Customer perception of CSR initiatives: its antecedents and consequences

Abstract

Purpose This study aims to ascertain the impact of customer perception of CSR activities (philanthropic, environmental and ethical) conducted on various consumer and corporate related dimensions including; customer loyalty, consumer attachment, corporate performance and repurchase intention. The study also adds value by taking customer perception of CSR as a mediator between green image and performance. Design/methodology/approach Structural equation modelling is used after using different (valid and reliable) instruments to measure latent constructs. The study has a sample size of 250 “CSR Consumers”, who had some knowledge and awareness of CSR and green image being advertised and or labelled by the company (such as printing “Recycled” or other eco-friendly images/labels on shopping bag, fliers, outlets, etc.) and are consumers/customers of such firms. The respondent’s awareness was measured by randomly asking them to recall organizations that might have eco-friendly policies. Findings The key findings of the study are that perceived fit of culture along with CSR capability radically influences CSR perception within consumer minds and so, subsequently, customer attachment and overall performance of the corporation. The outcomes bestow significant ramifications for marketing and advertising philosophy combined with practice. Practical implications Stakeholders exist in the form of consumers other than employees. So consumer satisfaction must be imparted its fair share of importance. Managers must make sure that initiatives for societal benefit are well accepted and well recognized by consumers in a positive array of light. Corporations enthusiastically involved in initiating CSR activities and forecast a positive income. The study guides managers into not falling in this misconception and by recognizing that the fact is that the company managers must only expect higher performance levels once their CSR is in synchronization with the firm’s culture. Originality/value A number of studies have been conducted about CSR practices in the Indian context for example (Khan and Atkinson, 1987; Krishna, 1992; Arora and Puranik, 2004; Sood and Arora, 2006; Mishra and Suar, 2010); however, there is dearth of research in its neighbouring country Pakistan about CSR practices and consumer perceptions. Therefore, this research aims to fill this gap by examining CSR practices in Pakistan which has similar historical and colonial roots with India. In doing so, this study ascertains the impact of CSR activities conducted on various consumer and corporate related dimensions that incorporate customer loyalty, consumer attachment and corporate performance.