The Customer's Awareness on Social Responsibility of Truong Hai-Chu Lai Automobile Joint Stock Company Has Effect on the Consumption Behavior

Son NT

Published on: 2020-02-25

Abstract

Corporate Social Responsibility (CSR) has emerged since the 1930s, and was first defined in 1953 by Bowen. There are many studies in the world about CSR in general. In Vietnam, a developing country, the concept of CSR is not new and has been introduced into our country through multinational corporations. However, in Vietnam, the understanding of consumer perceptions of CSR, its impact on customers' buying intentions in the automobile sector is tending to grow in Vietnam is not implemented. Samples were surveyed from 250 consumers of products of Truong Hai-Chu Lai Automobile Joint Stock Company. The study proposes 5 dimensions of social responsibility based on the Carroll model 1991 with 30 variable observations adjusted to the characteristics of the company. The results of the linear structural model analysis show the perception of: (1) Economic responsibilities, (2) Legal responsibilities, (3) Ethical responsibilities, (4) Philanthropic responsibilities, (5) Responsibilities for sustainable development influences the consumer's intent and behavior through the intermediary role of brand loyalty. The implementation of this study will support businesses that have a positive impact, promoting the purchase intent of consumers.

Keywords

Corporate social responsibility; Consumer awareness; Truong Hai-Chu Lai Automobile joint stock company; satisfaction; Loyalty brand

Introduction

Business to survive and grow requires business to be effective. However, to achieve sustainable profitability, businesses need to know the harmony between the interests of their customers (internal and external), the investors through their responsibility towards society. As one of the leading enterprises in Quang Nam, Truong Hai-Chu Lai Automobile Joint Stock Company(abbreviated as Thaco Specialized in manufacturing, assembling, importing, exporting, distributing, maintaining and repairing automobiles in Vietnam. In addition, the company also deals in infrastructure of industrial parks, real estate, high technology agriculture and agricultural mechanization [1]. Thaco is one of the members of the Vietnam Automobile Manufacturers Association (VAMA). Over more than 20 years of development based on brand "THACO" with Accommodation ng center is to provide c evil product lines Cars of Thaco, in 2016, the truck (with cooperation with Kia Motors, Fotonand Hyundai), buses (in cooperation with Hyundai), specialized vehicles and passenger cars (in partnership with Kia Motors and Mazda, Peugeot). However, for the Company to develop non-stop and towards sustainable in the coming period through the combination of improving quality, design and prestige of products as well as competitiveness with participation in many activities. Social responsibility (CSR) is very important. So far, the term Corporate Social Responsibility (CSR) is no longer unfamiliar to businesses, especially in the context of Vietnam's deepening integration into the international economy. CSR is considered as a synthesis concept, approaching in many different angles. In particular, the study of customer perceptions of CSR implementation of the enterprise, from which to make a purchase decision is still quite new in Vietnam. Thus, this study re-evaluates the impact of consumer perceptions of corporate social responsibility on purchasing behavior through a questionnaire: Does Thaco's Corporate Social Responsibility Do you have a positive impact on your brand satisfaction, trust, intent and purchase behavior [2,3]

