THE INFLUENCE OF AN ENTERPRISE’S CORPORATE SOCIAL RESPONSIBILITY AND BRAND IMAGE COGNITION ON CONSUMERS’ BEHAVIOR: A CASE STUDY OF THE BIG ISSUE

THE INFLUENCE OF AN ENTERPRISE’S CORPORATE SOCIAL RESPONSIBILITY AND BRAND IMAGE COGNITION ON CONSUMERS’ BEHAVIOR: A CASE STUDY OF THE BIG ISSUE

Introduction

Background of the Study

Homburg, Stierl and Bornemann (2013) have defined corporate social responsibility as a form of corporate self-regulation that is integrated into an organisation’s business model. Mason and Simmons (2014) add that it is a corporate initiative taken by an organisation to evaluate and take responsibility for the effects of its operations on the environment and on social welfare. In essence, corporate social responsibility is a built-in, self-assessment mechanism in which an organisation monitors and ensures that its active compliance with the law, ethical standards, and relevant international norms. According to Hiller (2013), in some models, an organisation’s implementation of corporate social responsibility goes beyond just compliance and takes some actions that tend to enhance some social good, beyond the interests of the organisation and that which the law requires.

Nonetheless, Gielens (2012) views a brand as a term that is used to identify an organisation’s product. The researcher further explains that a brand is what makes a product to be distinct from other similar brands in the market. Therefore, brand cognition is a consumer’s perception of a specific brand concept. It is about how a consumer interprets a product brand as an expectation. Thus, Chea and Luo (2008) and Lantos (2010) have argued that both corporate responsibility and brand image cognition have some influence on consumers’ behaviour. This forms the basis of this research study.

Statement of the Problem

There are many research studies that have been done with respect to the influence of a corporate organisation’s corporate social responsibility and brand image cognition on the behaviour of consumers (Romani, Grappi & Bagozzi 2013; Park, Lee & Kim 2014). However, the research studies have not yielded sufficient information, especially with regard to how the Big Issue’s corporate social responsibility and brand image cognition influence its consumer behaviours. This has left a significant research gap that this study will seek to bridge.

Purpose of the Study

The primary purpose of this research study is to evaluate the influence of an enterprise’s corporate social responsibility and brand image cognition on consumers’ behaviour, with a focus on the Big Issue.

Objectives of the Study

The general objective of this research study is to evaluate the influence of an enterprise’s corporate social responsibility and brand image cognition on consumers’ behaviour. Nonetheless, the specific objectives are:

  1. To determine the relationship between corporate social responsibility and brand image cognition, on one hand, and consumers’ behaviour on the other.
  2. To determine how the Big Issue’s corporate social responsibility influences the behaviour of consumers.
  3. To determine how the Big Issue’s brand image cognition influences the behaviour of consumers.

Research Questions and Hypothesis

  1. Is there a relationship between corporate social responsibility and brand image cognition and the behaviour of consumers?
  2. How does the Big Issue’s corporate social responsibility influence the behaviour of its customers?
  3. How does the Big Issue’s brand image cognition influence the behaviour of its customers?

Hypotheses

H0: There is no relationship between the Big Issue’s corporate social responsibility and brand image cognition and the behaviour of consumers.

Ha: There is a relationship between the Big Issue’s corporate social responsibility and brand image cognition and the behaviour of consumers.

Rationale and Significance of the Study

As noted earlier, there are not enough studies that have been done with respect to the influence of corporate social responsibility and brand image cognition on consumers’ behaviour, which has left a significant research gap, especially with respect to the Big Issue. Therefore, the rationale for this study is to bridge the research gap that was left by the previous studies.

In relation to significance, the results of this study will first be of a great benefit to the Big Issue. It will provide the organisation with information regarding how its corporate social responsibility and brand image cognition influence the behaviour of consumers. The information will also be important to other organisations. Importantly, the findings of the study will provide a foundation for future similar studies.

