| Chapter 2: | Literature Review |
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customer loyalty. The Body Shop based in Brighton, England has been known for being environmentally responsible and for actively promoting such values. The Body Shop produces biodegradable products and supports responsible care of communities in the Third World, good environmental stewardship, and social responsibility. The company leverages these values to help grow its sales and build strong customer relations (Hartman and Beck-Dudley, 1999, Sillanpaa, 1998).
Similarly, Ben & Jerry’s Ice Cream of Vermont promotes what it perceives as environmental stewardship and has attracted many loyal customers that agree with the company’s values. Both of these companies have been able to build a niche market with a certain group of customers who are attracted to them because both parties share important values. The increase in trust from shared values may increase a customer’s willingness to disclose personal information. These and other companies endeavor to appeal to clients by promoting shared values and thereby nurture trust and loyalty.
Likewise, Interface Inc, a billion-dollar international carpet manufacturer, has benefited from the values perceived by customers to be reflected in the company’s business practices. Interface recently initiated some sweeping, leading-edge environmental processes that not only saved money, but also helped them win new business. The Gap invited the company to bid on carpeting their new world headquarters specifically because of their environmental initiatives (Daviss, 1999).
To the contrary, Disney and Kmart are companies that have recently encountered a value conflict with the American Family Association (AFA) and Southern Baptists. Both groups called for a boycott of these firms whom they charged with promoting anti-family values. Kmart was boycotted for selling violent and sexually explicit video games to underage children. Disney was boycotted because of allegations that the firm supported homosexual causes that the AFA opposes (Vitagliano, 2001).
Recently, Wal-Mart, reacting to customer complaints regarding the selling of certain men’s magazines in its stores, pulled the publications