INTRODUCTION
RESEARCH BACKGROUND
In today's business landscape, companies increasingly recognize the significance of Corporate Social Responsibility (CSR), which enhances their competitive edge through improved customer and employee engagement, brand differentiation, and potential cost savings Engaging in CSR can take various forms, such as funding social causes, creating jobs, using safe materials, and integrating ethical practices within supply chains Research shows that stakeholders, particularly consumers, are more likely to support companies perceived as socially responsible As consumer expectations evolve, businesses are now challenged not just to deliver economic results but also to contribute positively to societal welfare and sustainability Therefore, integrating CSR into corporate strategies is no longer optional but essential for long-term success.
A growing body of academic research attests that CSR has positive influence on consumers’ evaluations and purchase intentions of company’s product h
(Mohr & Webb, 2005; Sen & Bhattacharya, 2001), enhancing trust and strengthening relationship between consumers and business (Porter & Kramer,
2006) More companies are willing to increase their CSR investment and integrate it into the long-term strategic plan to maintain or even enhance long-term market performance (Mahoney & Thorne, 2005)
Corporate Social Responsibility (CSR) has gained attention in Vietnam primarily due to the efforts of international NGOs and multinational companies A CSR Survey by SRI Vietnam revealed that 90% of respondents misunderstand CSR and its related concepts, indicating a significant gap in awareness among Vietnamese consumers While 40% view CSR as a social obligation focused on community initiatives, the overall perception of CSR remains low, compounded by media skepticism The lack of comprehensive knowledge and research on CSR in Vietnam has resulted in misleading information that can affect consumer and governmental perceptions Often, CSR initiatives are mischaracterized as mere PR activities, leading to negative interpretations Therefore, the key challenge is to enhance consumer awareness and appreciation of CSR, encouraging them to consider it in their purchasing decisions and connect it to broader social issues.
The primary challenge facing businesses today is the lack of resources and commitment to Corporate Social Responsibility (CSR) Many local companies are hesitant to adopt new practices, clinging to traditional metrics for measuring business performance that prioritize short-term financial gains As a result, they often view CSR merely as a branding strategy rather than a genuine commitment to sustainable practices.
In Vietnam, the concept of Corporate Social Responsibility (CSR) is still relatively new, creating challenges for companies seeking to implement sustainable practices The scarcity of professionally trained personnel in CSR is exacerbated by its absence in most university curricula Additionally, a prevailing belief among many businesses is that CSR is solely the domain of large multinational corporations, which further hinders the adoption of CSR initiatives.
“CSR is a luxury of the developed world, which is not relevant in a developing country” Therefore, it is important to change their attitude from “CSR as a cost” to
“CSR as an investment” in order to see more active CSR initiatives among local business community in the near future
In emerging markets like Vietnam, consumers are significantly influenced by product price and quality (Bui, 2010) However, recent environmental crises and food safety issues have heightened their awareness and concerns The Vietnam Journalist Association (2008) highlighted the Vedan Vietnam scandal, where a company polluted local rivers for over 14 years undetected, alongside similar contamination by Miwon Additionally, incidents involving tainted milk, toxic ingredients in consumer goods, and pesticide residues in vegetables have emerged These events have increased Vietnamese consumers' focus on corporate social responsibility, prompting them to prioritize environmental and health considerations in their purchasing decisions As a result, there is a growing movement among consumers to address food safety issues while also recognizing the importance of societal well-being.
4 | P a g e environmental dimensions of CSR Bui (2010) said that an ethical segment of consumers has been also emerging gradually in the Vietnamese market
In recent years, there has been a growing public interest in the social responsibility of businesses, leading to strong reactions against companies—both local and foreign—that neglect this aspect As a result, many organizations in Vietnam are increasingly focusing on Corporate Social Responsibility (CSR) However, despite this rising awareness, CSR remains a relatively new concept in the country, and early adopters are encountering various challenges in implementing effective CSR programs.
RESEARCH OBJECTIVE
This study aims to understand how consumers form purchase intentions for products from companies involved in Corporate Social Responsibility (CSR) activities It specifically investigates whether consumers' perceptions of CSR positively influence their trust and attitudes toward the firm, ultimately affecting their purchase intentions The research focuses on the relationships between CSR perceptions, consumer trust, attitudes, and purchase intentions.
