Corporate Social Responsibility and Word - of - Mouth Intentions

Authors

  •   Bohyeon Kang Associate Professor of Marketing, School of Business, Kyungpook National University, Daegu
  •   Eugene Sivadas Professor of Marketing and Associate Dean (Corresponding Author), Milgard School of Business, University of Washington, Tacoma

DOI:

https://doi.org/10.17010/ijom/2018/v48/i4/122622

Keywords:

CSR

, Loyalty, Trust, WOM

Paper Submission Date

, November 14, 2017, Paper sent back for Revision, February 4, 2018, Paper Acceptance Date, March 5, 2018

Abstract

Companies have invested substantial resources in corporate social responsibility (CSR) initiatives in part to accomplish various strategic objectives. However, firms may utilize CSR to not merely benefit the environment and society, but also to accomplish various firm level strategic objectives and gain competitive advantage. This paper examined the effectiveness of CSR in generating word - of - mouth and integrated the literature in CSR with the literature on WOM and demonstrated the linkages between the two. We tested the model with survey data from consumers in Korea. This was further supplemented with qualitative depth interviews in the United States. The results suggested that CSR image influenced trust and loyalty, and that trust and loyalty had a positive influence on WOM intentions. This research demonstrated that CSR activities could help with generating WOM and should motivate companies to engage in CSR, thus benefiting various stakeholders and society at large.

Downloads

Download data is not yet available.

Downloads

Published

2018-04-01

How to Cite

Kang, B., & Sivadas, E. (2018). Corporate Social Responsibility and Word - of - Mouth Intentions. Indian Journal of Marketing, 48(4), 7–20. https://doi.org/10.17010/ijom/2018/v48/i4/122622

Issue

Section

Articles

References

Ahmad, A., & Thyagaraj, K.S. (2015). Impact of brand personality on brand equity : The role of brand trust, brand attachment, and brand commitment. Indian Journal of Marketing, 45(5), 14-26. doi: https://doi.dx.org/10.17010/ijom/2015/v45/i5/79937

Anderson, J.C., & Gerbing, D. W. (1988). Structural equation modeling in practices: A review and recommended two step approach. Psychological Bulletin, 103 (3), 411-423.

Bagozzi, R., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16 (1), 74-94.

Bhattacharya, C. B., Korschun, D., & Sen, S. (2009). Strengthening stakeholder-company relationships through mutually beneficial corporate social responsibility initiatives. Journal of Business Ethics, 85 (2 supplement), 257- 272.

Bowen, H. (1953). Social responsibilities of the businessman. New York : Harper & Row.

Breazeale, M. (2009). Word of mouse. International Journal of Market Research, 51 (3), 297-318.

Brown, T. J., & Dacin, P. A. (1997). The company and the product: Corporate associations and consumer product responses. Journal of Marketing, 61 (1), 68-84.

Carroll, A. B. (1979). A three dimensional conceptual map of corporate performance. Academy of Management Review, 4 (4), 497-505.

Carroll, A. B. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholder. Business Horizons, 34 (4), 39-48.

Chaudhuri, A., & Holbrook, M. B. (2001). The chain of effects from brand trust and brand affect to brand performance : The role of brand loyalty. Journal of Marketing, 65 (2), 81-93.

Chernev, A., & Blair, S. (2015). Doing well by doing good : The benevolent halo of corporate social responsibility. Journal of Consumer Research, 41(6), 1412-1425.

Chevalier, J., & Mayzlin, D. (2004). The effect of word-of-mouth on sales: Online book reviews (Working Paper). USA : School of Management, Yale University.

De Matos, C., & Rossi, C. (2008). Word-of-mouth communication in marketing: A meta-analytic review of the antecedents and moderators. Journal of the Academy of Marketing Science, 36 (4), 578-596.

Delgado-Ballester, E., Munuera-Aleman, J.L., & Yague-Guillen, M.J. (2003). Development and validation of a brand trust scale. International Journal of Market Research, 45 (1), 35-54.

Drumwright, M. E. (1996). Company advertising with a social dimension: The role of noneconomic criteria. Journal of Marketing, 60 (4), 71-87.

Du, S., Bhattacharya, C.B., & Sen, S. (2011). Corporate social responsibility and competitive advantage: Overcoming the trust barrier. Management Science, 57 (9), 1528 -1545.

Ellen, P., Webb, D., & Mohr, L. (2006). Building corporate associations: Consumer attributions for corporate socially responsible programs. Journal of the Academy of Marketing Science, 34 (2), 147-157.

