INTRODUCTION
Research background
Corporate social responsibility (CSR) has gained significant attention from executives and researchers globally, particularly in recent decades A KPMG survey in 2011 revealed that 3,400 companies across 34 countries recognized CSR as a mainstream business practice, a figure that increased to 4,100 companies in 41 countries by 2013 Professional organizations, including the Association of Chartered Certified Accountants (ACCA) and the Chartered Institute of Management Accountants (CIMA), along with various universities, have emphasized the importance of CSR in promoting sustainable business practices According to Carroll (1991), CSR encompasses the social obligations to various stakeholders and the environment while ensuring profitability for shareholders Ultimately, CSR represents the essential use of business resources to foster societal harmony and drive sustainability.
Research has shown that CSR activities contribute to a company's effectiveness and profitability, both in the present and future (Cardebat & Sirven, 2010; Shin, 2015) The role of CSR has been a topic of debate among researchers, with some arguing that it transforms corporations from mere compliance to active engagement and value creation (Luetkenhorst, 2004) As the world's resources become increasingly scarce, CSR has become a crucial aspect of business activity, positioning itself as a vital partner in the industry.
Corporate Social Responsibility (CSR) has emerged as a significant global issue, impacting both developed and developing countries, including Vietnam In recent years, the concept of CSR has gained traction in Vietnam, particularly following the Doi Moi reforms of 1986, which introduced an open-door policy that encouraged private enterprises alongside state-owned entities This marked a pivotal transition aimed at enhancing Vietnam's integration into the global economy Consequently, the Vietnamese market has been increasingly influenced by international and transitional factors, further amplified by the country's accession to the World Trade Organization.
In 2007, the World Trade Organization (WTO) took significant steps to enhance global codes of conduct, coinciding with the rise of Corporate Social Responsibility (CSR) in Vietnam, primarily driven by Western transnational corporations (TNCs) This economic shift pressured the Vietnamese government to establish Vietnam Agenda 21, a CSR-related sustainability strategy officially signed in 2004, emphasizing the need for serious consideration of sustainable development Additionally, businesses in Vietnam were compelled to adapt in order to remain competitive in the global market.
Research problem
Vietnam's recent economic growth has significantly integrated its businesses into the global market, making brand positioning crucial In today's information age, consumers have access to diverse information, including Corporate Social Responsibility (CSR), which has emerged as a key factor in their purchasing decisions Research indicates that nearly 73% of Vietnamese consumers are willing to pay more for brands associated with CSR, showing a higher interest in CSR compared to global trends As Vietnam continues to embrace open-door policies and deeper integration, brands must innovate to earn customer trust Brand managers are increasingly adopting CSR practices to connect with consumers, focusing not only on product quality but also on societal responsibility Notably, many award-winning companies in Vietnam emphasize CSR, particularly among small and medium enterprises However, the understanding of CSR remains limited, with some companies viewing it merely as charity rather than a fundamental business need, leading to a lack of comprehensive knowledge and direction regarding its importance.
Economic management studies indicate that many large corporations believe that corporate social responsibility (CSR) initiatives should stem from a genuine empathy towards society (Kim Yến, 2015) Pham highlights that while Vietnamese consumers possess a strong awareness of CSR information, their attitudes towards it remain unclear Many customers expect companies to make commitments to both them and the broader community, regardless of the specifics (Bui, 2010) However, a significant number of these consumers have limited knowledge about CSR and primarily prioritize price over ethical considerations (Central Institute for Economic Management).
The practice of Corporate Social Responsibility (CSR) in Vietnam remains unclear to consumers, as recent scandals have severely undermined trust in companies' CSR efforts Notable incidents, such as the environmental violations by Taiwanese food manufacturer Vedan, which harmed the Thi Vai River for 14 years, and issues like contaminated soy sauce and melamine-tainted milk, have created a significant disconnect between customers and corporate initiatives Consequently, CSR practices have not effectively strengthened the relationship between consumers and brands in Vietnam.
Research gap
Recent research suggests that the concept of Corporate Social Responsibility (CSR) enables executives to define their social obligations and foster trusting relationships aligned with their strategies (Kim, Hur & Woo, 2014) This focus extends to various stakeholder aspects, including owner wealth (Lee, Seo & Sharma, 2013), customer behavior (Nehme, Charbel & Aline, 2013), employee attitudes (Glavas & Kelley, 2014), and financial performance (Waworuntu, Wantah & Rusmanto, 2014) Notably, studies highlight that CSR significantly influences customer engagement with brands, as it fosters emotional connections and considerations towards specific brands (Goldsmith & Goldsmith, 2012) The Australian Consumer Association notes that CSR activities perceived negatively by customers can lead to increased brand switching behavior (McDonald & Rundle-Thiele, 2008) These findings underscore that positive CSR perceptions enhance customer engagement with publicly listed brands that demonstrate strong CSR commitments (Mattera, Baena & Cervino, 2012) Furthermore, research by Popescu (2012) emphasizes that a strong CSR reputation is crucial for building brand trust and reputation Thus, customer perception of CSR plays a vital role in brand engagement, influencing customer loyalty to specific brands.
Customer engagement encompasses both psychological and behavioral dimensions, including enthusiasm, attention, absorption, interaction, and identification (So, King & Sparks, 2014) In Vietnam, the concept of customer engagement is relatively new, with limited studies exploring comprehensive customer brand engagement, often focusing on behavioral and psychological aspects separately, such as satisfaction and loyalty (Nguyen & Pan, 2015; Nguyen, 2015) While global research has examined the link between customer perceptions of corporate social responsibility (CSR) and customer engagement, the application of CSR to foster customer engagement in Vietnam remains underexplored This study aims to investigate the relationship between customer perceptions of CSR and brand engagement in the Vietnamese market, specifically analyzing the four dimensions of CSR as outlined by Carroll (1991).
Research objectives
This research aims to explore the connection between Vietnamese consumers' perceptions of Corporate Social Responsibility (CSR) and their engagement with various Fast-Moving Consumer Goods (FMCG) brands in Ho Chi Minh City (HCMC).
Thus, this research is to answer two questions:
Is there any relation between Vietnamese customer’s CSR perception and their brand engagement?
Significance of study
This study aims to equip brand owners and managers with effective strategies to align social benefits with corporate objectives, fostering sustainable business practices Additionally, the research findings will provide customers with valuable insights into perceived corporate social responsibility (CSR) during their purchasing decisions.
Research scope and methodology
A study was conducted on consumers in Ho Chi Minh City, one of Vietnam's largest cities, which encompasses a diverse range of trading activities and attracts individuals from various geographic regions and demographic backgrounds.