1 The relationship between the consumers’ perceptions of CSR and trust of CSR practices
2 The relationship between the consumers’ trust of CSR practices and attitude towards firm
3 The relationship between the consumers’ perceptions of CSR and attitude towards firm
4 The relationship between the consumers’ perceptions of CSR and purchase intention
5 The relationship between the consumers’ attitude towards firm and purchase intention
6 The effect of the consumer’s demographics on the relationship between consumers’ perceptions of CSR and purchase intention h
SCOPE OF THE RESEARCH
The FMCG industry is experiencing significant growth, prompting leading companies to engage in ambitious community development programs Recognizing the importance of Corporate Social Responsibility (CSR), these companies are actively working to mitigate the negative impacts of their business practices while maximizing shared value for all stakeholders Many FMCG firms are now involved in various social responsibility initiatives across sectors such as education, environment, community development, and rural development These CSR efforts not only foster a positive company image but also contribute to increased sales.
Recent research highlights the growing significance of consumers as key stakeholders and drivers of Corporate Social Responsibility (CSR) (Mohr & Webb, 2005; Sen & Bhattacharya, 2001) However, many studies examining consumer attitudes toward CSR and its influence on company evaluations and purchasing decisions tend to be somewhat generalized (Becker-Olsen, Cudmore & Hill, 2006).
SIGNIFICANCE OF THE STUDY
Research on Corporate Social Responsibility (CSR) has predominantly focused on developed countries such as the United States, the United Kingdom, and Spain, with China being a notable exception among developing nations However, there is a significant gap in studies specifically examining the FMCG industry in Vietnam Given the unique cultural and socio-economic landscape of Vietnam, it is essential to conduct localized research, as findings from other countries cannot be universally applied without proper validation This study aims to explore consumers' perceptions of CSR, their trust in CSR initiatives, attitudes toward firms, and purchase intentions within Vietnam's FMCG sector.
Despite the longstanding presence of Corporate Social Responsibility (CSR) in Vietnam, its significance and influence on business success and consumer well-being have not garnered substantial attention from Vietnamese economists Additionally, existing literature, both academic and non-academic, largely overlooks the Vietnamese context in CSR studies conducted by international authors Notably, the perceptions of Vietnamese consumers regarding CSR and their ethical consumption behaviors remain largely unexplored, even as they face serious repercussions from escalating CSR-related issues in recent years.
This study explores how consumer perceptions of Corporate Social Responsibility (CSR) influence trust in CSR initiatives, ultimately impacting attitudes toward firms and purchase intentions Understanding the effectiveness of CSR activities is crucial for managers, enabling them to optimize their strategies for achieving desired results.
Understanding consumer perceptions of corporate social responsibility (CSR) is crucial for companies engaged in CSR activities, as it influences attitudes toward the firm and purchase intentions Our research aids managers and professionals in developing effective integrated marketing communication strategies that cater to the growing segment of ethical consumers, ultimately enhancing the company’s sustainable reputation.
This study begins with a review of relevant literature on the definition of Corporate Social Responsibility (CSR) and the hypotheses for testing It then outlines the research methodology used, followed by a presentation of the results The article concludes with a discussion of the findings, managerial implications, and suggestions for future research directions.
STRUCTURES OF THE RESEARCH
This research is organized in five chapters with details as follow:
Chapter 1: Introduction This chapter has provided an introduction of the research background which includes the research objectives and scope of study
Chapter 2: Literature review A literature study is carried out to gain understanding of the main theoretical concepts related to the research and to examine to which extent existing literature already covers the subject The concept of Corporate Social Responsibility (CSR) and the CSR activities are discussed After that, there is literature review on consumers’ perceptions of CSR, consumers’ trust of CSR, their attitudes toward firm, and their purchase intention This chapter focuses on developing the hypotheses and theoretical framework, which forms a foundation for the study
Chapter 3: Research Methodology This part includes research design, measurement scales and measurement model It also described the process of doing the research to test the hypotheses
Chapter 4: Result of data analysis This chapter is designed to present patterns of results and to analyze them for their relevance to the research hypotheses
Chapter 5: Conclusion, Managerial implications and Limitations The final chapter with conclusions and discussion of this research Furthermore, recommendations on how to use CSR actions in business strategies and the relevance of our research are outlined It then ends with the limitations of present research and recommendation for future investigation on similar topic h
LITERATURE REVIEW
CORPORATE SOCIAL RESPONSIBILITY (“CSR”)
Much research has been done to examine differences and similarities of CSR definitions from different perspectives
Corporate Social Responsibility (CSR) is defined as a company's proactive approach to addressing issues that extend beyond its economic, technical, and legal obligations (Davis, 1973) Increasingly, businesses are motivated to adopt responsible practices in response to emerging challenges and stakeholder expectations (Mohr & Webb, 2005; Mohr, Webb & Harris, 2001; Russell & Russell, 2010).
