The effect of consumers’ perception of CSR activities on their purchasing behavior: the case of the Iranian automotive market

Abstract

PurposeThis study aims to examine the customer’s perception of corporate social responsibility within the automotive market in Tehran, Iran, and whether it leads to a purchasing behavior directly or indirectly through support intention.Design/methodology/approachA total of 235 customers of luxury and mid-range-priced automobiles were surveyed and analyzed using the partial least squares structural equation modeling method.FindingsRegarding luxury car owners, the authors concluded that both economical and ethical perceptions are indirectly related to purchasing behavior. Concerning mid-range-priced car buyers, both philanthropic and economical perceptions have a direct relationship with purchasing behavior, while the legal perception has an indirect relationship with purchasing behavior. The results show that Iranian car manufacturers and foreign car dealerships for both luxury and mid-range customers should focus on their economical responsibilities. The results show that luxury car manufacturers and dealerships should act ethically. With the importance of the philanthropic dimension for customers of mid-range cars, car dealerships dealing with mid-range-priced cars should focus more on their philanthropic activities. This study can help companies find better solutions to adjust their corporate social responsibility (CSR) policies to the consumers’ beliefs, gain a competitive advantage in the market and fill the knowledge gap regarding Iranian consumers.Originality/valueAlthough some research has been conducted on consumer perception and response regarding CSR in both developed and developing countries, no studies on consumer perception toward CSR have been carried out in Iran.