The impact of corporate social responsibility (CSR) performance and perceived brand quality on customer-based brand preference

Abstract

Purpose – This paper aims to investigate how corporate social responsibility (CSR) performance (i.e. to the environment, society and stakeholders) and perceived brand quality influence brand preference. The mediating effect of perceived brand quality on the relationship between CSR performance and brand preference is also studied. Design/methodology/approach – In 2011, 243 valid responses to questionnaire surveys were collected from a convenience sample in China. Regression analyses were used to test the hypotheses. Findings – Customers’ brand preference can be enhanced by CSR performance. Performance in each of the three CSR domains (i.e. environment, society and stakeholders) positively impacts brand preference, although to different degrees. The impact of CSR on stakeholders has the strongest influence on Chinese customers’ brand preference among the three CSR domains. Perceived brand quality was found to be a mediator of the relationship between CSR performance and brand preference. Research limitations/implications – This research studies the relationship between CSR performance and brand preference. Results show CSR performance is not the strongest predictor of branding outcomes, its explanatory power is comparatively weaker than that of perceived brand quality. Additionally, we found a mediating effect of perceived brand quality on the relationship between CSR performance and brand preference. Practical implications – Brands can be more attractive to Chinese consumers when brands take appropriate investments in CSR activities. A socially responsible brand is not guaranteed to yield a competitive advantage. Instead a competitive advantage will more likely result through the employment of the appropriate CSR strategies, with a focus on stakeholders’ interests. Originality/value – The current research contributes to the literature by finding that not all CSR activities are equally effective. Customers in emerging markets still appear to be focused more on the quality of brands and, to some extent, stakeholder CSR practice, as these provide direct benefits to customers. Findings of this study also support the notion that Chinese consumers are beginning to use CSR information to evaluate brands.

Is there a Benefit from being Green? Assessing Benefits from Marketing Sustainability by North American Hotels

“…Within hotels in North America, the findings reveal that companies who believe they incorporate green marketing into their business/strategy perceive greater guest visits per year, longer guest visits, greater guest satisfaction, higher revenue, greater profits, and higher daily rates. Indeed, these findings positively support a number of authors who declare that that socially and environmentally responsible actions do in fact result in increased customer satisfaction and brand value [3,[19][20][21]. Overall, as public concern for the environment increases, it is of the utmost importance that corporations integrate environmental concerns into their marketing, management strategies, and development of their products and services [42][43][44][45][46][47][48][49][50][51][52][53][54][55].…”

“…A prominent trend across studies is that socially and environmentally responsible actions do in fact result in increased customer satisfaction and brand value [3,[19][20][21]. One term that is consistently used throughout the literature is 'corporate social responsibility' (CSR); this can be interpreted as a company's contribution to sustainable development.…”

Influence of managers' demographic characteristics on CSR practices in the restaurant industry: the case of Slovenia

“…Previously presented studies primarily recognised the importance of CSR in large manufacturing enterprises and within the hotel (lodging) sector. To date, research findings into CSR in hotel industry have confirmed that if hotel organizations adopt and integrate CSR into their organizational strategies, they can facilitate innovativeness (Čivre and Gomezelj Omerzel 2015;Calveras 2015); increase and/or improve their organizational competitiveness (Kang et al 2015;Garay and Font 2012) and brand image (Tingchi et al 2014); boost employees' and customers' loyalty (García de Leaniz and Rodríguez Del Bosque Rodríguez 2015; Lee 2016); conserve environments (Rahman and Post, 2012), while at the same time contributing to solving problems in society that may arise (Smith and Ong 2015). According to Chen (2015) travellers are progressively more concerned with how tourist companies make their money and are expecting businesses to engage in responsible activities.…”

“…Based on the literature review (De Grosbois, D. 2012;DiPietro et al 2013;Dutta et al 2008;EU Commission 2016;Fernandez-Feijoo et al 2014;Golob and Bartlett 2007;GRI 2016;Hsieh 2012;Hu et al 2010;Jamali 2008;Jones et al 2016;Perramon et al 2014;Rahman and Post 2012;Blackburn 2007, Sanchez-Gutierrez et al 2011;Scanlon 2007;Tingchi et al 2014), 28 CSR indicators belonging to four major CSR dimensions (local community, environment, marketplace policy, and human resources) were identified. Special attention was paid to indicators included in the GRI's -G4 sustainability reporting guidelines (46 general guiding aspects of CSR included in three categorieseconomic, environmental, and social) and the EU Awareness raising questionnaire for CSR (26 generic questions included in four CSR dimensions -local community, environment, marketplace policy, and human resources) (EU Commission 2016; GRI 2016).…”

The Influence of CSR on Brand Relevant Aspects

“…The more customers identify with the brand, the more likely they are to feel satisfied (Bhattacharya & Sen, 2003). Customers' brand preference can be enhanced by CSR performance (Liu, Wong, Shi, Chu, & Brock, 2014). Meanwhile, companies can influence customer satisfaction in various ways by meeting their CSR (Luo & Bhattacharya, 2006).…”