Everard, A., & Galletta, D.F. (2006). How presentation flaws affect perceived site quality, trust and intention to purchase from an online store. Journal of Management Information Systems, 22 (3), 55-95.

Feldman, P. M., & Vasquez-Parraga, A. Z. (2013). Consumer social responses to CSR initiatives versus corporate abilities. Journal of Consumer Marketing, 30 (2), 100-111.

Ferreira, D.A., Avila, M. G., & de Faria, M. D. (2010). Corporate social responsibility and consumers' perception of price. Social Responsibility Journal, 6 (2), 208-221.

Fombrun, C. J. (1996). Reputation: Realizing value from the corporate image. Boston : Harvard Business School Press.

Forehand, R., & Grier, S. (2003). When is honesty the best policy? The effect of stated company intent on consumer skepticism. Journal of Consumer Psychology, 13 (3), 349-357.

Friedman, M. (1970). A Friedman doctrine: The social responsibility of business is to increase its profits. New York Times Magazine, 13 (September), 122-126.

Ganesan, S. (1994). Determinants of long-term orientation in buyer-seller relationships. Journal of Marketing, 58 (2), 1-19.

Garbarino, E., & Johnson, M. (1999). The different roles of satisfaction, trust, and commitment in customer relationships. Journal of Marketing, 63 (2),70-87.

Greening, D., & Turban, D. (2000). Corporate social performance as a competitive advantage in attracting a quality workforce. Business & Society, 39 (3), 254-280.

Henning-Thurau, S. T., & Walsh, G. (2003). Electronic word-of-mouth: Motives for and consequences of reading customer articulations on the internet. International Journal of Electronic Commerce, 8 (2), 51-74.

Hillenbrand, C., & Money, K. (2007). Corporate responsibility and corporate reputation: Two separate concepts or two sides of the same coin? Corporate Reputation Review, 10 (4), 261-277.

Hou, M., Liu, H., Fan, P., & Wei, Z. (2016). Does CSR practice pay off in East Asian firms ? A meta-analytic investigation. Asia Pacific Journal of Management, 33 (1), 195-228.

Hur, W. M., Kim, Y., & Park, K. (2013). Assessing the effects of perceived value and satisfaction on customer loyalty : A 'green' perspective. Corporate Social Responsibility and Environmental Management, 20(3), 146-156. DOI: https://doi.dx.org/10.1002/csr.1280

Johnson, M., Garbarino, E., & Sivadas, E. (2006). Influences of customer differences in loyalty, perceived risk, and category experience on customer satisfaction ratings. International Journal of Market Research, 48 (5), 601-623.

Kang, B. (2014). Corporate social responsibility and corporate performances. Journal of Applied Sciences, 14 (21), 2662-2673.

Lantos, G. (2001). The boundaries of strategic corporate social responsibility. Journal of Consumer Marketing, 18 (7), 595-630.

Lii, Y. S., Wu, K. W., & Ding, M. C. (2013). Doing good does good? sustainable marketing of CSR and consumer evaluations. Corporate Social Responsibility and Environmental Management, 20 (1), 15-28. DOI: https://doi.dx.org/10.1002/csr.29

Maignan, I., & Ferrell, O. C. (2001). Corporate citizenship as a marketing instrument: Concepts, evidence and research directions. European Journal of Marketing, 35 (3), 457- 484.

Marín, L., Rubio, A., & De Maya, S. R. (2012). Competitiveness as a strategic outcome of corporate social responsibility. Corporate Social Responsibility and Environmental Management, 19 (6), 364-376. DOI: https://doi.dx.org/10.1002/csr.1288

Martinez, P., & del Bosque, I. R. (2013). CSR and customer loyalty: The roles of trust, customer identification with the company and satisfaction. International Journal of Hospitality Management, 35 (December), 89-99.

Morgan, R. M., & Hunt, S. D. (1994). The commitment-trust theory of relationship marketing. Journal of Marketing,58 (3), 20-38.

Moura-Leite, R. C., & Padgett, R. C. (2011). Historical background of corporate social responsibility. Social Responsibility Journal, 7 (4), 528-539.

Mueller, T. (2014). Consumer Image of CSR: Modeling psychological motivators. Corporate Reputation Review, 17 (3), 195-205.

Oberseder, M., Schlegelmilch, B. B., & Murphy, P. E. (2013). CSR practices and consumer image. Journal of Business Research, 66 (10), 1839-1851.

Oliver, R.L., & DeSarbo,W. (1988). Response determinants in satisfaction judgements. Journal of Consumer Research, 14 (4), 495-507.

