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The role of CSR as a determinant of consumer responses in financial sector

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Abstract

The purpose of this study is to analyze the influence of corporate social responsibility (CSR) activities of financial institutions on their consumer responses. It aims to study the association of CSR activities through the customer–company identification. Consumer perception of CSR activities are analyzed in addition to corporate ability and how consumers make trade-off between these two types of association. The direct influence of CSR-based C-C identification on purchase intention is analyzed. A personal survey of banking customers was carried out, resulting in 320 valid responses. In order to comply with research objective and test the hypothesis, a structural equation modeling is used. The result shows the positive empirical validation of the relationship between corporate association and customer–company identification. This theoretical model is tested in the banking sector, so the generalizability is limited to context specific.

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Authors and Affiliations

  1. Department of Management Studies, Indian Institute of Technology Roorkee, Roorkee, 247667, India

    Mobin Fatma, Zillur Rahman & Imran Khan

Authors
  1. Mobin Fatma
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  2. Zillur Rahman
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  3. Imran Khan
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Corresponding author

Correspondence to Mobin Fatma.

Appendix

Appendix

Variable

This company…

Previous studies

CSR

 Economic responsibility

Maximize profits

Maignan (2001)

Always improve economic performance

Maignan (2001)

 Legal responsibility

Make sure that its employees act according to the law

Maignan (2001)

Always respect the norms when carrying out its activities

Maignan (2001)

 Ethical responsibility

Respecting ethical principles in its relationships has priority over achieving economic performance

Maignan (2001)

Has well-defined ethical principles

Maignan (2001)

Promotes equal opportunity when hiring employees

Maignan (2001)

 Philanthropic responsibility

Is concerned with improving the general well-being of society

Maignan (2001)

Assumes a role in society that goes beyond mere profit generation

Maignan (2001)

Directs part of its budget to donation and social work favoring the disadvantaged

Maignan (2001)

Identification

I have a positive feeling towards this bank

Ellemers et al. (1999)

I feel emotionally attached this bank

Fullerton (2003)

I feel identified with this bank values

Fullerton (2003)

Corporate ability

Has high experience in the industry

Brown and Dacin (1997)

Offers innovative product and services

Brown and Dacin (1997)

Purchase intention

If the price and quality of two products are the same, I would buy from the firm that has a socially responsible reputation

Maignan (2001)

I would pay more to buy products from companies that show care for the well-being of our society

Maignan (2001)

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Fatma, M., Rahman, Z. & Khan, I. The role of CSR as a determinant of consumer responses in financial sector. Decision 42, 393–401 (2015). https://doi.org/10.1007/s40622-015-0108-y

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