Record Details

How Consumers Respond to Corporate Social Responsibility Initiative: Cause Related Marketing vs Philantrophy

ASEAN Marketing Journal

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Title How Consumers Respond to Corporate Social Responsibility Initiative: Cause Related Marketing vs Philantrophy
 
Creator Lisia Astari Pertiwi; Faculty Economics and Business Universitas Indonesia
Tengku Ezni Balqiah; Faculty Economics and Business Universitas Indonesia
 
Subject Corporate Social Responsibility; cause-related marketing; philantrophy; motive; trust; satisfaction; customer loyalty
 
Description Increasing in demand of CSR from various stakeholders has caused company’s CSR motives to be more complex. CSR activities are not only founded on the benevolence of corporate agents but also as part of a corporate strategy formulated in pursuit of stakeholder interest. This study investigate whether CSR motives could enhance customer trust and satisfaction. Focus on two CSR initiatives conducted by GrabTaxi (transportation industry) and Alfamart (retail industry), the purposes is to demonstrate how two type CSR initiative could delivered perceived motives and create loyalty. Cross-sectional offline and on- line survey was conducted on 175 respondents of GrabTaxi and 192 respondents of Alfamart. Structural Equation Interestingly, even though respondent perceived firm-serving motives (as strategic objectives) and reactive motives (as expected by stakeholder), CSR initiative could create trust and satisfaction.Struc- tural Equation Modelling as data analysis to test 5 hypotheses. The results show slightly different in the context of cause-related marketing (GrabTaxi), and philanthropy (Alfamart). Even though all respondents perceived that CSR is motivated by mix motives (benevolent and strategic), how these motives influence trust, satisfaction, and further loyalty are different. Two-type of CSR initiative ie Cause Related Market- ing (CrM) and philanthropy can provide firm-serving motive, public serving motive and reactive motive. These motives could encourage trust and satisfaction through path motive-trust-satisfaction (directly or indirectly through trust)-customer loyalty. Interestingly, even though respondent perceived firm-serving motives (as strategic objectives) and reactive motives (as expected by stakeholder), CSR initiative could create trust and satisfaction.
 
Publisher Management Research Center, Department of Management, Faculty of Economics and Business, U
 
Contributor —
 
Date 2017-02-23
 
Type Peer-reviewed Article
 
Format application/pdf
 
Identifier http://journal.ui.ac.id/index.php/amj/article/view/9281
 
Source ASEAN Marketing Journal; Vol 8, No 2 (2016): December 2016; 136-146
 
Language en