Impact of corporate social responsibility and corporate reputation on consumer attitude toward food products and consumer behavioral intention

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business IMPACT OF CORPORATE SOCIAL RESPONSIBILITY AND CORPORATE REPUTATION ON CONSUMER ATTITUDE TOWARD FOOD PRODUCTS AND CONSUMER BEHAVIORAL INTENTION Cao Thị Hải Âu MASTER OF BUSINESS (Honours) Ho Chi Minh City – Year 2014 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business IMPACT OF CORPORATE SOCIAL RESPONSIBILITY AND CORPORATE REPUTATION ON CONSUMER ATTITUDE TOWARD FOOD PRODUCTS AND CONSUMER BEHAVIORAL INTENTION Cao Thị Hải Âu ID: 22110003 MASTER OF BUSINESS (Honours) SUPERVISOR: LƯU TRỌNG TUẤN, PhD Ho Chi Minh City – Year 2014 Acknowledgement I would like express my sincere thankfulness to Dr LuuTrong Tuan who is my research supervisor He helped me to understand the purpose of study research, as well as the process of research Thanks to his help, I can understand clearly about the topic I like and I can complete my thesis His guidance helps me a lot in performing the thesis, studying theories, and collecting the data This thesis could not be finished without his supporting I would like to thank Prof Nguyen DinhTho and Prof Nguyen Dong for giving me helpful advices to correct my thesis I am grateful to Dr Nguyen Thi Mai Trang and Dr Nguyen ThiNguyetQue with the useful comments for the thesis I would like to thank to all staffs of ISB for supporting me during the thesis processes with informing and guiding accurately and on time I would also like to thank to all of my family members, friends who supported and are by my side throughout my life Abstract Corporate social responsibility is still a new definition to Vietnam, the paper studies about its influence on consumer attitude and behavioral intention To investigate the relationships, the paper needs to search these relationships through corporate reputation The data is collected with a sample of 203 customers at super markets with the method mall-intercept Those customers are choosing food products and asked permit to interview The paper will prove these relationships, the corporate social responsibility effects on corporate reputation, and corporate reputation effects on consumer attitude, and consumer attitude influences on consumer behavioral intention However, the corporate social responsibility does not effect on consumer attitude The suggested hypotheses are proved by data analysis and findings help to the roles of these variables Contents Chapter 1: INTRODUCTION 1.1 Introduction: 1.2 Research Problem: 1.3 Research Objective and Questions: 1.4 Research Structure: Chapter 2: LITERATURE REVIEW 2.1 Corporate Social Responsibility: 2.2 Corporate Reputation: 2.3 Corporate Social Responsibility and Corporate Reputation: 10 2.4 Consumer Attitude toward the Company’s Food Products: 12 2.5 Corporate Social Responsibility and Consumer Attitude toward the Company’s Food Products: 15 2.6 Corporate Reputation and Consumer Attitude toward the Company’s Food Products: 18 2.7 Consumer Behavioral Intention: 20 2.8 Consumer Attitude toward the Company’s Food Products and Consumer Behavioral Intention: 22 2.9 Model: 24 2.10 Summary: 26 Chapter 3: METHODOLOGY 27 3.1 Research Approach: 27 3.2 Survey Research Method: 27 3.3 Questionnaire Design: 29 3.3.1 Scale Measurement: 31 3.3.2 Questionnaire: 32 3.4 Sampling Method: 33 3.5 Data Collection: 33 3.6 Data Preparation: 34 3.7 Summary: 35 Chapter 4: RESULTS AND DISCUSSION 36 4.1 Cronbach’s Alpha: 36 4.2 Exploratory Factor Analysis (EFA): 37 4.3 Regression Analysis and Multiple Regression Analysis: 38 4.4 Descriptive Analysis: 39 4.5 Measurement Assessment: 40 4.5.1 Cronbach’s alpha: 40 4.5.2 Exploratory factor analysis (EFA): 42 4.5.3.1 Testing hypothesis 1: 44 4.5.3.2 Testing hypotheses and hypothesis 3: 47 4.5.3.3 Testing Hypothesis 4: 50 4.6 Discussion Results: 53 Chapter 5: CONCLUSION AND IMPLICATION 56 5.1 Findings: 56 5.2 Managerial Implication: 57 5.3 Limitation: 59 5.4 Future Direction: 61 REFERENCES 62 Chapter 1: INTRODUCTION 1.1 Introduction: The paper investigates corporate social responsibility (CSR), corporate reputation, consumer attitude toward the company’s food products, and consumer behavioral intention; and their relationships Creyer and Ross (1997) study the relationship between corporate social responsibility and consumer attitude toward the company’s food products, they found a positive relationship between them According to Zaharia (2013), corporate social responsibility helps companies to build consumer product responses and product attitudes, corporate social responsibility also effects on product attributes Besides, corporate reputation also influences on consumer attitude toward the company’s food products, as Schwager (2004) defines reputation related to attitude Sen and Bhattacharya (2001) say corporate social responsibility is a key component of a firm’s marketing toolbox to build