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, including funding worthwhile causes, creating jobs, using safe materials, and integrating ethical practices into supply chains Research shows that stakeholders, particularly consumers, favor companies perceived as socially responsible, prompting businesses to prioritize CSR in their strategies As consumers now expect companies to contribute to societal welfare and sustainability, those that embrace CSR are likely to gain consumer support and loyalty.
A growing body of academic research attests that CSR has positive influence on consumers’ evaluations and purchase intentions of company’s product
(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 traction in Vietnam recently, largely 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, highlighting a significant gap in awareness among Vietnamese consumers While 40% view CSR as a social obligation focused on community initiatives, general knowledge remains low, compounded by media skepticism The lack of comprehensive research on CSR leads to misinformation, which can misguide consumers and influence governmental perspectives Furthermore, CSR initiatives are often mischaracterized as mere PR activities, contributing to negative perceptions Therefore, the key challenge is to enhance consumer awareness of CSR, fostering a deeper understanding and appreciation that influences their purchasing decisions and aligns CSR with societal concerns.
The primary challenge for businesses in Vietnam regarding Corporate Social Responsibility (CSR) is the lack of resources and commitment, leading many local companies to cling to traditional metrics for measuring performance These companies often prioritize short-term financial gains, viewing CSR merely as a branding tool rather than a sustainable practice Additionally, there is a scarcity of qualified personnel to manage CSR initiatives, as the concept is relatively new in Vietnam and is not widely covered in university programs This lack of professional training, combined with a prevailing belief that CSR is only relevant for large multinational corporations, creates significant internal barriers to the effective implementation of CSR practices in local businesses.
“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 have traditionally prioritized price and quality when making purchasing decisions (Bui, 2010) However, recent environmental crises and health issues have shifted this perspective Notably, the Vedan Vietnam scandal in 2008 highlighted significant pollution, as the company contaminated local rivers for over 14 years without detection Similarly, Miwon faced scrutiny for polluting another river that same year Additional health safety concerns, such as tainted milk and pesticide-laden vegetables, have further alarmed consumers These incidents have heightened awareness of corporate social responsibility (CSR) among Vietnamese shoppers, prompting them to prioritize environmental and health considerations in their buying choices As a result, a growing segment of ethically-minded consumers is emerging in Vietnam, reflecting a shift towards valuing CSR in the marketplace (Bui, 2010).
In recent years, there has been a growing public interest in the social responsibility of businesses, with consumers increasingly holding both local and foreign companies accountable for their actions As a result, many organizations in Vietnam are beginning to prioritize Corporate Social Responsibility (CSR) However, the concept of CSR remains relatively new in the country, presenting significant challenges for pioneers attempting to implement effective CSR initiatives.
RESEARCH OBJECTIVE
This study aims to understand how consumers develop 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 these variables to provide insights into consumer behavior in relation to CSR engagement.
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.
SCOPE OF THE RESEARCH
The FMCG industry is experiencing significant growth, prompting many leading companies to engage in ambitious community development programs Recognizing the importance of Corporate Social Responsibility (CSR), these companies are focusing on minimizing negative business impacts while maximizing shared value for all stakeholders Today, numerous FMCG firms are actively participating in social responsibility initiatives across various sectors, including education, environment, community, and rural development Such CSR efforts not only enhance the company's positive image but also contribute to increased sales.
Recent research highlights the significant role of consumers as key stakeholders and drivers of Corporate Social Responsibility (CSR) (Mohr & Webb, 2005; Sen & Bhattacharya, 2001) However, many studies examining consumer attitudes towards CSR and its influence on company evaluations and purchasing decisions tend to be somewhat generalized (Becker-Olsen, Cudmore & Hill, 2006).
SIGNIFICANCE OF THE STUDY
Most studies on Corporate Social Responsibility (CSR) have been conducted in 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 lack of research focusing on the FMCG industry in Vietnam Given the significant cultural and socio-economic differences, it is essential to conduct similar studies in Vietnam to avoid generalizing findings from one country to another without proper validation This research aims to explore Vietnamese consumers' perceptions of CSR, their trust in CSR initiatives, attitudes toward firms, and their purchasing behaviors, making it a vital and relevant investigation.