Theoretical Background

The concept of CSR has been shaped and developed over the decades. Formed in the early 1930s, by 1953, the era of CSR was marked by Bowen, when he published Social Responsibilities of the Businessman. This is considered to be the first book to define this subject. After Bowen, many other works appeared to play an important role in defining CSR Berle, Means, Cheit, Davis, Blomstrom, Greenwoo, Mason, Mc Guire. The concept of CSR has attracted the attention of researchers for a very long time. After the 1950s, CSR literature was supplemented by a number of studies in both theory and application Carroll 1999. Carroll categorized CSR definitions for each decade, so there were six key stages after 1950: the 1950s, the 1960s, the 1970s, the 1980s, the 1990s, and the 2000s. Before the 1950s, no official definition of CSR was given [4,5]. The main point to be considered at this stage is the issue of philanthropy and profit seeking. Researchers and researchers at this stage often focus on maximizing profits as the sole task of the business. In the 1950s and 1960s, the first study was made by Bowen in 1953 Carroll 1999. In Bowen's most important book, "Social Responsibilities of the Businessman," Bowen makes the first definition of social responsibility applicable to entrepreneurs. With this first definition, Bowen is considered "The father of CSR” Carroll, Windsor. In the 1960s and 1970s, development in the definition of CSR achieved great success. The main themes in this decade's definition include long-term benefits, legal advocacy, volunteering, and things. Out of "social expectations". In the 1970s and 1980s, many researchers came up with definitions of CSR. There are not many new CSR definitions, the most recent definitions of CSR at this stage are unclear, and the major themes of the past decades have been repeated. Most importantly at this stage, Caroll (1979) proposed a comprehensive definition of CSR that encompasses four types of responsibilities, namely economic, legal, ethical and TU charity. In the 1980s and 1990s, there was more research in defining CSR than in previous decades; however, there are fewer definitions to speak Carroll, 1999. Many studies at this stage do not lead to definitions, but they address issues related to social responsibility. In this phase, new concepts have been proposed, for example: corporate responses to the society, social performance of the enterprise, community policy, and business ethics. In particular, the proposed theme for CSR is extended from just satisfying shareholders to satisfying other social organizations, called stakeholders. The 1990 to 2000 period did not have a significant impact on the definition of CSR Carroll 1999. The concept of CSR does not have any new features, nor does it have any new relevance to CSR. At this stage, CSR is understood as the social merits of a business that goes hand in hand with its social responsibility enterprise. From 2000 up to now, there have been many definitions of CSR. Much of the definition and related issues are similar to those discussed in the previous decade. However, interest emerged in this decade was the environment. In general terms, issues of concern at this stage are also volunteering, stakeholders, society, environment, and profit.

Literature Review

Model CSR pyramid of Carroll (1991)

According to Carroll (1991), four types of social responsibility make CSR include: Economic Responsibilities, Legalre sponsibilities, Ethical Responsibilities, Philanthropic Responsibilities. The four types of responsibility, in other words, are the four components that make up CSR, which can be described as a pyramid. Rather, these four types of responsibilities have existed for a long time, but only in recent years has morality and charity responsibility played a significant role [6].

Economic responsibility

Throughout history, businesses have been formed to become an economic entity that aims to provide goods and services to the members of society. The goal of profit is built as the most basic motive of doing business. Before undertaking any other purpose, the enterprise is the basic economic component of society. So the basic purpose of the business is to produce the goods and services that consumers need and want, and to make a profit that is acceptable through the business process [7-9]. All kinds of responsibilities other businesses are built on economic responsibility, because without it, other types of responsibility become controversial considerations.

Legal responsibility

Society not only expects the business to operate on a profit-making basis, but at the same time, it is expected by the society to abide by the law, operate in accordance with the laws set forth by the government and authorities. As part of the "social contract" between business and society, companies are expected to pursue its economic mission within the framework of the law. Legal liability is described as the next floor in the CSR pyramid [10]. The scope of this responsibility applies not only to businesses but also to individuals when they are a member of that business [11].

Ethical responsibility

Ethical responsibility includes activities that are expected or banned by members of society, although these activities are not covered by law. Ethical responsibility includes standards, or expectations, that reflect the company's interest in what consumers, employees, shareholders, and the whole society regard as fair, right, or Show respect for the moral norms that they (the above mentioned objects) respect and protect. Although described as the next layer in the CSR pyramid, moral responsibility can affect liability. It promotes greater accountability and sets higher expectations for entrepreneurs to do more than the law.

