Effect Of Csr On Brand Loyalty

THE MEDIATING ROLE OF CONSUMER TRUST ON THE CSR- BRAND LOYALTY LINK

Abstract:

Objectives: Organizations are now realizing their responsibility towards the society and the environment. The purpose of this paper is to analyze the two dimensions of Corporate Social responsibilities and their effects on Brand Loyalty. To examine the mediating effects of Consumer Trust on the CSR- Brand Loyalty relationship.

Methodology: Philanthropic CSR and Economic CSR are taken as the independent variables, Brand Loyalty as the dependent variable and consumer trust as the mediating variable. A confirmatory factor analysis was used to verify the constructs and the relationship between variables was established using a SEM model. The mediating effect was analyzed

Before the mediating variable enters there exist a direct effect of Economic CSR and indirect effect of philanthropic CSR on Brand Loyalty. After the mediating variable enters, the regressions weights are reduced and the value is significant with regards to Economic CSR. Hence there is a partial mediation of Consumer Trust on the Economic CSR and Brand Loyalty. It’s found that Economic CSR has both direct and indirect effect on Brand Loyalty. There is a complete mediation of Consumer trust on Philanthropic CSR and Brand Loyalty as the regression weights are reduced and the value is not significant. Hence there is no direct effect of Philanthropic CSR on Brand loyalty.

Novelty/Improvements: This paper highlights the effects of Consumer Trust as mediating variable on the CSR –Brand Loyalty relationship. If the firm does well to the society and to the environment, the customers are loyal to the organization and will have positive word of

Materials and Methods

Structured questionnaire was framed and distributed to the respondents. Sample was taken from the FMCG consumers in a Shopping mall in Chennai. Mall intercept survey is used for collecting the data. Questionnaire was distributed to 300 samples which was the target population. The questionnaire was given only to those who were aware of Corporate Social Responsibility and their awareness was known by an In-depth Interview Method. Out of 300 samples, only 240 samples were usable data.

Statistical Analysis:

Constructs are validated using Construct, Discriminant and Convergent validity test. CFA is run in AMOS to calculate AVE and CR to validate the constructs. Pearson Correlation in SPSS is used to analyze the associations between the variables- Independent, dependent and mediating variables. Multiple Regression method in SPSS is run to find the beta weight of the regression between the variables. The effects of mediating variables are also analyzed using regression