The Impact of Customer’s Perception of the Practices of Corporate Social Responsibility on Purchase Intention
CSR and purchase intention
Abstract
The scarcity of research on the customer`s perception towards corporate social responsibility (CSR) in developing countries has inspired this research. This study aims to measure the impact of the customer`s perception of the practice of corporate social responsibility on the purchase intention in the presence of the service quality as a mediator variable. To achieve the aims of this study, the researcher relied on the mixed design of the search. The relevant CSR literature was recapitulated into a conceptual framework and an empirical study that were conducted through a mixed research design. This study reached many of the results, including that there is a direct impact of corporate social responsibility on the purchase intention. Also, there is an indirect impact of the moderating variable of the study, which is service quality of the direct positive impact of both the economic dimension, Ethics and philanthropic on purchase intention.
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References
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Journal of Public Policy & Marketing, 23(2), 193-208.
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Baughn, C. C., Bodie, N. L., & McIntosh, J. C. (2007). Corporate social and environmental responsibility in Asian countries and other geographical regions. Corporate Social Responsibility & Environmental Management, 14(4), 189-205.
Carroll, A. B. (1979, October). A three-dimensional conceptual model of corporate performance. The Academy of Management Review, 4(4), 497-505.
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International Journal of Corporate Social Responsibility, 1(1), 1-8.
Carroll, A. B., & Buchholtz, A. K. (2002, February). Business and society with infotrac: Ethics and stakeholder management (5th ed.). Cincinnati, USA: South-Western College Pub.
Cassel, D. (2001, April). Human rights and business responsibilities in the global marketplace. Business Ethics Quarterly, 11(2), 261-274.
Chandler, D. (2019, July). Strategic corporate social responsibility: Sustainable value creation (5th ed.). Thousand Oaks, CA, USA: SAGE Publications, Incorporated.
Chen, C. C., Lin, S. Y., Cheng, C. H., & Tsai, C. C. (2012, June). Service quality and corporate social responsibility, influence on post-purchase intentions of sheltered employment institutions. Research in Developmental Disabilities, 33(6), 1832-1840.
Choudhury, K. (2013). Service quality and WOM (word-of-mouth): A study of the Indian banking sector. International Journal of Customer Relationship Marketing & Management, 2(2), 63-87.
Collis, J., & Hussey, R. (2009). Business research (3rd ed.). Basingstoke, Hampshire, UK: Palgrave Macmillan.
Cornwell, T. B., & Coote, L. V. (2005, February). Corporate sponsorship of a cause: The role of identification in purchase intent. Journal of Business Research, 58(3), 268-276.
Davis, K. (1960, April). Can business afford to ignore social responsibilities? California Management Review, 2(3), 70-76.
Deng, J., & Qian, M.Y. (2011). Counselors’ implicit ethical attitude towards dual relationship. Chinese Mental Health Journal, 25(12), 897-903.
Dentchev, N. A. (2009). To what extent is business and society literature idealistic?
Business & Society, 48(1), 10-38.
Fatma, M., Khan, I., & Rahman, Z. (2016, August). The effect of CSR on consumer behavioral responses after service failure and recovery. European Business Review, 28(5), 583-599.
Foo, D. S. T., & Yazdanifard, R. (2014). Does corporate social responsibility make any differences when it comes to “un-substitutable” product from customer point of view. Journal of Research in Marketing, 2(2), 167-171.
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Hassan, H., Hashmi, M. S., & Sarwar, Z. (2014). Exploring the impact of retail stores’ service quality on consumers’ purchase intention: The moderating role of CSR. Middle-East Journal of Scientific Research, 19(4), 505-520.
Hayes, A. (2013). Introduction to Mediation, moderation and conditional process analysis: A regression-based approach. New York: The Guilford Press.
He, H., & Li, Y. (2011). CSR and service brand: The mediating effect of brand identification and moderating effect of service quality. Journal of Business Ethics, 100(4), 673-688.
