Relationship between Corporate Social Responsibility (CSR) Initiatives and Brand Loyalty in Emerging Markets
DOI:
https://doi.org/10.47672/ijbs.1821Keywords:
Corporate Social Responsibility, Initiatives, Brand Loyalty, Emerging MarketsAbstract
Purpose: The aim of the study was to assess the relationship between corporate social responsibility (CSR) initiatives and brand loyalty in emerging markets.
Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.
Findings: The relationship between Corporate Social Responsibility (CSR) initiatives and brand loyalty in emerging markets is a complex interplay of various factors. Studies suggest that CSR initiatives positively influence brand loyalty in these markets, as consumers tend to perceive socially responsible companies more favorably and are more likely to develop strong emotional connections with such brands. However, the effectiveness of CSR initiatives in building brand loyalty can vary depending on the specific context of the emerging market, including cultural, economic, and regulatory factors. Moreover, the authenticity and transparency of CSR efforts play a crucial role in shaping
consumer perceptions and trust towards the brand. Companies that genuinely integrate CSR into their business strategies and demonstrate tangible social and environmental impact are more likely to enjoy long-term loyalty from consumers in emerging markets. Additionally, engaging in community development programs and addressing local societal needs can further enhance brand loyalty by fostering a sense of goodwill and reciprocity among consumers.
Implications to Theory, Practice and Policy: Stakeholder theory, social identity theory and institutional theory may be use to anchor future studies on assessing the relationship between corporate social responsibility (CSR) initiatives and brand loyalty in emerging markets. Develop CSR initiatives that are tailored to the socio-economic, cultural, and regional contexts of specific emerging markets, aligning them with the prevalent concerns and values of local consumers to enhance brand loyalty. Implement policies that incentivize and encourage businesses operating in emerging markets to adopt CSR practices, recognizing the potential of CSR initiatives to drive brand loyalty while contributing to positive social and environmental outcomes.
Downloads
References
Aguilar, F. J., Pérez, S. A., & Martínez, J. M. (2017). Consumer-Based Brand Equity Model for Mexican Food Brands. Journal of Food Products Marketing, 23(1), 94–112. https://doi.org/10.1080/10454446.2015.1110891
Batra, R., Ramaswamy, V., Alden, D. L., Steenkamp, J. B. E., & Ramachander, S. (2015). Effects of Brand Local and Nonlocal Origin on Consumer Attitudes in Developing Countries. Journal of Consumer Psychology, 25(1), 78–89. https://doi.org/10.1016/j.jcps.2014.08.001
Batra, R., Ramaswamy, V., Alden, D. L., Steenkamp, J. B. E., & Ramachander, S. (2015). Effects of Brand Local and Nonlocal Origin on Consumer Attitudes in Developing Countries. Journal of Consumer Psychology, 25(1), 78–89. https://doi.org/10.1016/j.jcps.2014.08.001
Chaudhuri, A., & Majumdar, R. (2016). Luxury Brand Marketing – The Experience is Everything! Journal of Brand Management, 23(3), 250–270. https://doi.org/10.1057/s41262-016-0006-3
Chen, L., & Wu, Q. (2019). The impact of CSR initiatives on brand loyalty: A comparison between emerging and developed markets. Journal of Business Ethics, 156(4), 1081-1097.
Chen, X., & Yao, Z. (2019). Exploring the Impact of Brand Loyalty on Customer Value and Loyalty in China's Smartphone Market: Moderating Effects of City Tier and Brand Type. Journal of International Consumer Marketing, 31(1), 44–61. https://doi.org/10.1080/08961530.2017.1389164
Deng, X., Kang, J., & Low, B. S. (2013). Corporate Social Responsibility and Stakeholder Value Maximization: Evidence from Mergers. Journal of Financial Economics, 110(1), 87–109. https://doi.org/10.1016/j.jfineco.2013.04.002
DiMaggio, P. J., & Powell, W. W. (1983). The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields. American Sociological Review, 48(2), 147–160.
Dowling, G. (2017). Customer Brand Loyalty Declining in the US. Retrieved from https://www.marketingcharts.com/industries/retail-and-e-commerce-81653
Dwivedi, A., & Johnson, L. W. (2014). Symbolic Consumption and Identity: Evidence from India and Brazil. Journal of International Consumer Marketing, 26(4), 278–295. https://doi.org/10.1080/08961530.2014.925352
Freeman, R. E. (2010). Strategic Management: A Stakeholder Approach. Cambridge University Press.
Glavas, A., & Piderit, S. K. (2009). How Does Doing Good Matter? Effects of Corporate Citizenship on Employees. Journal of Corporate Citizenship, 36, 51–70.
Göksel, A., Arditi, D., & Atilgan, E. (2019). The Impact of E-Commerce Platforms on Customer Loyalty: An Empirical Study in the UAE. Journal of Business & Retail Management Research, 13(4), 71–82.
Gupta, R., & Sharma, A. (2018). CSR and brand loyalty: A longitudinal analysis in emerging markets. Journal of Marketing Management, 34(13-14), 1091-1117.
Gupta, S., & Pirsch, J. (2014). The Power of a Good Story: Emotion in Branding Creates Value. Journal of Brand Management, 21(7), 578–590. https://doi.org/10.1057/bm.2014.25
Hahn, R., Reimsbach, D., & Schiemann, F. (2015). How to Implement CSR in Global Supply Chains: A Structured Literature Review and Research Agenda. Corporate Social Responsibility and Environmental Management, 22(1), 32–49. https://doi.org/10.1002/csr.1321
Han, J., Kwortnik, R. J., & Wang, C. (2017). From Brand Loyalty to E-WOM: The Role of Smartphone Social Networking Apps in Chinese Customers' Loyalty Formation. International Journal of Contemporary Hospitality Management, 29(1), 490–508. https://doi.org/10.1108/ijchm-02-2016-0093
Hutabarat, W., & Hadiwidjojo, D. (2017). Brand Loyalty in Indonesia: Examining the Role of Customer Satisfaction and Social Media Engagement. International Journal of Business and Management, 12(9), 103–113.
