while to build stakeholder trust, and one mistake could ruin it. It is important to be transparent in communicating sustainability goals, achievements, and obstacles. Communicate Value Propositions: The degree of stakeholder buy-in depends on the quality of information they receive about sustainable practices adopted and initiatives employed through selected media and channels. Value proposition statements are more persuasive when they use specific and clearly stated vocabulary that customers can easily understand and that speak directly to the organisations’ care for their customers/stakeholders. Engage with Customers: To develop an appealing brand during ongoing environmental crises and epidemics/pandemics, businesses must listen to their consumers. Ensuring consumer feedback and addressing their concerns is an effective way to raise brand loyalty and commitment, even in a time of crisis. Avoid Ambiguity: The concept of sustainability can be ambiguous and multifaceted. Thus, there might be an inclination towards a “kitchen sink” approach—trying to solve every single environmental problem such as global pollution and lack of recycling. Broad stroke actions may be worthy, but it is crucial to keep marketing communications simple

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and focused on environmental and social problems relating to their value chain and immediate community before slowly progressing to broader sustainability issues. Organisations should avoid unnecessary jargon and communicate their sustainability efforts in conversational and relatable language. Monitor and Evaluate Results: After defining and implementing the branding and marketing communication strategies, it is important to analyse the outcome of the activities as they compare with expectations or goals. How have they responded to consumers’ needs during the crisis? Did their communication channels and tools encourage sustainable behaviours? Firms should be able to collect the data needed to look closely at how their activities have affected not only financial performance but societal welfare. Plans must be put in place to correct negative outcomes, if any, for the organisation to improve and learn from mistakes. Use Digital Media and ICT in an Innovative Manner: The emergence of integrated marketing communications with the inclusion of ICT has enabled marketing communications to go beyond the traditional use of print media towards the use of digital media. The impact of the pandemic encouraged firms in emerging countries to apply these innovative devices to reach a wider audience. YouTube marketing tools, blogs, and vlogs can be used to learn more about the marketplace, disclose sustainability efforts, and build a sustainable brand identity. To reap the full benefits of innovative ICT use, governments have an important role to play in closing the digital divide by providing an adequate electricity supply, investing in technological-based skill acquisition programmes, and ensuring equitable mobile coverage. Comply with Regulatory Requirements: Governments and institutions also have vital roles to play in encouraging CSR and sustainability across firms. Without a proper regulatory environment and building capacities for social responsibility, the integration of sustainability in marketing functions will be complex to the point of unattainability. For example, governments can raise awareness for CSR and encourage it through legislative acts that highlight the commitment to social development; offer grants, guarantees, and credits for CSR-related activities; and enact laws that regulate codes of conduct and reporting standards for CSR functions. Compliance may be defined by disclosure of a regulatory

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framework, but firms must agree to adhere to those regulations and cooperate with the government if sustainability efforts have a chance to succeed. Firms must engage in CSR activities, even in a time of crisis, to further position their brands in a way that clearly emphasises their stand on sustainability.

Future Studies Research is needed to critically assess how emerging sustainability processes are implemented by firms. Firms may be reluctant to internalise the externalities and tempted to draw system boundaries selectively. Very few firms are willing to translate the full negative environmental and social impacts of their operations into monetary terms. Researchers need to critically evaluate these and other emerging issues to determine the progress integrating sustainability has on the marketing literature and business practices.

Conclusion Profit-making should not be the sole objective of businesses at a time when a pandemic and environmental degradation have exacerbated economic inequality and poverty, especially in developing and emerging countries. Every company has the potential to etch a positive message about the importance of sustainability to its wide range of consumers. Examples abound of companies promoting their sustainability programs, strategies, objectives, and plans for the future. However, it should be noted that claiming sustainability ideals is not supported by simply hitching products to a topical issue while operating business as usual. The context of an issue must be considered in tapping into how and why a company’s brand contributes to a solution to the problem. The essence of integrating sustainability in marketing communications is that the firm positions its brand as an active figure in resolving a particular environmental or societal issue (e.g., COVID-19). Brand messages that acknowledge the human side of a crisis provide a rationale for customers to choose

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one firm over their competition. In a nutshell, significant commitment is needed to participate in sustainable initiatives, be it programs dedicated to addressing recyclable materials, carbon emissions, healthy living during a pandemic, adding value to the society or with great prospects for the next generation. Today’s businesses can use sustainable marketing communications for a time-sensitive cause, a specific product, or even as their unique selling proposition. Complementary to driving social and environmental change, embedding sustainability to a firm’s overall strategy contributes to a firm’s overall success. It may seem counterintuitive that spending more money on sustainable business practices can boost a firm’s profits, but studies have shown that the companies committed to sustainable development are also the most profitable. Millennials, in particular, are found to be more willing to pay more for products that have sustainable ingredients or boast social responsibility claims. Hence, to gain market share and increase sales, organisations should commit to sustainable products and practices, thereby attracting sustainability-minded customers. Finally, as companies continue to develop  strategies to win in a changing world, embedding sustainability in marketing communications will be a source of competitive advantage by promoting environmental and socially responsible practices.

