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Building Consumer-Oriented CSR Differentiation Strategy

Author

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  • Jinhua Li

    (Scientific Laboratory of Economic Behaviors, School of Economics & Management, South China Normal University, Guangzhou 510006, China)

  • Fang Zhang

    (Dept. of Business Administration, Guangzhou College of Technology and Business, Foshan 528000, China)

  • Shiwei Sun

    (School of Management and Economics, Beijing Institute of Technology, Beijing 100081, China
    Sustainable Development Research Institute for Economy and Society of Beijing, Beijing 100081, China)

Abstract

In a fierce competitive industry, firms conducting a corporate social responsibility (CSR) differentiation strategy can build a relative advantage. However, there is lack of literature to discuss the approach to identifying companies’ CSR differentiation conditions. Based on the theoretical foundations of consumers’ responses to CSR differentiation strategies, this paper proposes a consumer-oriented approach to identify CSR differentiation by using the best–worst scaling approach. In the context of the mobile phone industry, CSR activities were prioritized according to the extent to which they were valued by consumers. Consumers’ perceptions of the CSR activities of Huawei and Apple were also assessed in this study. Finally, the CSR differentiation conditions between the two companies was evaluated. The findings include the following: (1) the consumer priorities for different CSR activities vary greatly, and it is essential for firms to adopt a CSR differentiation strategy; (2) it is feasible to adopt a proper CSR premium in product pricing to build a socially responsible company; and (3) the lack of CSR communication between companies and consumers leads to consumers’ perceived distortion. The results provide implications for firms’ CSR practice.

Suggested Citation

  • Jinhua Li & Fang Zhang & Shiwei Sun, 2019. "Building Consumer-Oriented CSR Differentiation Strategy," Sustainability, MDPI, vol. 11(3), pages 1-14, January.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:3:p:664-:d:201221
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    References listed on IDEAS

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    2. Dang, Van Thac & Nguyen, Ninh & Pervan, Simon, 2020. "Retailer corporate social responsibility and consumer citizenship behavior: The mediating roles of perceived consumer effectiveness and consumer trust," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    3. Alfredo Flores-Hernández & Ana Olavarría-Jaraba & Guadalupe Valera-Blanes & Rosario Vázquez-Carrasco, 2020. "Sustainability and Branding in Retail: A Model of Chain of Effects," Sustainability, MDPI, vol. 12(14), pages 1-15, July.
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    5. Weihua Liu & Wanying Wei & Xiaoyu Yan & Di Wang, 2019. "Supply Contract Design with Asymmetric Corporate Social Responsibility Cost Information in Service Supply Chain," Sustainability, MDPI, vol. 11(5), pages 1-24, March.
    6. Barić, Andrija, 2022. "The Role of Social Responsibility in Company Strategy," Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference (2022), Hybrid Conference, Opatija, Croatia, in: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Hybrid Conference, Opatija, Croatia, 17-18 June 2022, pages 390-405, IRENET - Society for Advancing Innovation and Research in Economy, Zagreb.
    7. Andrija Bariæ & Mislav Ante Omaziæ & Ana Aleksiæ, 2021. "Corporate social responsibility of export organizations: Relation between strategy, activities and communication on foreign markets," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 19(1), pages 120-131.
    8. Niclas Erhardt & Carlos Martin-Rios & Jason Bolton & Matthew Luth, 2022. "Doing Well by Creating Economic Value through Social Values among Craft Beer Breweries: A Case Study in Responsible Innovation and Growth," Sustainability, MDPI, vol. 14(5), pages 1-17, February.
    9. Wadim Strielkowski & Elena Tarkhanova & Natalia Baburina & Justas Streimikis, 2021. "Corporate Social Responsibility and the Renewable Energy Development in the Baltic States," Sustainability, MDPI, vol. 13(17), pages 1-18, September.
    10. Adrian T. H. Kuah & Yi Xia & Pengji Wang, 2022. "How Do Corporate Social Responsibility Engagements Drive Consumer–Company Identification in Singapore?," Sustainability, MDPI, vol. 14(10), pages 1-23, May.
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