The Impact of Domestic Companies’ CSR Targets on Consumer Post-Purchase Responses: The Moderating Effects of Brand Reputation

Sage Open, Volume 14, Issue 4, October-December 2024.
With the growing interest in the environment, society, and governance, responsible management emphasizes corporate social responsibility (CSR) activities. Drawing upon social identity theory, this study explores the interplay between a brand’s CSR target (domestic or abroad) and its reputation in shaping consumers’ post-purchase product attitudes. Through two complementary experiments, the findings reveal that consumers exhibit more favorable post-purchase attitudes toward domestic brands with a high reputation when their CSR activities are targeted domestically. Conversely, the target of CSR activities does not significantly impact post-purchase product attitudes toward domestic brands of lower reputation. Further analysis reveals that for high-reputation brands, the perceived fairness of CSR activities is crucial, whereas, for lower reputable brands, the role of CSR activities is essential in reducing product risk, making the target country of CSR irrelevant. This study indicates that CSR strategies should be customized according to brand reputation, with significant implications for enhancing sustainable consumer brand loyalty.Plain Language SummaryHow the brand’s reputation affects consumer perception of local companies’ good deedsPeople are paying more attention to how companies care about the environment, society, and good management. This study looks at how a company’s good actions, whether they help people at home or overseas, can enhance customers’ liking for their products, particularly if the company is reputable and trustworthy. We did two experiments and found out that when famous local companies assist their own community, customers tend to like their products more after buying them. But, if the company isn’t that famous, the location of their assistance does not significantly impact customers’ perception of their products. We also found that for well-known companies, it’s important that their help seems fair. But for less famous companies, it’s more about making sure their products seem less risky, no matter where they help. Our study suggests that companies need to think carefully about their reputation when planning their good deeds to keep customers loyal in a sustainable way.

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