The Consumer Lens: Understanding How CSR Activities Translate to Brand Image

Abstract

The study's main objective is to measure the impact of different elements of CSR, like economic, ethical, and philanthropic CSR, on brand image. In addition, this study also examines the mediating effects of consumer perception. At the same time, this study addresses the gap in the literature on how these initiatives specifically influence Pakistan. Quantitative research was used and data were collected from 252 respondents of Generation Z and Millennial participants living in Karachi, Pakistan and analyzed in PLS-SEM using the latest version of Smart PLS. The study found significant relationships between consumer perception and brand image, economic CSR and brand image, ethical CSR and consumer perception, and philanthropic CSR with both. Consumer perception significantly mediate the association between ethical CSR, philanthropic CSR and brand image. The model had substantial explanatory power, with R² values of 0.631 for brand image and 0.564 for consumer perception. Collaboration between CSR departments and marketing is crucial for fostering positive brand perception. The study emphasizes the importance of fostering positive brand perception through collaboration between CSR departments and marketing, thereby enhancing customer engagement and promoting societal or employee-related activities. The study's limitations include a small sample size, a single mediator, and limited exogenous constructs, suggesting future research should consider larger sample sizes, multiple mediators, and diverse regions.