Consumer perception towards corporate social responsibility on brand equity
While the Malaysian government continues to encourage companies to adopt CSR practices, consumers’ preference and demands for products and services deemed ethical is expected to encourage firms to adopt the CSR agenda. Consumers are often regarded as one of the primary drivers of CSR amongst orga...
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my.unimap-620232019-09-26T10:35:58Z Consumer perception towards corporate social responsibility on brand equity Karpal Singh, Dara Singh Associate Professor Dr. Md Aminul Islam corporate social responsibility (CSR) Social responsibility of business Consumers Brand equity While the Malaysian government continues to encourage companies to adopt CSR practices, consumers’ preference and demands for products and services deemed ethical is expected to encourage firms to adopt the CSR agenda. Consumers are often regarded as one of the primary drivers of CSR amongst organizations, however, little is known about the impact CSR has on consumers more so in a Malaysian context. The primary purpose of this study is to examine consumers’ perception towards CSR and its effect on brand equity. This study investigates the drivers that motivate firms to adopt CSR and the effect of CSR dimensions on brand equity. The study also investigates the moderating effect of customer awareness and religiosity on the relationship between CSR and brand equity. In addition, the study also investigates the effect of brand equity (resulting from CSR practices) on consumer buying behaviour. Having reviewed scores of literatures, the study identified six drivers of CSR (intra-organizational factors, competitive dynamics, institutional investors, customers, government regulators and non-governmental organization) that were adopted as the antecedents of the study. Three CSR models were reviewed and synthesized which resulted in a proposed CSR model containing six dimensions (value creation, legal compliance, good governance, philanthropical engagements, workplace concerns and environmental integrity). These CSR dimensions were adopted as the independent variables of the study which were tested against brand equity, the dependent variable of the study. To attain the objectives, the study adopted a quantitative approach and questionnaires were developed and distributed to the chosen sample and collected back for relevant analyses and discussions. The geographical scope of the research comprised 12 states in Peninsular Malaysia targeting 120 people from each state contributing to a sample size of 1440 people, based on a quota based sampling plan in order to investigate the views of customers from the multi - racial population of Malaysia. A total of 909 usable questionnaires were used for analysis. The exploratory factor analysis and reliability analysis was undertaken to test the validity and consistency of all questionnaire items. The findings revealed that all the six drivers were able to motivate organizations to adopt CSR practices. As for the effects of CSR dimensions on brand equity, the study revealed that value creation, legal compliance, philanthropical engagements, workplace concerns and environmental integrity were significant predictors of brand equity. However the study found no convincing evidence to support the effect of good governance on brand equity. Hence, 5 hypotheses relating to CSR dimensions and brand equity were accepted while 1 hypothesis was not supported. In terms of the moderating variables, the study found that customer awareness was able to moderate the relationship between philanthropical engagement and brand equity while religiosity only had a moderating effect on the relationship between legal compliance and brand equity. In addition, the study also found that brand equity (resulting from CSR practices) had an effect on consumers buying behaviour which meant that customers were willing to consider products and services from organizations that were committed to CSR. 2019-09-26T10:35:57Z 2019-09-26T10:35:57Z 2015 Thesis http://dspace.unimap.edu.my:80/xmlui/handle/123456789/62023 en Universiti Malaysia Perlis (UniMAP) School of Business Innovation and Technopreneurship |
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corporate social responsibility (CSR) Social responsibility of business Consumers Brand equity Karpal Singh, Dara Singh Consumer perception towards corporate social responsibility on brand equity |
description |
While the Malaysian government continues to encourage companies to adopt CSR
practices, consumers’ preference and demands for products and services deemed ethical
is expected to encourage firms to adopt the CSR agenda. Consumers are often regarded
as one of the primary drivers of CSR amongst organizations, however, little is known
about the impact CSR has on consumers more so in a Malaysian context. The primary
purpose of this study is to examine consumers’ perception towards CSR and its effect on brand equity. This study investigates the drivers that motivate firms to adopt CSR
and the effect of CSR dimensions on brand equity. The study also investigates the
moderating effect of customer awareness and religiosity on the relationship between
CSR and brand equity. In addition, the study also investigates the effect of brand equity
(resulting from CSR practices) on consumer buying behaviour. Having reviewed scores
of literatures, the study identified six drivers of CSR (intra-organizational factors,
competitive dynamics, institutional investors, customers, government regulators and
non-governmental organization) that were adopted as the antecedents of the study.
Three CSR models were reviewed and synthesized which resulted in a proposed CSR
model containing six dimensions (value creation, legal compliance, good governance,
philanthropical engagements, workplace concerns and environmental integrity). These
CSR dimensions were adopted as the independent variables of the study which were
tested against brand equity, the dependent variable of the study. To attain the
objectives, the study adopted a quantitative approach and questionnaires were
developed and distributed to the chosen sample and collected back for relevant analyses
and discussions. The geographical scope of the research comprised 12 states in
Peninsular Malaysia targeting 120 people from each state contributing to a sample size
of 1440 people, based on a quota based sampling plan in order to investigate the views
of customers from the multi - racial population of Malaysia. A total of 909 usable
questionnaires were used for analysis. The exploratory factor analysis and reliability
analysis was undertaken to test the validity and consistency of all questionnaire items.
The findings revealed that all the six drivers were able to motivate organizations to
adopt CSR practices. As for the effects of CSR dimensions on brand equity, the study
revealed that value creation, legal compliance, philanthropical engagements, workplace
concerns and environmental integrity were significant predictors of brand equity.
However the study found no convincing evidence to support the effect of good
governance on brand equity. Hence, 5 hypotheses relating to CSR dimensions and
brand equity were accepted while 1 hypothesis was not supported. In terms of the
moderating variables, the study found that customer awareness was able to moderate
the relationship between philanthropical engagement and brand equity while religiosity
only had a moderating effect on the relationship between legal compliance and brand
equity. In addition, the study also found that brand equity (resulting from CSR
practices) had an effect on consumers buying behaviour which meant that customers
were willing to consider products and services from organizations that were committed
to CSR. |
author2 |
Associate Professor Dr. Md Aminul Islam |
author_facet |
Associate Professor Dr. Md Aminul Islam Karpal Singh, Dara Singh |
format |
Thesis |
author |
Karpal Singh, Dara Singh |
author_sort |
Karpal Singh, Dara Singh |
title |
Consumer perception towards corporate social responsibility on brand equity |
title_short |
Consumer perception towards corporate social responsibility on brand equity |
title_full |
Consumer perception towards corporate social responsibility on brand equity |
title_fullStr |
Consumer perception towards corporate social responsibility on brand equity |
title_full_unstemmed |
Consumer perception towards corporate social responsibility on brand equity |
title_sort |
consumer perception towards corporate social responsibility on brand equity |
publisher |
Universiti Malaysia Perlis (UniMAP) |
publishDate |
2019 |
url |
http://dspace.unimap.edu.my:80/xmlui/handle/123456789/62023 |
_version_ |
1651868582556991488 |
score |
13.222552 |