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

  • Improved Essays

    Many large companies, such as Coco-Cola, have taken initiatives ensure their products are sustainable and not damaging to all customers, and even support charities that further their CSR goals, such as supporting protection of local water sources in the Mediterranean (Sepers). Companies have just as much of a responsibility do their part in the global community, and as humans who work in and support businesses, it is our duty as well to act consciously. As consumers and members of society, we need to take our role as a global citizen seriously. It is not to say that one should completely abandon the characteristics that make up our identity- our culture or ethnicities or political beliefs, but that in addition to this identity, we should be aware of an additional responsibility to our global neighbors. Besides trying to support companies that act responsibly, we also have an obligation to act our concerns as to what will affect to our planet as a whole, and to fight for values that affect our neighbors in Europe, Asia, and Africa just as they affect the local inter-cities of our country.…

    • 1005 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    How can the current corporate system operate more sustainably with respect to our planet? (Lyles) Anderson articulates a powerful argument, based on his experiences at Interface, that sustainable operation, Mount Sustainability, presents the most important financial and ethical challenge for modern business. He suggests that it is much cheaper to produce goods and services if fewer materials are used and less waste is created, providing a financial incentive for sustainable practices. For example, the Patagonia clothing company recently advertised a recycling program for their current customers.…

    • 770 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    First, environmental lobbyists and many of the governments are pressuring the fast-food restaurant companies to become more sustainable and developing green, environmentally-friendly products. This factor influences businesses’ performance and their brand image because many governments levy huge fines upon companies for polluting. On the other hand, businesses are rewarded for having positive efforts toward the environment. Second, the environmental awareness increases among consumers, and they appreciate the companies in adopting CSR programs. Consumers in the industry are willing to switch brands easily if they realize a business is ignoring its environmental duties.…

    • 1120 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Hond (2014) argues that a firm’s active role in corporate social responsibility initiatives is political and seeks to secure favourable political conditions for the firm’s benefit. Weinzimmer & Esken, 2016 on the other hand, highlight that when companies get involved in societal issues, it can positively influence the firm’s financial performance. In addition, a firm’s active role on social issues may enhance the credibility and economic performance of a firm’s CSR strategy and commitment. Reputation, which is related to competitive advantage, is another reason why firms take an active role in social issues (Hond, 2014). McDonnell (2015) supports this reason and gives Nike as an example.…

    • 1418 Words
    • 6 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
  • Great Essays

    However, Sainsbury’s marketing initiatives shows capability to recover financially by proving success with their non-financial KPIs working along with CSR that contributes to the management and sustainability of their financial KPIs. The commitment to remain affordable remains in restoring faith in pricing strategies, such as brand matching guarantees, giving consumers the confidence that their pricing is fair if nor fairer than their competitors to capture those keen on making good savings. Its marketing strategy is therefore more focused on growing its market share but also with focus on ensuring that the customers, colleges and shareholders support gained are retained. Overall, with these KPIs present Sainsbury’s fulfils the needs of stakeholders at an economic, political and social level accounting to being a sustainable business by seeing growth for the future in the long-term and this is what all stakeholders, variably shareholders and investors wants. Whilst CSR focuses on moving a business away from economic concerns and raises issues of environmental and social concerns it verifies Sainsbury’s had positive combined benefits highlighting increased environmental and social legislation and increasing consumer sanctions for unethical behaviour such as using…

    • 1650 Words
    • 7 Pages
    Great Essays
  • Improved Essays

    So it is key that all contact points for the customer are aware of the brand, its values and the message that is trying to be sent out (Zeno, 2012). Internal branding: Internally, the brand should keep all its people informed on how the new ‘green agenda’ is going to work. From corporate (head-quarter) employees to shop staff, all the teams must be educated on the company’s new policies. The Corporate Social Responsibility charter should be spread among employees. Cultural Equality: The brand should focus on hiring a variety of people.…

    • 776 Words
    • 4 Pages
    Improved 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

    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

    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

    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
  • 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
  • Improved Essays

    Findings Corporate social responsiveness is better than the concept of corporate social responsibility. From previous literature review, corporate social responsiveness is a detailed analysis of the relationship between corporate social responsibility and social effective response. For the CSR, it is only classify the types of responsibility in business, it does not encourage and provide information of further responses, which most of the firms have achieve CSR, as it must be attain of legal standard. Corporate should take higher standard though CSR2. From CSP model, it is to establish a stakeholder framework for analyzing and evaluating corporate social performance. It is a mix from CSR principles and CSR2 process and social related issues, which is a combination from different arguments in CSR concept.…

    • 1119 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Brand Loyalty Case Study

    • 1599 Words
    • 7 Pages

    A brand’s image is an essential factor of brand equity, (Aaker, 1991). Keller (1993) and shows differently the brand image, brand suggestions in addition to the favorability, might and exclusivity of these connotations. By keeping in view an image is emotionally constructed by the consumers few basic impressions selected from the lake of many Brands; it came into existence through an artistic course of action where the chosen impressions are expanded, inflated, and prepared. In making consumers release the likelihood of purchase of that brand will increase which flourish that they need it and make its variance identity form its opponents. By the public corporation or its manufactured goods which continuously holds a promising image, definitely increase a better position in the market, increase market share, workable competitive advantage, and or enactment (Park, Jaworski,&MacInnis, 1986). ).…

    • 1599 Words
    • 7 Pages
    Improved Essays
  • Improved Essays

    Hartmann, P., Ibanez, V.A. & Sainz, F. J. F. (2005) offered a hypothetical model of the dimensionality and attitudinal effects of green brand positioning. The model was tested in the scope of investigative factor analysis and structural equation model. The result shows that an overall optimistic influence of green brand positioning on brand attitude. Additionally they found that a collective approach, which fit to both environmental consciousness and emotional benefits, will yield a stronger attitudinal effect than either functional or emotional positioning strategies on their own. An exclusive functional green brand positioning may fall short of delivering individual benefits to customers, assuming rational decision processes and limited…

    • 740 Words
    • 3 Pages
    Improved Essays