The Influence Of Sustainable Firm Behavior On Purchase Intention And Brand Image Case Study

Great Essays
Topic: The influence of sustainable firm behavior on purchase intention and brand image.
Inquiry Questions:
• What is the consumers' perception of sustainability?
• Why brand image consider as a key in marketing strategy?
• What is the correlation between sustainable firm behavior, purchase intention and brand image?
• What are the factors or variables that has effect on purchase intention?
In today’s society, there is a growing interest in, and demand for sustainability or Corporate Social Responsibility (CSR), because there is more awareness that CSR activities are not only charitable nature, but also contribute to a positive and attractiveness image of the company. Sustainability is about how business takes account of its economic, social
…show more content…
Brand image is the result of consumers' perception process. This process comes from the ideas, feelings and experiences of consumers of the services received from the company which these ideas, feelings and experiences are retrieved from their memory and form a mental image about the company ( (Aydin, S. & Ozer, G., 2005). Reviewing the previous studies, some studies argued that there is a direct and positive correlation between CSR and brand image. A company committed to economic development, ethics in the organization, supporting employees and their families, supporting non-profit groups and the supplying the needs of society, has a far better image in minds of society than other firms (Pomering, A. & Johnson, L. , 2009)Thus, companies which have more sustainable behavior have well positive image in the mind of the consumer. As a result, positive image leads to consumer satisfaction and loyalty towards the company's products or …show more content…
Products price, availability, performance and quality have the highest impetus on consumers’ intention to pay the green price premium. Previous research indicated a positive association between financial performance and CSR, this perspective used as basis for determining the relationship between CSR and purchase intention. A positive association exists between an organization’s involvement in CSR programs and consumers’ purchase intention. Thus, consumers are more likely to purchase an organization’s product if that organization is involved in socially responsible practices. Moreover, a good brand enhance customer recognition of the products. When a brand image is strong in a consumer's mind, the products can easily obtain greater attraction, thus a consumer buying spree could be triggered (Shamma, H. M., & Hassan, S. S., 2011). For example, a brand association, between the customers’ perceptions of a retailer sustainability practices and the customers’ brand attitudes towards the retailer corporate brand. The link goes beyond environmental management practices merely enhancing the quality of the merchandise. Finally, CSR increases revenues indirectly by stronger reputation of the company in the market and satisfied customers leading to greater purchasing power of the company

Related Documents

  • Decent Essays

    It also gives them the chance to find out new market opportunities through corporations that are aligned with sustainable business models. In other words, businesses aligned with sustainability models have become interdependent to each other because some of them have built partnerships in order to solve the global challenges. Additionally, the CEOs in the study have identified in order to be profitable and sustainable businesses they need to fulfill social responsibility and build trust with the…

    • 447 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    GHB CEO has a limited budget for improved CSR profile and operating system, so she consultant from Deepgreen Enterprises to implement CSR initiatives in their company. Significance of sustainable practices for corporations: Corporations apply the CSR strategies and corporate accountability to improve or maintain their reputation and image in the market through…

    • 1015 Words
    • 5 Pages
    Improved Essays
  • Great Essays

    •task 2 2.1 assess the benefits of csr to our employees Developing,implementing and promoting CSR policies is a cost to the business when its primary function is to maximize the shareholder value. Adopting CSR policies requires resourcing such as personnel to design,implement,monitor ans control the policies and keep them updated. New processes need to be adopted for manufactures,this can entail significant Research and Development expense. Set against this,it is argued that ,where public pressure about CSR issues is strong,consumers may abandon the firm and move their business to competitor. However,the research on links between CSR,business performance and customer loyality is far fromcomplete and it is currently impossible to make a robust case for its contribution to shareholder value.…

    • 1199 Words
    • 5 Pages
    Great Essays
  • Superior Essays

    Sustainability is all about striving and thriving for the future which is the core foundation of any business. Thus sustainability is the ability to achieve success without sacrificing the future needs of a business. As a result the organisations focuses on the fulfilling current customer demands at the same time taking into accord the desires and wants of the future generation in order to achieve sustainability. Organisational sustainability thus revolves around the core principle of keeping the business obtainable. The essence of organisational sustainability is based on the principle of enhancing the social, economic and environmental conditions in which the business operates.…

    • 1438 Words
    • 6 Pages
    Superior Essays
  • Superior Essays

    Ethical Behaviors

    • 1527 Words
    • 7 Pages

    in the increasingly competitive world business need to look for any competitive edge they can get by promoting ethical behaviours they are able to mitigate the risks of a pubic backlash against them if they are found to conducting unethical practices. this can be seen in many cases such as Nike’s use of sweatshop factories or AIG’s blat latent excessive risk taking and selling of CDOs and CDS. many firms have also promoted their use of corporate social responsibility to help them gain a competitive edge by associating their brand with ethical behaviours. in this day in age consumer have become increasing aware of companies practices and place a higher value on products the have been produced ethical and are produced by companies that go above…

    • 1527 Words
    • 7 Pages
    Superior Essays
  • Improved Essays

    Firms should be socially responsible Despite there being a case against firms being socially responsible it’s clear that the traditional view of simply making a profit is has changed. Firms have realised that conventional wisdom is outdated and therefore the New Thinking according to Porter (2013) is now seen as the modern day alternative. Awareness of the issues increased drastically in the 1960’s and early 70’s (Murphy, 1978 in Carroll 2010) and this increased pressure on firms to focus on CSR (McWilliams et al, 2000) therefore making firms unable to evade responsibility (Thompson, 2005) by relying on government. This reliance and failure of the government (Crane et al, 2010) to handle the scale of social problems put yet more emphasis on…

