The Relationship between Corporate Social Responsibility Initiative (CSRI) and Consumer Purchase Intention: A Case Study of Consumer Goods Industry in Lao PDR

Abstract

This study investigated the relationship between corporate social responsibility initiative (CSRI) and consumer’s purchase intentions, and their attitudes (loyalty, trust, and commitment). By focusing on the consumer goods industry in Lao PDR, this study examines whether CSR activities can influence consumer purchase intention towards the products and service of the firm that engaging CSRI. Four hundred samples are analyzed by descriptive statistics and hypothesis testing by Chi-square analysis, and Correlation with Alpha .05. The result shows that: there is signification relationship between the degree of matching of brand image and CSR (Brand/Cause fit), and consumer perception of CSR, which will affect consumer purchase intention. When there is a high level of fit consumers are more likely to participate and tend to perceive that the corporate’s CSRI is came from altruistic motivation, positive consumers perception on firm motives and good corporate image are associated not only with higher purchase intention but also with longer-term brand loyalty. The study also investigates further on the role of consumer brand loyalty and demographic variables, to advancing the understanding on consumer behavior in Laos. The finding revealed that, there is a positive correlation among brand loyalty, demographic characteristics and their perception on CSRI. In addition, the study showed that not all CSR initiatives can create equal positive impacts, but firm needs to make sure there is a high level of matching between brand and the CSR cause, in order guarantee the favorable judgment from consumer.

Keywords: Corporate social responsibility, Consumer attitude, Consumer purchase intention，Firm motive, Brand/Cause fit.