Because the CSR concept is still new in Vietnam Therefore, this research just focuses on general perception of customer about CSR practices impacting on their engagement
The data analysis tool SPSS is utilized for processing collected data, beginning with the assessment of scale reliability through Cronbach’s Alpha Following this, factor analysis identifies groups of items that respondents answer similarly Finally, Multiple Regression is employed to examine the relationships between independent and dependent variables.
Research structure
This chapter presents the research background of the study, research problems, research gap, research objectives, the significance of the study, research scopes and methodology, and the research structure
Chapter 2: Literature review and hypotheses
In this chapter, the fundamental theories and definition for each mentioned concept are presented The conceptual model and hypotheses of the study are also built
This chapter mentions about the research design, measurement scale, research sample, data collection and data analysis method
Chapter 4: Data analysis and data results
This chapter summarizes the characteristics of the collected data and presents the results of the research following a thorough analysis Based on these findings, the study discusses the research hypotheses proposed in Chapter 2.
Chapter 5: Conclusions, implications and limitations
This chapter illustrates the main results of the research, the contribution of the study in theory and practice as well as the limitations of the study for future research.
LITERATURE REVIEW
Customer engagement (CE)
Engagement has its roots in psychology, as highlighted by Morgan, Beatty, and Vivek (2012) Kahn (1990) was the first to apply the concept to the workplace, focusing on employee engagement and suggesting that individuals possess various levels of awareness in their work roles that impact their engagement This foundational idea has since evolved, gaining traction among both practitioners and academics Recently, the concept of "customer engagement" has garnered increased attention, reflecting its growing importance in the field.
Employee engagement serves as a psychological foundation for customer engagement, characterized by a positive and fulfilling state of mind marked by vigor, dedication, and absorption (Schaufeli et al., 2002) From a marketing perspective, customer engagement (CE) is defined as a customer's behavioral manifestation toward a brand, extending beyond mere purchases and driven by motivational factors (Marketing Science Institute, 2010) This behavioral focus is supported by both practitioners and academics, highlighting traditional manifestations such as word-of-mouth, co-creation, and complaining behavior (Bijmolt et al., 2010; Shevlin, 2007) However, while employee engagement can inform customer engagement, it is insufficient on its own, as customer engagement encompasses broader psychological and behavioral dimensions beyond the workplace (So et al., 2014).
Brodie et al (2011) conceptualize customer engagement (CE) by examining both its psychological dimensions and behavioral participation, leading to a comprehensive definition of the term.
Customer engagement (CE) is a psychological state that occurs by virtue of interactive, co-creative customer experiences with a focal agent/object (e.g., a brand) in focal service relationships (pp 260)
Brodie et al (2011) define customer engagement (CE) by emphasizing its psychological and behavioral dimensions; however, Bijmolt et al (2010) present an alternative perspective, viewing CE primarily as a behavioral construct influenced by various motivational factors.
The multidimensional approach to understanding composite loyalty, which encompasses both behavioral and attitudinal aspects, is supported by evidence from So et al (2014) Jacoby and Chestnut (1978) argue that measuring loyalty solely through behaviors may lack a solid conceptual foundation and fail to provide insight into repeat behavior Brodie et al (2011) offer a comprehensive conceptualization that includes both psychological and behavioral dimensions, highlighting the complexity of customer engagement (CE) and ensuring genuinely engaged customers (So et al., 2014) Additionally, Banyte and Dovaliene (2014) emphasize that Brodie et al.'s conceptualization of CE plays a crucial role in reflecting the interactive experience of customer co-creation in value creation within marketing relationships.
In Vietnam, the concept of Customer Engagement (CE) is relatively new and has not been widely studied, with previous research focusing more on customer loyalty, satisfaction, and intention (Vu, 2012; Wang & Pho, 2009) However, global studies highlight the strategic importance of CE for enhancing profitability (The Economic Intelligence Unit, 2007) and gaining competitive advantages (Sadley, as cited in Brodie et al., 2011), as it fosters ongoing customer interactions and co-creation of value (Sashi, 2012) Brodie et al (2011) emphasize the need for a comprehensive understanding of CE, which includes components such as enthusiasm, attention, absorption, interaction, and identification These elements represent both psychological and behavioral dimensions and serve as the foundation for the current study, which aims to assess the level of Vietnamese customer engagement with specific brands using the scale developed by So et al (2014).
The concept of corporate social responsibility (CSR)
Corporate Social Responsibility (CSR) emerged as a significant concept in the 20th century, evolving from the early recognition in the 1950s that businesses have obligations to society (Carroll, 1991) Although CSR literature saw limited development in the 1960s and 70s (Hanzaee & Rahpeima, 2013), Davis (1973) made notable contributions to the concept, highlighting its long-term benefits for firms By the 1980s, CSR was viewed as a continuous, long-term process (Freeman, 1984), evolving into a multidimensional perspective influenced by globalization In the last decade, CSR has gained international relevance, addressing global issues such as human rights, environmental sustainability, and social responsibility (Hanzaee & Rahpeima, 2013).
The concept of Corporate Social Responsibility (CSR) has evolved significantly, yet a consensus on its definition remains elusive According to Orlitzky (2005), the multitude of definitions contributes to a lack of clarity and precision in understanding CSR This ambiguity is exemplified by the varying interpretations offered by experts, such as Hopkins.
Corporate Social Responsibility (CSR) involves treating stakeholders ethically and responsibly, as defined by 2007, which emphasizes acceptable treatment in civilized societies According to the World Business Council for Sustainable Development (2015), CSR represents a business's commitment to sustainable economic development, focusing on enhancing the quality of life for employees, their families, and the broader community Overall, CSR encompasses a framework of policies, practices, and programs integrated into business operations and decision-making processes, aimed at maximizing the positive societal impacts of a company's activities.
Corporate Social Responsibility (CSR) emphasizes the importance of businesses actively engaging with and contributing to society, as highlighted by Jamali, Safieddine, and Rabbath (2008) Despite various definitions, the core idea is that corporations must take responsibility for their societal impact Addressing the concept of CSR can effectively bridge significant gaps in societal needs, as noted by Van (2001).
