Developing a consumer relationship model of corporate social performance

Abstract

Purpose This paper aims to address the complex nature of social performance (CSP/CSR) in building a trust-based consumer relationship. The relative and aggregate influence of corporate functional performance, corporate social performance (CSP) and shared values within a trust-based customer–brand relationship and their impact on behavioral loyalty in the forms of retention, referral and ease of voice are empirically tested. Design/methodology/approach Respondents were recruited to participate in a study on ice cream shop preferences. Structural equation modeling was used to simultaneously test the effects of independent variables on dependent variables. Findings Shared values mediate the effect that CSP has on trust and all loyalty behaviors. Trust has a significant influence on one behavior:retention. Research limitations/implications The findings may be specific by industry, product type or consumer involvement. Further tests should be performed with varying levels of each. Practical implications Millennial consumers expect organizations/brands to engage in CSR activities, and, because of increased CSP reporting, are aware of an organization’s CSR efforts. If the CSP does not reflect the customer’s value system (shared values), the long-term relationship can be impacted negatively. Firms must strategically consider the values communicated by their CSR activities to build and care for long-term relationships with their target consumer. Originality/value This research is the first to integrate and test a comprehensive consumer relationship model of CSP.

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