ĐẠI HỌC KINH TÉ THÀNH PHÓ HÒ CHÍ MINHBÁO CÁO TONG KÉT ĐỀ TÀI NGHIÊN CỨU KHOA HỌC THAM GIA XÉT GIÁI THƯỞNG ‘’NHÀ NGHIÊN CƯU TRẺ UEH” NÀM 2024 THE IMPACT OF CORPORATE SOCIAL RESPONSIBILI
RESEARCH OVERVIEW
Research problem
Corporate social responsibility (CSR) has become increasingly important in recent decades and is widely recognized in the global business landscape, including Vietnam A recent NielsenIQ survey revealed that 38% of Vietnamese consumers view companies' environmental initiatives and practical actions as crucial.
The 2023 NielsenIQ survey reveals a growing consumer commitment to sustainability, with a significant focus on reducing plastic waste This shift in shopping behavior highlights that over 90% of consumers now prioritize ethical and socially responsible companies, reflecting a broader trend towards environmentally conscious purchasing decisions.
As the demand for eco-friendly products rises and businesses increasingly focus on Corporate Social Responsibility (CSR), previous Vietnamese studies have explored the impact of CSR on brand loyalty among Generation Z, particularly in the jewelry and banking sectors However, there is a noticeable gap in research regarding CSR's influence on brand loyalty within the fashion industry for this demographic Consequently, our team aims to investigate how key CSR factors affect Generation Z's loyalty to fashion brands.
Research object
This study explores the influence of Corporate Social Responsibility (CSR) on brand loyalty among young Vietnamese consumers in the fashion industry, while also examining the role of Word of Mouth (WOM) in shaping the relationship between CSR and brand loyalty in this demographic.
From the general objective, these are the precise objectives that will be outlined in the study:
- Define factors impact on brand loyally of Gen z consumers in Ho Chi Minh City in the fashion industry.
- Examine the effects of these factors to brand loyally of Gen z consumers in Ho Chi Minh City in the fashion industry.
- Analyze the mediator relationships of Customer Trust, Customer Satisfaction, Customer - Corporate Identification and Worth of Mouth for CSR and brand loyalty.
- Propose some implications of this study.
Research questions
1 Which factors impact on brand loyalty for Gen z consumers in Ho Chi Minh City in the fashion industry?
2 How do these factors affect brand loyalty to Gen z consumers in Ho Chi Minh City in the fashion industry?
3 How does Customer Social Responsibility impact on Customer Trust, Customer Satisfaction, Customer - Corporate Identification and Worth of Mouth among Gen z in Ho Chi Minh city in the fashion industry?
4 What arc the moderator relationships between CSR and brand loyalty among Generation z consumers?
5 What are the implications of this study?
Research scope
• Time: The investigation, survey and data collection was carried out from May to July 2023.
• Location: The study was carried out in the area of Ho Chi Minh City.
• Subjects of the survey: Students at universities in Ho Chi Minh City.
Research methods
Primary data sources come from the answers collected by students through survey questionnaires.
This study includes Preliminary research and formal research.
A preliminary quantitative questionnaire with the scales was inherited from previous studies and was adapted from a group interview of 10 students to adjusted contents.
A formal quantitative research study was conducted by surveying 350 students from various universities in Ho Chi Minh City, including the University of Economics Ho Chi Minh City (UEH), Foreign Trade University Ho Chi Minh City Campus (FTU2), Ho Chi Minh City University of Technology (HCMUT), International University, and others such as Ho Chi Minh City University of Education (HCMUE), Ton Duc Thang University (TDTU), and University of Finance - Marketing (UFM) The primary goal was to evaluate the reliability of the scales used and to adapt the observed variables to the specific context of Vietnam.
The study surveyed 350 university students from Ho Chi Minh City, utilizing a quantitative analysis approach to filter and extract data from standardized samples The research employed a 5-level Likert scale to assess various factors, with data analysis conducted using Excel 365 and SmartPLS 4 software Key analytical methods included Cronbach's Alpha for internal consistency reliability, Composite Reliability for overall reliability, Average Variance Extracted (AVE), and Heterotrait-Monotrait (HTMT) ratio for evaluating discriminant validity The model's appropriateness was further validated through coefficients VIF, R2, and f2, culminating in a rigorous hypothesis testing using the PLS-SEM analysis method.
Research significance
This research paper enhances the academic understanding of CSR and brand loyalty, particularly among Gen Z consumers It highlights the importance of brand trust, customer-company identification, customer satisfaction, and word-of-mouth in fostering loyalty Companies are encouraged to strategically integrate CSR initiatives into their operations, build brand trust through transparency, align CSR efforts with Gen Z values, prioritize customer satisfaction through exceptional experiences, and leverage social media for effective word-of-mouth marketing.
This research reveals crucial insights for companies aiming to boost brand loyalty among Gen Z consumers, particularly in industries with significant social and environmental impacts, like fashion It highlights effective implementation strategies for Corporate Social Responsibility (CSR) initiatives and identifies key factors that enhance the success of CSR in fostering brand loyalty.
LITERATURE REVIEW
Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR) encompasses organizational policies and activities that consider stakeholder expectations while addressing economic, social, and environmental performance (Aguinis, 2011) This holistic approach aligns with Carroll's (1979) four pillars of CSR, which include economic, legal, ethical, and charitable responsibilities To effectively meet CSR obligations, organizations must integrate these four factors (Liu et al., 2019; Pérez and Rodríguez del Bosque, 2015b) Businesses have a moral obligation to operate with integrity, a legal duty to comply with laws, and an economic responsibility to benefit society (Carroll, 2016) Furthermore, society anticipates that companies will honor their ethical commitments in addition to adhering to legal standards (Pérez and Rodríguez del Bosque, 2015b).
