The Role of Corporate Social Responsibility Towards Purchase Intention: The Mediating Effect of Brand Image and Corporate Reputation

Abstract

The body of knowledge on Corporate Social Responsibility has grown tremendously over the past few decades. However, there are still gaps in the literature regarding CSR and its role in enhancing corporate strategy. This article aims at filling some of those gaps on whether CSR do enhance Brand Image and Corporate Reputation and influence Purchase Intention. List of questionnaires were distributed across Jabodetabek area with total respondents of 440. This study only considered respondents with knowledge on CSR activities performed by selected companies, and with that consideration 267 respondents were screen out from this research. Covariance Based SEM was performed as the statistical analysis since no significant deviation from normality was found on the data. This study found that CSR significantly influence Brand Image, Corporate Reputation and Purchase Intention. While the factor of Brand Image and Corporate Reputation significantly mediated the relationship between CSR and Purchase Intention.

The The Impact of Customer’s Perception of the Practices of Corporate Social Responsibility on Purchase Intention

“…Numerous researchers have found evidence of the impact of corporate social responsibility on the intention to purchase (Gigauri, 2012). Other research using the focus group discussion also found that corporate social responsibility in the company will in one way or another affect the intention of the client's purchase, bearing in mind that it should be noted that the customer will not request such information instead he will wait to be informed (Abdullah & Budiman, 2019). Others also expounded that the impact of CSR on the buying intentions of consumers is more complicated than he thought where can CSR affect firms directly affect or indirectly, to the purchase intentions, where direct effect is when reflect the activities of corporate social responsibility and consumer or beliefs depending on the degree of consumer confidence that corporate social responsibility and institutional capacity as well as consumer support for the behavior of the social responsibility of companies.…”

“…Companies must fully commitment with ethical responsibility towards shareholders, and society, to undertake ethical and correct work for all stakeholders (Abdullah & Budiman, 2019). Where consumer responses are mainly affected by the consumer's awareness of ethical responsibility, belief in them and the ability of companies to apply this responsibility and develop a general framework for the consumer's ethical response as well as how to stimulate suggestions that provide consumer support towards the ethical behavior of the company and then turn this support into a positive buying behavior (Deng & Qian, 2011).…”

“…The amount of knowledge about corporate social responsibility has also grown significantly over the past few decades. However, gaps remain in the literature related to corporate social responsibility and its role in furthering the company's strategy (Abdullah & Budiman, 2019), which caused the disparity in social responsibility definitions for companies and their perceptions. The researchers and managers used different terminology to describe the practices of companies, for example: terminology of social performance of companies, and social response to companies (Kotler & Lee, 2005), corporate philanthropy (Foster et al, 2009), corporate citizenship (Dentchev, 2009), and corporate sustainability (Garriga & Melé, 2004), and the business ethics (Dentchev, 2009) with the presence of many different perceptions of the social responsibility of the companies, which have existed since 1950.…”

The Influence of Employee Perceived CSR on Job Performance: through the mediation of Job Satisfaction and Employee Engagement

“…Thus, in this study, the researcher will only focus on employees' perceptions of CSR itself. Complementing the existing research, Abdullah & Budiman (2019), suggests that an organization can greatly benefit from CSR measures that are implemented properly.…”