Carroll's (1991) definition of Corporate Social Responsibility (CSR) as a social obligation to stakeholders while generating profit for shareholders is widely recognized, as noted by Jamali et al (2008) Xuan and Gregory (2011) highlight the comprehensive nature of Carroll's concept, which encompasses various definitions of CSR Numerous studies globally have utilized Carroll's framework as a foundation for their research (Jamali et al., 2008; Hanzaee & Rahpeima, 2013; Hassan et al., 2013), and its validity has been examined in developing countries (Jamali & Mirshak, 2007; Hanzaee & Rahpeima, 2013; Hassan et al., 2013) In Vietnam, Carroll's CSR framework has been instrumental in exploring perceptions of corporate social responsibility (Luu, 2012; Lai, Le & Truong, 2013), and it remains the most widely accepted model in both academic and practical contexts, despite ongoing debates about CSR definitions Consequently, this study adopts Carroll's framework and the CSR values scale established in prior research based on his model.
Corporate social responsibility (CSR) theories
Over decade, many researchers have observed the relationship between society and business in context of corporate social responsibility (CSR) based on concept of Carroll
Stakeholder theory, as articulated by Freeman (1984), emphasizes the importance of various groups, including investors, customers, and employees, in shaping corporate actions Corporations are increasingly adopting socially responsible practices to meet these stakeholder demands (Donaldson & Preston, 1995) However, Brown and Forster (2013) highlight a debate over the alignment of Corporate Social Responsibility (CSR) and stakeholder theory, noting their differing objectives Despite this, numerous studies indicate that stakeholders significantly influence corporate strategies and serve as a driving force behind CSR initiatives (Lee et al., 2013; Nehme et al., 2013; Glavas & Kelley, 2014) Additionally, Wood and Jones (1995) suggest that the impact of CSR on corporate performance varies across different stakeholder groups This study will focus on customers, a key stakeholder, to gather further insights.
2.3.2 Caroll’s CSR Conceptualization-Carroll’s CSR pyramid
In 1979, Carroll introduced a four-part definition of Corporate Social Responsibility (CSR) within the framework of Corporate Social Performance (CSP), categorizing the responsibilities expected of businesses into economic, legal, ethical, and discretionary dimensions These categories coexist within organizations and are not mutually exclusive, allowing activities to be primarily classified into one of the four types Carroll argued that the evolution of business focus has historically shifted from an initial emphasis on economic aspects to legal considerations, followed by ethical and discretionary responsibilities.
In 1991, Carroll redefined corporate social responsibility (CSR) by introducing a pyramid structure, where economic responsibility forms the foundation and discretionary responsibility sits at the apex This model categorizes economic and legal responsibilities as social requirements, ethical responsibilities as social expectations, and philanthropy as social desires (Windsor, 2001) Carroll emphasizes that these components exist in a dynamic tension with each other, yet they function as a cohesive whole without being mutually exclusive.
Figure 1 The pyramid of Corporate Social Responsibility (Carroll, 1991)
Research framework
According to Carroll (1991), economic viability encompasses a business's responsibility to produce goods and services that meet customer expectations, thereby fostering customer engagement with brands Research indicates a positive correlation between economic Corporate Social Responsibility (CSR) and customer engagement, highlighting that economic CSR enhances customer enthusiasm, attention, absorption, interaction, and identification (Kim et al., 2012; Alam & Rubel, 2014; Chung et al., 2015), all of which are essential components of customer engagement (So et al., 2010).
Carroll (1991) categorizes the economic dimension into several key components: competitiveness characterized by high quality and low cost, operational efficiency, ongoing profitability, maximization of shareholder wealth, and profit generation In this context, Baron and Nambisan further explore these concepts.
Research by Füller (2010), Roberts and Alpert (2010), and others highlights that social and economic benefits, including cost savings and product quality, significantly boost customer enthusiasm Additionally, increasing consumer expected utility can strengthen brand equity and attract customer attention (Abdolvand & Charsetad, 2013) Enhanced operational competency leads to improved customer absorption and engagement (Hur et al., 2014) Furthermore, companies can foster customer engagement by creating effective platforms for information exchange and interaction (Baron & Warnaby, 2011), while also enhancing customer identification through improved perceptions of quality and innovation (Pérez & Bosque, 2015).
Empirical studies by Fensel et al (2014) and Lee et al (2014) demonstrate that economic Corporate Social Responsibility (CSR) practices, such as cost savings, quality, and operational efficiency, significantly enhance customer engagement Additionally, theoretical research by Kaltcheva et al (2014) suggests that lower costs positively impact customer brand engagement Consequently, it is anticipated that customers who perceive a higher economic CSR will exhibit increased engagement with the brand.
Hypothesis 1: there is a positive impact of perception of economic CSR on Customer brand engagement
The legal responsibilities of Corporate Social Responsibility (CSR) are evaluated based on how well an organization's activities align with laws and regulations, ensuring they operate as law-abiding corporate citizens This includes fulfilling legal obligations and ensuring that goods and services meet minimum legal standards (Carroll, 1991) According to Wirtz, Lwin, and Williams (2007), customers develop greater trust and confidence in companies that adhere to legal regulations designed to protect consumers This sense of trust influences customers' perceptions of fairness, leading to increased engagement (Bala, 2014) Furthermore, consumers tend to pay more attention to companies that comply with legal standards compared to those that do not (Dorsch, Swanson & Kelly).
Increased customer satisfaction is linked to greater interaction with legal firms, as highlighted by Hassan et al (2013) and Lai, Nataraajan, & Ndubisi (2013) Additionally, firms that demonstrate stronger compliance with legal standards foster a deeper sense of identification among customers, according to Pérez & Bosque (2015).
Sarabdeen (2014) highlights that legal risks can adversely impact customer engagement, while Doorn et al (2010) suggest that legal actions may enhance it Consequently, it is anticipated that customers who perceive a stronger connection between legal matters and corporate social responsibility (CSR) will demonstrate increased engagement with the brand.
Hypothesis 2: there is a positive impact of perception of Legal CSR on Customer brand engagement
The ethical responsibility dimension of Corporate Social Responsibility (CSR) is measured by an organization's adherence to societal norms and moral standards, as well as its willingness to go beyond legal requirements to maintain integrity Research has shown that people have a natural desire to engage in equitable relationships, and firms that exhibit "citizenship behaviors" tend to attract more attention from customers By demonstrating moral capital through CSR, firms can build brand credibility and foster customer loyalty, as customers are more likely to interact with firms that prioritize ethical considerations Ultimately, a strong ethical perception can lead to increased customer identification with a brand, driving long-term relationships and business success.
In empirical study, based on study by Hammedi, Kandampully, Zhang, and Bouquiaux
Research indicates that moral responsibility significantly influences customer engagement, with Roberts and Alpert (2010) highlighting that corporate citizenship behavior boosts brand engagement Consequently, customers who perceive a company's CSR efforts as more ethical are likely to demonstrate higher levels of engagement with the brand.
