The impact of corporate social responsibility on brand equity: consumer responses to two types of fit
| Pages | 435-446 |
| Published date | 21 August 2017 |
| Date | 21 August 2017 |
| DOI | https://doi.org/10.1108/JPBM-06-2015-0917 |
| Author | Francisco Guzmán,Donna Davis |
| Subject Matter | Marketing,Product management,Brand management/equity |
The impact of corporate social responsibility
on brand equity: consumer responses to two
types of fit
Francisco Guzmán
Department of Marketing and Logistics, University of North Texas, Denton, Texas, USA, and
Donna Davis
Department of Marketing, University of South Florida, Tampa, Florida, USA
Abstract
Purpose – A significant stream of research investigates the influence of corporate social responsibility (CSR) initiatives on firm performance and
consumer response to CSR programs. However, how CSR initiatives help build brand equity remains relatively unexamined. This study aims to
demonstrate how CSR influences brand equity in response to perceptions of two types of brand–cause fit.
Design/methodology/approach – The authors analyze two types of fit between a brand and a social cause (disaster relief): brand value–cause
fit and brand function–cause fit. Structural equation modeling is used to estimate the fit of the data with the proposed model.
Findings – Survey evidence from 370 millennial undergraduate students in the USA suggests that the two types of brand– cause fit have differential
effects on attitude toward the brand and ad, which in turn influence brand equity.
Research implications/limitations – The research operationalizes brand– cause fit as a construct with two components: brand value–cause fit and
brand function–cause fit. It tests these two types of fit and finds evidence for differential effects on consumer attitudes.
Practical implications – The findings offer practical considerations for managers about the importance of considering two types of brand– cause
fit in selecting social causes and crafting effective corporate communications about the firm’s CSR initiatives.
Originality/value – Results suggest that it is possible for firms to craft desirable win–win–win strategies that build brand equity by investing in
a strategic approach to CSR initiatives.
Keywords Brand equity, CSR, Consumer attitudes, SEM, Brand–cause fit
Paper type Research paper
Introduction
Corporate social responsibility (CSR) describes the complex
interrelationships between businesses and the larger society
(Carroll, 1999). CSR programs are becoming a key element of
business strategy, as they represent a competitive advantage
that enhances firm performance while supporting the society
(Barone et al., 2000;Ellen et al., 2006;Lichtenstein et al.,
2004;Luo and Bhattacharya, 2006;Maignan and Ferrell,
2003;Miller and Merrilees, 2013;Sen et al., 2006;Simmons
and Becker-Olsen, 2006;Torelli et al., 2012). Consumers
have become more socially conscious (Shang et al., 2010;
Webb et al., 2008). In 2007, 90 per cent of American
consumers were more likely to choose a product or service of
equal quality and price provided by a socially responsible
company (Bemporad and Baranowski, 2007). A Nielsen
(2014) report shows that “55 per cent of global online
consumers across 60 countries are willing to pay more” for
products and services from companies committed to social
responsibility (Rayapura, 2014). Not surprisingly, the
Committee Encouraging Corporate Philanthropy (CECP)
reports that companies’ aggregate median contributions to
CSR programs in 2013 equaled $18.46m (CECP, 2014).
While traditional views of CSR assume a tension between
business and society, the strategic view acknowledges their
interdependence for creating shared value. This study
examines a strategic approach to CSR in which a firm aligns its
CSR initiatives with its core value proposition (cf. Beckmann,
2007;Guzmán and Becker-Olsen, 2010;Ingenbleek et al.,
2007;Melo and Galan, 2011;Porter and Kramer, 2006).
A significant body of research investigates the effects of
alignment between social causes and brands to support a
firm’s overall business strategy (Bigné-Alcañiz et al., 2009;Du
et al., 2007;Ellen et al., 2006;Husted and Allen, 2007;
Moosmayer and Fuljahn, 2013;Pérez and Rodríguez del
Bosque, 2015;Porter and Kramer, 2006;Torelli et al., 2012).
Previous studies show that brand-cause alliances with high fit
yield positive results for both the firm and the cause (Bigné
et al., 2012;Hamlin and Wilson, 2004;Lafferty, 2007;
Pracejus and Olsen, 2004;Samu and Wymer, 2014;Wang
and Korschun, 2015). Other research finds that low fit
between a firm and a social cause can actually damage the firm
The current issue and full text archive of this journal is available on
Emerald Insight at: www.emeraldinsight.com/1061-0421.htm
Journal of Product & Brand Management
26/5 (2017) 435–446
© Emerald Publishing Limited [ISSN 1061-0421]
[DOI 10.1108/JPBM-06-2015-0917]
Received 29 June 2015
Revised 29 February 2016
9 June 2016
30 June 2016
Accepted 1 July 2016
435
To continue reading
Request your trial