Philanthropic responsibilities

Philanthropic Responsibilities includes the activities of the business that respond to the expectations of the society, showing that the business fulfills the obligations of a citizen. It includes a direct commitment of the business in action or the design of programs to promote the prosperity of the whole society. Examples may include corporate philanthropic activities, such as: corporate contributions to finance and resources for arts, education or community activities. Generalization, CSR consists of four components, namely economic responsibility, legal responsibility, moral responsibility, and charitable responsibility. In fact, a CSR entrepreneur should try to make a profit, obey the law, behave in accordance with ethical standards of society and become a good citizen in the community.

The impact of CSR on business performance

As a result of many studies, CSR has had a significant impact on many aspects of a company's operations. Good CSR performance not only exerts a positive impact on financial performance, but also improves its reputation, but it also helps businesses attract more applicants, as well as help maintain their loyalty. Loyalty and positive work attitude of employees towards the organization. The general trend from the results of the researches has shown that CSR has a positive impact on the above mentioned activities of enterprises. Specifically, financially, the good performance of CSR helps increase the market value of the business Cheung 2010, and helps increase the ROA - Return on Asset - which can be considered as a Indicates the financial performance of the business Lin On the reputation of the business, consumers value the performance of good CSR as the second most important factor (after product quality) in creating a good reputation for a particular business. In other words, doing well CSR brings better business image to the consumer Vitezic, 2011. In addition, CSR also affects the recruitment of enterprises, businesses with good reputation in the implementation of social responsibility will attract more applicants to apply than other enterprises Albinger and Freeman, Sen, Willness, And besides recruiting, implementing CSR also helps increase heart trung the employee for business, and they will also have a positive work attitude than Turker 2008.

Intention to buy

A purchase intention is defined as the ability of a consumer to try to buy a product or service, or to be defined by a means of purchase, that is, the level of preference for a product, which the person Consumer perception between the product evaluation and the behavior that actually buys the product. Turney and Littman 2003 assert that a buyer's intention is to predict which company he / she intends to buy. Purchasing intent can be viewed as a reflection of actual buying behavior. The greater the purchase intent, the greater the desire to buy a consumer product Schiffman and Kanuk,. There are various theories about the factors that affect the buying intentions of consumers. According to Amir Nasermoadeli 2013, the factor that influences consumer buying intentions is their experience (customer experience). Gentileargue that "the consumer experience comes from the relationship between the consumer and a product or service, a business, or a part of that business, which will create their response. This experience is completely personal, and it shows the participation of many different components (physical, sensory, sensory, mental, and spiritual). "Gupta and Vajic provide a more comprehensive definition of the consumer experience, which suggests that "an experience takes place when a customer has a lot of sense or knowledge acquired from some degree that they interact with different constituents in a certain circumstance created by the service provider. Schmitt 1999 suggests that the three components that make up the consumer experience include: the sensory experience, the emotional experience, and the social experience.

The impact of CSR awareness on buying intent

In order to study the impact of CSR awareness of customers and purchase intentions, the model proposed by Carvalho. will be applied in this study. The original model includes the following key elements: CSR awareness, price fairness, self-satisfaction, purchasing power, intention to buy, intention to complain, and intent to convert.

Data Description

Impact model of CSR awareness

Description of the model

 

 

Speaking hypothesis

H1a

Customer perception of the environmental responsibility of the business impact Positive to brand trust.

H1b

Customer perception of the economic responsibility of the business impact Extreme to brand trust.

H1c

Customer perception of corporate liability impact Positive to brand trust.

H1d

Customer perceptions of the ethical responsibility of positive interactions to the brand trust.

H1e

Customer perception of corporate philanthropic responsibility Positive to brand trust.

H2a

Customer perception of the environmental responsibility of the business impact Positive to brand satisfaction.

H2b

Customer perception of the economic responsibility of the business impact Extreme to brand satisfaction.

H2c

Customer perception of corporate liability impact Positive to brand satisfaction.

H2d

Customer perceptions of the ethical responsibility of positive interactions to brand satisfaction.

H2e

Customer perception of corporate philanthropic responsibility Positive to brand satisfaction.

H3

Consumer brand trust has an impact on engagement brand.

H4

Consumer brand satisfaction has a positive impact on cohesion trademark.