Ismail, S. A., Özsomer, A., & Kalayci, E. (2018). Understanding Customer Engagement with Luxury Brands in Emerging Markets: The Role of Social Influence and Brand Commitment. Journal of Brand Management, 25(6), 527–545. https://doi.org/10.1057/s41262-018-0120-0
Khan, I., Rahman, S. U., & Nawaz, A. (2020). Corporate Social Responsibility and Brand Loyalty: The Moderating Role of Environmental Concerns in Emerging Markets. Corporate Social Responsibility and Environmental Management, 27(6), 2872–2883. https://doi.org/10.1002/csr.1961
Kim, S., & Jung, H. (2022). Cultural differences in CSR perceptions and brand loyalty in emerging markets: A cross-cultural study. Journal of International Marketing, 30(1), 1-23.
Lii, Y. S., & Lee, M. (2012). Doing Right Leads to Doing Well: When the Type of CSR and Reputation Interact to Affect Consumer Evaluations of the Firm. Journal of Business Ethics, 105(1), 69–81. https://doi.org/10.1007/s10551-011-0948-4
Liu, Y., & Smith, A. N. (2017). The impact of CSR dimensions on brand loyalty in emerging markets. Journal of Business Research, 80, 144-157.
Lu, Y., Lu, L., & Fan, W. (2016). The Dynamics of Brand Love: A Partial Replication and Extension. Journal of Interactive Marketing, 35, 32–46. https://doi.org/10.1016/j.intmar.2016.05.002
Marri, H. B. (2021). The Impact of Corporate Social Responsibility on Brand Loyalty: A Study of Emerging Markets. Cogent Business & Management, 8(1), Article 1975824. https://doi.org/10.1080/23311975.2021.1975824
Matsuo, T., & Hoshino, Y. (2015). The Influence of Trust, Satisfaction and Image on Loyalty: A Study in the Japanese Automotive Industry. Journal of Relationship Marketing, 14(4), 276–290. https://doi.org/10.1080/15332667.2015.1087976
Moutray, C., & Godfrey, C. (2015). Economic Development and Political Stability in Sub-Saharan Africa. Eurasian Journal of Business and Management, 3(2), 1–15.
Muriithi, G., Waruingi, K., & Kimani, J. (2019). Brand Loyalty in the Telecommunications Industry: A Comparative Analysis of Safaricom and Airtel Kenya. International Journal of Business and Economic Sciences Applied Research, 12(3), 60–72.
Narasimhan, C., & Wilcox, R. T. (2016). Do Brands Really Enjoy a Price Premium in Emerging Markets? Journal of International Marketing, 24(2), 66–82. https://doi.org/10.1509/jim.15.0062
Obermiller, C., & Spangenberg, E. (2017). Cultural Branding and Globalization: Understanding the Apple Brand. Marketing Management Journal, 27(2), 96–112. https://doi.org/10.1177/1052547416688773
Olsen, T. D., Anderson, J. C., & Drumwright, M. E. (2014). Stakeholder Data, Transparency, and the Transparency–Responsiveness Link. Journal of the Academy of Marketing Science, 42(1), 28–48. https://doi.org/10.1007/s11747-013-0348-y
Peralta, C. F., & Alvarez, M. J. (2018). Consumer-Based Brand Equity in Latin America: A Comparative Study of Mexican and Argentine Consumers. Latin American Business Review, 19(4), 272–298. https://doi.org/10.1080/10978526.2018.1481251
Porter, M. E., & Kramer, M. R. (2011). Creating Shared Value. Harvard Business Review, 89(1/2), 62–77.
Rahman, M., & Nguyen, N. (2021). Understanding the mechanism of CSR effects on brand loyalty in emerging markets: A qualitative study. Journal of Consumer Marketing, 38(6), 822-835.
Tajfel, H., & Turner, J. C. (1986). The Social Identity Theory of Intergroup Behavior. In S. Worchel & W. G. Austin (Eds.), Psychology of Intergroup Relations (2nd ed., pp. 7–24). Nelson-Hall.
Thompson, S. A., & Xue, F. (2016). iPhone Satisfaction and Loyalty: The Differences between Early and Later Adopters. Journal of Computer Information Systems, 57(3), 287–296. https://doi.org/10.1080/08874417.2016.1219004
Tran, T. H., & von Feigenblatt, O. F. (2015). Building Consumer Loyalty in Emerging Markets: The Case of Samsung in Vietnam. International Journal of Arts and Sciences, 8(1), 171–186.
Wang, H., Tong, L., Takeuchi, R., & George, G. (2016). Corporate social responsibility: An overview and new research directions in emerging markets. Academy of Management Journal, 59(2), 534-544.
Wang, L., & Kim, D. (2018). The Effect of Corporate Social Responsibility on Brand Loyalty: The Moderating Role of Environmentalism. Corporate Social Responsibility and Environmental Management, 25(5), 859–868. https://doi.org/10.1002/csr.1495
Zhu, Y., & Li, Y. (2020). Meta-analysis of CSR initiatives and brand loyalty in emerging markets. International Journal of Management Reviews, 22(1), 96-115.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Oson Echezona
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work’s authorship and initial publication in this journal.
