Luận văn thạc sĩ UEH impact of corporate social responsibility and corporate reputation on consumer

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

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IMPACT OF CORPORATE SOCIAL

RESPONSIBILITY AND CORPORATE

REPUTATION ON CONSUMER ATTITUDE

TOWARD FOOD PRODUCTS AND CONSUMER

BEHAVIORAL INTENTION

Cao Thị Hải Âu

MASTER OF BUSINESS (Honours)

Ho Chi Minh City – Year 2014

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UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

------------------------------

IMPACT OF CORPORATE SOCIAL

RESPONSIBILITY AND CORPORATE

REPUTATION ON CONSUMER ATTITUDE

TOWARD FOOD PRODUCTS AND CONSUMER

BEHAVIORAL INTENTION

Cao Thị Hải Âu

ID: 22110003

MASTER OF BUSINESS (Honours)

SUPERVISOR: LƯU TRỌNG TUẤN, PhD.

Ho Chi Minh City – Year 2014

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Acknowledgement

I would like express my sincere thankfulness to Dr. LuuTrong Tuan who is my

research supervisor. He helped me to understand the purpose of study research, as well as

the process of research. Thanks to his help, I can understand clearly about the topic I like

and I can complete my thesis. His guidance helps me a lot in performing the thesis,

studying theories, and collecting the data. This thesis could not be finished without his

supporting.

I would like to thank Prof. Nguyen DinhTho and Prof. Nguyen Dong for giving

me helpful advices to correct my thesis. I am grateful to Dr. Nguyen Thi Mai Trang and

Dr. Nguyen ThiNguyetQue with the useful comments for the thesis.

I would like to thank to all staffs of ISB for supporting me during the thesis

processes with informing and guiding accurately and on time.

I would also like to thank to all of my family members, friends who supported and

are by my side throughout my life.

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Abstract

Corporate social responsibility is still a new definition to Vietnam, the paper

studies about its influence on consumer attitude and behavioral intention. To investigate

the relationships, the paper needs to search these relationships through corporate

reputation. The data is collected with a sample of 203 customers at super markets with

the method mall-intercept. Those customers are choosing food products and asked permit

to interview. The paper will prove these relationships, the corporate social responsibility

effects on corporate reputation, and corporate reputation effects on consumer attitude,

and consumer attitude influences on consumer behavioral intention. However, the

corporate social responsibility does not effect on consumer attitude. The suggested

hypotheses are proved by data analysis and findings help to the roles of these variables.

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Contents

Chapter 1: INTRODUCTION.......................................................................................................................1

1.1 Introduction: .....................................................................................................................................1

1.2 Research Problem:............................................................................................................................2

1.3 Research Objective and Questions:.................................................................................................4

1.4 Research Structure:..........................................................................................................................4

Chapter 2: LITERATURE REVIEW............................................................................................................6

2.1 Corporate Social Responsibility:.....................................................................................................6

2.2 Corporate Reputation:.........................................................................................................................8

2.3 Corporate Social Responsibility and Corporate Reputation: ............................................................10

2.4 Consumer Attitude toward the Company’s Food Products: .............................................................12

2.5 Corporate Social Responsibility and Consumer Attitude toward the Company’s Food Products:...15

2.6 Corporate Reputation and Consumer Attitude toward the Company’s Food Products: ...................18

2.7 Consumer Behavioral Intention:.......................................................................................................20

2.8 Consumer Attitude toward the Company’s Food Products and Consumer Behavioral Intention: ...22

2.9 Model:...............................................................................................................................................24

2.10 Summary:........................................................................................................................................26

Chapter 3: METHODOLOGY....................................................................................................................27

3.1 Research Approach:..........................................................................................................................27

3.2 Survey Research Method:.................................................................................................................27

3.3 Questionnaire Design:.......................................................................................................................29

3.3.1 Scale Measurement:...................................................................................................................31

3.3.2 Questionnaire:............................................................................................................................32

3.4 Sampling Method:.............................................................................................................................33

3.5 Data Collection: ................................................................................................................................33

3.6 Data Preparation: ..............................................................................................................................34

3.7 Summary:..........................................................................................................................................35

Chapter 4: RESULTS AND DISCUSSION ...............................................................................................36

4.1 Cronbach’s Alpha: ............................................................................................................................36

4.2 Exploratory Factor Analysis (EFA):.................................................................................................37

4.3 Regression Analysis and Multiple Regression Analysis:..................................................................38

4.4 Descriptive Analysis:........................................................................................................................39

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4.5 Measurement Assessment:................................................................................................................40

4.5.1 Cronbach’s alpha: ......................................................................................................................40

4.5.2 Exploratory factor analysis (EFA):..........................................................................................42

