The Effects of Corporate Social Responsibility (CSR) Toward Corporate Image and Customer Response (A Case Study in Waroeng Group Yogyakarta)

Primanita Setyono; Ardyan Barru Puspita

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Abstract

In dealing with the issue of Corporate Social Responsibility (CSR) which is not only a discussion of social issues, but also develops into a heated conversation for business owners. This research aims to examine the influence of CSR on corporate image, satisfaction, purchase intention, and customer loyalty in Waroeng Group Yogyakarta. This research uses the type of data that is primary data with the method of distributing questionnaire to respondents, using sampling techniques with purposive sampling, and the population in this study is Waroeng Group consumers in Yogyakarta. The method used to test hypothesis is Structural Equation Model (SEM) with the help of SmartPLS 3.0 software. The result of this research indicate that CSR shows a significant positive effect on corporate image, customer satisfaction, purchase intention, and customer loyalty. The corporate’s image has a significant positive effect on customer purchase intention and customer loyalty. Customer satisfaction has a significant positive effect on customer purchase intention and customer loyalty.

Keywords: CSR, corporate image, customer satisfaction, customer purchase intention, customer loyalty

Author Biography

Primanita Setyono, Faculty of Economics, Universitas Islam Indonesia, Yogyakarta, Indonesia

How to Cite

Setyono, P., & Puspita, A. B. (2020). The Effects of Corporate Social Responsibility (CSR) Toward Corporate Image and Customer Response (A Case Study in Waroeng Group Yogyakarta). Proceeding UII-ICABE, 1(1), 313–333. Retrieved from https://journal.uii.ac.id/icabe/article/view/14729

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References

Aaker, D. (2004). Strategic Marketing Management. New York: John Willey and Sons Inc.
Adji, J., and Semuel, H. (2014). Pengaruh Satisfaction dan Trust Terhadap Minat Beli Konsumen (Purchase Intention) di Starbucks The Square Surabaya. Jurnal Manajemen Pemasaran Petra, 2(1), 1-10.
Ajzen, I., and Fishbein, M. (2005). The Influence of Attitudes on Behavior. Englewood Cliffs, NJ: Prentice Hall.
Anderson, E. W ., and Sullivan, M. W . (1993). The Antencedents and Consequence of Customer Satisfaction. Marketing Science, 12, 125-143.
Asseal, H. (1998). Consumer Behavior and Marketing Action (6th Edition). New York: International Thomson Publishing.
Brammer, S., Millington, A. (2005). Corporate Reputation and Philanthropy: An Empirical Analysis. Journal of Business Ethics, 61(1), 29-44.
Chung, K., Yu, J., Choi, M., and Shin, J. (2015). The Effect of CSR on Customer Satisfaction and Loyalty in China: The Moderating Role of Corporate Image. Journal of Economics, Business and Management, 3(5), 542-547.
Creyer, E. H., Ross, W. T. (1997). The Influence of Firm Behavior on Purchase Intention: Do Consumer Really Care About Business Ethics. Journal of Consumer Marketing, 14(6), 313-336.
Fornell, C., and Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research (JMR). Feb1981, 18(1), 39-50,12p. 1 Diagram.
Ghozali, I. (2006). Structural Equation Modelling Metode Alternatif dengan PLS. Semarang: Badan Penerbit Universitas Diponegoro.
Ghozali, I., and Latan, H. (2015). Partial Least Square: Konsep, Teknik dan Aplikasi Menggunakan Program SmartPLS 2.0 M3. Semarang: Badan Penerbit Universitas Diponegoro.
Han, J. K., and Schmitt, B. H. (1997). Product Category Dynamics and Corporate Identity in Brand Extensions: A Comparison of Hong Kong and US Consumers. Journal of International Marketing, 5, 77-92.
Hanaysha, Jalala Rajeh. (2017). Impact of Social Media Marketing, Price Promotion, and Corporate Social Responsibility on Customer Satisfaction. Jindal Journal of Business Research, 6(2), 1-14.
Heryeni, Mulyati, Y., Laoli, E. F. (2017). Kualitas Pelayanan, Kepercayaan dan Kepuasan Nasabah dan Pengaruhnya Terhadap Loyalitas Nasabah pada Tabungan Bank Rakyat Indonesia (Persero) Tbk Kantor Cabang Khatib Sulaiman. Jurnal Ekonomi dan Bisnis Andalas, 19(2), 189-201.
Hsu, T. K. H. (2012). The Advertising Effects of Corporate Social Responsibility on Corporate Reputation and Brand Equity: Evidence from the Life Insurance Industry in Taiwan. Journal Business Ethics, 10(9), 189-201.
Huang, C. -C., Yen, S. -W., Liu, C. -Y., and Huang P. -C. (2014). The Relationship Among Corporate Social Responsibility, Service Quality, Corporate Image, and Purchase Intention. International Journal of OrganizationalInnovation, 6(3), 68-85.
Ishaq, I. (2012). Perceived value, service quality, corporate image and customer loyalty: Empirical assessment from Pakistan. Serbian Journal of Management, 7(1), 25–36. https://doi.org/10.5937/sjm1201025I
Kaur, H., and Soch, H. (2012). Validating Antecendents of Customer Loyalty for Indian Call Phone Users. Executive Summary, 7(2), 47-61.
Kotler, P., and Lee, N. (2005). Corporate Social Responsibility: Doing The Most Good For Your Company and Your Cause. New Jersey: John Wiley & Son, Inc.
Kotler, P., and Armstrong, G. (2008). Marketing Management (12ed). Upper Saddle River, New Jersey: Prentice-Hall.
Krishnamurthy, P., and Sivaraman, A. (2002). Counterfactual Thinking and Advertising Responses. Journal of Consumer Research, 650-659.
Lako, Andreas. (2011). Dekonstruksi CSR dan Reformasi Paradigma Bisnis dan Akuntansi. Jakarta: Erlangga.
Loudon, D. L., and Bitta, A. J. (1988). Consumer Behavior: Concepts and Application (Edition 4th). New York: McGraw-Hill.
Maden et al. (2012). Linking Corporate Social Responsibility to Corporate Reputation: A Study on Understanding Behavioral Consequences. Responsibility of 8th International Strategic Management Conference.
Maignan, I., Ferrel, O. C. (2004). Corporate Social Responsibility and Marketing An Integrative Framework. Academy of Marketing Science Journal, 32(1), 3-19.
Morf, D. A., Schumacher, M. G., Vitell, S. J. (1999). A Survey of Ethics Officers in Large Organization. Journal of Business Ethics, 20(3), 265-272.
Nurdizal, M. Rachman, Asep, Efendi, and Emir. (2011). Wicaksana. Panduan Lengkap Pelaksanaan CSR. Jakarta: Penebar Swadaya.
Oliver, R. L. (1997). Customer Delight: Fundations, Findings, and Managerial Insight. Journal of Retailing, 73(3), 311-226.
Peter, J. P., and Olson, J. C. (2000). Perilaku Konsumen dan Strategi Pemasaran. Jakarta: PT Penerbit Erlangga.
Rahim, Taofik. (2012). Analisis Pengaruh Kualitas Pelayanan dan Pelayanan Terhadap Kepuasan Pelanggan di Amoole Distro.
Sen, S., and Bhattacharya, C. B. (2001). Does Doing Good Always Lead to Doing Better? Consumer Reactions to Corporate Social Responsibility. Journal of Marketing Research, 38(2), 225-243.
Smith, C. N. (2003). Corporate Social Responsibility: Whether Or How? California Management Review, 45 (4), 52-76.
Wibisono, Y. (2007). Membedah Konsep & Aplikasi CSR (Corporate Social Responsibility). Gresik: Fascho Publishing.