European Commission in year 2006 proposed a definition of CSR as “A concept whereby companies integrate social and environmental concerns in their h
Corporate Social Responsibility (CSR) emphasizes the voluntary contributions of businesses in collaboration with their stakeholders to address social and environmental issues By engaging in CSR initiatives, companies of all sizes can enhance their long-term success, as these efforts foster trust and meet the sustainable needs and expectations of customers As CSR effectively balances economic, social, and environmental goals, it has increasingly gained significance both globally and within the European Union.
Corporate Social Responsibility (CSR), as defined by the World Business Council for Sustainable Development in 2000, is the commitment of businesses to contribute to sustainable economic development This involves collaborating with employees, their families, and the local community to enhance quality of life in ways that benefit both business and societal development Essentially, CSR reflects a company's dedication to reducing negative externalities while maximizing positive impacts on society.
Carroll's pyramid of Corporate Social Responsibility, introduced in his 1991 article in Business Horizons, highlights four key components: economic, legal, ethical, and philanthropic responsibilities This framework has garnered significant attention for its comprehensive portrayal of corporate social responsibility.
Figure 2.1 The pyramid of Corporate Social Responsibility
Table 2.1.1 Economic and legal components of Corporate Social Responsibility (Carroll, 1991)
1 Profitability is the first priority
2 Maintaining a strong competitive position is an important target
1 It is important to obey the laws and other local regulations
2 A successful firm is the one that fulfills its legal obligations
3 Provide goods and services that meet minimal legal requirements is key to keep the firm operated
The role of each dimension in Corporate Social Responsibility (CSR) is clarified, highlighting that economic and legal responsibilities form the foundational level that corporations must fulfill Consequently, existing studies primarily focus on higher levels of CSR, specifically ethical and philanthropic responsibilities, which are the main concerns of this research.
Companies must adhere to the laws and regulations set by the governments in which they operate, ensuring that their economic responsibilities align with legal standards Engaging in illegal practices for profit is not acceptable; instead, firms are expected to achieve their economic objectives while remaining compliant with the law (Carroll, 1991).
Table 2.1.2 Ethical and philanthropic components of Corporate Social Responsibility (Carroll, 1991)
1 Ethical norms go beyond laws and regulations
2 Ethical norms should be recognized and respected
3 Ethical norms must not be compromised in order to achieve corporate goals
1 Managers and employees should participate in voluntary and charitable activities in their local communities
2 Providing assistance to the local educational institutions is a good practice
3 Contributing to those projects that improve the community’s
“Quality of life” is important
Ethical responsibilities refer to the practices that society considers acceptable or unacceptable, even if they are not legally mandated In the context of Corporate Social Responsibility (CSR), businesses should not only strive to avoid causing harm but also actively engage in ethical conduct Ethics are deeply intertwined with the values and norms that evolve within different societies and cultures.
Philanthropic responsibilities involve businesses acting as good corporate citizens by meeting societal expectations This can include engaging in volunteer work to enhance human welfare, sponsoring local initiatives, and making donations to public and non-profit organizations.
Van Marrewijk (2003) identifies three progressive approaches to Corporate Social Responsibility (CSR) that have been discussed by various scholars Each approach builds upon and expands the previous one, aiming to define the organization's responsibilities in a comprehensive manner.
The shareholder approach, as articulated by Van Marrewijk (2003) and based on Friedman’s perspective (1962), posits that the primary social responsibility of a business is to enhance its profits This approach prioritizes profit maximization as the ultimate objective, suggesting that organizations should engage in corporate social responsibility (CSR) only when it aligns with their profit-driven goals.
The stakeholder approach emphasizes that organizations must be accountable not only to their shareholders but also to all stakeholders impacted by their actions This perspective highlights the importance of considering the diverse interests of those affected as organizations strive to achieve their objectives.
The societal approach emphasizes that companies hold responsibilities to society as a whole, as they are integral components of it (Van Marrewijk, 2003, p 97) This perspective asserts that organizations should conduct their operations in a manner that meets and fulfills societal needs.
Kotler and Lee (2005) outlined six key initiatives that encompass the majority of social responsibility activities: cause promotion, cause-related marketing, corporate social marketing, corporate philanthropy, community volunteering, and socially responsible business practices.
Cause Promotion A goal of this initiative is to build awareness and concern for social causes by informing the public of the facts and statistics about a cause It h
The article encourages individuals to contribute by donating time, money, and non-monetary resources, as well as participating in events It emphasizes that support for a cause is not linked to the purchase of specific products The aim of cause promotion is not to alter individuals' behaviors regarding the cause, but rather to inspire action related to choosing certain products over others.