H5

Consumer brand satisfaction has a positive impact on behavior buy current.

H6

Consumer brand satisfaction has a positive impact on purchase intent Future

H7

Sticking to consumer branding will have a positive impact on behavior buy current.

H8

The branding of consumers will positively affect the intention to buy Future.

H9

The current consumer behavior is positively influenced by intention shopping in the future.

Table 1: Results of Cronbach alpha analysis.

Observed variables

Indicators

Cronbach alpha

Conclude

Responsible for sustainable development

SD1 ->SD5

0.769

Get credibility

Economic responsibility

ER1 ->ER9

0.873

Get credibility

Legal responsibility

LR1 ->LR5

0.815

Get credibility

Ethical  responsibility

eR1 ->eR7

0.882

Get credibility

Philanthropic Responsibilities

PR1 ->PR6

0.855

Get credibility

Brand trust

BT1 ->BT5

0.875

Get credibility

Satisfying the brand

SB1 ->SB5

0.825

Get credibility

Stick to the brand

sB1 ->sB4

0.812

Get credibility

Current buying behavior

CBB->CBB5

0.778

Get credibility

Intended to buy the future

IBF1 ->IBF5

0.854

Get credibility

Table 2: Results of the EFA analysis for Social Responsibility.

Observed variables

 

 

Element

 

 

Symbol

first

2

3

4

5

ER1 ->ER9

0.592-> 0.723

 

 

 

 

PR1 ->PR6

 

0.545-> 0.764

 

 

 

LR1 ->LR5

 

 

0.598-> 0.756

 

 

ER (1,2,3,4)

 

 

 

0.657-> 0.756

 

SD(1,2,3,4)

 

 

 

 

0.516-> 0.792

Table 3: Results of the EFA analysis for the THACO brand scale.

Observed variables

 

 

Element

 

 

Symbol

first

2

3

4

5

IBF(1,2,3,4,5)

0.688 -> 0.776

 

 

 

 

SB(1,2,3,4,5)

 

0.525 -> 0.765

 

 

 

SB(1,2,3,4)

 

 

0.686 -> 0.826

 

 

B(1,2,3,4,5)

 

 

 

0.612 -> 0.795

 

CBB(2,3,4)

 

 

 

 

0.622 -> 0.832

 Table 4: CFA for CSR scale and Thaco trade scale.

Concepts and indicators

Factor factor

Value t

Reliability synthetic

Method false deduction

Responsible for Sustainable Development(SD1,2,3,4)

0.576→ 0.718

7,479 → 8.783

0.76

0.45

Economic responsibility (ER1,2,3,4,5,6,7,8,9)

0.600→ 0.740

8.664 → 9.856

0.87

0.44

Legal Responsibilities (RL1, 3, 5, 5)

0.642→ 0.798

9,972 → 10,905

0.8

0.52

Ethical Responsibilities(ER1,2,3,4)

0.680 → 0.800

10801 → 12.121

0.83

0.54

Philanthropic Responsibilities(PR1,2,3,4)

0.675→ 0.757

10.030 → 10.657

0.87

0.52

Brand trust

0.640 →0.760

8,940 →9.880

0.83

0.5

Satisfying the brand

0.648 → 0.742

9.303 → 9.821

0.82

0.48

Stick to the brand

0.647 → 0.768

9.523 → 10.219

0.8

0.52

Current buying behaviour

0.618 → 0.765

8.648 → 9.787

0.74

0.5

Intended to buy the future

0.654 → 0.802

9.794 → 10.601

0.83

0.57

Table 5: Results of testing the causal relationship.

