Impact of CSR on Brand Loyalty in Chinese Retail Companies

This research examines the impact of CSR on brand loyalty in Chinese retail companies. It analyzes the CSR activities of Chinese retail companies and their effect on consumer behavior and brand loyalty. The study aims to provide useful implications for improving brand loyalty through CSR activities.

Running head: IMPACT OF CSR ON BRAND LOYALTY IN CHINESE RETAIL
COMPANIES
Impact of CSR on Brand Loyalty in Chinese Retail Companies
Name of the University:
Name of the Student:
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1IMPACT OF CSR ON BRAND LOYALTY IN CHINESE RETAIL COMPANIES
Executive Summary
CSR activities of Chinese retail companies have positive effect on consumer behavior
encompassing loyalty as it positively influence consumers product attitude. From such
relationship it has been gathered that consumers those have confidence and trust on the
company’s products and services will tend to have loyalty towards the brand and they will also
find the CSR activates of the organization to contribute towards betterment of consumers.
Primary and secondary data will be collected for this research that will facilitate in gathering
most suitable data for analyzing the relationship between CSR and brand loyalty in Chinese retail
companies. The data gathered will be analyzed through employing reliable statistical methods
such as SPSS by means of which correlation and regression analysis will be carried out for
testing hypotheses.

2IMPACT OF CSR ON BRAND LOYALTY IN CHINESE RETAIL COMPANIES
Table of Contents
1. Introduction..................................................................................................................................3
1.1. Research Background and Significance...............................................................................3
1.2. Aim and Objectives..............................................................................................................3
1.3. Research Questions...............................................................................................................3
1.4. Research hypotheses:............................................................................................................4
2. Literature Review........................................................................................................................4
2.1. Concept of Corporate Social Responsibility.........................................................................4
2.2. Concept of Brand Loyalty....................................................................................................4
2.3. Impact of CSR on Brand Loyalty in Chinese Retail Companies..........................................5
3. Research Methodology................................................................................................................5
3.1. Research Approach and Philosophy.....................................................................................5
3.2. Research Design...................................................................................................................5
3.3. Data Collection Methods......................................................................................................6
3.4. Sampling and Sample Size...................................................................................................6
3.5. Data Analysis........................................................................................................................6
3.6. Research Limitations............................................................................................................7
3.7. Research Timeline................................................................................................................7
References........................................................................................................................................9

3IMPACT OF CSR ON BRAND LOYALTY IN CHINESE RETAIL COMPANIES

4IMPACT OF CSR ON BRAND LOYALTY IN CHINESE RETAIL COMPANIES
1. Introduction
1.1. Research Background and Significance
Corporate Social Responsibility (CSR) and brand loyalty is recognized as important
business benefit generators. Through being good corporate citizens, the retail organizations can
convert its consumers into brand ambassadors which can make consumers to pay increased
prices for identical services or products (Cha, Yi & Bagozzi, 2016). Moreover, a positive image
of organizations through CSR activities can improve its profitability and can attract new
investors, skilled workers and huge target consumer base.
Considering the same, the significance of the research will be to offer useful implications
on the suitable CSR activities those can be implemented by Chinese retail companies in
improving brand loyalty.
1.2. Aim and Objectives
The aim of the research is to analyze the impact of CSR on brand loyalty of consumers in
the retail companies of China. The objectives of research are indicated below:
 To analyze the CSR activities of Chinese retail companies in increasing brand loyalty
 To evaluate the aspects of CSR initiatives such as environmental sustainability, ethical
business practices and economic responsibility in increasing brand loyalty
 To recommend CSR activities for Chinese retail companies in improving brand loyalty
1.3. Research Questions
The research questions those are to be answered through completion of the research are
indicated below:

5IMPACT OF CSR ON BRAND LOYALTY IN CHINESE RETAIL COMPANIES
 What are the CSR activities of Chinese retail companies in increasing brand loyalty?
 What are the aspects of CSR initiatives such as environmental sustainability, ethical
business practices and economic responsibility in increasing brand loyalty
 What are the recommended CSR activities for Chinese retail companies in improving
brand loyalty?
1.4. Research hypotheses:
 H0: CSR initiatives such as environmental sustainability, ethical business practices and
economic responsibility has a negative impact on consumer loyalty of Chinese consumers
 H1: CSR initiatives such as environmental sustainability, ethical business practices and
economic responsibility has a positive impact on brand loyalty of Chinese consumers
2. Literature Review
2.1. Concept of Corporate Social Responsibility
Chang, (2017) defined CSR as companies encouragement to be highly aware of their
impact on businesses on the overall society encompassing the stakeholders and the business
environment. CSR activities implemented by companies include four major aspects such as
ethical, legal, economic and philanthropic which ensures social responsibility for sustainable
development.
2.2. Concept of Brand Loyalty
Moon, Lee & Oh, (2015) defined brand loyalty as a broad concept which is a biased
behavioral response expressed over time by the consumers in consideration to one or more
alternative brands out of several available brands.

