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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.
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    4. 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.
    5. Mohammad Nurunnabi & Yazeed Alfakhri & Demah H. Alfakhri, 2018. "Consumer perceptions and corporate social responsibility: what we know so far," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 15(2), pages 161-187, June.
    6. Abhi Bhattacharya & Valerie Good & Hanieh Sardashti & John Peloza, 2021. "Beyond Warm Glow: The Risk-Mitigating Effect of Corporate Social Responsibility (CSR)," Journal of Business Ethics, Springer, vol. 171(2), pages 317-336, June.
    7. 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.
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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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