Literature Review

Corporate Social Responsibility and Consumer Behaviour

There are many studies that have been done to establish the relationship between corporate social responsibility and consumer behaviour. An empirical study that was done by Mishra and Mohanty (2013) focused on the specific impact of corporate social responsibility on consumers’ behaviour. Based on the results, the researchers concluded that consumers tended to prefer products from companies that followed the law and engaged in social initiatives that benefitted the local people. This was also confirmed by a study that was done by Mihalache (2013).

Rahizar, Jalaludin and Tajuddin (2011), He and Lai (2014) and Gupta and Hodges (2012) have shown that there is a positive correlation between an organisation’s corporate social responsibility initiatives and the attitudes of consumers towards the organisation and its product. This finding was also found by another researcher in another empirical study. Groza, Pronschinske and Walker (2011) conducted another study in which he established that CSR has a positive implication as a driver of consumer loyalty to the products of an organisation.

Even though the above studies have shown that there is a positive correlation between corporate social responsibility and consumer behaviour, studies by Bashar, Ahmad and Wasiq (2013), Fratu (2011) and Gherasim (2013) have indicated that the consumer behaviour is influenced by factors that are more than corporate social responsibility. For instance, the researchers have found out that the behaviour of a consumer is much influenced by many factors: psychological, personal, social and cultural factors. This disproves researchers who have focused on corporate social responsibility as if it is the only way through the behaviour of consumers can be influenced.

Low, idowu and Ang (2013) argue that it is unlikely that consumers will blindly accept a company’s social responsibility initiatives. The implication of the argument is that it is not a guarantee that a company will always benefit by initiating corporate social responsibility initiatives. The researchers contend that consumers can only change their behaviours according to their evaluation of the activities and how they benefit from them. This has been confirmed through other studies done by Benson (2011) and Schwalbach (2010).

Vlachos (2012) contends that a perceived corporate motivation is likely to influence the behaviour and attitude of consumers towards a corporate organisation and its social initiatives. McDonald and Rundle-Thiele (2008) note that even though an organisation’s act of supporting social responsibility initiatives may be seen as beneficial to the public, the way consumers perceive the underlying motives may inform their assessments of the organisation, the assessment of which determines their attitudes, intentions and beliefs in relation to the organisation. This implies that consumers determine whether they prefer products of an organisation based on their assessment of the organisation.

Brand Image Cognition and Consumer Behaviour

Wheeler (2012) has defined a brand image as a product knowledge that allows consumers to identify a particular brand without confusing it with almost similar ones. Consumers encounter many competing product brands in the market.  Dens and De Pelsmacker (2010) argue that despite the many brands, consumers pay very minimal attention to how the exposure to the brands is likely to impact their subsequent behaviours. Moreover, the researchers reveal that when a minimal processing is involved, exposing customers to brands with any specific personality may have an influence on how they react to product brands that they are able to see simultaneously. This implies that the way a product brand image is presented has a significant influence on how consumers behave in reaction to the brand. Martinez (2012) argues that the whole process of an image perception is linked to a consumer’s cognition. The researcher defines a consumer’s cognitive process to include different layers of sensations and feelings.

Zaichkowsky, Parlee and Hill (2010) have shown that brand images have tangible and intangible relationships with consumers. In relation to tangibility, the researchers have unanimously agreed that consumers are often concerned with the size, punch line, reputation and colour of a product. According to the researchers, brand images are important to consumers in the sense that they use them to evaluate the quality of a product and consequently exhibit the appropriate behaviours.

Tsiotsou (2011) and Kandampully (2011) have argued that the loyalty of consumers to a specific product brand begins with brand cognition. The empirical study done by the researchers indicates that brand cognition significantly influence brand loyalty, which is influenced by a combination of brand by brand image and association through a perceived quality of products. The problem with these studies is that they are generalist in nature and do not focus on a specific industry, product or region. This makes it difficult to generalise their findings to all products. Besides, the researchers have not explained how brand cognition, association and loyalty influence consumers’ behaviours.

