Impact of CSR Marketing on Brand Loyalty: Mediating Role of Customer CSR Awareness and Moderating Role of Perceived Financial Value
DOI:
https://doi.org/10.47067/ramss.v9i1.604Keywords:
CSR Marketing, Brand Loyalty, Customer CSR Awareness, Perceived Financial ValueAbstract
This study analyzes the effects of CSR marketing on brand loyalty specifically the mediating effect of customer CSR awareness and the moderating effect of perceived financial value. With the rising number of consumers focusing on ethical and social aspects in their buying behavior, companies have adopted CSR marketing to one of the strategic instruments to communicate their social and environmental responsibility. Nevertheless, the success of such initiatives is highly determined by the level of awareness of consumers to the CSR initiatives and financial value that the brand provides to them. Applying quantitative research, the consumers working in different industries were surveyed using a structured questionnaire. Structural Equation Modelling (SEM) used to test the proposed relations. The results indicate that CSR marketing impacts the brand loyalty positively and indirectly through customer CSR awareness. Further, the perceived financial value considerably moderates the relationship between CSR marketing and brand loyalty in cases where customers perceive greater financial value in the relationship. This study adds to the existing body of literature on CSR and consumer behavior in the sense that it incorporates the communicative, cognitive, and economic perspectives in one framework. The findings provide insights that can be put in practice by the managers who are interested in creating effective CSR communication strategy to improve customer recognition without creating a negative perception of value that may lead to a long-term brand loyalty.
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