Hypothesis 3: there is a positive impact of perception of ethical CSR on Customer brand engagement
Philanthropy represents the pinnacle of Corporate Social Responsibility (CSR), as defined by Carroll (1991), and is evaluated based on societal expectations for charitable contributions, support for the arts, employee involvement in community activities, and initiatives that enhance quality of life Morgan et al (2012) highlight that brands can attract individuals through their humanitarian values, which are closely tied to philanthropic efforts Engaging in social activities signals a non-self-serving orientation, fostering positive consumer perceptions (Godfrey, Merrill & Hansen, 2009) Lichtenstein, Drumwright, and Braig (2004) suggest that altruistic practices cultivate emotional bonds with customers, while Lii and Lee (2012) find that customers who value philanthropy are more likely to engage in behaviors like recommending the brand Additionally, those aware of corporate philanthropy initiatives tend to identify more strongly with the brand (Sen & Bhattacharya).
Research by Wirgau, Farley, and Jensen (2010) indicates that donations foster customer engagement, while Kaltcheva et al (2014) suggest that socially responsible firms enhance brand engagement Consequently, it is anticipated that customers who perceive a company's corporate social responsibility (CSR) efforts as philanthropic will exhibit higher levels of brand engagement.
Hypothesis 4: there is a positive impact of perception of philanthropy CSR on Customer brand engagement.
Research Model
H1: There is a positive impact of perception of economic CSR on Customer brand engagement
H2: There is a positive impact of perception of Legal CSR on Customer brand engagement
H3: There is a positive impact of perception of ethical CSR on Customer brand engagement
H4: There is a positive impact of perception of philanthropy CSR on Customer brand engagement
This chapter reviews the literature on corporate social responsibility (CSR) and customer brand engagement, highlighting the theoretical foundations of both concepts It reveals that customer brand engagement is positively influenced by various perceptions of CSR, including economic, legal, ethical, and philanthropic aspects The study proposes four hypotheses to explore these relationships further.
METHODOLOGY
Research design
After establishing the research problem, questions, and scope, a literature review was conducted to explore theories related to Corporate Social Responsibility, aiming to develop a relevant conceptual model for factors influencing Customer Engagement Consequently, the research was designed using a mixed-method approach to create measurements adapted from existing literature for the Vietnamese context This two-phase project encompasses qualitative research to refine the measurement scale and quantitative research to apply the modified scale to a sample population.
Figure 3: Research process The research process follows the steps below:
Step 1: The questionnaire was composed for the research
Questionnaire was designed in English based on the various measurement scales from previous studies, after that the questionnaire’s translation into Vietnamese was taken for delivering to respondents in interview
Step 2: Refining the questionnaire by pilot qualitative research
In a study conducted in Ho Chi Minh City focusing on FMCG brands, respondents were interviewed to assess their perceptions of Corporate Social Responsibility (CSR) and customer brand engagement The interviewees provided insights to refine the questionnaire, ensuring it was well-suited to the study's context and objectives.
The measurement scale was adjusted to better align with the study's context (refer to Appendix 1), leading to the finalization of the reformulated questionnaire Concurrently, the sample population for the main survey was proposed.
Step 4: Taking the main survey
A total of 400 questionnaires were distributed via email, and after three weeks, 238 responses were received Out of these, 226 were deemed valid for data analysis, while 12 responses were excluded due to identical answers.
Step 5: Testing the reliability and validity of data
Cronbach’s Alpha was employed to assess the reliability of the measurement scale, confirming its reliability through the coefficient results Subsequently, Exploratory Factor Analysis (EFA) was conducted to evaluate the validity of the scales, allowing for adjustments to the research model as necessary.
Step 6: Testing the structure model and hypothesis
The multiple regression analysis was used to test the conceptual model and its
In Chapter 2, four hypotheses were proposed based on a literature review of CSR and customer brand engagement A model was developed, and a preliminary scale for the study's questionnaire was selected through the consolidation of previous research A draft questionnaire was created and translated into Vietnamese, followed by in-depth interviews with seven participants from Ho Chi Minh City These interviewees, currently enrolled in a master’s program at the University of Economics, provided insights relevant to Vietnamese consumers This phase involved modifying the scale to ensure it was suitable and comprehensible for the study's context Ultimately, the final questionnaire was completed, paving the way for the subsequent quantitative research.
Following qualitative research, the questionnaire was refined based on interviewee feedback to enhance clarity for the Vietnamese market A comprehensive survey was then conducted using a convenience sample of consumers in Ho Chi Minh City Data analysis was performed using SPSS version 22, employing Cronbach's Alpha and Exploratory Factor Analysis (EFA) to ensure reliability and validity Subsequently, Standard Multiple Regression was utilized to evaluate the proposed model.
Measurement scale
This study utilized validated measurement scales from previous research to assess Corporate Social Responsibility (CSR) from the customer perspective The scales comprised 21 items, with Economic and Legal CSR perceptions each measured by 4 items based on Arli and Lasmono (2010) Ethical CSR perception was evaluated using 8 items from Mulki and Jaramillo (2011) and Ho and Rashid (2003), while Philanthropy CSR perception was measured with 5 items based on Oppewal, Alexander, and Sullivan (2006) Additionally, customer engagement with the brand was assessed using the measurement scale from So et al (2014), which included 5 items reflecting enthusiasm, attention, absorption, interaction, and identification, capturing both psychological and behavioral dimensions of customer engagement.
This study assessed Ethical CSR perception using eight items derived from the research of Mulki and Jaramillo (2011) and Ho and Rashid (2003) The measurement scales from Ho and Rashid focus on diverse groups with varying ethical perceptions, while Mulki and Jaramillo's study emphasizes customer evaluations of the ethical practices of both organizations and salespeople The role of the salesperson is crucial in shaping customer assessments of the seller's ethics, as highlighted by Babin, Griffin, and Boles.
In 2004, research conducted in Ho Chi Minh City highlighted the diverse trading activities and demographic characteristics of its population This setting enriches the understanding of ethical Corporate Social Responsibility (CSR) practices among firms, including salespeople from various backgrounds The integration of previous studies on ethical CSR perception further enhances this comprehensive understanding.