6IMPACT OF CSR ON BRAND LOYALTY IN CHINESE RETAIL COMPANIES
2.3. Impact of CSR on Brand Loyalty in Chinese Retail Companies
Lu, Liu & Rahman, (2017) elucidated that there is an increased impact of CSR on the
brand loyalty of the consumers in the Chinese retail organizations. These researchers also
confirmed that CSR activities of Chinese retail companies have positive effect on consumer
behavior encompassing loyalty as it positively influence consumers product attitude. From such
relationship it has been gathered that consumers those have confidence and trust on the
company’s products and services will tend to have loyalty towards the brand and they will also
find the CSR activates of the organization to contribute towards betterment of consumers.
3. Research Methodology
3.1. Research Approach and Philosophy
Deductive research approach and positivism research philosophy will be employed in the
current research as the selected philosophy will facilitate the researcher in associating the models
and theories explained in literature review with the recent scenario. Moreover, the selected
research approach will facilitate the researcher in carrying out quantitative research effectively
through analyzing the responses attained from the survey respondents (Fletcher, 2017).
Passivism research philosophy with deductive research approach is considered suitable as this is
directly associated with quantitative data analysis in which data collected will be analyzed with
the support of previous trends along with existing models along with proven facts.
3.2. Research Design
The research design that is considered to be suitable for this research is descriptive. This
design will be selected by the researcher as it can facilitate in explaining the characteristics of the
sample population that will be employed in the study (Kumar, 2019). Moreover, as the study will

7IMPACT OF CSR ON BRAND LOYALTY IN CHINESE RETAIL COMPANIES
employ quantitative data analysis this research design will be most suitable in correlating
variables or determining the cause and effect relationship between CSR activities of companies
and consumer brand loyalty.
3.3. Data Collection Methods
Primary and secondary data will be collected for this research that will facilitate in
gathering most suitable data for analyzing the relationship between CSR and brand loyalty in
Chinese retail companies (Kumar, 2019). Secondary data will be gathered from government
publications, peer reviewed journals and annual reports of Chinese retail companies. Primary
data will be gathered through survey method in which the questionnaire developed will be
distributed to target respondents’ trough personalized e-mails.
3.4. Sampling and Sample Size
Simple random sampling technique will be employed in this research as it can provide
equal changes for the target respondents from a population to get selected for the survey. It is
gathered that quantitative data analysis will focus on attaining larger sample size for adequately
analyzing respondents’ responses (Kumar, 2019). The sample selected for this research will
include 110 consumers of the Chinese retail companies for gathering most relevant primary data
in quantitative research analysis.
3.5. Data Analysis
The data gathered will be analyzed through employing reliable statistical methods such as
SPSS by means of which correlation and regression analysis will be carried out for testing
hypotheses. This can facilitate in anticipating the respondents insight. The data analyze will be

8IMPACT OF CSR ON BRAND LOYALTY IN CHINESE RETAIL COMPANIES
represented in the form of tables and graphs for making the results easily understandable (Flick,
2015).
3.6. Research Limitations
Despite having certain useful implications, the research has certain limitations regarding
reliability of the information gathered from the primary data collection method that can generate
an obstacle between research findings and study accomplishment. This is or the reason that the
consumers might have the tendency to provide a positive image of the companies a might not
disclosure major issues. For such reasons, researcher might face issues related with analyzing
CSR issues and recommending suitable solutions to companies.
3.7. Research Timeline
Task Year
1
Year
2
Year
2
Year
3
Year
3
Year
4
Year
4
Year
5
Year
5
Selection of topic
and search for
justification
Constructing
literature
Selecting
appropriate
methods
Data collection

9IMPACT OF CSR ON BRAND LOYALTY IN CHINESE RETAIL COMPANIES
Data analysis and
representation
Reviewing the
outcomes
Conclusions and
recommendations
Submitting draft
of the project
Printing and final
submission

10IMPACT OF CSR ON BRAND LOYALTY IN CHINESE RETAIL COMPANIES
References
Cha, M. K., Yi, Y., & Bagozzi, R. P. (2016). Effects of customer participation in corporate social
responsibility (CSR) programs on the CSR-brand fit and brand loyalty. Cornell
Hospitality Quarterly, 57(3), 235-249.
Chang, H. H. (2017). Consumer socially sustainable consumption: the perspective toward
corporate social responsibility, perceived value, and brand loyalty. Journal of Economics
and Management, 13(2), 167-191.
Fletcher, A. J. (2017). Applying critical realism in qualitative research: methodology meets
method. International Journal of Social Research Methodology, 20(2), 181-194.
Flick, U. (2015). Introducing research methodology: A beginner's guide to doing a research
project. Sage.
Iglesias, O., Markovic, S., Bagherzadeh, M., & Singh, J. J. (2018). Co-creation: A key link
between corporate social responsibility, customer trust, and customer loyalty. Journal of
Business Ethics, 1-16.
Kumar, R. (2019). Research methodology: A step-by-step guide for beginners. Sage Publications
Limited.
Lu, X., Liu, H. W., & Rahman, M. (2017). The impact of corporate social responsibility on
customer loyalty: A case for two global corporations in China. Strategic Change, 26(3),
251-260.

11IMPACT OF CSR ON BRAND LOYALTY IN CHINESE RETAIL COMPANIES
Moon, B. J., Lee, L. W., & Oh, C. H. (2015). The impact of CSR on consumer-corporate
connection and brand loyalty: A cross cultural investigation. International Marketing
Review, 32(5), 518-539.