Cause-Related Marketing (CRM) involves a corporation committing to contribute a portion of its revenues to a specific cause linked to product sales, typically for a limited time and designated charity (Kotler & Lee, 2005) This CSR initiative uniquely ties product sales to charitable contributions, fostering a partnership between companies and non-profit organizations aimed at boosting sales while providing financial support to the charity The marketing department plays a crucial role in this strategy, as the primary goal is to enhance sales performance (Kotler & Lee, 2005).
(2003), this initiative potentially causes a problem when customers assume that a company is engaging in this activity only to increase the company’s profits
PURCHASE INTENTION
Purchase intentions are defined in various ways Ajzen (as cited in Rahman,
Intention is defined as behavioral dispositions that manifest as actions when the right time and opportunity arise (2013) Purchase intention indicates what consumers anticipate buying in the future to satisfy their needs and desires This intention is significantly influenced by consumers' attitudes; a strong positive attitude towards a product serves as an effective predictor of future purchasing decisions Spears and Singh (2004) describe purchase intention as an individual's inclination to engage in buying behavior.
Eagly and Chaiken (as cited in Rahman, 2013) suggest that attitudes, which reflect favorable or unfavorable evaluations of objects, are learned through information and direct experiences These attitudes can evolve with new information or experiences Furthermore, intentions signify a person's motivation to engage in a behavior, highlighting a realistic scenario where consumers may appreciate a product yet choose not to buy it due to financial constraints.
The relationship between attitudes and behavior has been extensively studied over decades According to Ajzen and Fishbein's (as cited in Rahman,
The Theory of Reasoned Action, proposed in 2013, identifies two key determinants of intentions: (1) attitude toward the behavior, which reflects an individual's favorable or unfavorable evaluation of a specific action, such as purchasing a brand, and (2) subjective norms, which denote the perceived social pressure to engage in or refrain from that behavior This theory can be effectively applied to the context of Corporate Social Responsibility (CSR) initiatives and consumer behavior.
Consumers' positive attitudes towards a firm's Corporate Social Responsibility (CSR) initiatives can significantly influence their purchase intentions These initiatives are often perceived as altruistic actions, leading to supportive subjective norms that encourage consumer backing As CSR efforts are typically viewed positively, there is a normative motivation to endorse them, which can enhance consumers' willingness to support such actions Consequently, even without direct personal benefits from CSR initiatives, exposure to information about these efforts can foster strong positive attitudes toward the firm, ultimately predicting future purchasing behavior.
According to Fishbein and Ajzen (as cited in Rahman, 2013), the unidimensionalist view of attitude posits that attitude comprises an affective component, while cognition and conation serve as antecedents and consequences, respectively The cognitive aspect reflects an individual's beliefs about an attitude object (e.g., "I believe "), whereas the affective component captures emotional responses to that object (e.g., "Therefore, I like ") The conative component includes both intended and actual behaviors (e.g., "I intend to purchase ") Consequently, attitude is recognized as a distinct construct that can influence subsequent behaviors or behavioral intentions, such as purchase intentions.
CONSUMERS’ PERCEPTIONS OF CSR
Consumers' perception of Corporate Social Responsibility (CSR) involves their ability to distinguish between a company's economic responsibilities and its legal, ethical, and philanthropic duties (Maignan, 2001) This perception highlights the significance consumers place on socially responsible companies When consumers view a company's non-economic responsibilities as important, they are more likely to engage in socially responsible consumption, thereby supporting the company.
CSR initiatives significantly shape consumer perceptions of a company's community contributions and trustworthiness, as noted by Chaisurivirat (2009) Implementing effective CSR campaigns serves as a strategic approach to enhance a company's image By demonstrating social responsibility, businesses can cultivate goodwill and foster long-term relationships within the community Furthermore, as highlighted by Vlachos & Tsamakos (2011), consumers view participation in CSR activities as ethically commendable, leading to increased trust in those firms.
According to Brown and Dacin (2015), a company's socially responsible initiatives reflect its character and values, fostering trust among stakeholders Hosmer (1995) emphasized that integrating ethical principles into strategic decision-making enhances this trust Pivato, Misani, and Tencati (2008) further highlighted that consumer trust in a company's ethical practices is a direct outcome of its social performance, significantly influencing consumer behavior towards CSR CSR activities are defined as pro-social efforts that enhance societal welfare while also serving the company's interests, ultimately building consumer trust (Sen & Bhattacharya, 2001).
A study by Fatma, Rahman, and Khan (2015) found that consumers view socially responsible companies as more trustworthy, leading to a favorable perception of these businesses This highlights the importance of corporate social responsibility in building consumer trust.