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Index

A

B

Accor Hotels, 144 Adaptative marketing approaches, 3 Advanced Robotics, 60 Advertising and COVID-19, 100 Affect–reason–involvement (ARI), 85 Al Nahyan Foundation and Red Crescent Authority (RCA), 191 Alpen Capital ME, 188 Altruistic CSR, 163 Anthropomorphism, 29, 30 Arithmetic, 27 Artificial Intelligence (AI), 26, 60 Audience mapping, 121 Augmented Reality (AR), 9, 67

Big Data, 60 Brand association, 164 Brand development, 4 Brand equity, 164 Brand extension, 218 Brand loyalty, 164 Brand management, 131, 132 Brand management strategies, 135 Brand quality, 164 Brand trust, 164 C

Campaign marketing, 7 Carroll’s pyramid, 162

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 O. Adeola et al. (eds.), Marketing Communications and Brand Development in Emerging Markets Volume II, Palgrave Studies of Marketing in Emerging Economies, https://doi.org/10.1007/978-3-030-95581-6

309

310 Index

Certified B Corporations (B Corps), 234 Chatbots, 26, 27 Climatic conditions, 3 Cloud Computing, 60 Coalition Against COVID-19 (CACOVID), 171 Collaborative partnerships, 158 Communication technologies, 157 Content amplification, 124 Content automation, 7 Content creation, 124 Content distribution, 124 Content ideation and planning, 121 Content marketing, 7 Content marketing evaluation, 124 Content marketing improvement, 124 Coronavirus disease (COVID-19), 83, 84 Corporate branding, 211 Corporate communications, 211 Corporate community involvement, 185 Corporate governance, 233, 234 Corporate identity, 211 Corporate reputation, 211 Corporate social initiatives (CSIs), 185, 186 Corporate Social Responsibility (CSR), 158 COVID-19 pandemic, 3, 159 Cyber-Physical Systems (CPS), 60

D

Danube Welfare Centre, 202 Destination Marketing Organisation (DMO), 57 Developing economies, 110 Digital marketing tools, 7 Digital media, 7 Digital technologies, 26, 27 Direct e-mail marketing, 7 Display advertising, 7 E

E-books, 7 E-commerce accounts, 118 Emerging economies, 84, 159 Employee value proposition (EVP), 184 Environmental degradation, 289 Ethical CSR, 163 Explore Malaysia Virtually, 63 F

Fourth Industrial Revolution (IR), 60 G

Goal setting, 121 Green content, 7 Green innovation (GI), 258, 259 Green Managerial Innovation (GMGI), 265–266 Green market innovation, 264

 Index 

Green organisational innovation (GOI), 264 Green process innovation (GPRI), 263–264 Green product innovation (GPI), 262–263

Marketing strategies, 4 Marriot International, 143–144 Memorising, 27 Microblogging instruments, 59 Multinational brands, 137 N

H

Heuristics-learning, 27 Heuristic-systematic model, 88 Hilton Hotel, 145–146 Hospitality industry, 132 Hyper-consumption, 290

Normal periods, 112 O

1.5 trillion USD, 56 Online communities, 58, 59

I

P

Indigenous brands, 133 Industry Revolution 4.0, 59 Influencer marketing, 7 Information and Communications Technology (ICT), 8 Internet of Things (IoT), 60

Perceiving, 27 Post-Covid, 133 R

Radisson Hotel Group, 142–143 Real-time marketing (RTM), 58

L

Logical reasoning and comparison, 27 M

Marketing communication (MC), 4, 25, 288 Marketing communications strategies, 110

S

Search engine optimisation, 7 Service robots, 9 Skyline University College (SUC), 198–200 Social distancing, 105 Social media marketing, 7 Social Networking Platforms, 57 Social networks, 56

311

312 Index

Social phenomenon, 55 Social tagging, 59 Stakeholder theory, 160 StaySafeNigeria, 96, 97 Strategic Orientation for Sustainable Development in Vietnam, 234 Sustainability certifications, 235 Sustainable Development Goals (SDGs), 288 T

Technological innovation, 3 Technology-Organisation-­ Environment (TOE), 28 Traditional communication tools, 109

2030 Agenda for Sustainable Development, 234 U

UN Global Compact, 288 V

Vietnam Business Council for Sustainable Development, 234 Virtual assistants, 9 Virtual Reality (VR), 9, 61 W

Word of mouth (WOM), 57, 58