Impact of Dimensions of CSR on Purchase Intention with Mediating Role of Customer Satisfaction, Commitment and Trust

Abstract

CSR has been an important matter for companies; however, concerns about CSR issues are also intensified. Despite the prominence of CSR, research is yet to investigate how CSR practices influence customers purchase intentions. The study aims to investigate the CSR effect on purchase intention. It took step ahead to operationalize CSR into dimensions (social CSR, environmental CSR, and legal CSR) and evaluate each dimension to measure the impact on purchase intention. Secondly, mediating effect of satisfaction, commitment and trust is examined. Data is collected from cellular users of Telecom sector of Pakistan; convenience sampling technique is adopted with sample size of 327 individuals. EFA and CFA are conducted to evaluate factors whereas SEM is executed to test hypotheses. Findings showed significant relationship exists between CSR dimensions and purchase intention. Moreover, partial mediation exists between CSR dimensions and purchase intention. Result encourages mangers of Telecom sector to keep investing on CSR activities. Customers are inclined towards companies who practice CSR; it acts as a safety net buffer and protects companies from unpredictable negative events. Theoretically the present study made a number of contributions. Firstly, it examined the dimensions of CSR which previously taken as a one construct. Secondly, the effect of each dimension on purchase intention is evaluated. Future study can examine the impact of dimensions of CSR in other context such as: FMCG, mobile industry, hospitality sector, oil and gas, and chemical sector etc and proposed hypotheses can also be tested in developed economies by investigating the significance of social, ethical and legal assumptions in context of corporate social responsibility.