The following hypothesis is proposed:
H1: A higher level of consumers’ perceived CSR leads to higher level of consumers’ trust of CSR
Consumers' perceptions of Corporate Social Responsibility (CSR) significantly influence their purchasing behavior and attitudes toward firms These perceptions are shaped by various factors, including political traditions, cultural contexts, and economic development, which can lead to variations from one country to another In Vietnam, many consumers exhibit limited awareness of CSR, particularly regarding ethical and philanthropic aspects This lack of understanding can hinder consumer sensitivity to CSR initiatives Conversely, consumers who are more aware of CSR are likely to develop positive attitudes toward companies and demonstrate higher purchase intentions Furthermore, consumers actively seek to understand the motivations behind a firm's CSR activities, which can impact their overall perception of the company and its initiatives Consequently, a company's CSR efforts play a crucial role in shaping consumer attitudes and influencing their purchasing decisions.
The following hypothesis is proposed:
H2: A higher level of consumers’ perceived CSR leads to higher level of consumers’ attitude toward firm h
A study by Tian, Wang, and Yang (2011) indicates that consumers with a heightened awareness of Corporate Social Responsibility (CSR) in their daily purchases exhibit a stronger intention to buy when exposed to CSR initiatives This suggests that these consumers possess a deeper understanding of CSR activities.
(2001) in their research has concluded that perceived CSR activities have a significant positive relationship on their purchase intention
In Vietnam, consumers are increasingly embracing Corporate Social Responsibility (CSR) and prioritizing clean and green products, as highlighted by Bui (2010) The philanthropic aspect of CSR significantly influences purchasing intentions among the population Despite the ongoing focus on price and quality, recent food safety crises—such as issues with tainted milk and contaminated food items—have prompted Vietnamese consumers to reassess the importance of environmental and health considerations in their buying decisions Although their response to ethical concerns has been gradual, there is a noticeable emergence of an ethical consumer segment that actively seeks clean food options, such as fresh produce and safe animal products, while opting for green products like eco-friendly construction materials.
The following hypothesis is proposed:
H3: A higher level of consumers’ perceived CSR leads to higher level of purchase intention h
CONSUMERS’ TRUST OF CSR
Trust is a fundamental element in the customer-company relationship (Pivato et al., 2008) From a CSR perspective, trust has been understood as consumer expectations of socially responsible behavior from companies (Vlachos
Research by Brown and Dacin (as cited in Fatma, Rahman & Khan, 2015) indicates that consumers are more likely to have a positive evaluation and attitude towards a company when they perceive it as moral, socially responsible, and trustworthy.
Consumer trust plays a vital role in marketing, serving as a foundation for long-term relationships between consumers and companies (Kayabasi & Mucan, 2015) Establishing this trust is challenging, yet essential According to Hahn and Kim (as cited in Kayabasi and Mucan, 2015), consumer trust is a key element for successful business transactions and the effective management of enduring customer relationships Their findings indicate that consumer trust positively influences purchase intentions, particularly in relation to consumers’ perceptions of corporate social responsibility (CSR).
Trust is essential for establishing customer relationships and enhancing purchase intentions, as highlighted in previous literature (Bhattacharya & Sen, 2004; Vlachos & Tsamakos, 2011) Research by Hillenbrand, Money, and Ghobadian (2011) demonstrates that corporate social responsibility (CSR) significantly influences consumer trust and attitudes, ultimately fostering positive purchase intentions Additionally, Kang and Hustvedt (2013) emphasize that consumers' perceptions of a company's commitment to social responsibility, particularly in contributing to the local community, are crucial for building trust and encouraging positive purchasing behavior Thus, nurturing the consumer-company relationship must be rooted in trust.
Consumer trust in a company, defined as the belief that the firm will act in the best interests of its customers and fulfill its promises, is crucial for achieving positive outcomes This trust fosters positive attitudes, loyalty, customer retention, and influences product choices and purchase intentions, ultimately enhancing overall market performance Therefore, it is essential for companies to prioritize building and maintaining trust with their consumers to thrive in today's competitive landscape.
Consumers' trust in Corporate Social Responsibility (CSR) is fundamentally rooted in their expectation that companies sponsoring CSR initiatives will uphold their promises and fulfill their obligations with integrity, goodwill, and a genuine commitment rather than opportunistic motives.
Managers perceive their firms' motives as a blend of economic and social objectives; however, they believe consumers view CSR initiatives as either profit-driven or genuinely altruistic Trust in a company's CSR practices is a critical outcome of its social performance, influencing consumer attitudes and actions towards CSR initiatives.