Theoretical Framework

This research study will be based on the social identity theory, which was developed by Tajfel and Turner in 1979 (Burke 2006). The social identity approach treats individual attitudinal expressions interpersonal communications that represent a specific image of respondents to self and others (Burke 2006). The theory envisages when individuals will associates themselves with specific symbols, and when a change in attitude will trigger a specific behaviour (Burke 2006). This theory will be applied in this study to understand consumer behaviour in response to organisations’ corporate social responsibility initiatives and brand images.

 

Research Methodology

Research Design

A quantitative research design will be used in this study. The preference for this design is based on its specific strengths. First, it is the most appropriate design for testing hypotheses and theories on how individuals behave in certain ways (Creswell 2014). Second, a quantitative research design is more objective than any other design. Third, the results can easily be generalised to a larger population. Lastly, a quantitative design yields numerical data, which are easy to analyse (Creswell 2014).

However, a quantitative research is not without its own weaknesses. First, it ignores the environmental contexts of the phenomena under study (Creswell 2014). Second, the statistical accuracy is linked to the size of sample population used in a study; to achieve a high accuracy level, a sample size must also be large (Creswell 2014). This is relatively costly in terms of time and resources. Last, this kind of design does not allow a researcher to delve into the nuances of a subject under study. Despite the weaknesses, the quantitative research is still the most preferred design for this study due to its strengths (Creswell 2014).

Sampling Procedure

The study will target the population of consumers who use the products of the Big Issue, from which a total of 200 respondents will be selected to participate in the study. A snowball sampling technique will be used to select the respondents. Snowball sampling is a non-probability sampling method where respondents are involved in recruiting future respondents (Babbie 2013). The choice of this sampling technique is based on the fact that it will not be easy to identify the consumers of the Big Issue’s product (Babbie 2013). Therefore, one few consumers will be identified, they will be asked to help in recruiting other respondents. It is a more direct sampling technique as compared to other non-probabilistic techniques. Moreover, it is a relatively cheap way recruiting respondents (Babbie 2013).

Methods of Data Collection

Survey questionnaires will be used as data collection instruments. The suitability of questionnaires is that they will allow for the administration of questions in a standard way. The questionnaires also make it possible for a researcher to collect data from a large sample population within a relatively short period of time (Bethlehem 2009). Survey questionnaires are easy to analyse, especially because they can be used to collect numerical data (Bethlehem 2009).

However, questionnaires also have weaknesses. First, emphases are placed on numerical data, which means that a researcher may miss important data that cannot be given in numerical form, because a respondent does not have the freedom to provide as much related information as possible (Bethlehem 2009). Nonetheless, since this study will seek to collect quantitative data, survey questionnaires will be used.

Ethical Issues in Research

Any research study involving human subjects must have some ethical issues that a researcher must deal with in order to make a research credible. Therefore, before the commencement of this research study, the researcher will obtain a written consent from each of the respondents. No one will be coerced or enticed to participate in the study. Moreover, the researcher will explain to the respondents the main purpose of the study and how data will be used for the purposes of achieving the study objectives. In addition, the identities of the respondents will be made anonymous, especially where they will request so. After the analysis process, data will be destroyed immediately to avoid unauthorised access and usage by third parties.

Methods of Data Analysis

The data that will be collected will be analysed quantitatively through the use of SPSS data analysis software. The software is one of the most used quantitative data software. It is relatively cheap and easily available. The data will first be cleaned, coded and then entered into a computer system. The techniques to be used will include a t-test to determine whether to accept or reject the null hypothesis, frequency distribution and correlation between different variables. The results will be presented in tables, charts and bar graphs.

The Research Program

Stages of Research Start End
Gathering the required books, journals and periodicals 3 March 2014 4 March 2014
Writing research proposal and literature reviews 5 March 2014 8 March 2014
Submission of the research proposal for approval 9 March 2014 11 March 2014
Design and pretesting questionnaires 9 March 2014 13 March 2014
Actual Fieldwork: Sampling and data collection 15 March 2014 15 April 2014
Data analysis process 17 April 2014 20 April 2014
Compilation of the research report and submission 21 April 2014 30 April 2014

 

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