Consumer Behavior and Social Responsibility

This research paper aims to investigate the relationship between CSR activities and consumer actions. It focuses on gaining a better and clearer insight view of behavioral insinuations in reaction to social ingenuities that are undertaken by the companies in current era.

Running head: CONSUMER BEHAVOUR AND SOCIAL RESPONSIBILITY
Consumer Behavior and Social Responsibility
Name of the Student:
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Table of Contents
1. Introduction..................................................................................................................................3
1.1 Problem statement.................................................................................................................4
1.2 Aim and objectives................................................................................................................4
1.3. Research Questions...............................................................................................................5
1.4 Theoretical framework...........................................................................................................5
2. Literature Review........................................................................................................................5
3. Research methodology.................................................................................................................6
3.1 Sample population.................................................................................................................6
3.2 Research Philosophy..............................................................................................................7
3.2 Research Design....................................................................................................................7
3.4 Research Materials.................................................................................................................8
3.5 Research approach.................................................................................................................8
3.6 Data Collection methods........................................................................................................9
3.7 Protection of Human Rights..................................................................................................9
3.8 Managerial Implications......................................................................................................10
3.9 Limitations...........................................................................................................................10
References:....................................................................................................................................11

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Topic: Relationship between the CSR and consumer purchasing behavior
1. Introduction
CSR or Corporate Social Responsibility is that particular concept which is concerned
with the ways how enterprises at present addresses the needs and values of their customers and
other stakeholders (Porter & Kramer, 2019). Most of all, it covers business ethics, environmental
problems, community relationships as well as human rights issues (welfare programs for the
employees such as education or trainings on safety measures to be taken on workplace). It has
eventually become one of the very important topics in business world as well as academic
literature. The researchers have explained that CSR is highly responsible for influencing the
financial performance of a company in positive ways. It supports the share prices of the firm,
shores up the market values as well as provides competitive advantage to the same. At present,
consumers not only expect from the businesses that they will conduct themselves in regards to
ethics; but also to keep the products at a lower cost with the highest level. Nepomuceno,
Laroche and Richard (2014), have stated that the probability of purchasing a product increases
when the consumers are given options for supporting social problems through purchasing those
products. He found that in this way a firm can derive high benefits when the consumers and the
other stakeholders perceive it to be a socially responsible. In context to publication of CSR
focused research, there has been extensive growth in the developed countries, but in the
developing nations, they have yet not investigated the affect of CSR so completely and
inclusively. Chernev and Blair (2015) argued that though it is true that CSR is reaching its
mature stage, but it is also a fact that the consumer response to the activities of CSR is not well
researched. Their relationship is still debatable.

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This proposal discourses the evolving focuses as well as gaps in supplying a perfect view
on the connection in amid these two i.e. CSR activities and consumer actions. This aims to
explain the CSR relationships as the responses of the customers from the perspective of South
Asia. It focuses on gaining a better and clearer insight view of behavioral insinuations in reaction
to social ingenuities that are undertaken by the companies in current era.
1.1 Problem statement
Relationships between the CSR activities as well as customer retorts is arguable as either
positive or negative. This proposal aims to give a clear view of their relationship. Not much
research has been conducted within the developed nation on this perspective. Understanding of
the hidden relationship between the CSR actions and consumer responses is very important for
the economic expansion of the emerging countries.
1.2 Aim and objectives
The developing nations are more focused on the short-term rather than long-term
therefore, in order to reduce the cost, they have still not made CSR a priority. Environmental and
social crises are two of the biggest issues prevailing in these nations because of the weak
government policies. Furthermore, they are also targeted by various MNCs (Multinational
Companies) because of their available resources. With the same, most of the publications are
focused on other factors like marketing and promotion of their products in order to lure
customers. This research focuses on investigating whether the stature or reputations of the
socially responsible companies have the potential to drag new customers towards themselves and
whether it gives the customers the sense of demonstrating their responsibility while supporting a
firm with high CSR.