Consumers are more likely to feel satisfied with a company that aligns with their legal, social, and ethical expectations, as this consistency enhances their self-concept Trust and positive attitudes fostered by such alignment can strengthen the business relationship (Dick & Basu, 1994) Implementing Corporate Social Responsibility (CSR) programs not only yields non-financial rewards, such as increased trust, but also enhances consumers' perceptions of the company Consequently, these positive perceptions lead to greater consumer trust and favorable attitudes toward the company.
The following hypothesis is proposed:
H4: A higher level of consumers’ trust of CSR leads to higher level of consumers’ attitude toward firm.
ATTITUDE TOWARDS FIRM
Numerous studies explore the link between Corporate Social Responsibility (CSR) initiatives, consumer attitudes, and purchasing intentions Mohr and Webb (2005) investigated how CSR activities and pricing affect consumer evaluations and purchase intentions, aiming to determine which factor holds more sway Their findings revealed that CSR initiatives significantly enhance consumer evaluations and positively impact purchase intentions.
Research by Rahman (2013) indicates that consumers tend to have more positive attitudes toward firms that engage in Corporate Social Responsibility (CSR) initiatives aimed at the local community This favorable attitude correlates with changes in consumer perception of the firm and their intention to purchase its products Additionally, Sen et al (2006) highlight a positive relationship between a company's CSR efforts and consumer attitudes, which in turn influences their purchasing intentions Vahdati, Mousavi, and Tajik (2015) further emphasize that consumers' purchase intentions are shaped by their perceptions of CSR and their overall attitude toward the firm.
A study by Pham (2011) examined Vietnamese consumers' awareness and perceptions of corporate social responsibility (CSR), revealing that consumers generally hold a positive attitude towards CSR initiatives.
Vietnamese consumers play a crucial role in shaping corporate social responsibility (CSR) practices and disclosures Research shows that consumers are increasingly aware of CSR, with many expressing a preference for purchasing products from companies that demonstrate strong social responsibility Additionally, a significant number of respondents indicated a willingness to alter their buying behavior in support of socially responsible practices.
The following hypothesis is proposed:
H5: A higher level of consumers’ attitude toward firm leads to higher level of purchase intention.
CONSUMER DEMOGRAPHICS
This study investigates how demographic characteristics influence the relationship between perceptions of corporate social responsibility (CSR) and purchase intentions Managers should consider which consumer demographics are more responsive to CSR initiatives Research indicates that women, individuals with higher education, and those in higher income brackets tend to show greater support for CSR practices (Youn & Kim, 2008) Additionally, older consumers are more inclined to prioritize ethical considerations in their purchasing decisions (Carrigan, Szmigin & Wright, 2004).
Tian et al (2011) discovered that demographic factors such as age, gender, income, and education, along with product category, significantly influence how consumers perceive corporate social responsibility (CSR) and their subsequent reactions, including purchase intentions Their research indicates that consumers exposed to CSR information from firms selling experience goods demonstrate more favorable responses when they perceive a higher level of CSR, compared to those dealing with search or credence goods Additionally, Tian et al categorized consumers into three distinct types: warm type, practical type, and another type not specified in the provided text.
The article identifies three consumer groups in relation to Corporate Social Responsibility (CSR) practices The warm-type group consists of middle-income, middle-aged consumers who actively support socially beneficial CSR initiatives through their purchasing decisions In contrast, the practical-type group, primarily composed of young, low-income individuals, tends to prioritize economic factors over ethical considerations in their buying behavior Lastly, the shrewd-type group, which includes higher-income and well-educated consumers, demonstrates a neutral stance towards CSR, balancing traditional and modern values while considering both economic and normative influences in their consumption choices.
Dodd (2010) concluded that gender, age, and income significantly influence the relationship between consumer perceptions of corporate social responsibility (CSR) and purchase intentions Specifically, older adults and females are more inclined to buy from socially responsible companies, while younger individuals and males show less likelihood Additionally, the study found that consumers with higher income and education levels are more likely to purchase from socially responsible businesses compared to those with lower income and education.
In Vietnam, research by Pham (2011) indicates that younger consumers exhibit a more favorable attitude towards Corporate Social Responsibility (CSR) compared to older generations This trend is attributed to the fact that many of these young individuals are students or early-career professionals with higher educational backgrounds, leading them to place greater emphasis on the CSR initiatives of companies.
The following hypotheses are proposed:
H6a: The impacts of consumers’ perceived CSR on purchase intention are stronger for female consumers than for male consumers
H6b: The impacts of consumers’ perceived CSR on purchase intention are stronger for older consumers than for younger consumers
H6c: The impacts of consumers’ perceived CSR on purchase intention are h
27 | P a g e stronger for higher income consumers than for lower income consumers.