Henderson, J. C. (2007). Corporate social responsibility and tourism: Hotel companies in Phuket, Thailand, after the Indian ocean tsunami. International Journal of Hospitality Management, 26(1), 228-239
Henseler, J., Ringle, C., & Sinkovics, R. (2009). The use of partial least squares path modelling in international marketing. Advances in International Marketing, 20, 277- 320.
Hsu, K. T. (2012). The advertising effects of corporate social responsibility on corporate reputation and brand equity: Evidence from the life insurance industry in Taiwan. Journal of Business Ethics, 109(2), 189-201.
Huang, C. -C., Yen, S. -W., Liu, C. -Y., & Huang, P. -C. (2014). The relationship among corporate social responsibility, service quality, corporate image and purchase intention. International Journal of Organizational Innovation (Online), 6(3), 68-84.
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Husted, B. W., & Allen, D. B. (2000). Is it ethical to use ethics as strategy? Journal of Business Ethics, 27(1/2), 21-31.
Jensen, M., & Meckling, W. (1976). Theory of the firm: Managerial behavior, agency cost, and capital structure. Journal of Financial Economics, 3(4), 305-360.
Kolkailah, S. K., Aish, E. A., & El‐Bassiouny, N. (2012, July). The impact of corporate social responsibility initiatives on consumers’ behavioral intentions in the Egyptian market. International Journal of Consumer Studies, 36(4), 369-384
Kotler, P., & Lee, N. (2005), Corporate social responsibility: Doing the most good for your company and your cause. Hoboken, NJ: John Wiley & Sons.
Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities.
Educational & Psychological Measurement, 30, 607-610.
Kuo, Y. F., Wu, C. M., & Deng, W. J. (2009). The relationships among service quality, perceived value, customer satisfaction, and post-purchase intention in mobile value-added services. Computers in Human Behavior, 25(4), 887-896.
Lacey, R., Kennett-Hensel, P. A., & Manolis, C. (2015). Is corporate social responsibility a motivator or hygiene factor? Insights into its bivalent nature. Journal of the Academy of Marketing Science, 43(3), 315-332.
Lantos, G.P., (2001). The boundaries of strategic corporate social responsibility. Journal of Consumer Marketing, 18(7), 595-632.
Lee, H., Park, T., Moon, H. K., Yang, Y., & Kim, C. (2009). Corporate philanthropy, attitude towards corporations, and purchase intentions: South Korea study. Journal of Business Research, 62(10), 939-946.
Lichtenstein, D. R., Drumwright, M. E., & Braig, B. M. (2004). The effect of corporate social responsibility on customer donations to corporate-supported nonprofits. Journal of Marketing, 68(4), 16-32.
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Mohr, L. A., & Webb, D. J. (2005). The effects of corporate social responsibility and price on consumer responses. Journal of Consumer Affairs, 39(1), 121-147.
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Park, J., Lee, H., & Kim, C. (2014). Corporate social responsibilities, consumer trust and corporate reputation: South Korean consumers’ perspectives. Journal of Business Research, 67(3), 295-302.
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California Management Review, 23(3), 56-62.
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Argo, J. J., & Main, K. J. (2004). Meta-analyses of the effectiveness of warning labels.
Journal of Public Policy & Marketing, 23(2), 193-208.
Arikan, E., & Güner, S. (2013, November). The impact of corporate social responsibility, service quality and customer-company identification on customers. Procedia-Social & Behavioral Sciences, 99, 304-313.
Baughn, C. C., Bodie, N. L., & McIntosh, J. C. (2007). Corporate social and environmental responsibility in Asian countries and other geographical regions. Corporate Social Responsibility & Environmental Management, 14(4), 189-205.
Carroll, A. B. (1979, October). A three-dimensional conceptual model of corporate performance. The Academy of Management Review, 4(4), 497-505.
Carroll, A. B. (1991, July). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons, 34(4), 39-48. Carroll, A. B. (2016, December). Carroll’s pyramid of CSR: Taking another look.
International Journal of Corporate Social Responsibility, 1(1), 1-8.
Carroll, A. B., & Buchholtz, A. K. (2002, February). Business and society with infotrac: Ethics and stakeholder management (5th ed.). Cincinnati, USA: South-Western College Pub.
