How Corporate Social Responsibility Affects Brand Equity and Loyalty? A Comparison Between Private and Public Universities

Abstract

This study compares the direct and indirect effects of corporate social responsibility (CSR) on brand equity and brand loyalty between public and private universities. Additionally, this study compares the direct effect of CSR on brand reputation, brand equity, and brand loyalty; and role of brand reputation as a mediator between CSR, brand equity, and loyalty between public and private universities. Data were collected from one public and one private university in Malaysia, with 600 questionnaires collected from students of Taylor’s University and University of Malaya, both top private and public universities in Malaysia, respectively. Partial least squares - structural equation modeling has been used to assess the measurement model and for hypothesis testing. The findings showed positive and significant effects for CSR on reputation, brand equity, and brand loyalty, either directly or indirectly, for private and public universities. Significant differences were seen in the direct and indirect effects of CSR on brand loyalty, and the effects of brand reputation on brand loyalty, between public and private universities. This study makes a unique theoretical contribution to the literature by comparing the direct and indirect effects of CSR on brand reputation, brand equity, and brand loyalty between public and private universities; in assessing the mediation role of brand reputation between CSR, brand equity, and loyalty through brand reputation; and in comparing this mediation effect between public and private universities. Moreover, this study provides practical implications for public and private higher education institutions to develop their branding strategies.