The role of CSR as a determinant of consumer responses in financial sector

Abstract

The purpose of this study is to analyze the influence of corporate social responsibility (CSR) activities of financial institutions on their consumer responses. It aims to study the association of CSR activities through the customer–company identification. Consumer perception of CSR activities are analyzed in addition to corporate ability and how consumers make trade-off between these two types of association. The direct influence of CSR-based C-C identification on purchase intention is analyzed. A personal survey of banking customers was carried out, resulting in 320 valid responses. In order to comply with research objective and test the hypothesis, a structural equation modeling is used. The result shows the positive empirical validation of the relationship between corporate association and customer–company identification. This theoretical model is tested in the banking sector, so the generalizability is limited to context specific.