I believe that this brand must maximize profit Arli and Lasmono
I believe that this brand must control their production cost strictly
I believe that this brand must plan for their long term success
I believe that this brand must always improve economic performance
I believe that this brand must ensure that their employees act within the standards defined by the law
I believe that this brand must refrain from putting aside their contractual obligations
I believe that this brand must refrain from bending the law even it this helps improve the performance
I believe that this brand must always submit to the principles defined by the regulatory system
I believe that this brand salesperson is honest with me Mulki and Jaramillo
I believe ethical problems do not occur at this brand
I believe this brand is a highly ethical brands
I think this brand would not market unsafe product Ho and Rashid (2003)
I think this brand would not be lying that the product is “new and improved
I think that this brand would not give deceptive instructions
I think that this brand would not sell defectives products
I think that this brand would not irritation in advertisement
I think that this brand has good activities at provision for education in this City
I think that this brand has good activities at support for better work condition in local industry
I think that this brand has good activities at help local people in need
I think that this brand has good activities at support for national cultural and sport events
I think that this brand concern for local natural environment
When someone praises this brand, it feels like a personal compliment So et al (2014)
I feel excited about this brand
I concentrate a lot on this brand When interacting with the brand intensely, I feel happy
In general, I thoroughly enjoy exchanging ideas with other people in the brand community.
Research sample
The sample size for this study was determined based on the guidelines set by Hair, Black, Babin, and Anderson (2009), which recommend a minimum of five times the number of variables, totaling at least 100 observations With the current study comprising five factors and 26 variables, the minimum sample size should be at least 130 observations Additionally, following the recommendations of Tabachnick and Fidell (1991), the formula n > 50 + 8m was applied, where m represents the number of independent variables Given that this research includes four independent variables, the required sample size for multiple regression analysis is confirmed to be n > 50 + 8 * 4, reinforcing the expectation of a minimum of 130 observations for robust analysis.
Data collection
Data collection occurred in two phases, beginning with qualitative research through in-depth interviews with seven master's degree students at the University of Economics This phase aimed to assess and refine the language of the initial measurement scales for clarity and contextual relevance Modifications to the Vietnamese version were made based on feedback from respondents, with unclear items removed for accuracy, as detailed in Appendix 1 Following these adjustments, the final questionnaire was completed, including the removal of one item from So et al (2014) deemed unsuitable.
In the second phase of the study, quantitative research was conducted through a self-administered questionnaire targeting consumers in Ho Chi Minh City, utilizing a convenience sampling method to achieve a minimum sample size of 130 The survey was delivered via electronic mail and Google survey tools, asking respondents to select one brand from a list of well-known companies, including SuSu, Vinamilk, and Unilever, to ensure familiarity with Corporate Social Responsibility (CSR) concepts The Likert Scale, ranging from 1 (strongly disagree) to 5 (strongly agree), was employed to gauge responses Data collection spanned three weeks, resulting in 238 completed questionnaires, of which 226 (approximately 95%) were deemed valid for analysis, while 12 were rejected due to identical responses.
Data analysis method
This study utilized SPSS 22 for data analysis, employing various statistical methods for sample description and result measurement with SPSS 22 and Microsoft Excel The reliability and validity of the measurement scales were assessed using Cronbach’s Alpha coefficient and Exploratory Factor Analysis (EFA) Ultimately, Multiple Regression analysis was conducted to evaluate the hypotheses.
A descriptive statistic analysis was performed to gather general information on interviewee evaluations related to gender, income, education level, and age These demographic factors were instrumental in assessing consumer awareness of Corporate Social Responsibility (CSR) and its impact on brand engagement, utilizing frequency and percentage calculations derived from the collected data.
In this study, Cronbach’s Alpha was employed to assess the internal consistency of the constructed items Constructs demonstrating high reliability are characterized by strong inter-correlations among the items, all of which measure the same underlying construct (Hair et al., 2009) Additionally, as noted by Connelly (2011), this approach reinforces the validity of the measurements.
Cronbach's alpha serves as a singular criterion for evaluating instruments or scales, indicating whether the items are cohesively related However, it does not assess whether these items accurately measure the intended attribute Consequently, it is essential to also evaluate scales based on their content and construct validity.
In this study, Cronbach’s Alpha is considered reliable when it exceeds 0.7, though it may be acceptable at 0.6 for scales with fewer items A very high Cronbach’s Alpha, above 0.9, suggests that the items may be redundant or that the scale contains more items than needed to accurately measure the concept.
The Corrected Item-Total Correlation is crucial for evaluating item reliability, with values of 0.4 or higher indicating a strong correlation with other items (Morgan et al., 2005) Conversely, an Item-Total Correlation below 0.3 suggests that the item may need to be excluded to enhance the overall reliability of the construct.
The Exploratory Factor Analysis (EFA) method, as outlined by Morgan et al (2005), is utilized to identify groups of items that are answered similarly by respondents EFA also serves to assess key measurement properties, including uni-dimensionality, discriminant validity, and convergent validity Hair et al (2009) emphasize that uni-dimensionality reflects the strong correlation among items within a scale, while convergent validity evaluates the correlation between two measurements of the same concept Additionally, Steenkamp and Trijp (1991) define discriminant validity as the degree to which items in a single construct are related, while being negatively associated with items from opposing constructs.
In Exploratory Factor Analysis (EFA), a KMO statistic coefficient between 0.5 and 0.9, along with a Bartlett’s test significance of less than 5%, indicates a sufficient correlation for effective factor analysis (Field, 2000) Additionally, Hair et al (2009) recommend that each item's value within a factor should exceed 0.5 to demonstrate a strong correlation and significance Furthermore, the factor loading for a given item must be higher than that of other factors, with a minimum threshold of 0.25.
In validity analysis, Hair et al (2009) emphasize that for convergent validity, each item's loading value on its respective factor should exceed 0.5, with a minimum difference of 0.25 in loading values across different factors Additionally, to establish discriminant validity, the correlation values between constructs must be less than 1 and statistically significant (p < 0.05), as noted by Steenkamp & Trijp (1991) Furthermore, items should demonstrate unidimensionality by loading greater than 0.5 on their designated factors (Hair et al., 2009).
Multiple regression analysis, as outlined by Morgan et al (2005), was employed to evaluate the conceptual model and its hypotheses Utilizing the SPSS 22 program, multiple linear regression was performed to forecast a single outcome based on various independent variables, adhering to the assumptions of multiple regression analysis These assumptions include the independence of residuals, the presence of a linear relationship between independent and dependent variables, normal distribution of residuals or errors, and the absence of multicollinearity.
In this study, the independence of residuals was confirmed by plotting them against potential sequencing variables, as outlined by Hair et al (2009) The linear relationship between independent and dependent variables was assessed using Normal P-P Plot Graphs and Scatter Graphs Additionally, the distribution of residuals was found to be normal, indicated by a histogram and scatter plot with a mean close to 0 and a standard deviation near 1 Furthermore, multicollinearity was evaluated through two diagnostic factors: Tolerance and the Variance Inflation Factor (VIF) The VIF, which measures the impact of collinearity in regression models, is always greater than or equal to 1 A tolerance value below 0.1 and a VIF greater than 2 suggest a significant risk of multicollinearity.
