Consumers’ Perception of CSR Activities: What Does it Mean for Companies?

Abstract

Research Question: The paper develops a conceptual model for exploring the factors which impact the consumers' word of mouth (WOM) and willingness to pay (WTP) for products and services of socially responsible companies. Motivation: The paper is based on the research of Castaldo et al. (2009), Pivato et al. (2007), Rim and Kim (2016), and Jarvis et al. (2017) concerning the consumers’ perception of corporate social responsibility (CSR) and measurement of the effectiveness of CSR activities. Accordingly, our paper tries to provide companies with valuable information on how the consumers’ perception of CSR activities impacts the consumers’ trust, awareness, purchase intention, and future behaviour. Idea: The proposed model is based on three pillars: Perception of CSR, Moderating effects, and Willingness to pay and recommend and strives to shed light on their mutual relations. The goal is to better understand the complex mechanisms and consequences of the consumers’ perception of CSR activities of companies. Data: To verify the proposed conceptual model, a questionnaire was developed and distributed. In total, 265 respondents participated in the research. Tools: Structural equation modelling (SEM) analysis was employed to explore the relationships between defined factors. Findings: The findings illustrate that both attitudes towards CSR and CSR companies have an impact on the level of trust and purchase intention. When it comes to WTP and WOM, only the level of trust and purchase intention have an impact. Interestingly, the respondents' awareness of the companies’ CSR activities did not have an impact on WTP and WOM. The model indicates that the companies should communicate their CSR activities which will lead to greater trust and purchase intention leading to higher consumers' willingness to pay and recommend the companies’ products/services. Contribution: The study empirically explores how the perception of CSR and CSR activities potentially influences the WOM and WTP on products and services of socially responsible companies and provides a roadmap on how companies can increase the benefits of their CSR activities.

Author Biographies

Milica Nikolić, University of Belgrade, Faculty of Organizational Sciences, Serbia

Milica Nikolić is a master’s student of Informational Technologies at the University of Belgrade, Faculty of Organizational Sciences. She completed her undergraduate studies of Informational Systems and Technologies at the University of Belgrade, Faculty of Organizational Sciences. Her fields of interest are data analysis, product management and human-computer interaction.

Milica Maričić, University of Belgrade, Faculty of Organizational Sciences, Serbia

Milica Maričić is an assistant professor at the University of Belgrade, Faculty of Organizational Sciences. She received her Ph.D. at the same faculty, in the field of Computational Statistics. She specializes in the field of applied statistics and data analysis. Her research interests include the development and evaluation of ranking methodologies, structural equation modelling, and multivariate analysis. She has published more than 40 scientific papers with an emphasis on ISI indexed journals. She is an active member of the International Statistical Institute (ISI).

Dejana Nikolić, University of Belgrade, Faculty of Organizational Sciences, Serbia

Dejana Nikolic is a Teaching Assistant at the Univeristy of Belgrade, Faculty of Organizational Sciences, Department of Marketing Management and Public Relations. She is also a PhD student at the University of Belgrade, Faculty of Organizational Sciences. Her research fields are creative industries, marketing and public relations. She is also the author of more than 30 scientific papers in the field of management and communications.

Published
2021-04-28
How to Cite
Nikolić, M., Maričić, M., & Nikolić, D. (2021). Consumers’ Perception of CSR Activities: What Does it Mean for Companies?. Management:Journal Of Sustainable Business And Management Solutions In Emerging Economies, . doi:10.7595/management.fon.2021.0017
Section
Articles