An Experimental Design to Test the Main and Interaction Effects of CSR Involvement, Brand Naming, and Pricing on Purchase Intentions in Thailand

Apicha Boonpattarakan

doi:10.5539/ijbm.v7n16p62

Abstract

This study attempted to test the main and interaction effects of CSR involvement, brand naming, and pricing onconsumers’ purchase intentions by using a 2 x 2 x 2 experimental design. CSR involvement was based on acause-related marketing campaign. Brand naming was based on a local/Thai brand name and a foreign brandname signifying that the product is from a renowned country. High prices and low prices were adopted for thepricing factor. A computer notebook was used to represent a high involvement and technological product for theexperiment. Siam Computer was used to represent a Thai brand name whereas Toshisu was used to represent aforeign brand name. Students from a local university were recruited as experimental subjects. Fifty subjects wererandomly assigned to each of the eight experimental conditions. All three experimental factors were found tohave significant effects on purchase intentions. The levels of purchase intentions were found to be higher forproducts with CSR involvement, foreign brand name, and lower prices. The two way interaction effectssuggested that CSR involvement had a positive effect on products with foreign brand name and higher prices.The effect of pricing was found to be stronger for products using Thai brand name. The three way interactioneffect suggested that for a high price condition, CSR involvement had a strong effect on purchase intentions forproducts using a foreign brand name whereas in a low price condition, CSR involvement had no significanteffect regardless of the name of the brand.

Highlights

What is the purchase criteria consumers use for brand evaluation is a very good question in today’s competitive environment
The manipulation check suggested that all the subjects understood very well about the three factors used in the experiment, i.e., foreign brand name VS Thai brand name, high price VS low price, and having corporate social responsibility (CSR) involvement VS no CSR involvement
The contribution of this study is on the investigation of both main and interaction effects of CSR involvement, brand naming, and pricing by using an experimental design that contains a high level of internal validity

Summary

Introduction

What is the purchase criteria consumers use for brand evaluation is a very good question in today’s competitive environment. The typical purchase criteria consumers use for a high involvement and technological product, such as an air conditioner, an LCD or LED TV, an electrical washer, a computer notebook, a digital camera, etc., may include the name of the brand itself, brand image, brand reputation, product features, product design, product quality, product usefulness, ease of use, and prices (Davis, Bagozzi, & Warshaw, 1989; McClary, 2006). The renowned air conditioner in Thailand is perceived to be Mitsubishi, Mr Slim (Mitsubishi Electric, 2012). These examples imply that developed countries like Japan, USA, and South Korea are reputed for manufacturing technological products. Even though the name of the brand itself may convey some aspects of image, such as quality image, value image, ease of use image, etc., www.ccsenet.org/ijbm

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