This chapter outlines the research design, measurement scale, sample selection, data collection, and analysis methods employed in the study The research process is divided into two phases: qualitative and quantitative research In the qualitative phase, a pilot in-depth interview was conducted with seven participants to ensure clarity and relevance of the questionnaire items Based on their feedback, the questionnaire was revised before proceeding to the main survey The quantitative phase involved defining the sample size, distributing the questionnaire via email, and cleaning the collected data for analysis using SPSS Ultimately, 226 usable questionnaires were gathered for analysis The chapter concludes by detailing the data analysis methods, with the subsequent chapter set to present the results from the main survey.
DATA ANALYSIS
Sample description
A total of 400 questionnaires were distributed to consumers in Ho Chi Minh City, resulting in 238 responses However, 12 of these were deemed invalid due to repetitive answers, leaving 226 valid questionnaires Among the valid respondents, 71 were men, accounting for 31.4 percent of the total.
The study surveyed 155 women, representing 68.6% of the participants, with ages ranging from 18 to over 30, predominantly between 24 and 30 years old (51.8%) Most respondents held a university degree, accounting for 52.2% of the sample Monthly income varied, with the majority earning between 5 and 10 million VND, which comprised 39.8% of the respondents.
Income per month (VND million)
Table 4.1 indicates that the demographic characteristics varied across different categories, which may have impacted the study's results and its generalizability to the broader population Nonetheless, since the data was collected using a convenience sampling method, the combination of data presented in the table is appropriate for the current study.
The reliability analysis: Cronbach’s Alpha test
To ensure the reliability of the research constructs, a test was conducted on each scale, confirming that all items effectively measured the intended concepts Cronbach’s Alpha was utilized to identify and eliminate inconsistent items, with a recommended value of 0.6 or higher for internal reliability (Nunnally & Bernstein, 1994) Additionally, the Corrected Item-Total Correlation should exceed 0.3; values below this threshold indicate a need to reevaluate the wording of the questionnaire or remove problematic items.
The results of Cronbach’s Alpha test for each construct were reported in below table:
Table 4.2 the results of Cronbach’s alpha
Scale mean if item deleted
Scale variance if item deleted
Cronbach’s Alpha if item delected
The reliability analysis showed that the Cronbach’s Alpha coefficients for all scales met the required standards, with Philanthropy CSR perception achieving the highest score of 0.876 and Economic CSR perception the lowest at 0.745 Additionally, all Corrected Item-Total Correlation values exceeded 0.3, confirming the consistency of the scales Consequently, these reliable measures were utilized for testing the study hypotheses.
Exploratory Factor Analysis (EFA) for measurement scale
The reliability of the measurement scales was assessed through exploratory factor analysis (EFA), which aimed to identify groups of items that respondents answered similarly (Morgan et al., 2005) This study's conceptual model comprises five distinct factors.
This study explores the relationship between various independent factors—customer perceptions of economic, legal, ethical, and philanthropic corporate social responsibility (CSR)—and the dependent factor of customer brand engagement Utilizing Exploratory Factor Analysis (EFA) with Varimax rotation, the research assesses whether the items associated with these constructs are grouped appropriately, providing insights into how different dimensions of CSR influence customer engagement with brands.
Table 4.3 KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy .860
Bartlett's Test of Sphericity Approx Chi-Square 1975.341 df 136
Initial Eigenvalues Extraction Sums of Squared
Extraction Method: Principal Component Analysis
Extraction Method: Principal Component Analysis
Rotation Method: Varimax with Kaiser Normalization a Rotation converged in 6 iterations
4.3.2 Dependent factor: Customer brand engagement
Table 4.6 KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy 0.788
Bartlett's Test of Sphericity Approx Chi-Square 456.792 df 6
Component Initial Eigenvalues Extraction Sums of Squared Loadings
Total % of Variance Cumulative % Total % of Variance Cumulative %
Extraction Method: Principal Component Analysis
Extraction Method: Principal Component Analysis a 1 components extracted
According to Field (2000), KMO statistics ranging from 0.5 to 0.7 are considered mediocre, 0.7 to 0.8 are good, and 0.8 to 0.9 are superb The results of the EFA testing indicated that all factors had KMO values exceeding 0.7, with Bartlett’s test showing significance at 000 (less than 5%) (refer to Table 4.3 for independent factors and Table 4.6 for dependent factors) This suggests that the variables are highly correlated, providing a solid foundation for factor analysis.
In the Rotated Component Matrix (Table 4.5 for independent factors and Table 4.8 for dependent factors), Hair et al (2009) indicate that each item's value in a factor should exceed 0.5 to demonstrate a strong correlation and significance Additionally, the factor loading of an item must be higher than other factors, with a minimum threshold of 0.25 Following the Exploratory Factor Analysis (EFA), four items from the independent factors were removed due to not meeting EFA testing criteria and Cronbach’s Alpha standards The deleted variables include PEC1, PEC4, PET1, and PET2, where PEC1 and PEC4 were excluded due to their Cronbach’s Alpha coefficients being greater than the overall component's Alpha (refer to Table 4.2 for PEC4 and Table 6.2 in Appendix 6 for PEC1), while PET1 and PET2 were removed for having factor loadings below 0.5 (see Table 6.1 in Appendix 6) Consequently, the scale for independent factors (CSR perception) was reduced from 21 to 17 items (Table 4.5), whereas the dependent factor scale remained unchanged at 4 items (Table 4.8), indicating that all respondents comprehend customer brand engagement as a singular component.
After item reduction, the Total Variance Explained indicated that the eigenvalues of four independent components exceeded 1, confirming the initial hypotheses These four components accounted for approximately 67.172 percent of the total variance, suggesting that nearly 70 percent of the variance is explained by the initial items In the analysis of the dependent factor, the eigenvalue of one component also surpassed 1, aligning with the hypotheses, and this component explained 71.431 percent of the variance.
Recent findings revealed shifts in independent factors, indicating that interviewees' perceptions diverged from the study's hypotheses and existing theories This change highlights how respondents believe these factors genuinely impact customer brand engagement.
New 4 independent factors were tested on reliability again because old groups of items were broken in case of item removing and the old value of reliability was not qualified any more The Cronbach’s Alpha coefficient of all constructs over 0.7 and qualified the requirement (see table below)
Table 4.9 Cronbach’s Alpha after reducing items
Scale mean if item deleted
Scale variance if item deleted
Cronbach’s Alpha if item delected
Following the EFA analysis and recalibration of Cronbach’s alpha, the factor loading values for each item exceeded 0.5, as shown in tables 4.5 and 4.8 Additionally, the variance in loading values for the same item across different factors was at least 0.25 (table 4.5) Consequently, it can be concluded that these scales meet the criteria for convergent validity, as outlined by Hair et al.
