In spite of the pessimistic worries of the global economy, in 2011 the global diamond industry performed successfully beyond expectation. A total of 124 million carats of rough diamonds, which is worth of $15 billion, were excavated (AWDC, 2013). According to the industry consulting organization, Bain & Company (2013), “those stones were worth $24 billion after moving through the chain of dealers, cutters and polishers, on their way to making diamond jewellery worth $71 billion at retail”. They also reported that compared to 2010, the global diamond sales significantly increased by 18% to $71 billion, close to the 2007 peak of $73 billion before the crisis. IDEX (2013) and Tacy LTD (2013) indicated that the majority of growth contributed to the mounting demand from Chinese and Indian markets. De Beers, which is reviewed in this proposal as an example of the world’s leading diamond company for more than a century, reached their second highest level of sales ever to $6.5 billion in 2011.
In the 1990s an issue of “conflict diamonds” or “blood diamonds” was heatedly debated across the globe. The diamond industry encountered the crisis from their diamond sourced countries. In several politically unstable African countries, such as Angola, Sierra Leone, Liberia, the Democratic Republic of the Congo, the diamond mines were under control of the military as a means to finance their military power. With the media‘s widespread coverage and the movie “Blood Diamond”, the transactions between diamond buyers and the military, although not all from such illegal channels, were regarded as intensifying violent tribal conflict. Consequently, the reputation of the diamond industry was blackened (The Kimberly Process, 2013; Pauwelyn, 2003; Worldbank.org, 2013). In response to this situation, the Kimberley Process was organized in 2002. Under the auspices of the United Nations, The Kimberley Process Certification Scheme (KPCS) conducted a list of rules that every diamond trading country should obey: certification of rough diamonds is now required before being exported (Pauwelyn, 2003; Schefer, 2005). This is to "guarantee that their trade does not finance rebel activities" (The Kimberly Process, 2013).
Table of Contents
1 Title and Introduction
1.1 Title
1.2 Introduction
2 Literature Review
2.1 Corporate Social Responsibility (CSR)
2.1.1 De Beers Drivers to CSR Implementation
2.1.2 CSR Pyramid for De Beers
2.1.3 Categories of CSR
2.2 Brand Image
2.2.1 Definition of Brand Image
2.2.2 The Impact of CSR on brand Image
2.3 Purchase Intention
2.3.1 Definition of Purchase Intention
2.3.2 The Impact of CSR on Purchase Intention
3 Research Aim and Objectives
3.1 Research Aim
3.2 Objectives
4 Methodology
4.1 Research Structure
4.2 Hypotheses Development
4.3 Questionnaire
4.3.1 Question Design Draft
4.4 Interview
4.5 Data Analysis
5 Difficulties and Limitations
6 References
Research Objectives and Topics
This research aims to critically investigate the impact of corporate social responsibility (CSR) initiatives on consumer purchase intention and brand image within the context of the luxury diamond market in Taiwan, using De Beers as a primary case study.
- Analysis of the relationship between CSR perception and brand image in luxury marketing.
- Examination of how brand image influences consumer purchase intentions.
- Comparative analysis of purchase intentions between consumers aware and unaware of De Beers' CSR activities.
- Exploration of CSR as a strategic tool for market positioning in the diamond industry.
Excerpt from the Book
1.2 Introduction
In spite of the pessimistic worries of the global economy, in 2011 the global diamond industry performed successfully beyond expectation. A total of 124 million carats of rough diamonds, which is worth of $15 billion, were excavated (AWDC, 2013). According to the industry consulting organization, Bain & Company (2013), “those stones were worth $24 billion after moving through the chain of dealers, cutters and polishers, on their way to making diamond jewellery worth $71 billion at retail”. They also reported that compared to 2010, the global diamond sales significantly increased by 18% to $71 billion, close to the 2007 peak of $73 billion before the crisis. IDEX (2013) and Tacy LTD (2013) indicated that the majority of growth contributed to the mounting demand from Chinese and Indian markets. De Beers, which is reviewed in this proposal as an example of the world’s leading diamond company for more than a century, reached their second highest level of sales ever to $6.5 billion in 2011.
In the 1990s an issue of “conflict diamonds” or “blood diamonds” was heatedly debated across the globe. The diamond industry encountered the crisis from their diamond sourced countries. In several politically unstable African countries, such as Angola, Sierra Leone, Liberia, the Democratic Republic of the Congo, the diamond mines were under control of the military as a means to finance their military power. With the media‘s widespread coverage and the movie “Blood Diamond”, the transactions between diamond buyers and the military, although not all from such illegal channels, were regarded as intensifying violent tribal conflict. Consequently, the reputation of the diamond industry was blackened (The Kimberly Process, 2013; Pauwelyn, 2003; Worldbank.org, 2013).
Summary of Chapters
1 Title and Introduction: Provides background on the diamond industry’s economic performance and introduces the ethical challenges posed by “blood diamonds” and the role of CSR.
2 Literature Review: Examines theoretical foundations of CSR, brand image, and purchase intention, while analyzing De Beers' specific CSR implementations.
3 Research Aim and Objectives: Defines the core goals of the study, focusing on the link between CSR, brand perception, and buying behavior in the Taiwanese diamond market.
4 Methodology: Outlines the research design, including the use of both quantitative questionnaires and qualitative interviews to gather empirical data.
5 Difficulties and Limitations: Acknowledges constraints such as time, sample size, and the narrow focus on philanthropy within the broader spectrum of CSR.
6 References: A comprehensive bibliography of academic and industry sources cited throughout the research.
Keywords
Corporate Social Responsibility, CSR, Diamond Industry, Purchase Intention, Brand Image, De Beers, Consumer Behavior, Luxury Marketing, Conflict Diamonds, Kimberley Process, Philanthropy, Sponsorship, Taiwan Market, Strategic Marketing, Sustainability
Frequently Asked Questions
What is the primary focus of this research?
The research investigates how Corporate Social Responsibility (CSR) activities influence brand image and purchase intention among consumers in the Taiwanese luxury diamond market.
What are the central thematic areas of the study?
The key themes include the evaluation of CSR in luxury branding, the impact of brand image on consumer psychology, and the strategic importance of philanthropy for companies like De Beers.
What is the central research question?
The core research goal is to determine the extent to which CSR activities affect the purchase intentions of Taiwanese consumers and how this relationship is mediated by brand image.
Which research methods are employed?
The study utilizes a deductive approach, primarily using quantitative questionnaire analysis (Likert scale) supplemented by in-depth qualitative interviews.
What topics are discussed in the main body of the work?
The main sections cover the literature on CSR definitions, brand image frameworks (specifically Keller’s model), sponsorship strategies, and the specific case study of De Beers.
Which keywords characterize this work?
The most relevant keywords are CSR, Diamond Industry, Brand Image, Purchase Intention, Consumer Behavior, and Strategic Philanthropy.
Why was De Beers selected as the case study?
De Beers was chosen because of its high brand awareness in the Taiwan market, its consistent long-term CSR efforts since 2006, and its significant consumer base.
How does the study address the “blood diamond” crisis?
The study treats the “blood diamond” crisis as a catalyst that forced the diamond industry to adopt transparent CSR policies to rehabilitate its global reputation and brand image.
- Quote paper
- Peter Maine (Author), 2011, The influence of Corporate Social Responsibility (CSR) on Taiwanese Consumers’ Purchase Intention and Brand Image in the Diamond Industry, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/267607
