Abstract
The main objective of this study is to analyse the impact of sustainable practices on companies’ corporate reputation and brand image in the retail sector as perceived by consumers. In addition, we evaluate how those practices affect consumers’ perceived satisfaction levels and their predisposition to engage in positive Word of Mouth (WOM). For the purpose of this study, the context of an emerging economy, Peru, is taken as reference. To do this, we propose a structural equation model based on a representative sample of 403 consumers. The data analysis—using the PLS software package—confirms that corporate social responsibility (CSR) positively influences both corporate reputation and brand image. These two factors jointly have an impact on consumers’ perceived satisfaction levels, which in turn help to explain the flow of positive WOM. This work is a pioneering study of the relationship between the aforementioned factors in the context of emerging economies. The final part of the article discusses the main theoretical implications and recommendations for business practice.
Highlights
Society in general requires companies to follow sustainable and socially responsible business models [1]
The strategies based on sustainability and positively valued by customers may help to facilitate the economic growth of emerging economies, to reduce both absolute poverty and inequality and to guarantee the future of the generations. After identifying these gaps in the literature, and having observed that they addressed a specific topic of this particular issue, this work aims to respond to the following research questions (RQs) in the context of emerging economies: Do the corporate social responsibility (CSR) activities perceived by customers impact on reputation and brand image? Does branding influence customers’ perceived satisfaction and post-purchase behaviour?
The present study examines the impact of retail companies’ sustainability actions—measured based on the CSR concept—on consumer satisfaction levels and their predisposition to generate positive Word of Mouth (WOM) through a chain of effects that considers corporate reputation and brand image as transmitters of such CSR actions
Summary
Society in general requires companies to follow sustainable and socially responsible business models [1]. In the case of retail companies, trade dynamics are changing: the rapid expansion of ecommerce and online retailing [6] has encouraged omnichannel models and has forced many companies to consider logistical aspects (i.e., last mile logistics) in the value proposition. The latter have an impact on specific deliveries, and on the CO2 footprint generated by each delivery [2]. Adopting best practices in terms of sustainability is a key factor to understand retailers’ success [7,8]
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