RESEARCH MODEL
Chapter 2 started by presenting various definitions of Corporate Social Responsibility (CSR) leading to comprehensive definition of CSR that incorporates important elements of the construct Different types of CSR were introduced to provide a general idea how CSR actions can range, followed by description of perceived pros and cons of CSR This chapter provided thorough explanations of and discussed theories on perceptions of CSR, trust of CSR, attitudes toward firm, and purchase intentions, as well as relationships among these constructs Besides, understanding the linkage between how CSR initiatives affect consumer perception, their trust, their attitude to firm, and finally affect to purchase intention is crucial before further research is done Some important previous findings on the relationship have been also concluded in this chapter as well
Consumer demographics: a Gender b Age c Income Perceptions of CSR
Trust of CSR Purchase intention
RESEARCH METHODOLOGY
RESEARCH DESIGN
The research design consists of two phases: the initial phase utilizes qualitative research, while the subsequent phase involves a quantitative survey The overall research process is illustrated in Figure 3.1.
Main survey (n00) Confirmatory Factor Analysis
The draft questionnaires, informed by prior research and tailored to the Vietnamese context, included four key measurement scales: perception of CSR, trust in CSR, attitude toward the firm, and purchase intention To refine these questionnaires, in-depth interviews were conducted with eight colleagues, allowing for modifications based on their feedback and ensuring cultural and linguistic appropriateness This qualitative study was crucial in finalizing a user-friendly questionnaire that effectively measured the intended variables As a result, confusing or unclear questions were removed, leading to a clearer and more understandable survey for respondents.
In the primary survey, data was gathered from consumers in Ho Chi Minh City using a convenience sampling method through an online survey This approach was chosen for its cost-effectiveness, quick response time, sample control, and overall efficiency.
The author distributed 300 questionnaires to participants recruited from personal networks in Ho Chi Minh City, resulting in 224 usable responses and a response rate of 75% This satisfactory rate was largely attributed to the strong support from friends and acquaintances.
MEASUREMENT SCALES
This study adapted existing measures from the literature to fit the Vietnamese context, utilizing in-depth interviews with eight participants aged 29 to 35, including five bachelor's degree holders, two master's degree holders in business, and one doctor The interviews focused on participants' responses to corporate social responsibility (CSR) performance, assessing their trust in CSR, attitudes towards firms, and purchase intentions This process not only enhanced the readability and understanding of the scales but also facilitated the generation and revision of survey items, ensuring that inappropriate phrases were reworded to align with Vietnamese cultural nuances.
Construct names and items Coding
1 Perceived CSR (adopted from Lin et al, 2011)
1 Company X supports good causes PCSR1
2 Company X behaves responsibly regarding the environment
3 Company X is aware of environmental issues PCSR3
4 Company X fulfills its social responsibility PCSR4
5 Company X gives back to society PCSR5
6 Company X acts in a socially responsible way PCSR6
2 Trust of CSR (adopted from Tian et al, 2011)
1 I think Company X’s socially responsible actions sincerely aimed at contributing to society
2 I think Company X’s socially responsible practices made a substantial contribution to the society
3 I think the Company took a lot of effort to be socially responsible
3 Attitudes toward firm (adopted from Tian et al, 2011)
1 The Company is a socially responsible company ATF1
2 The Company is a successful company ATF2
3 The Company is a trustworthy company ATF3
4 The Company is an honorable company that benefits society
5 Rate your feelings toward the Company ATF5
4 Purchase intention (adopted from Tian et al, 2011)
1 If I am planning to buy a product of this type, I will choose this product (from Company X)
2 There is a great possibility that I will buy this product
3 I am willing to pay a little more for this product (from
This study examines the positive impact of Corporate Social Responsibility (CSR) on consumer behavior through four distinct questionnaires related to four fictitious companies The use of fictitious firms helps mitigate participant biases, such as pre-existing loyalty to real brands Each of these companies is involved in various CSR initiatives, including long-term support for environmental protection, charitable contributions to enhance education and healthcare, and efforts to improve community quality of life and promote sustainable development.
The independent variable for this study is the consumers’ perceived CSR level Participants were first asked to read a brief, short paragraphs about the basic h
The article presents a fictitious company, detailing its industry type and primary products, alongside its commendable corporate social responsibility (CSR) achievements Consumers are then invited to evaluate the firm's CSR performance For reference, Appendix 1 illustrates CSR descriptions related to everyday household products, including detergents and shampoos.