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1.3. Research Questions
The below mentioned questions will be addressed for this study:
1. Does the purchase intentions of the customers are encouraged by the CSR activities of a
company?
2. What are the different elements of consumer behavior?
3. What are the different elements of CSR?
1.4 Theoretical framework
“The challenge for Corporate Social Responsibility (CSR) in developing countries is framed
by a vision that was distilled in 2000 into the Millennium Development Goals- a world with less
poverty, hunger and disease, greater survival prospects for mothers and their infants, educated
children, equal opportunities for women, and a healthier environment” (United Nations, 2006).
Sadly, these hopes have still to be fulfilled in the developing nations. The corporations are yet
not conscious about the effect of the CSR actions upon the attitudes of the customers and their
purchasing behavior (Marquina Feldman & Vasquez-Parraga, 2013). This research has proposed
a link between the above discussed topic –CSR and the actions of the customers. The prime
motivation for firm to involve in the CSR activities to attract customers. The primary research
questions for our study will be 1. How does the purchase intentions of the consumers are
attracted by the CSR activities of a company? 2. What are the different elements of consumer
behavior? 3. What are the different elements of CSR?
2. Literature Review
Numerous researches were conducted aiming analyzing the influences of the CSR in the
behavior of the consumer in different places. According to Muhumed (2018), millions of dollars

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are kept aside by the banking industry (retail banks) for the CSR programs in order to strengthen
their relations with the customers and stakeholders. A substantial amount of study has been
handled in the trade banking sector’s commitment to the Corporate Social Responsibility
principles and their implications. In this era of high competition within the retail banks, the
researchers are therefore now concentrated on finding out if the retail banks are promising
sustainable business practice or not. The extreme vogue of microfinance amongst the several
monetary institutions is because of the existing confidence that- the engagement in the
microfinance programs will assist them greatly in retaining the credibility as development
agencies. The business rewards that the CSR can provide is greater when social initiative are
linked with a company’s key competency and it is concerned with the problems that the
consumers usually care about. According to Baumann-Pauly et al., (2013), the CSR has been
related to large corporations and there are assumptions that the approaches of the CSR are grown
for the large corporations. The speculation in the CSR enterprises is regarded as the source of
competitive edge as well as a device for improving the financial performance. Notwithstanding,
it is not clear whether the CSR initiatives can be used as a tool to attain the competitive
advantage. Marquina Feldman and Vasquez-Parrage (2013) further stated that there is a great
difference in the CSR initiatives of the institution as well as the characteristics of the other
marketing mix.
3. Research methodology
3.1 Sample population
About forty respondents in Peru, of age 15 to 50 years and having an income range of
150-1500 Rupees per day will be surveyed as the participants for this research. These

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respondents are the people who currently reside in Peru and have a good exposure to CSR
activities or marketing and promotions of different products and services. Since, the research
shall be direct; hence, an informed consent will be taken prior to the survey. In order to motivate
them for participating, they will be provided with rewards and incentives.
3.2 Research Philosophy
Five types of research philosophy are considered in academic research. They include
positivism, pragmatism, inter-pretivisim, post-positivism and realism (Silva, 2014). Positivism
refers to the philosophy where the hidden facts and finding are identified through relevant
observation. Pragmatism on the other hand, accepts all the doctrines that are available and it
facilitate in conducting both the qualitative and quantitative analysis of data (Katz, 2015). While
Interpretivism is usually used in the secondary analysis of data in which the journals are used to
identify the relevant findings. Apparently, the post-positivism usually rejects all the assumptions
that are made by positivism and it considers both daily and scientific approach. Lastly, Realism
consists of both direct and critical realism in which the personal sense of the human beings is
accepted by one and is rejected by another. However, in this study, the philosophy of positivism
is chosen.
3.2 Research Design
A total of three in-depth interviews along with three focus groups shall be conducted at
first for understanding the purchasing behavior of the consumer towards the corporations, which
are incorporating CSR actions.
It is to be assuming that the consumers who are earning not more than $1.46 a day are
price sensitive and therefore, they are least bothered about the CSR activities of the firm. Hence,

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there shall be restrictions on the quantitative research sample to the customers belonging from
the socio-economic classes. All the respondents will be approached personally in the interviews
at Peru. They will be given materials, which will include small introduction regarding a
hypothetical company, its services, produces, operations and some positive record of CSR
activities. The respondents shall be free from asking any questions related to the company. A
total of 20 valid interviews shall be conducted for the same.
The constructs that are under consideration in this research are:
1. Customer satisfaction
2. Customer perception
3. Corporate reputation
4. Corporate brand/influence
5. Customer purchasing
6. Customer attitude
7. Customer choice
3.4 Research Materials
A color pamphlet or leaflet of the hypothetical company, which consists of a basic
introduction about the specific company and its different services and activities. The interview
will require a total set of two pretested questionnaires for an in-depth group interview.
3.5 Research approach
This research shall be using exploratory approach to understand the
statistics which is composed qualitative secondary data by using the
academic journal article as well as the academic websites. It includes