References

Aaker, D. (2004). Strategic Marketing Management. New York: John Willey and Sons Inc.

Adji, J., and Semuel, H. (2014). Pengaruh Satisfaction dan Trust Terhadap Minat Beli Konsumen (Purchase Intention) di Starbucks The Square Surabaya. Jurnal Manajemen Pemasaran Petra, 2(1), 1-10.

Ajzen, I., and Fishbein, M. (2005). The Influence of Attitudes on Behavior. Englewood Cliffs, NJ: Prentice Hall.

Anderson, E. W ., and Sullivan, M. W . (1993). The Antencedents and Consequence of Customer Satisfaction. Marketing Science, 12, 125-143.

Asseal, H. (1998). Consumer Behavior and Marketing Action (6th Edition). New York: International Thomson Publishing.

Brammer, S., Millington, A. (2005). Corporate Reputation and Philanthropy: An Empirical Analysis. Journal of Business Ethics, 61(1), 29-44.

Chung, K., Yu, J., Choi, M., and Shin, J. (2015). The Effect of CSR on Customer Satisfaction and Loyalty in China: The Moderating Role of Corporate Image. Journal of Economics, Business and Management, 3(5), 542-547.

Creyer, E. H., Ross, W. T. (1997). The Influence of Firm Behavior on Purchase Intention: Do Consumer Really Care About Business Ethics. Journal of Consumer Marketing, 14(6), 313-336.

Fornell, C., and Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research (JMR). Feb1981, 18(1), 39-50,12p. 1 Diagram.

Ghozali, I. (2006). Structural Equation Modelling Metode Alternatif dengan PLS. Semarang: Badan Penerbit Universitas Diponegoro.

