The Influence of Corporate Social Responsibility on Brand Equity and Consumer Behavior

Abstract

This study aims to determine “Corporate Social Responsibility” (CSR) effect on “brand equity” and “consumer behavior” using a mixed method design. The quantitative phase was the use of a survey of 500 participants and SEM to test the mediation model between CSR perceptions, brand equity, and “consumer behavior”. The qualitative stage consisted of case study approaches to The Body Shop and Patagonia coupled with interview of marketing managers and CSR officials to provide real-life perspectives on the implementation of CSR. The findings show that CSR has a positive relationship with “brand equity “and the relationship between CSR and “consumer behavior” is also partially mediated by brand equity. This may mean that CSR influences “brand equity “positively by increasing product and service trust, consumer loyalty, and willingness to promote a particular brand. This is underpinned by key theoretical perspectives such as Carroll’s Pyramid of CSR, Stakeholder Theory and Aaker’s “brand equity” model. This research highlights the significance of embedding CSR into corporate activities as well as providing practical suggestions which businesses can refer to for creating business value via CSR. Such future research directions may include longitudinal studies, industry specificity, and digital as well as other CSR strategies. Finally, this paper has provided an answer to the present research question and enhanced the understanding of how CSR can enhance “brand equity “and stimulate “consumer behavior” in the field of knowledge and in the field of business.

DOI: https://doi.org/10.52783/jier.v4i2.1013