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An Integrative Framework to Explore Corporate Ability and Corporate Social Responsibility Association’s Influence on Consumer Responses in the Banking Sector

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  • Mobin Fatma

    (Department of Marketing, College of Business Administration, Prince Sultan University, Riyadh 12435, Saudi Arabia)

  • Imran Khan

    (Department of Marketing, College of Business Administration, Prince Sultan University, Riyadh 12435, Saudi Arabia)

Abstract

In response to the rising attention being given to corporate social responsibility (CSR) activities in the marketplace, this study aims to explain how corporate ability in terms of CSR initiatives influences consumer attitudinal (trust) and behavioral (purchase intention and word of mouth (WOM)) outcomes in the context of the Indian retail banking industry. The data for the study were taken from banking customers through a survey administered in the bank branch during working hours. Non-probabilistic convenience sampling is used to target the respondents. The 357 completed questionnaires taken from the respondents were analyzed using confirmatory factor analysis and structural equation modeling. The findings show the strong influence of CSR on consumer trust, which leads to positive word of mouth and purchase intentions. The findings provide an important insight into consumer behavior, how they form their attitude and make judgments towards the company, and also allow the companies to design better strategies for consumers that prove to be profitable in the long run. This study has implications for banks, as the practical significance of the study is that managers can learn to understand the relevance of CSR in marketing, and the proposed model of this study will help in assessing the effectiveness of CSR initiatives in relation to consumer responses.

Suggested Citation

  • Mobin Fatma & Imran Khan, 2023. "An Integrative Framework to Explore Corporate Ability and Corporate Social Responsibility Association’s Influence on Consumer Responses in the Banking Sector," Sustainability, MDPI, vol. 15(10), pages 1-11, May.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:10:p:7988-:d:1146361
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    References listed on IDEAS

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    1. Chieh-Peng Lin & Shwu-Chuan Chen & Chou-Kang Chiu & Wan-Yu Lee, 2011. "Understanding Purchase Intention During Product-Harm Crises: Moderating Effects of Perceived Corporate Ability and Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 102(3), pages 455-471, September.
    2. Imran Khan & Mobin Fatma, 2023. "CSR Influence on Brand Image and Consumer Word of Mouth: Mediating Role of Brand Trust," Sustainability, MDPI, vol. 15(4), pages 1-10, February.
    3. Oriol Iglesias & Stefan Markovic & Jatinder Jit Singh & Vicenta Sierra, 2019. "Do Customer Perceptions of Corporate Services Brand Ethicality Improve Brand Equity? Considering the Roles of Brand Heritage, Brand Image, and Recognition Benefits," Journal of Business Ethics, Springer, vol. 154(2), pages 441-459, January.
    4. Ishfaq Ahmed & Mian Sajid Nazir & Imran Ali & Mohammad Nurunnabi & Arooj Khalid & Muhammad Zeeshan Shaukat, 2020. "Investing In CSR Pays You Back in Many Ways! The Case of Perceptual, Attitudinal and Behavioral Outcomes of Customers," Sustainability, MDPI, vol. 12(3), pages 1-15, February.
    5. Mobin Fatma & Imran Khan & Zillur Rahman, 2018. "Striving for legitimacy through CSR: an exploration of employees responses in controversial industry sector," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 15(7), pages 924-938, November.
    6. Karpinska-Krakowiak, Malgorzata, 2021. "Women are more likely to buy unknown brands than men: The effects of gender and known versus unknown brands on purchase intentions," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
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    Cited by:

    1. Otero Gómez, María Cristina & Pérez, Wilson Giraldo & Gutiérrez Barriga, Luis Alejandro, 2024. "Análisis de la responsabilidad social empresarial en la respuesta afectiva de los usuarios de Bancolombia," Revista Tendencias, Universidad de Narino, vol. 25(1), pages 33-51, January.
    2. Luísa Pinto, 2023. "A Qualitative Analysis of Corporate Social Responsibility in Saudi Arabia’s Service Sector-Practices and Company Performance," Sustainability, MDPI, vol. 15(12), pages 1-14, June.

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