1 Mediating Role of CSR in Moulding Consumers’ Purchase Decision on Toothpaste Brands: A Study in Kolkata Metropolis Anulekha Banerjee Assistant Professor, Department of Commerce St. Xavier’s College (Autonomous), Kolkata e-mail: [email protected]Rajib Dasgupta Professor, Department of Commerce University of Calcutta, Kolkata e-mail: [email protected]Abstract: An empirical study was carried out in Kolkata to evaluate the nature of involvement of corporate social responsibility (CSR) initiatives in strengthening the brand equity of selected toothpaste brands by modulating the consumers’ purchase decisions. Data were collected using a questionnaire based survey among 322 resident respondents of the Indian metropolis. Findings suggest that while choosing a brand the respondents prioritised oral hygiene although they exhibited consciousness about the pricing and availability of the brand. The most preferred brands were successful in generating loyalty and association among the respondents through convincing portrayal of a responsible social image. Key-words: CSR, FMCG, brand equity, purchase decision. 1. Introduction The concept of corporate social responsibility (CSR) was created to mask the profit making attitude of a brand with a societal hue which could capture the emotion of stakeholders and provide an advantageous platform over the competing brands (Carroll, 1979; Roy, 2010). Building a healthy customer to brand relationship has become the priority of the companies which are trying every possible way to consolidate their social endeavours to safeguard the business acumen (Popoli, 2011). While one accepts that consumer awareness about CSR would generate better understanding of the CSR notions (Lee and Shin, 2010), it must also be reconciled that only responsible customers can recognise the social involvements of a company
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Mediating Role of CSR in Moulding Consumers’ Purchase Decision on
t 20.47 3.23 3.87 -0.57 -0.61 10.19 -0.49 -0.30 -0.31
P <0.01* <0.01* <0.01* 0.56 0.53 <0.01* 0.61 0.76 0.75
VIF 1.00 2.87 1.52 1.09 1.31 2.04 1.64
R
R2
0.26
0.07
0.61
0.37
Adjusted R2 0.06 0.35
*P<0.05; female: n=140; male: n=182 Note: UC- Unstandardized coefficients; SC- Standardized coefficients; SE- Standard error; VIF- Variance inflation factor; CL (dependent variable; L-loyalty)- I consider myself to be loyal to the toothpaste brand; C1- Have a strong social mission of free dental check-up and oral health initiative; C2- Affordable; C3- Clearly label products for the customers; C4- Meets customer’s
health and safety regulation; C5- Transparent about brand’s revenue and packaging; C6- Does not employ child/forced labour; (C1-C6 :independent variables); F-female; M-male; T-toothpaste.
Table 11: Multiple linear regression analysing the mediating role of the CSR components
(independent variables) in enhancing the brand awareness (dependent variable) of the toothpaste
brands
Model coefficients Female respondent Male respondent
Model FAT Model MAT
CA C2 C3 C4 C5 CA C3
UC B 2.92 0.41 -0.55 0.32 0.23 2.2 0.48
SE 0.47 0.14 0.09 0.08 0.07 0.23 0.05
SC β 0.26 -0.68 0.45 0.29 0.538
t 6.14 2.88 -5.58 3.95 2.98 10.14 8.55
P <0.01* <0.01* <0.01* <0.01* <0.01* <0.01* <0.01*
VIF 1.68 2.93 2.57 1.94 1.00
R 0.55 0.53
R2 0.30 0.28
Adjusted R2 0.28 0.28
P<0.05; female: n=140; male: n=182 Note: UC- Unstandardized coefficients; SC- Standardized coefficients; SE- Standard error; VIF- Variance inflation factor; CA(dependent variable; A-awareness)- I can quickly recall the colour/logo of the toothpaste brand; C2- Affordable; C3- Clearly label products for the customers; C4- Meets customer’s health and safety regulation; C5- Transparent about brand’s revenue and
t 12.32 9.66 -4.86 -2.03 4.59 8.86 4.21 4.15 -4.05
P <0.01* <0.01* <0.01* 0.04* <0.01* <0.01* <0.01* <0.01* <0.01*
VIF 2.17 1.91 1.25 1.05 1.17 1.22 1.37
R 0.65 0.62
R2 0.42 0.39
Adjusted R2 0.41 0.37
*P<0.05; female: n=140; male: n=182 Note: UC- Unstandardized coefficients; SC- Standardized coefficients; SE- Standard error; VIF- Variance inflation factor; C (dependent variable; AS-association)- I can recognize the toothpaste brand even if another brand have the same features; C1-
Have a strong social mission of free dental check-up and oral health initiative; C2- Affordable; C3- Clearly label products for the customers; C5- Transparent about brand’s revenue and packaging; C6- Does not employ child/forced labour; (C1-C6 :independent variables); F-female; M-male; T-toothpaste.