Despite the established presence of Corporate Social Responsibility (CSR) in Vietnam, its significance and influence on business success and consumer well-being have not garnered sufficient attention from Vietnamese economists Additionally, international research on CSR often overlooks the Vietnamese context, leaving a gap in understanding Notably, the perceptions of Vietnamese consumers regarding CSR and their ethical consumption behaviors remain largely unexplored, even as they face increasing challenges related to CSR issues in recent years.
This study explores the impact of consumer perceptions of Corporate Social Responsibility (CSR) on fostering positive trust in CSR initiatives, which subsequently influences attitudes toward the firm and purchase intentions Understanding the effectiveness of CSR activities is crucial for managers, enabling them to optimize their strategies for achieving desired outcomes.
Understanding consumer perceptions of Corporate Social Responsibility (CSR) is crucial for companies engaged in CSR activities, as it influences their reputation 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 their company's sustainable reputation.
This study begins with a review of pertinent literature on the definition of Corporate Social Responsibility (CSR) and the hypotheses for testing It then outlines the research methodology employed, followed by a presentation of the results The author concludes by discussing the findings, highlighting managerial implications, and proposing avenues for future research.
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.
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 acknowledgment and proactive response to concerns that extend beyond its basic economic, technical, and legal obligations (Davis, 1973) In light of evolving issues and stakeholder expectations, businesses are increasingly urged to adopt more responsible practices (Mohr & Webb, 2005; Mohr, Webb & Harris, 2001; Russell & Russell, 2010).
In 2006, the European Commission defined Corporate Social Responsibility (CSR) as a concept where companies voluntarily integrate social and environmental concerns into their operations and stakeholder interactions This approach highlights the significance of businesses collaborating with stakeholders to address social and environmental challenges By engaging in CSR initiatives, companies of all sizes can enhance their long-term success, as these efforts foster trust and align with customers' sustainable expectations Consequently, CSR has emerged as a crucial concept both globally and within the EU, effectively balancing economic, social, and environmental goals.
According to the World Business Council for Sustainable Development (2000), Corporate Social Responsibility (CSR) is defined as a business's commitment to fostering sustainable economic development by collaborating with employees, their families, and the wider community to enhance quality of life in ways that benefit both business and societal progress This definition is commonly understood as a pledge from businesses to reduce negative externalities while amplifying positive contributions to society (Mohr et al., 2001).
Carroll's pyramid of Corporate Social Responsibility is widely recognized as a key framework in understanding CSR In his 1991 article in Business Horizons, Carroll outlined this pyramid, which consists of four essential components: economic, legal, ethical, and philanthropic responsibilities This model illustrates how these elements interact to shape a company's commitment to 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
Corporate Social Responsibility (CSR) encompasses various dimensions, with economic and legal responsibilities forming the foundational level that corporations must adhere to without question While existing studies often focus on higher-level CSR practices, such as ethical and philanthropic responsibilities, this study primarily addresses these critical aspects.
Companies are required to adhere to the laws and regulations set by the governments in which they operate, ensuring that they conduct their business legally while pursuing economic goals This means that firms must avoid illegal practices in their quest for profit and instead fulfill their economic responsibilities within the legal framework (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 practices that society endorses or condemns, despite not being codified in law In the realm of Corporate Social Responsibility (CSR), this ethical dimension encourages companies to not only refrain from causing harm but also to actively engage in positive actions Ethics is inherently linked to the values and norms that evolve within societies and cultures over time.
Philanthropic responsibilities involve businesses meeting societal expectations to act as good corporate citizens This includes engaging in volunteer work that promotes human welfare and sponsoring local initiatives.
Van Marrewijk (2003) identifies a progressive sequence of three approaches to Corporate Social Responsibility (CSR), as discussed by various scholars in the academic literature Each approach builds upon and expands the previous one, aiming to define the organizational responsibility within the context of CSR.