In 2009, correlation values between constructs were found to be less than 1, with significant statistics (p < 0.05), confirming that the scales achieved discriminant validity (Steenkamp & Trijp, 1991) Additionally, all items demonstrated strong loadings (greater than 0.5) on their respective factors, further supporting their unidimensionality (Hair et al., 2009).
Customer Brand Engagement Economic CSR perception
** Correlation is significant at the 0.01 level (2-tailed).
Multiple regression analysis: testing hypothesis
Following the application of Cronbach’s Alpha Analysis and Exploratory Factor Analysis (EFA), multiple regression analysis was conducted to explore the relationship between four independent variables and one dependent variable According to Hair et al (2009), multiple regression analysis is effective in predicting the impact of independent variables on a dependent variable Consequently, this study utilized multiple regression analysis to assess how perceptions of economic CSR, legal CSR, ethical CSR, and philanthropic CSR influence customer brand engagement.
To ensure the accuracy of multiple regression analysis, certain assumptions must be met According to Morgan et al (2005), these assumptions include the independence of residuals, a linear relationship between independent and dependent variables, normal distribution of residuals or errors, and the absence of multicollinearity.
The assumption that the predicted values are independent of any predictor can be verified by plotting the residuals against potential sequencing variables (Hair et al., 2009) As demonstrated in the scatter plot in Appendix 5 (Figure 6), the variables do not exhibit any sequential relationship, confirming that the assumption is satisfied.
4.4.1.2 There was linear relationship between independent variables and dependent variables
Normal P-P Plot Graphs and Scatter Graphs were used to define the relationship between customer engagement and each predictor As the plot showed in Appendix 5 (Figure
5), the relationship between customer brand engagement and each predictor was linear regression Therefore, this assumption was satisfied
4.4.1.3 The residual or error was distributed normally
The normal distribution of the dependent variable was assessed using a histogram and scatter plot (see Appendix 5, Figure 4), revealing a mean of approximately 7.36E-16, which is nearly zero, and a standard deviation of about 0.991, close to one These results provide support for the assumption of normal distribution.
The study evaluated collinearity using two diagnostic factors: Tolerance and the Variance Inflation Factor (VIF) VIF measures the influence of collinearity in regression models, with values always being equal to or greater than 1 A tolerance value below 0.1 and a VIF exceeding 2 indicate a high likelihood of multicollinearity However, the results revealed that all tolerance values were above 0.1 and VIF was below 2, confirming the absence of multicollinearity in this study Thus, the assumption of no multicollinearity was satisfied.
4.4.2 Hypothesis testing: relationship between independent variables and dependent variable
The collected data met three essential assumptions necessary for conducting multiple regression analysis After verifying these assumptions, the results of the analysis were reported to evaluate the model's fit.
The analysis revealed a multiple correlation coefficient (R) of 0.644, indicating a strong relationship between the variables The R square value of 0.415 suggests that 41.5% of the variance in customer brand engagement can be explained by the four independent variables Additionally, an F value of 39.201 with a significance level of less than 0.05 confirms that the combination of these independent variables significantly predicts the dependent variable.
Model R R Square Adjusted R Square Std Error of the Estimate
1 644 a 415 404 53573 a Predictors: (Constant), PhilanthropyCSRPerception, EthicalCSRPerception , EconomicCSRPerception, LegalCSRPerception b Dependent Variable: CustomerBrandEngagement
Model Sum of Squares df Mean Square F Sig
Total 108.434 225 a Dependent Variable: CustomerBrandEngagement b Predictors: (Constant), PhilanthropyCSRPerception, EthicalCSRPerception, EconomicCSRPerception, LegalCSRPerception
Table 4.11 reveals that four independent factors of the model—Economic CSR Perception, Legal CSR Perception, Ethical CSR Perception, and Philanthropy CSR Perception—demonstrated statistical significance, with a Sig value of less than 0.05.
Hypothesis 1: there is a positive impact of perception of economic CSR on Customer brand engagement
The evaluation of the perception of economic CSR revealed a positive impact on customer brand engagement, as indicated by a Standardized Coefficient of 0.16 and a significance level (Sig.) of 0.007, which is below the 0.05 threshold This suggests that increased consumer awareness of economic CSR significantly enhances their engagement with specific brands, thereby confirming Hypothesis 1.
Hypothesis 2: there is a positive impact of perception of Legal CSR on Customer brand engagement
Table 4.11 shows a significance value of 0.026 for the perception of legal CSR, indicating a meaningful and positive influence on customer brand engagement (Beta=0.148) This suggests that increased customer awareness of legal CSR leads to greater engagement with specific brands, thereby confirming hypothesis 2.
Hypothesis 3: there is a positive impact of perception of ethical CSR on Customer brand engagement
The analysis in Table 4.11 reveals that the perception of ethical Corporate Social Responsibility (CSR) has a significant positive impact on customer brand engagement, as indicated by a standardized coefficient of 0.313 and a significance level of 0.000, which is below the 0.05 threshold This suggests that increased awareness of ethical CSR among customers leads to greater engagement with specific brands, thereby confirming Hypothesis 3.
Hypothesis 4: there is a positive impact of perception of philanthropy CSR on Customer brand engagement
The analysis revealed a positive Standardized Coefficient of 0.221 for the perception of philanthropy in Corporate Social Responsibility (CSR), with a significance level (Sig.) of 0.000, indicating a strong statistical significance (p < 0.05) This suggests that the perception of philanthropy CSR plays a crucial role in enhancing customer brand engagement, thereby confirming Hypothesis 4.
The result of testing all hypotheses in this research was showed briefly in the table 4.14
Table 4.14 Summary of hypotheses testing result
No Hypotheses Testing result Beta Sig
H1 There is a positive impact of perception of economic
CSR on Customer brand engagement
H2 There is a positive impact of perception of Legal CSR on Customer brand engagement
H3 There is a positive impact of perception of ethical CSR on Customer brand engagement
H4 There is a positive impact of perception of philanthropy
CSR on Customer brand engagement
Discussions on the results
This study offers empirical evidence on the factors influencing customer brand engagement in Vietnam's transitional economy The findings indicate strong support for all hypotheses, with high standardized regression coefficients reported Notably, the research confirms that corporate social responsibility (CSR) perception serves as a reliable predictor of customer brand engagement within the service sector Additionally, the study validates the economic and legal CSR perception scale proposed by Arli and Lasmono (2010) in their examination of CSR practices in Indonesia, along with the ethical CSR perception scale.