Cassel, D. (2001, April). Human rights and business responsibilities in the global marketplace. Business Ethics Quarterly, 11(2), 261-274.
Chandler, D. (2019, July). Strategic corporate social responsibility: Sustainable value creation (5th ed.). Thousand Oaks, CA, USA: SAGE Publications, Incorporated.
Chen, C. C., Lin, S. Y., Cheng, C. H., & Tsai, C. C. (2012, June). Service quality and corporate social responsibility, influence on post-purchase intentions of sheltered employment institutions. Research in Developmental Disabilities, 33(6), 1832-1840.
Choudhury, K. (2013). Service quality and WOM (word-of-mouth): A study of the Indian banking sector. International Journal of Customer Relationship Marketing & Management, 2(2), 63-87.
Collis, J., & Hussey, R. (2009). Business research (3rd ed.). Basingstoke, Hampshire, UK: Palgrave Macmillan.
Cornwell, T. B., & Coote, L. V. (2005, February). Corporate sponsorship of a cause: The role of identification in purchase intent. Journal of Business Research, 58(3), 268-276.
Davis, K. (1960, April). Can business afford to ignore social responsibilities? California Management Review, 2(3), 70-76.
Deng, J., & Qian, M.Y. (2011). Counselors’ implicit ethical attitude towards dual relationship. Chinese Mental Health Journal, 25(12), 897-903.
Dentchev, N. A. (2009). To what extent is business and society literature idealistic?
Business & Society, 48(1), 10-38.
Fatma, M., Khan, I., & Rahman, Z. (2016, August). The effect of CSR on consumer behavioral responses after service failure and recovery. European Business Review, 28(5), 583-599.
Foo, D. S. T., & Yazdanifard, R. (2014). Does corporate social responsibility make any differences when it comes to “un-substitutable” product from customer point of view. Journal of Research in Marketing, 2(2), 167-171.
Foster, M. K., Meinhard, A.G., Berger, I. E., & Krpan, P. (2009, June). Corporate philanthropy in the Canadian context: From damage control to improving society. Nonprofit & Voluntary Sector Quarterly, 38(3), 441-466.
Garriga, E., & Melé, D. (2004). Corporate social responsibility theories: Mapping the territory. Journal of Business Ethics, 53(1), 51-71.
Gigauri, I. (2012, November). Impact of corporate social responsibility on consumer purchase decision. Journal of Educational & Social Research, 2(9), 106-106.
González‐Rodríguez, M. R., & Díaz‐Fernández, M. C. (2020, February). Customers’ corporate social responsibility awareness as antecedent of repeat behaviour intention. Corporate Social Responsibility & Environmental Management, 27(3), 1294- 1306.
Gopal, A., & Srinivasan, R. (2006, October). The new Indian consumer. Harvard Business Review, 84(10), 22-23.
Gottlieb, U. R., Brown, M. R., & Drennan, J. (2011, November). The influence of service quality and trade show effectiveness on post-show purchase intention. European Journal of Marketing, 45(11/12), 1642-1659.
Hair, J., Hult, G., Ringle, C., & Sarstedt, M. (2014). A primer on partial least squares structural equation modelling (PLS-SEM). Los Angeles: Sage Publications.
Hair, J., Sarstedt, M., Ringle, C., & Mena, J. (2012). An assessment of the use of partial least squares structural equation modelling in marketing research. Journal of the Academy of Marketing Science, 40(3), 414-433.
Hassan, H., Hashmi, M. S., & Sarwar, Z. (2014). Exploring the impact of retail stores’ service quality on consumers’ purchase intention: The moderating role of CSR. Middle-East Journal of Scientific Research, 19(4), 505-520.
Hayes, A. (2013). Introduction to Mediation, moderation and conditional process analysis: A regression-based approach. New York: The Guilford Press.
He, H., & Li, Y. (2011). CSR and service brand: The mediating effect of brand identification and moderating effect of service quality. Journal of Business Ethics, 100(4), 673-688.