For all the dependent measures, the author used a Five-point Likert-type scale, anchored by 1 (strongly disagree) and 5 (strongly agree).
DATA ANALYSIS METHODOLOGY
SPSS 21 and AMOS 21 were used for data analysis Confirmatory Factor Analysis (CFA) was used to validate the measures, and Structural Equation Modeling (SEM) was used to test the theoretical model
To ensure reliable findings regarding the hypothesized structural model, it is crucial that the measurement model adequately fits the sample data Confirmatory Factor Analysis (CFA) effectively assesses construct reliability and validity of measurement constructs, making it a powerful method with minimal assumptions It offers distinct advantages, such as evaluating overall model fit through the Chi-square goodness of fit test and examining convergent and discriminant validity via Chi-square difference tests, factor loading sizes, and trait correlation estimates Prior to CFA, Exploratory Factor Analysis (EFA) was conducted to identify the factor structure based on inter-variable correlations, allowing CFA to confirm the extracted factor structure.
Reliability of the measures was first assessed using Cronbach’s coefficient Alpha, Composite Reliability (CR), and Average Variance Extracted (AVE)
The author utilized Cronbach’s Alpha, as outlined by Hair et al (1998), to assess reliability statistics Reliability refers to the consistency of a measurement, with high reliability indicating that a measure yields stable results under consistent conditions Cronbach’s Alpha serves as a coefficient of reliability, widely recognized for evaluating the internal consistency of a measure.
In this study, to measure the impact of Perception of CSR, Trust of CSR, Attitude toward firm and Purchase Intention
Composite reliability is a measure of reliability and internal consistency of the measured variables Composite reliability scores should be greater than 0.7 (Hair et al., 2014, p.619)
Average Variance Extracted (AVE) is the average percentage of variation explained among a set of items (Hair et al., 2014, p.619) Bagozzi & Yi (1988) recommended AVE should be equal to or greater than 50 h
CFA has also been used to assess convergent and discriminant validity
Convergent validity is the extent to which variable correlates to indicators to measure the same construct (Anderson & Gerbing, 1988)
Discriminant validity is the extent to which the indicators of one construct are distinct from the items of other variables (Bagozzi et al., 1991)
Structural Equation Modeling (SEM) is a statistical technique that integrates factor analysis and multiple regression to analyze covariance structures It enables the simultaneous estimation of relationships among all factors within a comprehensive model, allowing researchers to assess the causal relationships of latent constructs By utilizing goodness-of-fit (GOF) indices, SEM evaluates both the measurement and structural models, ensuring robust analysis of the underlying data.
This study evaluates the model's relevance and tests its fit by considering various goodness-of-fit indices.
The P-value is linked to a test statistic and represents the probability of observing that statistic A smaller P-value indicates a stronger rejection of the null hypothesis, which is the hypothesis under investigation Specifically, a P-value of 0.05 or lower suggests that the null hypothesis can be rejected, implying that a significant relationship exists.
The Chi-Squared (X²) statistic is a crucial metric used to assess the differences between observed and estimated covariance matrices It depends on both the sample size and the discrepancies between the observed covariance matrix and the model covariance matrix.
CMIN/df (X 2/df): Chi-square adjusted following degree of freedom, is used to measure appropriate level of the model Some authors suggested h
1< X 2/df < 3 (Hair et al., 1998) Other authors suggested X 2/df < 3 (Chin
& Todd, 1995), then model is considered good fit (Kettinger & Lee,
Degree of freedom (df) represents the amount of mathematical available to estimate model parameters
The Comparative Fit Index (CFI) is an advanced incremental fit index that enhances the normed fit index (NPI) by evaluating relevant indicators A CFI value of 0.90 or above is considered optimal for assessing model fit.
Tucker Lewis Index (TLI) or Non-normed Fit Index (NNFI): A model with good fit has that approach 1
Goodness-of-fit (GFI) is a statistical measure designed to assess how well a model fits the data, with a focus on minimizing sensitivity to sample size GFI values range from 0 to 1, where higher values signify a better model fit.
Indices CFI, TLI, GFI having value > 0.9 is taken to indicate good fit If these values are at 1, the model is perfect (Chin & Todd, 1995)
The Root Mean Square Error of Approximation (RMSEA) assesses the fit of a model to a broader population rather than just the sample used for estimation An RMSEA value of less than 0.05 indicates a good fit, while values below 0.08 can still be considered acceptable (Taylor, Sharland, Cronin & Bullard, 1993).
Tho & Trang (2008) suggested that if a model gets the value of TLI, CFI
>=0.9, CMIN/df