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research which covers the barriers for the entrepreneurs to go global. It
includes the opportunities and effort to get the important primary qualitative
data through interviewing the entrepreneurs from the home country who
opened brnches abroad.
3.6 Data Collection methods
This method of data collection is considered to be the technique of gathering and
measuring the data over the directed variables in systematic ways (Papamitsious & Economides,
2014). This method is divided in two sets, namely primary method and secondary method. The
former method focuses on conducting several questionnaires, survey and interviews with small
groups of people (Palinkas et al., 2015). On the other hand, the later one uses the past researches
to collect data from the sources such as the peer-reviewed journal. In this research, the primary
data collection will be taken into consideration by conducting a small group interview of about
twenty valid interviewers. Letter of consent shall be provided to the participants and they will be
collected three days before the interview. A profile of a particular company shall be presented
prior to the dispersal of questionnaire to the participants.
3.7 Protection of Human Rights
Participants will be requested to affirm their accord five days before this interview day
and they will be free to quit their participation from the survey at any while. These interviews
shall be nameless and the confidentiality of the topic will be safe by any means. Each of the
participants will be provided a copy of this survey after it is finished.

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3.8 Managerial Implications
The involvements that are expected from the research are that consumers shall take the
CSR actions positively and they will be engaged in the purchasing behavior accordingly. Higher
marketing effort is expected in order to ensure that the customers will link the CSR campaign
along with the products and services. The customers belonging from the low income groups are
expected not to be conscious of the CSR activities and they do not ponder much about the same
during their purchasing. Increase in the CSR activities shall be advantageous for the companies
in such a competitive market (Homborg, Stierl & Torsten, 2013).
3.9 Limitations
The questionnaires shall be designed on the pattern that will not disclose the name of any
company. They will not particular to only single product line because this may not lead to clear
results. This research paper shall put emphasis on the geographical areas of Peru. This paper will
help to the emerging countries to supply a better comprehension of consumer viewpoint in Peru.

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References:
Baumann-Pauly, D., Wickert, C., Spence, L. J., & Scherer, A. G. (2013). Organizing corporate
social responsibility in small and large firms: Size matters. Journal of Business
Ethics, 115(4), 693-705.
Chernev, A., & Blair, S. (2015). Doing well by doing good: The benevolent halo of corporate
social responsibility. Journal of Consumer Research, 41(6), 1412-1425.
Homburg, C., Stierl, M., & Bornemann, T. (2013). Corporate social responsibility in business-to-
business markets: How organizational customers account for supplier corporate social
responsibility engagement. Journal of Marketing, 77(6), 54-72.
Katz, J. (2015). A theory of qualitative methodology: The social system of analytic
fieldwork. Méthod (e) s: African Review of Social Sciences Methodology, 1(1-2), 131-
146.
Marquina Feldman, P., & Vasquez-Parraga, A. Z. (2013). Consumer social responses to CSR
initiatives versus corporate abilities. Journal of Consumer Marketing, 30(2), 100-111.
Marquina Feldman, P., & Vasquez-Parraga, A. Z. (2013). Consumer social responses to CSR
initiatives versus corporate abilities. Journal of Consumer Marketing, 30(2), 100-111.
Muhumed, Q. M. (2018). Corporate social responsibility strategies and competitive advantage of
commercial banks in Kenya: Case of Equity Bank Kenya Limited. International
Academic Journal of Human Resource and Business Administration, 3(1), 27-51.
Palinkas, L. A., Horwitz, S. M., Green, C. A., Wisdom, J. P., Duan, N., & Hoagwood, K. (2015).
Purposeful sampling for qualitative data collection and analysis in mixed method

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implementation research. Administration and Policy in Mental Health and Mental Health
Services Research, 42(5), 533-544.
Papamitsiou, Z., & Economides, A. A. (2014). Learning analytics and educational data mining in
practice: A systematic literature review of empirical evidence. Journal of Educational
Technology & Society, 17(4), 49.
Porter, M. E., & Kramer, M. R. (2019). Creating shared value. In Managing Sustainable
Business (pp. 327-350). Springer, Dordrecht.
Silva, T. (2014). On the philosophical bases of inquiry in second language writing: Metaphysics,
inquiry paradigms, and the intellectual zeitgeist. In Second language writing research(pp.
19-32). Routledge.