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The Advertising Effects of Corporate Social Responsibility on Corporate Reputation and Brand Equity: Evidence from the Life Insurance Industry in Taiwan

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  • Ker-Tah Hsu

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    Abstract

    This study investigates the persuasive advertising and informative advertising effects of CSR initiatives on corporate reputation and brand equity based on the evidence from the life insurance industry in Taiwan. The study finds, first, policyholders’ perceptions concerning the CSR initiatives of life insurance companies have positive effects on customer satisfaction, corporate reputation, and brand equity. Second, the advertising effects of the CSR initiatives on corporate reputation are only informative. Third, the impacts of CSR initiatives on brand equity include informative advertising and persuasive advertising effects. This study contributes the literature by explicit defining the advertising effects of CSR initiatives. Following the first step made by McWilliams et al. (Journal of Management Studies 43(1):1–18, 2006 ), the hypotheses of this study crystallize their conceptual framework. The obtained results in this research first identify the informative advertising effects and persuasive advertising effects of CSR initiatives. Copyright Springer Science+Business Media B.V. 2012

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    File URL: http://hdl.handle.net/10.1007/s10551-011-1118-0
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    Bibliographic Info

    Article provided by Springer in its journal Journal of Business Ethics.

    Volume (Year): 109 (2012)
    Issue (Month): 2 (August)
    Pages: 189-201

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    Handle: RePEc:kap:jbuset:v:109:y:2012:i:2:p:189-201

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    Web page: http://www.springerlink.com/link.asp?id=100281

    Related research

    Keywords: Advertising effect; Brand equity; Corporate reputation; Customer satisfaction; CSR;

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    1. Yoo, Boonghee & Donthu, Naveen, 2001. "Developing and validating a multidimensional consumer-based brand equity scale," Journal of Business Research, Elsevier, vol. 52(1), pages 1-14, April.
    2. Heidrun C. Hoppe & Ulrich Lehmann-Grube, 2001. "Second-Mover Advantages in Dynamic Quality Competition," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 10(3), pages 419-433, 09.
    3. Brickley, James A. & Smith Jr., Clifford W. & Zimmerman, Jerold L., 2002. "Business ethics and organizational architecture," Journal of Banking & Finance, Elsevier, vol. 26(9), pages 1821-1835, September.
    4. Athanassopoulos, Antreas D., 2000. "Customer Satisfaction Cues To Support Market Segmentation and Explain Switching Behavior," Journal of Business Research, Elsevier, vol. 47(3), pages 191-207, March.
    5. Abagail McWilliams & Donald S. Siegel & Patrick M. Wright, 2005. "Corporate Social Responsibility: Strategic Implications," Rensselaer Working Papers in Economics 0506, Rensselaer Polytechnic Institute, Department of Economics.
    6. Carol J. Simon & Mary W. Sullivan, 1993. "The Measurement and Determinants of Brand Equity: A Financial Approach," Marketing Science, INFORMS, vol. 12(1), pages 28-52.
    7. Eugene W. Anderson & Mary W. Sullivan, 1993. "The Antecedents and Consequences of Customer Satisfaction for Firms," Marketing Science, INFORMS, vol. 12(2), pages 125-143.
    8. Chi-Shiun Lai & Chih-Jen Chiu & Chin-Fang Yang & Da-Chang Pai, 2010. "The Effects of Corporate Social Responsibility on Brand Performance: The Mediating Effect of Industrial Brand Equity and Corporate Reputation," Journal of Business Ethics, Springer, vol. 95(3), pages 457-469, September.
    9. Marjo Siltaoja, 2006. "Value Priorities as Combining Core Factors Between CSR and Reputation – A Qualitative Study," Journal of Business Ethics, Springer, vol. 68(1), pages 91-111, September.
    10. Hae-Ryong Kim & Moonkyu Lee & Hyoung-Tark Lee & Na-Min Kim, 2010. "Corporate Social Responsibility and Employee–Company Identification," Journal of Business Ethics, Springer, vol. 95(4), pages 557-569, September.
    11. Brady, Michael K. & Robertson, Christopher J., 2001. "Searching for a consensus on the antecedent role of service quality and satisfaction: an exploratory cross-national study," Journal of Business Research, Elsevier, vol. 51(1), pages 53-60, January.
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    Cited by:
    1. Eun-Ju Lee & Gusang Kwon & Hyun Shin & Seungeun Yang & Sukhan Lee & Minah Suh, 2014. "The Spell of Green: Can Frontal EEG Activations Identify Green Consumers?," Journal of Business Ethics, Springer, vol. 122(3), pages 511-521, July.

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