Brand loyalty
Behavioral brand loyalty, highlighted in studies by Parks and Back (2008) and Li and Petrick (2003), refers to the frequency with which consumers purchase a specific brand Research by Zhang and Bloemer (2008) supports the idea that customers exhibiting this loyalty are likely to repurchase from the same brand In contrast, attitudinal brand loyalty encompasses the emotional commitment an individual has towards a brand, often resulting in a willingness to pay a premium and engage in positive word-of-mouth promotion.
Brand loyalty is essential in marketing, representing the emotional connection, trust, and dedication consumers have towards a brand Key factors influencing brand loyalty include customer satisfaction, brand equity, service quality, and the management of customer complaints.
Theory
This research is based on 2 theories including Stakeholder Theory and Signaling Theory.
Stakeholder theory emphasizes the importance of considering the interests of all individuals or groups affected by a company's actions, not just shareholders Freeman
The modern concept of stakeholder theory, developed in 1984, emphasizes the importance of managing relationships with stakeholders to achieve long-term value and sustainable success By engaging in ethical decision-making and aligning with stakeholders' expectations, businesses can build trust, enhance loyalty, and improve financial performance (Mitchell et al., 1997) This theory has significantly influenced organizational practices and corporate governance, advocating for social responsibility and transparency (Donaldson & Preston, 1995) Ultimately, stakeholder theory provides a framework for businesses to cultivate positive stakeholder relationships and drive sustainable growth in today's socially conscious environment.
Michael Spence's signaling theory, introduced in 1973, examines how individuals and organizations use signals to convey information and reduce uncertainty in decision-making In the business context, companies communicate their quality, capabilities, and intentions to external stakeholders to build trust and goodwill These signals are often costly or challenging to fake, serving as credible indicators of a company's true attributes The theory addresses information asymmetry, with companies aiming to mitigate this imbalance and secure a competitive edge through effective signaling.
Summary of previous findings
The research team meticulously reviewed 26 journals and ultimately selected 8 studies focused on corporate social responsibility, as detailed in Table 1 This selection encompasses both qualitative and quantitative research, providing key information such as the article number, paper title, authors and publication year, relevant theories, and independent variables.
(6) Mediators, (7) Dependent variables and (8) Results.
Table 1: Summary of related studies
Theories Independent variables Mediators Dependent variables Results
1 The effect of corporat e social responsi bility on brand loyalty: the mediati ng role of brand image
Theory of attitude - behavior relations hip links attitudes Theory of person organizat ion
Theory of socializat ion process
Hl: A brand's functional image has a positive relationship with brand loyalty (P = 0.234, p < 0.01).
H2: A brand's symbolic image has a positive relationship with brand loyalty (p = 0.341, p < 0.01).
H3: Perception of corporate legally responsible behavior has a positive relationship with consumers' perception of a brand's functional image (P 0.541, p< 0.01).
H4: Perception of corporate ethically responsible behavior has a positive relationship with consumers' perception of a brand's functional image (p 0.205, p< 0.01).
H5: Perception of corporate legally responsible behavior has a positive relationship with consumers' perception of a brand's symbolic image (P 0.270, p< 0.01).
H6: Perception of corporate ethically responsible behavior has a positive relationship with consumers' perception of a brand's symbolic image (P 0.455, p< 0.01).
2 Connect ing the dots between
CSR and brand loyalty: the mediati ng role of brand experie nee and brand trust
Imran Khan and Mobin Fatma - 2019 stakehold er theory commitm ent-trust theory
CSR Brand experience , Brand trust
Hl: CSR activities have a positive relationship with brand experience (p= 0.29; p < 0.05).
H2: CSR activities have a positive relationship with brand trust (P= 0.23; p < 0.05).
H3: The hypothesis that CSR activities positively influence brand loyalty (p= -0.191; p 0.114) is not supported.
H4: Brand experience has a positive relationship with brand trust (P= 0.39; p < 0.05).
H5: Brand experience has a positive relationship with brand loyalty (P= 0.33; p < 0.05).
H6: Brand trust has a positive relationship with brand loyally (p= 0.31; p< 0.05).
The study reveals a significant positive relationship between corporate service quality and customer satisfaction (P=0.26, p-value 0.000), indicating that higher service quality leads to increased customer loyalty However, the hypothesis linking corporate social responsibility to customer satisfaction was rejected due to non-significance (p=0.02, p-value = 0.692) Notably, customer perceived value quality significantly contributes to overall customer satisfaction (P=0.64, p-value = 0.000) Additionally, customer satisfaction positively influences brand loyalty (P=0.39, p-value 0.000) Furthermore, customer satisfaction partially mediates the relationship between service quality and brand loyalty, with a mediation effect of p=0.31 and a variance accounted for (VAF) of 32% It fully mediates the relationship between customer perceived value and brand loyalty, with a mediation effect of p=0.28 and a VAF of 90%, highlighting the strong significance of these mediations.
Stakehol dcr theory The commitm ent-trust theory The theory of social identity The signaling theory
Hl: CSR has a positive significance to Co-crcation (p 0.48, p