The Effect Of CSR On Consumer's Buying Behavior

Abstract

Although research into CSR and consumer behavior is still relatively young, there exists growing interest in studying the links between CSR and marketing of different products. The consumers of India are now well aware of and that companies now have to show responsibility towards society and the environment. The companies up to a certain extent has been realized that  their socially responsible behavior have a direct impact on the consumer buying behavior. But what is the actual impact of companies' engagement in CSR on consumer behavior? The main objective is to investigate whether CSR has an impact on consumer trust and whether consumer trust has an impact on purchase intention, taking random stratified sample of 500 respondents using Multiple Linear Regression technique. For measuring CSR economic, ethical, philanthropic and legal, variables have been considered from Carroll's definition. This study found that CSR has a strong positive relationship with consumer trust and consumer trust has a strong positive relationship to purchase intention. This study will have implications for academicians to have an understanding relating to dynamics of the role of corporate social responsibility in consumers' buying behavior. This is also important for a manager that a substantial and identifiable consumer group exists that considers company's level of social responsibility in its purchase decisions. There are important lessons drawn from this study that owing to strengthening of consumers' awareness and rights in today's market scenario and companies who disregard expectations concerning social responsibly may risk consumer boycotts and criticism.