The shareholder approach to corporate social responsibility (CSR) emphasizes profit maximization as the primary goal of a business As noted by Van Marrewijk (2003) and quoting Friedman (1962), the central tenet of this perspective is that "the social responsibility of business is to increase its profits" (p 96) Consequently, organizations should engage in CSR initiatives only when they align with and contribute to the objective of maximizing profits.
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 encourages companies to consider the diverse interests of individuals and groups affected by their objectives, fostering a more inclusive and responsible business strategy.
The societal approach emphasizes that companies hold responsibilities to society at large, recognizing their integral role within it (Van Marrewijk, 2003) This perspective advocates for organizations to operate in a manner that meets and fulfills societal needs, ensuring that their actions contribute positively to the community.
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 aims to raise awareness and concern for social issues by sharing facts and statistics with the public This initiative encourages individuals to contribute their time, money, and non-monetary resources, as well as to participate in related events Unlike traditional marketing, cause promotion does not link support for a cause to the purchase of specific products; instead, it focuses on inspiring action without necessarily altering consumer behaviors regarding the cause.
Cause-Related Marketing (CRM) involves a corporation pledging to donate a portion of its revenues to a specific cause linked to product sales, typically for a limited time and associated with a particular charity (Kotler & Lee, 2005) This CSR initiative uniquely connects product sales with charitable contributions, fostering a partnership between the company and a non-profit organization that aims to boost 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 through this collaborative effort (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, as defined by 2013 research, refers to behavioral dispositions that manifest as actions when the right time and opportunity arise Purchase intention indicates what consumers anticipate buying in the future to satisfy their needs and desires This intention is significantly influenced by consumers' attitudes, with a strong positive attitude towards a product serving as a reliable predictor of purchasing decisions Spears and Singh (2004) further clarify that purchase intention reflects an individual's inclination to engage in buying behavior.
Eagly and Chaiken (as cited in Rahman, 2013) suggest that attitudes are learned through information and direct experiences with the attitude object, leading to feelings of favorability or unfavorability These attitudes can change with new information or experiences They differentiate between attitudes, which reflect evaluations of objects, and intentions, which indicate a person's motivation to engage in a behavior This distinction highlights that consumers may appreciate a product but choose not to buy it due to concerns about their financial resources.
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 identifies two key factors influencing intentions: (1) attitude toward the behavior, which reflects a person'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 When applied to Corporate Social Responsibility (CSR) initiatives, it is reasonable to suggest that positive consumer attitudes towards a company's CSR efforts can enhance purchase intentions Since CSR initiatives are typically viewed as altruistic actions, subjective norms indicate that these efforts should receive support, leading to increased purchase intentions among consumers Additionally, the perception of CSR as a good deed may create a normative motivation to endorse such initiatives, fostering a more positive attitude among consumers Consequently, even without experiencing direct benefits from a firm's CSR activities, exposure to information about these initiatives can cultivate strong positive attitudes towards the company and its actions, ultimately predicting future purchasing behavior.
According to Fishbein's and Ajzen's theory, attitude is a multifaceted construct consisting of cognitive, affective, and conative components The cognitive aspect refers to an individual's beliefs about an attitude object, while the affective component encompasses the resulting emotional reactions The conative component, on the other hand, involves the intended and actual behaviors, such as purchase intentions By understanding these components, attitude can be treated as a separate construct that influences subsequent behavior or behavioral 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 non-economic responsibilities as important, they are more likely to support these companies through socially responsible consumption.
CSR initiatives significantly shape consumers' perceptions of a company's community contributions and trustworthiness (Chaisurivirat, 2009) By implementing effective CSR campaigns, companies can enhance their image and foster goodwill, leading to stronger, long-term relationships with the community Furthermore, involvement in ethically justified CSR activities is likely to instill a sense of trust among consumers (Vlachos & Tsamakos, 2011).