    • 801 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    The definition of CSR: CSR is about how companies manage the business processes to produce an overall positive impact on society. CSR is one of the most important thing to the competitiveness of enterprises, and a good CSR strategy can bring benefits : access to capital, cost savings, customer relationships and innovation capacity. Summary: • No (communication) devices, but also the strategic level is displayed at every level of the organization • Knowledge of the law and adherence to basic, does not constitute a CSR • The CSR is voluntarily accepted activity • The key objective of the business aspects, values, maintaining competitiveness • Value-based businesses in the XXI. century indispensable, must give something back to society, the…

    • 2913 Words
    • 12 Pages
    Great Essays
  • Improved Essays

    Sustainability operations is a relatively new practices for businesses to be taking part in, while we are measuring how: CEO compensation, CEO gender, size of firm, profitability and stock value impact a firm’s sustainability. Corporate Social Responsibility (CSR) has become an increasing concern, which sustainability is a part of. While there is a constant need to drive profits for the business, receive compensation and for investors to profit how can we tell which of these variables are positively and negatively impacting the businesses sustainability efforts. Or how do we know if the business is really attempting to be sustainable at all, but let’s explore sustainability, its history in business and its variables. It was not until later…

    • 978 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    To sum up, most studies recognize that firms with strong commitment to CSR have better corporate financial performance. Eccles, Ioannou and Serafeim (2012) find that high sustainability firms have better stock and accounting performance in long run. Luo and Bhattacharya (2006) offer the evidence that CSR strength result in higher market value by increasing customer satisfaction. When it comes to the impact of ESG on corporate financial performance, scholars work on the both the aggregate and disaggregated ESG, yet literatures on disaggregated ESG performance still outnumber the aggregate one. The reason stated by Fulton, Kahn, Sharples (2012) is similar to the one given above.…

    • 1460 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    Value related Sustainable businesses and sustainable business practices is also a trend that has begun to emerge. Consumers have developed concerns about the environmental impact of business and their products and have focused more on the trend of “going green.” In addition, it has also become easier to look into companies and their products and practices due to the increase in technology and social media (Greengard, 2013). Consumers are becoming savvier and demanding more sustainable, ethical, or healthy practices and unveiling companies who attempt to fool the public about using sustainable or green practices (Darroch, 2015).…

    • 781 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    For decades, the concept of luxury has evolved from a status assumption to a sheer lifestyle offering that goes beyond traditional imagination. Jean-Noël Kapferer, the co-creator of The Luxury Strategy; states that luxury has opened it’s doors to the mass interest and is changing the old belief of a having a selective market to elevate economies and achieve record breaking profits. The breadth and depth of this change has acquainted luxury brands to a global affluent audience. (Doran, S., 2013)…

    • 716 Words
    • 3 Pages
    Improved Essays
  • Great Essays

    Introduction and Background Organisations’ management strategies and practices affecting environmental, ethical, social and global aspects have evolved significantly and the responsibilities of an organisation to society are those that arise in the concept of Corporate Social Responsibilities (CSR). CSR can be defined as “the responsibility of an organisation for the impacts of its decisions and activities on society and the environment, through transparent and ethical behaviour (ACCSR, 2016). Though CSR is not compulsory, it is expected and issuing regular CSR reports detailing social and environmental performance is considered best practice (Carroll 2004, 116). HSBC was established in 1865 and its named derived from founding member, The Hong Kong and Shanghai Banking Corporation Limited. HSBC is one of the largest Banking and Financial Institutions in the world, operating in 71 countries across the globe and crossing multiple jurisdictions (HSBC Group 2016).…

    • 1463 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    In its core, a brand is a promise that the seller provide to buyers constantly for certain products, benefits and services. Brands guarantee the best quality of goods and services. Thus, in terms of the image, it may have the following meanings: a) Product Characteristics' brand - consumer memory recalls certain product attributes; the company can use one or more of these attributes that makes a creative product; b) Benefits - people buy advantages, which are why product's attributes are converted into functional and psychological benefits; c) Standards – the message a brand carries about values and buyers; therefore must identify specific groups of buyers of a particular product, whose values coincide with the package of profits offered; d)…

    • 752 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Having a bad reputation socially and environmentally can have serious negative effects on the overall profitability and success of a company, as nowadays consumers want to spend their money on products and services that they believe in, and engage with companies that follow ethical practices that meet their own beliefs. CSR requires internal and external stakeholder’s engagement so it enables organization to anticipate better and take advantage of fast-changing expectations in society as well as operating conditions. By doing the social responsibility activities, organization can build long-term relationship with employee, consumer and citizen trust which act as a basis for sustainable business models. And it helps to create an environment and culture in which organization can innovate and grow. In the longer term, CSR provides a set of values on which to build a more cohesive society and on which to base the transition to a sustainable economic system.…

    • 1756 Words
    • 8 Pages
    Great Essays
  • Improved Essays

    Thus, they will shape people expectation about green consumption. As a result, the consumers will change their attitude toward it and make it as their identity since they receive the message from a credible source. Lastly, the highest level of commitment is internalization when the attitude becomes part of the consumers’ value system. However, this is very hard for the companies to influence since it comes from the internal of consumers. What the companies can do is to create a belief by consistently promote the benefits of green…

    • 938 Words
    • 4 Pages
    Improved Essays