4.5.3.1 Testing hypothesis 1: ..............................................................................................................44

4.5.3.2 Testing hypotheses 2 and hypothesis 3:..................................................................................47

4.5.3.3 Testing Hypothesis 4:..............................................................................................................50

4.6 Discussion Results: ...........................................................................................................................53

Chapter 5: CONCLUSION AND IMPLICATION.....................................................................................56

5.1 Findings: ...........................................................................................................................................56

5.2 Managerial Implication:....................................................................................................................57

5.3 Limitation:.........................................................................................................................................59

5.4 Future Direction:...............................................................................................................................61

REFERENCES ...........................................................................................................................................62

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1

Chapter 1: INTRODUCTION

1.1 Introduction:

The paper investigates corporate social responsibility (CSR), corporate reputation,

consumer attitude toward the company’s food products, and consumer behavioral

intention; and their relationships. Creyer and Ross (1997) study the relationship between

corporate social responsibility and consumer attitude toward the company’s food

products, they found a positive relationship between them. According to Zaharia (2013),

corporate social responsibility helps companies to build consumer product responses and

product attitudes, corporate social responsibility also effects on product attributes.

Besides, corporate reputation also influences on consumer attitude toward the company’s

food products, as Schwager (2004) defines reputation related to attitude. Sen and

Bhattacharya (2001) say corporate social responsibility is a key component of a firm’s

marketing toolbox to build their corporate reputation; that means a positive relationship

between corporate social responsibility and corporate reputation. The research focuses on

corporate social responsibility and corporate reputation influence on consumer attitude

toward the company’s food products. Attitude changing will lead to behavior changing of

consumer (Eagly&Chaiken, 1993), consumer attitude toward the company’s food

products and consumer behavioral intention has a positive relationship. Both theories of

reasoned action (Fishbein&Ajzen, 1975) and of planned behavior (Ajzen, 1991) consider

behavioral intentions to be the most proximal determinant of behavior, and behavioral

intention is proposed to be influenced attitude that consumer attitude toward the

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company’s food products towards consumer behavioral intention. By looking and

considering corporate social responsibility and corporate reputation of a company,

consumer can attitude toward their food products; that leads to buy and consume their

food products as consumer behavioral intention. As well as, producers can change their

images by focusing on building their corporate social responsibility and corporate

reputation to lead to consumer attitude toward the company’s food products and gain

customer’s consumer behavioral intention.

1.2 Research Problem:

Vietnam is a communist country that has opened the economics door to integrate

into the global economy by joining ASEAN in 1995, AFTA in 1996; especially Vietnam

has joined WTO since 2007 that opened a new way for Vietnamese economy, as well as

gave many opportunities and challenges to Vietnam companies. Besides the advantages

the economics integrating has given, Vietnam had to face many disadvantages,

difficulties in the process of its development. Vietnam has allowed foreign products that

exported to Vietnamese market. Vietnamese consumers contact with many trademarks of

products, as well as variety quality of products. Vietnamese also has another

consideration about Vietnamese products. One of industrial is food manufacturing is

affected. Vietnamese customers don’t believe in Vietnam food products. They prefer

foreign food products such as milk products for babies; they believe that food products

from famous trade mark have good quality and they trust the guarantee that the famous

organizations posted in the food products’ labels. The Vietnam food production lost their

customer because they lose consumer trust. To attract customers to Vietnam food

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products, the Vietnam food productions need to build their own strategy to gain customer

trust. The paper supposes to give two supposed factors that maybe influences to attitude

toward food products of costumers in Vietnam market. Additions, the link between

attitude and intention has been explained by Ajzen (1991), and this relationship is also

improved a positive one. The paper studies the indirect impact of supposed variables

corporate social responsibility and corporate reputation on consumer behavioral intention

through consumer attitude toward food products.

Every company has its own aim; that is profit. The profit comes from consuming

products. That their marketing strategy. All of four variables in the paper are areas of

marketing. Because food producers lack of corporate social responsibility and corporate

reputation, customers don’t care their food products and avoid buying their food product.

The paper investigates the relationships of these variables. Food producers can build their

corporate social responsibility and corporate reputation to influence on consumer attitude

toward the company’s food products. From that, customers can buy their food products,

as previous research about the positive relationship between consumer attitude toward the

company’s food products and consumer behavioral intention.

The purpose of building corporate social responsibility is to enhance corporate

reputation, also to gain consumer attitude toward the company’s food products. Food

producers can attract consumer behavioral intention by their corporate social

responsibility and corporate based on the positive relationship of consumer attitude

toward the company’s food products and consumer behavioral intention. Corporate social

responsibility and corporate reputation help food producers to build a long term

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