Henderson, J. C. (2007). Corporate social responsibility and tourism: Hotel companies in Phuket, Thailand, after the Indian ocean tsunami. International Journal of Hospitality Management, 26(1), 228-239
Henseler, J., Ringle, C., & Sinkovics, R. (2009). The use of partial least squares path modelling in international marketing. Advances in International Marketing, 20, 277- 320.
Hsu, K. T. (2012). The advertising effects of corporate social responsibility on corporate reputation and brand equity: Evidence from the life insurance industry in Taiwan. Journal of Business Ethics, 109(2), 189-201.
Huang, C. -C., Yen, S. -W., Liu, C. -Y., & Huang, P. -C. (2014). The relationship among corporate social responsibility, service quality, corporate image and purchase intention. International Journal of Organizational Innovation (Online), 6(3), 68-84.
Huang, J. -L., Yeh, L. -Y., & Chien, H. -Y. (2011, January). ABAKA: An anonymous batch authenticated and key agreement scheme for value-added services in vehicular ad hoc networks. IEEE Transactions on Vehicular Technology, 60(1), 248- 262.
Husted, B. W., & Allen, D. B. (2000). Is it ethical to use ethics as strategy? Journal of Business Ethics, 27(1/2), 21-31.
Jensen, M., & Meckling, W. (1976). Theory of the firm: Managerial behavior, agency cost, and capital structure. Journal of Financial Economics, 3(4), 305-360.
Kolkailah, S. K., Aish, E. A., & El‐Bassiouny, N. (2012, July). The impact of corporate social responsibility initiatives on consumers’ behavioral intentions in the Egyptian market. International Journal of Consumer Studies, 36(4), 369-384
Kotler, P., & Lee, N. (2005), Corporate social responsibility: Doing the most good for your company and your cause. Hoboken, NJ: John Wiley & Sons.
Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities.
Educational & Psychological Measurement, 30, 607-610.
Kuo, Y. F., Wu, C. M., & Deng, W. J. (2009). The relationships among service quality, perceived value, customer satisfaction, and post-purchase intention in mobile value-added services. Computers in Human Behavior, 25(4), 887-896.
Lacey, R., Kennett-Hensel, P. A., & Manolis, C. (2015). Is corporate social responsibility a motivator or hygiene factor? Insights into its bivalent nature. Journal of the Academy of Marketing Science, 43(3), 315-332.
Lantos, G.P., (2001). The boundaries of strategic corporate social responsibility. Journal of Consumer Marketing, 18(7), 595-632.
Lee, H., Park, T., Moon, H. K., Yang, Y., & Kim, C. (2009). Corporate philanthropy, attitude towards corporations, and purchase intentions: South Korea study. Journal of Business Research, 62(10), 939-946.
Lichtenstein, D. R., Drumwright, M. E., & Braig, B. M. (2004). The effect of corporate social responsibility on customer donations to corporate-supported nonprofits. Journal of Marketing, 68(4), 16-32.
Ling, K. C., Chai, L. T., & Piew, T. H. (2010, July). The effects of shopping orientations, online trust and prior online purchase experience toward customers’ online purchase intention. International Business Research, 3(3), 63-76.
Maignan, I., & Ferrell, O. C., (2003). Nature of corporate responsibilities: Perspectives from American, French, and German consumers. Journal of Business research, 56(1), 55-67.
Malhotra, N. & Birks, D. (2007). Marketing research: An applied approach (3rd ed.). Harlow, UK: Pearson Education.
Malhotra, N. K. (2011). Review of marketing research: Special issue–marketing legends (vol. 8).
Bingley, UK: Emerald Group Publishing Limited.
Martínez, J. B., Fernández, M. L., & Fernández, P. M. R. (2016). Corporate social responsibility: Evolution through institutional and stakeholder perspectives. European Journal of Management & Business Economics, 25(1), 8-14.
Matten, D., & Crane, A. (2005). Corporate citizenship: Toward an extended theoretical conceptualization. Academy of Management Review, 30(1), 166-179.