Relationship

Estimates

SE

CR

P

BT←SD

0.027

0.086

0.317

0.751

BT←ER

0.300

0.84

3.561

***

BT← LR

0.021

0.065

0.316

0.752

BT←eR

0.154

0.060

2.571

0.010

BT←PR

0.371

0.81

4,606

***

SB←SD

0.251

0.116

2,153

0.31

SB←ER

0.133

0.100

1,321

0.186

SB← LR

0.281

0.087

3,213

0.001

SB←eR

0.184

0.075

2,438

0.015

SB←PR

0.350

0.097

3,600

***

sB←SB

0.569

0.91

6.233

***

sB←BT

0.497

0.088

5,679

***

CBB←SB

0.396

0.245

1.620

0.105

MTL ←sB

0.578

0.076

7.597

***

IBF←sB

0.720

0.242

2.981

0.003

First, the Cronbach alpha analysis aimed Testing the scale reliability, convergence value and rubbish removal can cause other factors in the factor analysis. Second, the discovery factorization (EFA) method eliminates factors Inappropriate, using factor analysis is appropriate. The remaining variables (full scale) will be included in the CFA analysis (Table 1). Third, assertive factor analysis (CFA) is used to evaluate the scale measured before the analysis of structural equation modeling (SEM). Results of analysis of the scale last EFA Social Responsibility and scaleacompanybrand tubers Thacodescribed in (Tables 2,3) as follows: Tables 2 and 3 show that all indicators are weighted at> 0.40. Thus, the observational variables of this scale satisfy the condition for CFA analysis. (Table 4) shows the weighting factor of each indicator for caps c concept attained statistical significance p <0.000; Statistical values ??(t) are greater than 7,479; the weights are high (MT1 = 0.57). In addition, scales that achieve aggregate reliability fall within the range of good judgment, greater than 0.7, and varianceextracts more than 44%. This result shows that the scale of use has reached the reliability, convergence effect. On the basis of the results above, the author examines the causal relationship between the concepts in the research model (standardization) shown in (Table 5).

Through the above steps, affirm the current and future purchase behavior of customers are influenced by the brand sticking. In addition, brand trust in this study is considered by the three components of economic responsibility, moral responsibility and charitable responsibility; Liability, charity, moral responsibility affect the brand satisfaction. In this research, brand trust, brand loyalty and brand satisfaction are the three variables that can lead to conclusions about customer perceptions about CSR of Thaco [12-14]. The research model is thus confirmed as follows:

Results and Discussion

Research has proven there are 5 factors that constitute CSR Company Thaco include:

  • Economic Responsibilities,
  • Legalre possibilities,
  • Ethical Responsibilities,
  • Philanthropic Responsibilities,
  • Sustainable development. In addition,

The study also shows the effects of CSR when consumers trust brand, brand satisfaction, stick with the brand to appear current buying behavior and plans to buy in the future. The results of the study were explained as follows: First, this study enriches Add previous research results on customer perception of social responsibility. Accordingly, the study has focused on the implementation of CSR in a specific company in the Chu Lai Open Economic Zone in Quang Nam, thereby clarifying the relationship between the implementation of CSR and customer perceptions of responsibility. The social order from which to decide the consumption behavior. Second, the brand image is seen Influence the purchase behavior of customers. Therefore, Thaco Company needs to build brand image as a long-term measure, it creates a great belief for customers, keeping in mind the image of a company providing quality products, top quality. It then proposed some of the following suggestions.

Conclusion

First, the social responsibility solution group: Thaco Company should continue to maintain and promoting key products, improving product quality to always affirm the leading position in the automotive market. In addition, it is necessary to improve the network of shops and distribution channels to improve the quality of customer care system Thaco Company needs to build a brand image as a long-term measure, it creates a great belief for customers, keeping in mind the image of a company that provides products with top quality. Vietnam and the region. That's one recognizing the importance of environmental protection- sustainable development. Second, the Thaco brand enhancement group includes: The Company needs to build a brand identity system that will provide customers with a deep sense of value that will influence the purchase behavior. In addition, the company should focus on building corporate culture, creating their own identity as a solid foundation for the development of the brand. It is necessary to continue boosting the export to the markets of other countries and then building a strong international brand. Finally, the Company needs to link economic development with sustainable development of the Company.

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