Socially responsible initiatives play a crucial role in shaping a company's character and values, ultimately fostering trust among stakeholders (Brown & Dacin, 2015) Incorporating ethical principles into strategic decision-making enhances this trust (Hosmer, 1995) Pivato, Misani, and Tencati (2008) highlighted that consumer trust in a firm's ethical practices is a direct result of its social performance, significantly influencing consumer behavior towards CSR CSR activities are viewed as pro-social efforts that not only enhance societal welfare but also safeguard the company's interests, thereby strengthening consumer trust (Sen & Bhattacharya, 2001) Research by Fatma, Rahman, and Khan (2015) indicates that consumers perceive socially responsible companies as more trustworthy and view them positively.
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 engagement with CSR activities, which can vary based on political, cultural, and economic factors in different countries (Pomering & Dolnicar, 2009; Singh et al., 2008) In Vietnam, many consumers lack awareness of CSR, particularly at the ethical and philanthropic levels, which can hinder their sensitivity to CSR initiatives Conversely, a greater awareness of CSR correlates with a deeper understanding of these activities, leading to more positive attitudes toward firms and increased purchase intentions (Lee & Shin, 2010) Additionally, consumers seek to understand the motivations behind a company's CSR efforts, which further impacts their attitudes and purchasing decisions (Barone et al., 2000; Ellen et al., 2006; Herpen et al., 2003) Overall, the perception of a company's CSR initiatives plays a crucial role in shaping consumer attitudes and intentions to purchase.
The following hypothesis is proposed:
H2: A higher level of consumers’ perceived CSR leads to higher level of consumers’ attitude toward firm
Tian, Wang, and Yang (2011) found that consumers with a greater awareness of Corporate Social Responsibility (CSR) in their daily purchases demonstrate a heightened intention to buy when exposed to CSR initiatives This suggests that these consumers possess a deeper understanding of CSR activities and their impact.
(2001) in their research has concluded that perceived CSR activities have a significant positive relationship on their purchase intention
In Vietnam, consumers increasingly favor companies that prioritize Corporate Social Responsibility (CSR) and offer clean, green products, as highlighted by Bui (2010) The philanthropic aspect of Carroll’s CSR pyramid significantly influences purchasing intentions among the population Despite the strong impact of price and quality on buying decisions in emerging markets like Vietnam, recent food safety scandals—such as tainted milk and contaminated fish sauce—have prompted consumers to reassess the importance of health and environmental factors in their choices Although Vietnamese consumers have been slow to respond to ethical concerns, there is a growing segment that actively seeks clean food and eco-friendly products while avoiding those that pose health risks.
The following hypothesis is proposed:
H3: A higher level of consumers’ perceived CSR leads to higher level of purchase intention.
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 develop a positive evaluation and attitude toward a company when they perceive it as moral, socially responsible, and trustworthy.
Consumer trust plays a vital role in marketing as it fosters long-term relationships between consumers and companies (Kayabasi & Mucan, 2015) Establishing a trustworthy connection with customers can be challenging According to Hahn and Kim (as cited in Kayabasi and Mucan, 2015), consumer trust is essential for successful business transactions and the effective development and management of enduring customer relationships They found that consumer trust positively influences purchase intentions, particularly regarding consumers' perceptions of corporate social responsibility (CSR).
Trust is essential for establishing strong customer relationships and enhancing purchase intentions, as highlighted in previous studies (Bhattacharya & Sen, 2004; Vlachos & Tsamakos, 2011) Research by Hillenbrand, Money, and Ghobadian (2011) indicates that corporate social responsibility (CSR) positively affects consumer trust and attitudes, ultimately driving purchase intentions Additionally, Kang and Hustvedt (2013) emphasize that consumers' perceptions of a company's commitment to social responsibility significantly influence their trust and willingness to buy Trust is defined as a consumer's belief that a company will prioritize their interests and fulfill its promises (Chaudhuri & Holbrook, 2001) Building trust leads to favorable outcomes such as customer loyalty, retention, and improved market performance, making it crucial for companies to focus on strategies that foster trust with their consumers.