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Table 13: Multiple linear regression analyzing the mediating role of the CSR components
(independent variables) in enhancing the perceived brand quality (dependent variable) of
the toothpaste brands
Model coefficients Female respondent Male respondent
Model FPBQT Model MPBQT
CPBQ C5 CPBQ C1 C5 C6
UC B 4.10 0.14 3.92 0.43 -0.28 -0.20
SE 0.20 0.06 0.40 0.06 0.11 0.08
SC β 0.19 0.52 -0.18 -0.17
t 20.51 2.28 9.63 6.91 -2.55 -2.45
P <0.01* 0.02* <0.01* <0.01* 0.01* 0.01*
VIF 1.00 1.30 1.15 1.14
R 0.19 0.46
R2
0.03
0.21
Adjusted R2
0.02 0.19
*P<0.05; female: n=140; male: n=182 Note: UC- Unstandardized coefficients; SC- Standardized coefficients; SE- Standard error; VIF- Variance inflation factor; C (dependent variable; PBQ-perceived brand quality)- I can recognize the toothpaste brand even if another brand have the same features; C1- Have a strong social mission of free dental check-up and oral health initiative; C5- Transparent about brand’s revenue and packaging; C6- Does not employ child/forced labour; (C1-C6 :independent variables); F-female; M-male; T- toothpaste.
Findings on the correlation of criteria and factor analysis suggest similar nature of gross
reasoning between the male and female respondents (Table 4, 5, 7). In the context of selection of
toothpaste brand on the basis of oral health and hygiene, the respondents exhibited higher
preference for the brands like Colgate (Figure 2 b). It may be noted that the mentioned brand
exercises several CSR initiatives and strongly adhere to the oral health initiatives (Table 1).
However, in the same context, the respondents preferred two extrinsic criteria, namely,
reasonable pricing and well-known brand for making purchase decision on toothpaste brands
(Table 7) suggesting poised state of mind weighing the qualitative as well as economic attributes
of the brand. Among the CSR components investigated, the respondents expressed faith for the
criterion- have a strong social mission of free dental check-up and oral health initiative while
the male respondents additionally preferred affordability (Table 7). It also strengthens the
conjecture that the consumers with a higher level of awareness for CSR may express an elevated
purchase intention (Lee and Shin, 2010). Moreover, the respondents exhibited confidence with
the cognitive statements on brand loyalty, brand awareness, brand association and perceived
brand quality and thereby on gross brand image which in turn enhances the brand equities of
preferred toothpaste brands (Table 7). The evolving model as represented in Figure 3 (derived
from Table 10-13) indicates the differential contribution of the CSR components which might
enhance the brand equity of the preferred toothpaste brand. The present findings indicate
comprehensive cognitive reasoning ability of both female and male respondents under complex
condition of making purchase decision on FMCG brands of toothpaste, an act which somehow
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Figure 3: Evolving model reflecting the nature of involvement of the different CSR
components in enhancing the brand equity of the toothpaste brands. (F-female; M-male; T-
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Appendix – I
(Questionnaire of the Survey) PART - A Please rank the factors according to importance (A) and rate how much you think that each of the factors is important to you when you purchase
toothpaste products (put tick mark in boxes that you feel appropriate) (B): (1= not important; 2= less important; 3= no idea; 4= moderately
important; 5= very important)
(A) Factors Rank (B) Factors 1 2 3 4 5
Reasonably priced Reasonably priced
Well-known brand Well-known brand
Taste and flavour Taste and flavour
Oral-dental care Oral-dental care
Availability Availability
Advertisement Advertisement
PART – B
(I) Have you ever bought toothpaste from any one of the following brands? [put tick mark in box(es) that you feel appropriate]; (II) If you have
purchased any of the above brands before, which brand you had selected for oral and dental care? [put tick mark in box(es) that you feel
appropriate]
(I) Brands Visuals Yes No (II) Brands Select (√ mark) Remark
Colgate Colgate
Pepsodent Pepsodent
Neem Active Neem Active
Babool Babool
Close up Close up
(If your response is No to all the above mentioned brands, please stop here. Thank you for your participation)
(III) Keeping the above brand(s) in your mind, please rate how likely you think that the brand above has each of the following characteristics (put
tick mark in boxes that you feel appropriate): (1= not at all; 2= most likely; 3= no idea; 4= likely; 5=extremely likely)
Characteristics 1 2 3 4 5
Reasonable pricing
Well-known brand
Taste and flavour
Better availability
Advertises well
PART- C
Keeping the above brand(s) in your mind, please rate how much you agree or disagree with each of the following remarks (even if you do not
have exact information, please express what you think):(1= strongly disagree; 2= disagree; 3= no idea; 4= agree; 5= strongly agree)
Remarks 1 2 3 4 5
Have a strong social mission of free dental check-up and oral health initiative
Affordable
Follow guidelines of Indian Dental Care Association
Meets customer’s health and safety regulation
Transparent about brand’s revenue and packaging
Does not employ child/forced labour
PART - D
Keeping the above brand(s) in your mind, please rate how much you agree or disagree with each of the following remarks: (1= strongly disagree;
2= disagree; 3= no idea; 4= agree; 5= strongly agree)
Cognitive statements 1 2 3 4 5
I consider myself to be loyal to the toothpaste brand
I would not buy other toothpaste brands if the brand is available in the store
If there is another toothpaste brand as good as the considered brand, I prefer to buy the brand
I can quickly recall the colour/logo of the toothpaste brand
I can recognize the toothpaste brand among other competing brands
I have no difficulty in imaging the toothpaste brand in my mind
I can recognize the toothpaste brand even if another brand have the same features
The brand would be my first choice among alternatives when I buy toothpaste that I need
I will be disappointed if I hear that the toothpaste brand is involved in unethical business
The quality of the toothpaste brand is extremely high
I would like to recommend the toothpaste brand to my acquaintance
Performance of the toothpaste brand is best among peers