Panda, R., Swar, B.N., & Mukerjee, K. (2014). Factors affecting brand trust: An exploratory investigation among Indian retail consumers. Indian Journal of Marketing, 44 (7), 7-17. doi:10.17010/ijom/2014/v44/i7/80362

Pfau, M., Haigh, M.M., Sims, J., & Wigley, S. (2008). The influence of corporate social responsibility campaigns on public opinion. Corporate Reputation Review, 11 (2), 145-154.

Pivato, S., Misani, N., & Tencati, A. (2008). The impact of corporate social responsibility on consumer trust: The case of organic food. Business Ethics: A European Review, 17 (1), 3-12.

Podsakoff, P.M., & Organ, D. W. (1986). Self-reports in organizational research: Problems and prospects. Journal of Management, 12 (4), 531-544.

Podsakoff, P.M., MacKenzie, S.B., Lee, J.Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88 (5), 879-903.

Podsakoff, P.M., MacKenzie, S. B., & Podsakoff, N. P. (2012). Sources of method bias in social science research and recommendations on how to control it. Annual Review of Psychology, 63, 539-569.

Reichheld, F. F. (2003). The one number you need to grow. Harvard Business Review, 81 (12), 46-54.

Saju, B., & Rajan, K. R. (2014). Impact of corporate social responsibility on customer loyalty and the mediating role of affective identification. Indian Journal of Marketing, 44(9), 7-19. doi: https://doi.dx.org/10.1002/csr.1288

Samson, A. (2010). Product usage and firm-generated word of mouth. International Journal of Market Research, 52 (4), 459-482.

Sen, S., & Bhattacharya, C.B. (2001). Does doing good always lead to doing better? Consumer reactions to corporate social responsibility. Journal of Marketing Research, 38 (2), 225-243.

Sen, S., & Bhattacharya, C. B. (2004). Doing better at doing good: When, why, and how consumers respond to corporate social initiatives. California Management Review, 47 (1), 9-24.

Shaw, B., & Post, F. R. (1993). A moral basis for corporate philanthropy. Journal of Business Ethics, 12(10), 745-751.

Shin, Y., & Thai, V.V. (2015). The impact of corporate social responsibility on customer satisfaction, relationship maintenance, and loyalty in the shipping industry. Corporate Social Responsibility and Environmental Management, 22(6), 381-392.

Sirdeshmukh, D., Singh, J., & Barry, S. (2002). Consumer trust, value, and loyalty in relational exchanges. Journal of Marketing, 66 (1), 15-37.

Sparks, R., & Cowton, C. (2004). The maturing of socially responsible investment: A review of the developing link with corporate social responsibility. Journal of Business Ethics, 52 (1), 45-57.

Stanaland, A., Lwin, M.O., & Murphy, P. E. (2011). Consumer image of the antecedents and consequences of corporate social responsibility. Journal of Business Ethics, 102 (1), 47-55. doi: https://doi.dx.org/10.1007/s 10551-011-0904-z

Stanley, R.E. (1977). Promotion. New Jersey : Prentice-Hall Inc.

Stokburger-Sauer N., Ratneshwar, S., & Sen, S. (2012). Drivers of consumer-brand identification. International Journal of Research in Marketing, 29 (4), 406-418.

Turban, D. B., & Greening, D.W. (1996). Corporate social performance and organizational attractiveness to prospective employees. Academy of Management Journal , 40 (3), 658-672.

Vázquez-Casielles, R., Suárez-Ãlvarez, L., & del Río-Lanza, A.-B. (2013). The word of mouth dynamic: How positive (and negative) WOM drives purchase probability : An analysis of interpersonal and non-interpersonal factors. Journal of Advertising Research, 53 (1), 43-60.

Vlachos, P. A., Tsamakos, A., Vrechopoulos, A. P., & Avramidis, P. K. (2009). Corporate social responsibility: Attributions, loyalty, and the mediating role of trust. Journal of the Academy of Marketing Science, 37(2), 170 -180.

Ward, J. C., & Ostrom, A. L. (2003). The internet as information minefield: An analysis of the source and content of brand information yielded by net searches. Journal of Business Research, 56 (11), 907-914.

Westbrook, R. A. (1987). Product/consumption-based affective responses and post purchase processes. Journal of Marketing Research, 24 (3), 258-270.

Zeithaml, V.A., & Bitner, M. J. (2000). Service marketing. Boston: McGraw-Hill.

Zhu, Y., Sun, L.-Y., & Leung, A. S. M. (2014). Corporate social responsibility, firm reputation, and firm performance: The role of ethical leadership. Asia Pacific Journal of Management, 31 (4), 925-947.