Consumers' trust in Corporate Social Responsibility (CSR) is fundamentally based on their expectation that companies sponsoring CSR initiatives will uphold their commitments with integrity, goodwill, and genuine intentions, rather than opportunistic motives.
Drumwright (2015) found that while managers recognize their firms' motives as a blend of economic and social objectives, they perceive consumers as oversimplifying these CSR initiatives, viewing them as either profit-driven or genuinely altruistic A consumer's trust in a company's CSR practices is a crucial outcome of its social performance, significantly influencing their attitudes and actions towards the firm's CSR efforts (Pivato et al., 2008).
Consumers are more likely to feel satisfied with a company that aligns with their legal, social, and ethical expectations, as this consistency resonates with their self-concept Trust and positive attitudes towards a company foster stronger business relationships (Dick & Basu, 1994) The implementation of Corporate Social Responsibility (CSR) programs not only enhances a company's reputation but also yields non-financial rewards such as increased consumer trust As positive perceptions of the company grow, consumer trust strengthens, ultimately leading to more favorable attitudes towards the brand.
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
Research has extensively explored the relationship between Corporate Social Responsibility (CSR) initiatives and consumer behavior, particularly in terms of attitudes and purchase intentions A study by Mohr and Webb (2005) specifically analyzed the impact of CSR activities compared to pricing on consumer evaluation and purchasing decisions Their findings revealed that CSR initiatives significantly enhance consumer evaluation and positively affect purchase intentions, demonstrating the importance of socially responsible practices in influencing consumer choices.
Research by Rahman (2013) indicates that consumers tend to have more positive attitudes toward firms that engage in Corporate Social Responsibility (CSR) initiatives focused on the local community This favorable attitude correlates with changes in consumer perception of the firm and enhances their intention to purchase its products Additionally, Sen et al (2006) support the notion that there is a positive link between a company's CSR efforts and consumer attitudes, which in turn influences their purchasing intentions Furthermore, Vahdati, Mousavi, and Tajik (2015) emphasize that consumers' perceptions of CSR significantly affect their attitudes toward a firm and their intention to buy its products.
A study by Pham (2011) explored Vietnamese consumers' awareness and perceptions of corporate social responsibility (CSR), revealing that their attitudes towards CSR are generally positive The research highlights the significance of understanding consumer awareness in relation to CSR initiatives in Vietnam.
Vietnamese consumers play a crucial role in shaping corporate social responsibility (CSR) practices and disclosures Many consumers are aware of CSR initiatives, and a significant number indicated a preference for purchasing products from companies that demonstrate strong social responsibility Additionally, survey participants expressed a willingness to alter their buying behavior to support 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 It highlights the importance for managers to identify which consumer segments 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), while older consumers are more inclined to prioritize ethical considerations in their purchasing decisions (Carrigan, Szmigin & Wright, 2004).
Tian et al (2011) identified that demographics, including age, gender, income, and education, along with product category, influence the relationship between consumers' perceived Corporate Social Responsibility (CSR) and their responses, such as purchase intentions They discovered that consumers exposed to CSR information about firms selling experience goods exhibit more positive responses when they perceive higher levels of CSR The study categorizes consumers into three types: warm, practical, and shrewd The warm-type group, consisting of middle-income and middle-aged consumers, tends to support CSR practices that benefit society through their purchasing decisions In contrast, the practical-type group, primarily younger individuals with low income, often disregards ethical and philanthropic CSR in their buying choices, especially under financial constraints Lastly, the shrewd-type group, made up of higher-income and educated consumers, displays a neutral response to CSR, as they navigate between traditional and modern values, balancing economic and normative considerations in their consumption behavior.