Mulki and Jaramillo (2011) conducted an empirical study on the banking industry in America, while Ho and Rashid (2003) focused on business in Malaysia Additionally, Oppewal et al (2006) proposed a philanthropy CSR perception scale based on their research in the retail industry in England Furthermore, So et al (2014) introduced a customer brand engagement scale through their empirical study in the tourism industry in Australia The findings from these studies are discussed in detail below.
This study highlights that the perception of economic Corporate Social Responsibility (CSR) is a key factor in predicting customer engagement with a brand Increased awareness of economic CSR practices encourages customers to connect with specific brands This aligns with previous research indicating that enhancing the economic dimension of CSR can bolster customer engagement Empirical studies also suggest that focusing on economic CSR—such as product quality and technology—directly boosts customer loyalty Specifically, this research demonstrates a direct link between economic CSR perception and brand engagement among Vietnamese consumers, indicating that greater awareness of economic CSR practices leads to increased brand participation.
The study reveals that customers' perception of a brand's legal Corporate Social Responsibility (CSR) practices has a significant impact on their brand engagement Specifically, when customers are aware of a brand's positive legal CSR practices, they tend to show more engagement with the brand This finding aligns with previous literature and empirical studies, which suggest that focusing on legal CSR practices can enhance the customer engagement process In the context of Vietnam, the results indicate that Vietnamese customers consider a brand's legal CSR practices when engaging with the brand, and increased awareness of these practices leads to higher engagement levels.
The study confirms that the perception of ethical Corporate Social Responsibility (CSR) positively impacts customer engagement with specific brands Customers are more likely to engage with a brand when they recognize its ethical CSR practices This finding aligns with existing literature and empirical studies, indicating that enhancing ethical CSR initiatives can strengthen customer engagement In the context of Vietnam, it suggests that Vietnamese consumers value the ethical CSR efforts of a brand, leading to increased engagement when these practices are perceived positively.
The study demonstrates that the perception of philanthropy in corporate social responsibility (CSR) positively influences customer engagement with a brand As customers' awareness of a brand's philanthropic CSR practices increases, so does their engagement behavior This finding aligns with previous research, indicating that enhancing philanthropic CSR initiatives can strengthen customer brand engagement Specifically, in the context of Vietnam, consumers who recognize and value a brand's philanthropic efforts are more likely to engage with that brand.
The study reveals that during the engagement process, customers prioritize ethical CSR factors as the most significant influence (Beta = 0.313), followed by philanthropic CSR factors (Beta = 0.221), economic CSR factors (Beta = 0.16), and legal CSR factors (Beta = 0.148), which has the least impact This contrasts with previous research by Hassan et al (2013), which identified different weights for CSR domains in Malaysia The varying importance of CSR factors reflects customers' personal values and opinions, as noted by ệberseder, Schlegelmilch, and Murphy (2013), indicating that these perceptions can differ across contexts Furthermore, these findings diverge from those of Bui.
A 2010 empirical study in Vietnam's service sector revealed that consumers respond slowly and weakly to ethical and philanthropic issues, prioritizing economic factors like price and product quality This trend may stem from previous research focusing more on price than on quality and environmental friendliness (Pham, 2011) However, Bui notes that an ethical consumer segment is gradually emerging in the Vietnamese market.
This empirical study highlights the scarcity of research on brand engagement in the service sector, particularly in Vietnam, where limited studies exist The unique characteristics and context of Vietnam may offer additional insights into these findings Furthermore, to understand the varying impact of CSR dimensions on customer brand engagement, in-depth interviews were conducted, and potential biases in the sample collection were carefully considered.
In Vietnam, rising incomes have highlighted serious food safety and health issues, such as tainted milk and blue ear pig disease, prompting consumers to reassess the significance of ethical and environmental factors (Bui, 2010) However, Vietnamese customers often lack comprehensive information about corporate social responsibility (CSR) initiatives and accomplishments (Pham, 2011), primarily receiving insights from companies’ philanthropic activities aimed at addressing external needs or enhancing their reputation (Pham & Dang, 2013) As a result, ethical and philanthropic considerations significantly influence Vietnamese consumer behavior.
In addition, another reason is legal mentality factor that reflect state of mind, feeling, and attitude with law and the process of spontaneous behavior with law (Nguyễn Minh Đoan,
In 2004, it was noted that the legal awareness among Vietnamese citizens remains low, with certain groups lacking familiarity with the law and often evading legal responsibilities Despite the existence of consumer protection laws, Vietnamese consumers possess a limited understanding of their rights due to the government's ineffective implementation of these regulations (Nguyễn Văn Hậu, 2015) As a result, there is a general lack of awareness regarding legal initiatives among Vietnamese consumers.
An in-depth interview with six respondents revealed that legal CSR practices had minimal impact on their brand engagement Despite being aware of the legal responsibilities brands should uphold, the interviewees felt that compliance with the law was not a significant factor in their brand loyalty They believed that brand self-promotion implied legal adherence, and their engagement was more influenced by how well a brand met their needs This perspective is particularly relevant in the Vietnamese market, where consumers generally assume that legal compliance is the government's responsibility While they acknowledge potential risks, these factors do not significantly affect their perceptions or engagement with brands.
The outcome of the study was influenced by the characteristics of the sampled brands, which were exclusively selected from three major companies in Vietnam, with only 1.3% of respondents choosing other brands This limited selection affected the questionnaire results, as interviewees indicated that the prominence of these brands shaped their perceptions, even when the survey focused broadly on branding According to Pham & Dang (2013), larger brands are perceived to contribute more to society and economic stability Additionally, interviewees believed that brands from large companies are directly regulated by the government due to their economic impact As a result, legal CSR practices were viewed as less critical, while ethical, philanthropic, and economic considerations were deemed more significant by consumers when engaging with brands It is essential to acknowledge the legal perceptions of the Vietnamese populace in this context.
This study, alongside the work of Lai et al (2013) and Hassan et al (2013) on CSR practices in Vietnam and Malaysia, highlights the applicability of Carroll's (1991) CSR pyramid theory in understanding consumer behavior and psychology within the service sector It particularly emphasizes the significance of brand engagement, suggesting that this framework can enhance customer-centric strategies in Vietnam.
Corporate Social Responsibility (CSR) remains an ambiguous concept in Vietnam (Pham, 2011), yet its practices are anticipated to surpass other factors in influencing customer responses within the context of a merging economy (Chung et al., 2015) As such, CSR is expected to play a crucial role in transitional economies (Hamm, 2012).