Ghozali, I., and Latan, H. (2015). Partial Least Square: Konsep, Teknik dan Aplikasi Menggunakan Program SmartPLS 2.0 M3. Semarang: Badan Penerbit Universitas Diponegoro.

Han, J. K., and Schmitt, B. H. (1997). Product Category Dynamics and Corporate Identity in Brand Extensions: A Comparison of Hong Kong and US Consumers. Journal of International Marketing, 5, 77-92.

Hanaysha, Jalala Rajeh. (2017). Impact of Social Media Marketing, Price Promotion, and Corporate Social Responsibility on Customer Satisfaction. Jindal Journal of Business Research, 6(2), 1-14.

Heryeni, Mulyati, Y., Laoli, E. F. (2017). Kualitas Pelayanan, Kepercayaan dan Kepuasan Nasabah dan Pengaruhnya Terhadap Loyalitas Nasabah pada Tabungan Bank Rakyat Indonesia (Persero) Tbk Kantor Cabang Khatib Sulaiman. Jurnal Ekonomi dan Bisnis Andalas, 19(2), 189-201.

Hsu, T. K. H. (2012). The Advertising Effects of Corporate Social Responsibility on Corporate Reputation and Brand Equity: Evidence from the Life Insurance Industry in Taiwan. Journal Business Ethics, 10(9), 189-201.

Huang, C. -C., Yen, S. -W., Liu, C. -Y., and Huang P. -C. (2014). The Relationship Among Corporate Social Responsibility, Service Quality, Corporate Image, and Purchase Intention. International Journal of OrganizationalInnovation, 6(3), 68-85.

Ishaq, I. (2012). Perceived value, service quality, corporate image and customer loyalty: Empirical assessment from Pakistan. Serbian Journal of Management, 7(1), 25–36. https://doi.org/10.5937/sjm1201025I

Kaur, H., and Soch, H. (2012). Validating Antecendents of Customer Loyalty for Indian Call Phone Users. Executive Summary, 7(2), 47-61.

Kotler, P., and Lee, N. (2005). Corporate Social Responsibility: Doing The Most Good For Your Company and Your Cause. New Jersey: John Wiley & Son, Inc.

Kotler, P., and Armstrong, G. (2008). Marketing Management (12ed). Upper Saddle River, New Jersey: Prentice-Hall.

Krishnamurthy, P., and Sivaraman, A. (2002). Counterfactual Thinking and Advertising Responses. Journal of Consumer Research, 650-659.

Lako, Andreas. (2011). Dekonstruksi CSR dan Reformasi Paradigma Bisnis dan Akuntansi. Jakarta: Erlangga.

Loudon, D. L., and Bitta, A. J. (1988). Consumer Behavior: Concepts and Application (Edition 4th). New York: McGraw-Hill.

Maden et al. (2012). Linking Corporate Social Responsibility to Corporate Reputation: A Study on Understanding Behavioral Consequences. Responsibility of 8th International Strategic Management Conference.

Maignan, I., Ferrel, O. C. (2004). Corporate Social Responsibility and Marketing An Integrative Framework. Academy of Marketing Science Journal, 32(1), 3-19.

Morf, D. A., Schumacher, M. G., Vitell, S. J. (1999). A Survey of Ethics Officers in Large Organization. Journal of Business Ethics, 20(3), 265-272.

Nurdizal, M. Rachman, Asep, Efendi, and Emir. (2011). Wicaksana. Panduan Lengkap Pelaksanaan CSR. Jakarta: Penebar Swadaya.

Oliver, R. L. (1997). Customer Delight: Fundations, Findings, and Managerial Insight. Journal of Retailing, 73(3), 311-226.

Peter, J. P., and Olson, J. C. (2000). Perilaku Konsumen dan Strategi Pemasaran. Jakarta: PT Penerbit Erlangga.

Rahim, Taofik. (2012). Analisis Pengaruh Kualitas Pelayanan dan Pelayanan Terhadap Kepuasan Pelanggan di Amoole Distro.

Sen, S., and Bhattacharya, C. B. (2001). Does Doing Good Always Lead to Doing Better? Consumer Reactions to Corporate Social Responsibility. Journal of Marketing Research, 38(2), 225-243.

Smith, C. N. (2003). Corporate Social Responsibility: Whether Or How? California Management Review, 45 (4), 52-76.

Wibisono, Y. (2007). Membedah Konsep & Aplikasi CSR (Corporate Social Responsibility). Gresik: Fascho Publishing.

The Effects of Corporate Social Responsibility (CSR) Toward Corporate Image and Customer Response (A Case Study in Waroeng Group Yogyakarta)

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Primanita Setyono, Faculty of Economics, Universitas Islam Indonesia, Yogyakarta, Indonesia

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