CHAPTER 4 FINDINGS AND DISCUSSION 4.1 TOMS Ideology and CSR Storytelling The business model of TOMS is steeped in its social responsibility ideology, an idea that centers on improving lives through business. Its CSR activities are not merely a peripheral component of its business strategy but at the core of what it is as an entity. Every touchpoint, from product design to retail experience and customer relationship marketing is rooted into TOMS way of gifting. TOMS think you can make money and do 'good' together. They exist to put corporate social responsibility at the heart of their business in order to create positive change. As Mohr and Webb (2005) pointed out, more consumers are turning towards brands that show an interest in society, which gives TOMS a leg up. Through its stories of empathy and community, TOMS gives the sense to their customers that they are part of something more than just buying shoes. And this is why TOMS in more than just a shoe company, it's part of the movement to change. TOMS founder Blake Mycoskie reiterated that TOMS was founded on a simple idea: for every pair of shoes sold, one would be given to someone in need. This approach, referred to as the One for One model, has struck a chord with customers and helped TOMS stand out from other retailers. The brand storytelling strategy is an important tool to convey this ideology over the public. By telling captivating stories of the individuals and communities receiving a pair for each purchase, TOMS fundamentally humanizes its brands emotionally connecting with people. Studying on this proved that storytelling is a great asset in Marketing and especially with CSR. Through storytelling, TOMS has been able to build a sense of trust and loyalty within its customers by creating real-life experiences that align with the core values they own. Taking an ethical stand in the form of social welfare needs is likely to further solidify a brand's image as socially conscious, and lead consumers' overall evaluation (Gill, 2015; Herskovitz & Crystal, 2010). 17 4.2 One for One Model This is the CSR initiative of TOMS, which has pretty much become synonymous with the brand. TOMS is built on a simple concept: One for One. For each item purchased, TOMS will give one of equal value to a person in need. At first, this translated into shoes, but the model has since expanded to include different products such as eyewear and clean water & safe birth services. TOMS' One for One model is not simply a CSR approach, it is an operating social model that layers social purpose on top of its operations. This strategy has served as a game changer for the reputation of the company and how consumers see it. You are not just selling a product; you are contributing to a social cause. This was a compelling differentiation, or value proposition that set them apart from their competitors and resonated with socially-conscious consumers. The model has succeeded by being simple and transparent. By doing this, consumers can see exactly how their purchase is affecting the cause, clearly amplifying what they get out of having that brand. Yet, the model has not been without criticism ­with concerns frequently targeting long-term sustainability and the tendency for NGOs to become supplanting rather than empowering in nature (Eikenberry & Mirabella 2017). While those critiques are almost certainly valid, the One for One model represents one of most powerful demonstrations to date agency can incorporate CSR into a business model in ways that achieve clear social and economic objectives. 4.3 Questionnaire Response Analysis The original target sample of respondents was 100 respondents. However, the sample was able to reach even more respondents than originally intended. The total number of respondents reached 104 people. The questionnaire did not ask for any data about the respondent’s demographics, as it provide no relevance to this study. However, it is safe to assume that the respondents were mostly consisted of Indonesian citizens. The number of respondents was able to be gathered, due to the questionnaire being sent out through various means, such as but not limited to, social media platforms and personal communication. The sample collected from the survey questionnaire is diverse and will bring a new perspective to 18 this study. In the following, each of the seven questions that were in the questionnaire (Appendix 2) will be discussed. Figure 4.1 Initial Perception Based on Image Figure 4.2 Image of TOMS Shoes In the first question, respondents are shown an image of a product from the TOMS shoes catalog (See Figure 4.2). This is to observe the first impressions of the survey respondents towards a TOMS shoe, without the preconception or bias from giving information regarding company background or any of its campaign material. The results show that, based solely on the sample picture of a TOMS shoe (if the respondent has no prior knowledge of the TOMS brand), most respondents are less likely to purchase the shoes. On a scale of 1 to 10 (with 1 being the lowest likelihood and 10 being the highest likelihood), most respond with a rating of 4 (22.1%), 3 (17.3%), and 5 (16.3%), showing a low likelihood or disinterest towards the product. This result will prove useful when compared to further questions after giving 19 information on the TOMS’ model, creating a before-after comparison on the respondent’s perception towards the product. Figure 4.3 TOMS Model Description and Brand Awareness It is also important that we acknowledge whether or not the respondents have prior knowledge on the TOMS brand and its CSR model. Based on the results showing that only 32.7% of respondents have heard of TOMS or purchased their products before this survey is conducted and 67.3% saying they have no past knowledge or experience with the brand, it could be assumed that change in respondent’s perception towards the product is based mainly on the addition of information on the “One for One” model shown in this section of the questionnaire. 20 Figure 4.4 Perception After Learning About TOMS' Model Respondents are then asked on their opinion after provided further information on TOMS and its “One for One” model. When asked their likelihood of purchasing a TOMS product, at this point, results show that most respondents are likely to purchase after hearing about their social mission. On a scale of 1 to 10 (with 1 being the lowest likelihood and 10 being the highest likelihood), most respondents give a rating of 8 (22.1%), 7 (21.2%), and 6 (17.3%) showing a higher likelihood of an interest in purchasing. Not only could we see change in respondents' likelihood of purchasing compared to their initial impressions (Figure 4.1), but this change is a positive shift in perception. Therefore, we could assume that the additional information given on TOMS’ and its “One for One” model made most respondents more likely to purchase a product from the company. 21 Figure 4.5 Reasons for Change in Perception One of the main objectives of this questionnaire is to analyze how TOMS’ CSR storytelling is able to influence the perception of the survey takers. If in the previous question we were able to determine whether or not there was a positive change in respondent’s perception caused by the brand’s storytelling, this part of the questionnaire aims to acknowledge why that change occurred. When asked to explain the reason for giving the chosen rating for the question prior to this, most of the respondents were ablet to justify their choice or change in perception towards the brand.