The role of brand equity in the effects of corporate social responsibility on consumer loyalty

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Date
2010
Authors
Almohammad, Asaad
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Abstract
Based on the assumption that consumers are demanding more out of organizations than high quality products or services with a low price, business firms seek for other criteria to enhance their consumers’ loyalty. The adoption of the social identity theory shed the light on how practicing corporate social responsibility (CSR), will lead to more identification for the firm by enhancing its identity attractiveness. Moreover, the study showed that CSR initiatives influence brand equity which plays a crucial role on consumer loyalty. The purpose of the quantitative research study was to investigate the relationship between corporate social responsibility CSR and consumer loyalty. A purposive sampling strategy was used to survey Nestle Malaysia consumers. Approximately 350 of Nestle Malaysia consumers located in Penang were selected based on purposive sampling approach. The data supported the hypotheses which proved that CSR plays a significant role in enhancing the consumers’ loyalty and consumers view on corporate social responsibility as an important factor of their loyalty to the business firms. The results of this study revealed that good corporate social responsibility is not only good for society but also provides companies with a competitive advantage by acquiring loyal consumers in their marketplace.
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Keywords
Business Administration , Corporate Social Responsibility , Consumer Loyalty
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