their corporate reputation; that means a positive relationship between corporate social responsibility and corporate reputation The research focuses on corporate social responsibility and corporate reputation influence on consumer attitude toward the company’s food products Attitude changing will lead to behavior changing of consumer (Eagly&Chaiken, 1993), consumer attitude toward the company’s food products and consumer behavioral intention has a positive relationship Both theories of reasoned action (Fishbein&Ajzen, 1975) and of planned behavior (Ajzen, 1991) consider behavioral intentions to be the most proximal determinant of behavior, and behavioral intention is proposed to be influenced attitude that consumer attitude toward the company’s food products towards consumer behavioral intention By looking and considering corporate social responsibility and corporate reputation of a company, consumer can attitude toward their food products; that leads to buy and consume their food products as consumer behavioral intention As well as, producers can change their images by focusing on building their corporate social responsibility and corporate reputation to lead to consumer attitude toward the company’s food products and gain customer’s consumer behavioral intention 1.2 Research Problem: Vietnam is a communist country that has opened the economics door to integrate into the global economy by joining ASEAN in 1995, AFTA in 1996; especially Vietnam has joined WTO since 2007 that opened a new way for Vietnamese economy, as well as gave many opportunities and challenges to Vietnam companies Besides the advantages the economics integrating has given, Vietnam had to face many disadvantages, difficulties in the process of its development Vietnam has allowed foreign products that exported to Vietnamese market Vietnamese consumers contact with many trademarks of products, as well as variety quality of products Vietnamese also has another consideration about Vietnamese products One of industrial is food manufacturing is affected Vietnamese customers don’t believe in Vietnam food products They prefer foreign food products such as milk products for babies; they believe that food products from famous trade mark have good quality and they trust the guarantee that the famous organizations posted in the food products’ labels The Vietnam food production lost their customer because they lose consumer trust To attract customers to Vietnam food products, the Vietnam food productions need to build their own strategy to gain customer trust The paper supposes to give two supposed factors that maybe influences to attitude toward food products of costumers in Vietnam market Additions, the link between attitude and intention has been explained by Ajzen (1991), and this relationship is also improved a positive one The paper studies the indirect impact of supposed variables corporate social responsibility and corporate reputation on consumer behavioral intention through consumer attitude toward food products Every company has its own aim; that is profit The profit comes from consuming products That their marketing strategy All of four variables in the paper are areas of marketing Because food producers lack of corporate social responsibility and corporate reputation, customers don’t care their food products and avoid buying their food product The paper investigates the relationships of these variables Food producers can build their corporate social responsibility and corporate reputation to influence on consumer attitude toward the company’s food products From that, customers can buy their food products, as previous research about the positive relationship between consumer attitude toward the company’s food products and consumer behavioral intention The purpose of building corporate social responsibility is to enhance corporate reputation, also to gain consumer attitude toward the company’s food products Food producers can attract consumer behavioral intention by their corporate social responsibility and corporate based on the positive relationship of consumer attitude toward the company’s food products and consumer behavioral intention Corporate social responsibility and corporate reputation help food producers to build a long term relationship with the customers based on gaining consumer attitude toward the company’s food products; the customers would think about their brand when making a decision on buying food products 1.3 Research Objective and Questions: The aim of research is to explore the relationships between supposed factors and studied variables Simultaneously, the study shows how the independent variables influence on the dependent variables In additions, the data analysis will help to improve these assumptions How the supposed factors influence on consumer behavioral intention? What kind of relationship between independent variables and dependent variables? How strong are these correlations? To answer the above questions, the