Menichini, T., & Rosati, F. (2014, January). The strategic impact of CSR consumer- company alignment. Procedia-Social & Behavioral Sciences, 109, 360-364
Mohr, L. A., & Webb, D. J. (2005). The effects of corporate social responsibility and price on consumer responses. Journal of Consumer Affairs, 39(1), 121-147.
Murray, K. B., & Montanari, J. B. (1986). Strategic management of the socially responsible firm: Integrating management and marketing theory. Academy of Management Review, 11(4), 815-827.
Parasuraman, A., Berry, L. L., & Zeithaml, V. A. (1993). More on improving service quality measurement. Journal of Retailing, 69(1), 140-147.
Park, J., Lee, H., & Kim, C. (2014). Corporate social responsibilities, consumer trust and corporate reputation: South Korean consumers’ perspectives. Journal of Business Research, 67(3), 295-302.
Parsons, T. (1961). An outline of the social system. In Classical Sociological Theory (2nd ed., pp. 421-440). Malden MA, USA: Wiley-Blackwell Publ.
Payton, R. L. (1988). Philanthropy: Voluntary action for the public good. New York: American Council on Education.
Pérez, M. S., Abad, J. C. G., Carrillo, G. M. M., & Fernández, R. S. (2007, March). Effects of service quality dimensions on behavioural purchase intentions: A study in public‐sector transport. Managing Service Quality: An International Journal. 17(2), 134-151.
Potočan, V., & Mulej, M. (2009, January). How to improve innovativeness of small and medium enterprises. Management: Journal of Contemporary Management Issues, 14(1), 1- 20.
Preacher, K., & Hayes, A. (2004). SPSS and SAS procedures for estimating indirect effects in simple mediation models. Behaviour Research Methods, Instruments, & Computers, 36(4), 717-731.
Preacher, K., & Hayes, A. (2008). Asymptotic and re-sampling strategies for assessing and comparing indirect effects in multiple mediator models. Behaviour Research Methods, 40(3), 879-891.
Preston, L. E., & Post, J. E. (1981, April). Private management and public policy.
California Management Review, 23(3), 56-62.
Rexhepi, G., Kurtishi, S., & Bexheti, G. (2013, April). Corporate social responsibility (CSR) and innovation–the drivers of business growth? Procedia-Social & Behavioral Sciences, 75, 532-541.
Ringle, C. M., Wende, S., & Becker, J. -M. (2015, January). Smart PLS 3. Bönningstedt: Smart PLS GmbH, http://www.smartpls.com.
Sen, S., Bhattacharya, C. B., & Korschun, D. (2006, March). The role of corporate social responsibility in strengthening multiple stakeholder relationships: A field experiment. Journal of the Academy of Marketing Science, 34(2), 158-166.
Servaes, H., & Tamayo, A. (2013). The impact of corporate social responsibility on firm value: The role of customer awareness. Management Science, 59(5), 1045-1061.
Smith, W., & Higgins, M. (2000). Cause-related marketing: Ethics and the ecstatic.
Business & Society, 39(3), 304-322.
Staiculescu, O. (2014, January). Quality and social responsibility: A pathway to the future. Procedia-Social & Behavioral Sciences, 109, 241-245.
Sturdivant, F. D. (1979, Fall). Executives and activists: Test of stakeholder theory.
California Management Review (pre-1986), 22(1), 53-59.
Sureshchandar, G. S., Rajendran, C., & Anantharaman, R. N. (2002, July). The relationship between service quality and customer satisfaction-a factor specific approach. Journal of Services Marketing, 16(4), 363-379.
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Published
2021-11-07
How to Cite
ABD ELSAMEA, Doaa Mohamed; RASHED, Ahmed Sayed.
The Impact of Customer’s Perception of the Practices of Corporate Social Responsibility on Purchase Intention.
Journal of Accounting, Business and Management (JABM), [S.l.], v. 28, n. 2, p. 83-103, nov. 2021.
ISSN 2622-2167.
Available at: <https://journal.stie-mce.ac.id/index.php/jabminternational/article/view/473>. Date accessed: 27 apr. 2024.
doi: https://doi.org/10.31966/jabminternational.v28i2.473.
Section
Articles
