Effect of corporate social responsibility on customer behavioral intention

Document Type : Research Paper

Authors

1 M.Sc., Department of Entrepreneurship and Rural Development, Ilam University, Ilam, Iran

2 Assistant Professor, Department of Entrepreneurship and Rural Development, Ilam University, Ilam, Iran

10.22034/jbar.2022.16444.3940

Abstract

Introduction: Nowadays, paying attention to the various plans and functions of companies has caused transformation and dynamism in the field of business. In this regard, companies are faced with fundamental and new challenges to maintain their survival, including the challenge of the simultaneous managing the level of profitability and responding to the problems and social expectations of their customers. This approach requires strategies such as implementing social responsibility in the company, which can help both the sustainability and profitability of the company in the long run and the community. Today, the issue of corporate social responsibility has become one of the main topics of interest for researchers, experts and stakeholders in the field of business. Despite the extensive studies in this field, the impacts and consequences of social responsibility operations in companies and food industries have not been investigated. Therefore, the main purpose of this study is to investigate the effect of corporate social responsibility on the behavioral intention of customers to repurchase from Pegah's Bazaar-Gostar food distribution company in Ilam.
Methodology: The present study is quantitative in terms of paradigm, applied in terms of purpose, and descriptive-correlative in terms of data collection and analysis. The statistical population of this study included all the customers of Pegah's Bazaar-Gostar food distribution company in Ilam (N = 1208). Using the stratified random sampling method with proportional assignment, 415 customers were selected. The main tool for data collection was a standard questionnaire whose validity was assessed by a panel of experts. Its construct validity and reliability were also evaluated by Cronbach's alpha coefficient and a composite reliability test. In order to analyze the data in descriptive and inferential sections, SPSS version 26 and SmartPLS version 3 were used. For this purpose, in the descriptive statistics section, the frequency, percentage, mean, standard deviation as well as minimum and maximum were calculated. In the inferential statistics section, structural equation modeling (measurement model evaluation, structural model evaluation) was done. A measurement model was used to evaluate the validity and reliability of the latent variables of the research, and a structural model is used to test the hypotheses in the framework of the proposed research framework.
Results and Discussion: As the results showed, the behavioral intention, corporate image, customer satisfaction and corporate social responsibility dimensions variables had an above-average status. Besides, the latent variables of corporate image, customer satisfaction, economic responsibility, ethical responsibility and philanthropy responsibility had positive and significant effects on the behavioral intention of customers to repurchase from the Pegah's Bazaar-Gostar food distribution company in Ilam. However, based on the results, the positive and significant total effect of the latent variable of legal responsibility on customers' behavioral intent was not significant. Finally, it was also shown that 71% of the changes in the customers' behavioral intention to repurchase from Pegah's Bazaar-Gostar food distribution company in Ilam could be explained and predicted by the variables of corporate image, customer satisfaction, economic responsibility, ethical responsibility, legal responsibility and philanthropy responsibility.
Conclusion: The results of this study clarified the role of the social dimension of companies to improve their performance; therefore, company executives and managers should pay more attention to psychological and social issues, such as corporate image, customer satisfaction and the dimensions of social responsibility, to attract the consent of their customers. In this regard, it is recommended that companies participate in social activities like helping victims of natural disasters and charities. Such tasks as approving and implementing ethical and behavioral regulations can support customers with fair payment. Finally, more attention is to be paid to advertising and and use promotional activities to create a positive corporate image of companies in the minds of customers. In order to increase customer satisfaction with Pegah Company, the managers are suggested to receive customer comments and suggestions periodically on how to provide services and compare it with previous periods to identify weaknesses and strengths. In order to improve the mental image of Pegah Company customers, the managers  are suggested to pay more attention to advertisements and information and take steps to create a positive image of the company by using promotional and incentive activities. In order to increase economic responsibility, the managers of the company are recommended to support their employees and customers with fair payment.

Keywords

References

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Journal of Business Administration Researches
Volume 14, Issue 28
October 2022
Pages 203-228

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