author performs step by step to find the final result The process is described in research process section The organized form of the paper is indicated in the next section 1.4 Research Structure: Following the concepts of a typical research paper, the concept of the study is performed as the list of chapters below: Chapter illustrates the introduction of the paper, including four sections such as: introduction, research problem, research questions, research Structure B2.4 Côngtycungcấpsảnphẩmvớigiátrịxứngđángvớigiátiềntôibỏra 5 5 5 5 B3 Vêmơitrườnglàmviệc B3.1 Mơitrườnglàmviệccủacơngtynàytốt B3.2 Mơitrườnglàmviệccủacơngtycóvẻlàmộtcơngtytốtđángđểlàmviệc B3.3 Mơitrườnglàmviệccủacơngtynàycóvẻđólàmộtcơngtycónhiềunhânviêngiỏi 3 C Đánhgiánhậnthứccủakháchhàngđốivớisảnphẩmthựcphẩmcủacơngty C1 Nóichung, muasảnphẩmthựcphẩmcủacơngtynàyđólàmộtlựachọntốthơn C2 Xétvềgiácả, tơithíchmuasảnphẩmthựcphẩmcủacơngtynàyhơn C3 Tơithíchmuasắmvìsảnphẩmthựcphẩmcủacơngtynày C4 Khơngcógìsaitráikhimuasảnphẩmthựcphẩmcủacơngtynày 3 3 D Về ý địnhhành vi hành vi muacủakháchhàng D1 Tôixemxétsảnphẩmcủacôngtylàlựachọnhàngđầukhimuathựcphẩm 77 5 D4 Tơikhuyếnkhíchbạnbèvàngườithânmuasảnphẩncủacơngtykhihọcmuathựcphẩm D2 Tơinóinhữngđiềutốtđẹpvềsảnphẩmthựcphẩmcủacơngtychonhữngngườikhác D3 Tơigiớithiệusảnphẩmcủacơngtychonhữngaihỏi ý kiếnkhimuốnmuathựcphẩm 3 Xinchânthànhcảmơn Appendix B: Codified Variables No Name SCR1 Label Measure The company maintains high standards in Scale the way it treats people The company adheres to all state rules and SCR2 regulation even though it may be costly for Scale it The company is an environmentally SCR3 Scale responsible company SCR4 The company supports good case Scale I have a good feeling about the company CR1 CR2 Scale I admire and respect the company Scale 78 CR3 CR4 I trust this company Scale The company stands behind its products Scale The company develops innovative CR5 products Scale The company offers high-quality products 10 CR6 Scale The company offers products that are good 11 CR7 Scale value for money 12 CR8 Workplace environment is well-managed Scale Workplace environment looks like a good 13 CR9 Scale company to work for Workplace environment looks like a 14 CR10 Scale company that would have good employees CACP General speaking, buying the company’s 15 Scale food products is a better choice CACP Considering price, I prefer the company’s 16 17 Scale food products CACP I like shopping for the company’s food Scale 79 products CACP There’s no wrong with purchasing the 18 Scale company’s food products I consider the company’s food products my 19 CBI1 Scale first choice to buy food products I say positive things about the company’s 20 CBI2 Scale food products to other people I recommend the company’s food products 21 CBI3 to someone who seeks my advice about Scale buying food products I encourage friends and relatives to buy the 22 CBI4 company’s food products when buying Scale food products Sum of SCR1, SCR2, 23 SCR Corporate social responsibility SCR3, SCR4 Sum of CR1, CR2, 24 CR Corporate reputation CR3, CR4, CR5, CR6, CR7, CR8, CR9, CR10 Sum of CACP1, Consumer attitude toward the company’s 25 CACP CACP2, CACP3, food products CACP4 80 Sum of CBI1, CBI2, 26 CBI Consumer behavioral intention CBI3, CBI4 Appendix C: Data collection The list of super-markets is chosen to collect data: Order COOPMART ADDRESS PHONE NO Co-op mart CầuKinh 684 XôViếtNghệTĩnh, BT, HCM 08-8990472 Co-op mart CốngQuỳnh 189C CốngQuỳnh, Dist 1, HCM 08-8325239 Co-op mart ĐinhTiênHoàng 127 ĐinhTiênHoàng, BT, HCM 08-5100091 Co-op mart NguyễnKiệm 571 NguyễnKiệm, PN, HCM 08-9972475 Co-op mart TrầnHưngĐạo 727 TrầnHưngĐạo, Dist 5, HCM 08-8384553 Co-op mart XL HàNội 191 QuangTrung, Dist 9, HCM 08-7307551 Co-op mart ThằngLợi TrườngChinh, TP, HCM 08-8155483 MAXIMART MaximarkLêLợi 65 Lêlợi, Dist 1, HCM 08-8210320 MaximarkCộngHòa 15-17 CộngHòa, TB, HCM 08-8117570 81 10 Maximark 3/2 C 3/2 Street, Dist 10, HCM 08-8356617 Worksheet: Time Mon Tue Wed Thu 9am- 5 Fri Sat Sun 10 12 Mon Tue Wed 11am 1pm-3pm 3pm-5pm 7pm-9pm 7 12 82 9am- 11am 1pm-3pm 3pm-5pm 7pm-9pm 5 15 11 Appendix D: Data analysis Table 1: Item-Total statistics 83 84 Table 2: Item-total statistics 85 Table 3: Component Matrix 86 Table 4: The graph of hypothesis Table 5: Correlations 87 Table 6: The graph of hypothesis Table 7: Total Variance Explained 88 Table 8: The graph of hypothesis 89 Table 9: Results from hypothesis testing Standardized No Hypotheses Tested Sig Coefficients (Beta) results Corporate social responsibility H1 positively influences on corporate 0.640 0.000 Confirmed 0.022 0.769 Unconfirmed 0.673 0.000 Confirmed reputation Corporate social responsibility positively influences on consumer H2 attitude toward the company’s products H3 Corporate reputation positively influences on consumer attitude 90 toward the company’s products Consumer attitude toward the company’s food products positively H4 0.649 0.000 Confirmed influences on consumer behavioral intention 91