Dodd (2010) concluded that gender, age, and income significantly influence the relationship between CSR perception and purchase intention Specifically, older individuals and females are more inclined to buy from socially responsible companies, while younger individuals and males show less likelihood Additionally, 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 positive attitude towards Corporate Social Responsibility (CSR) compared to older generations This trend is particularly evident among students and young professionals who, due to their higher education levels, are more attentive to the CSR initiatives implemented by 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 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 distinct phases: the initial phase employs qualitative research methods, while the subsequent phase utilizes quantitative research through a main survey This comprehensive research process is illustrated in Figure 3.1.
Main survey (n00) Confirmatory Factor Analysis
Informed by previous research and the Vietnamese context, the draft questionnaires included four key measurement scales: perception of CSR, trust in CSR, attitude toward the firm, and purchase intention A qualitative study involving in-depth interviews with eight colleagues was conducted to refine the draft questionnaire derived from the literature review, ensuring that the observed items were culturally and linguistically appropriate This process allowed for the identification of suitable questions for the research, resulting in a finalized questionnaire that is easy for respondents to comprehend Additionally, the feedback gathered from these interviews proved invaluable in measuring the observed variables prior to the main survey, leading to the removal of any confusing or unclear questions, thereby enhancing the clarity and effectiveness of the survey instruments.
A convenience sampling method was employed in the main survey to gather data from consumers in Ho Chi Minh City through an online survey This approach was favored due to its cost-effectiveness, quick response time, sample control, and overall efficiency.
The author distributed 300 questionnaires to consumers in Ho Chi Minh City, leveraging personal networks of friends and acquaintances for recruitment A total of 224 usable responses were collected, resulting in a response rate of 75% This satisfactory response rate was largely attributed to the strong support from the author's social network.
MEASUREMENT SCALES
The study utilized existing measures from the literature, adapting them to the Vietnamese context through 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 These interviews focused on participants' perceptions of corporate social responsibility (CSR) performance, their trust in CSR, attitudes towards firms, and purchase intentions, enhancing the readability and comprehension of the scales The findings facilitated the generation and revision of survey items, with some inappropriate items being rephrased to better fit the Vietnamese cultural context.
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 by utilizing four distinct questionnaires linked to four fictitious firms across different product categories The use of fictional companies minimizes participant biases, such as pre-existing loyalty to real brands These fictitious firms are actively 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.
This study focuses on the independent variable of consumers' perceived level of Corporate Social Responsibility (CSR) Participants were presented with concise information about a fictitious company, including its industry and primary products, along with its commendable CSR track record Following this introduction, consumers were asked to evaluate the firm's CSR performance For example, Appendix 1 provides CSR descriptions related to household daily consumer goods, such as 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
The measurement model must adequately fit the sample data to confidently assess the hypothesized structural model Confirmatory Factor Analysis (CFA) effectively evaluates construct reliability and validity, making it a robust method with minimal assumptions It offers significant advantages, including the ability to measure overall model fit through the Chi-square goodness of fit test and to assess 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 investigate the factor structure based on inter-variable correlations, with CFA subsequently confirming 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 the measure yields stable results under the same conditions Cronbach’s Alpha serves as a coefficient of reliability, widely recognized for evaluating internal consistency.
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
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 merges factor analysis and multiple regression, enabling the simultaneous estimation of relationships among all factors within a comprehensive model SEM facilitates the assessment of causal relationships among latent constructs by utilizing goodness-of-fit (GOF) indices for both the measurement and structural models.
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, indicating that a significant relationship exists.
Chi-Squared (X²) is a key metric used to assess the differences between observed and estimated covariance matrices, taking into account 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
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 enhanced incremental fit index that improves upon 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 provide a fit statistic that is less influenced by sample size GFI values range from 0 to 1, with higher values signifying a better fit for the model.
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) indicates the extent to which a model accurately fits a population rather than just the sample used for estimation A RMSEA value of less than 0.05 signifies a good model fit, while values below 0.08 may still be acceptable in certain contexts (Taylor, Sharland, Cronin & Bullard, 1993).
Tho & Trang (2008) suggested that if a model gets the value of TLI, CFI
>=0.9, CMIN/df
