Volume 15 Issue 1 2019


Ammar Ahmad
Assistant Professor, Department of Business Administration, ISP, Multan.

Muhammad Azeem
Ph.D. Scholar, university Utara Malaysia.

Sanober Salman Shaikh
Institute of Business Administration, University of Sindh Jamshoro, Pakistan.

Abstract This empirical study was aimed to discover the impact of corporate social responsibility (CSR) and international standardization of organization (ISO) on corporate reputation (CR) and corporate reputation's effect on consumer loyalty (CL). In addition, the relationship of corporate reputation & trust (T), corporate reputation with consumer company identification (CCI) was also examined. Lastly, the association of consumer company identification, trust, and consumer loyalty (CL) was also analyzed. The data was collected from 500 students of three different universities and a survey instrument was administrated. Overall, eight hypotheses were examined to confirm the relationship among variables by using the CFA (Confirmatory Factor Analysis), and structural equation modeling (SEM) was used to test the validity of the instrument with the help of AMOS and SPSS software. The result indicated that ISO and environmental CSR has a direct relationship with corporate reputation. Corporate reputation had a direct association with trust. Whereas, corporate reputation was significantly positively related to consumer company identification. Subsequently, Trust also showed a positive relationship with loyalty, and a positive relationship was found between consumer company identification and consumer loyalty. Furthermore, results showed that community development- corporate social responsibility had no relationship with corporate reputation and corporate reputation was significantly related to customer loyalty. The findings of this study contribute to the literature provided instrument authenticity and adaptability in the Pakistani context. In this study limitations and future recommendations were also provided.
Keywords CSR, ISO, Consumer Company Identification, Corporate Reputation, Trust, Consumer Loyalty
Year 2019
Volume 15
Issue 1
Type Research paper, manuscript, article
Recognized by Higher Education Commission of Pakistan, HEC
Category "Y"
Journal Name IBT Journal of Business Studies
Publisher Name ILMA University
Jel Classification D11, D18
DOI http://dx.doi.org/10.46745/ilma.jbs.2019.15.01.08
ISSN no (E, Electronic) 2409-6520
ISSN no (P, Print) 2416-8393
Country Pakistan
City Karachi
Institution Type University
Journal Type Open Access
Type OF Review Double Blind Peer Reviewed
Format PDF
Paper Link http://ibtjbs.ilmauniversity.edu.pk/journal/jbs/15.1/8.pdf
Page 95-111
References Aggarwal, P. (2004). The effects of brand relationship norms on consumer attitudes and behavior. Journal of Consumer Research, 31(1), 87-101.

Aguinis, H. (2011). Organizational responsibility: Doing good and doing well. APA handbook of industrial and Organizational Psychology, 3, 855-879.

Ahearne, M., Bhattacharya, C. B., & Gruen, T. (2005). Antecedents and consequences of customer- company identification: Expanding the role of relationship marketing. Journal of Applied Psychology, 90(3), 574.

Ahmed, A., & Malik, M. S. (2016). Strategy to Customer Loyalty: Building CSR and Service Quality: LAP LAMBERT. Academic Publishing Germany.

Ahmed, A., & Othman, I. L. (2016). Mediating Role of Customer Commitment on Customer Loyalty in FMCG. Scholars Journal of Economics, Business and Management, 3(5), 263-270.

Ahmed, A., Khuwaja, F. M., Othman, I. B. L., Qureshi, M. A., & Ali, R. A. (2017). Validation of SERVQUAL Model in Relation to Customer Loyalty: Evidence from FMCGs in Pakistan. Sukkur IBA Journal of Management and Business, 4(2), 54-76.

Andreassen, T. W., &Lindestad, B. (1998). The effect of corporate image in the formation of customer loyalty. Journal of Service Research, 1(1), 82-92.

Barich, H., & Kotler, P. (1991). A framework for marketing image management. MIT Sloan Management Review, 32(2), 94.

Becker-Olsen, K. L., Taylor, C. R., Hill, R. P., &Yalcinkaya, G. (2011). A cross-cultural examination of corporate social responsibility marketing communications in Mexico and the United States: Strategies for global brands. Journal of International Marketing, 19(2), 30-44.

Benner, M. J., & Veloso, F. M. (2008). ISO 9000 practices and financial performance: A technology coherence perspective. Journal of Operations Management, 26(5), 611-629.

Bergami, M., &Bagozzi, R. P. (2000). Self-categorization, affective commitment and group self- esteem as distinct aspects of social identity in the organization. British Journal of Social Psychology, 39(4), 555-577.

Bhattacharya, C. B., &Elsbach, K. D. (2002). Us versus them: The roles of organizational identification and disidentification in social marketing initiatives. Journal of Public Policy & Marketing, 21(1), 26-36.

Blythe, J. (1997). The essence of consumer behavior. Pearson: PTR.

Bowen, J. T., & Shoemaker, S. (2003). Loyalty: A strategic commitment. Cornell Hotel and Restaurant Administration Quarterly, 44(5-6), 31-46.

Brammer, S., Hoejmose, S., & Millington, A. (2011). Managing sustainable global supply chain: framework and best practices.

Brewer, M. B. (1991). The social self: On being the same and different at the same time. Personality and Social Psychology Bulletin, 17(5), 475-482.

Calderon, M. (2011). CSR in Latin America and South East Asia analysis of the corporate communication of top local companies. International Research Journal of Finance and Economics, 73, 56-74.

Chen, Y., & Pearcy, J. (2010). Dynamic pricing: when to entice brand switching and when to reward consumer loyalty. The RAND Journal of Economics, 41(4), 674-685.

Cheung, D. K., Welford, R. J., & Hills, P. R. (2009). CSR and the environment: business supply chain partnerships in Hong Kong and PRDR, China. Corporate Social Responsibility and Environmental Management, 16(5), 250-263.

Choi, S., & Ng, A. (2011). Environmental and economic dimensions of sustainability and price effects on consumer responses. Journal of Business Ethics, 104(2), 269-282.

Liang, J., Moore, R. E., Moher, E. D., Munroe, J. E., Al-awar, R. S., Hay, D. A., ... & Shih, C. (2005). Cryptophycins-309, 249 and other cryptophycin analogs: preclinical efficacy studies with mouse and human tumors. Investigational New Drugs, 23(3), 213.

Delgado-Ballester, E., Munuera-Aleman, J. L., &Yague-Guillen, M. J. (2003). Development and validation of a brand trust scale. International Journal of Market Research, 45(1), 35-54.

Davis, K., &Blomstrom, R. L. (1966). Business and its environment. McGraw-Hill.

Dick, A. S., &Basu, K. (1994). Customer loyalty: toward an integrated conceptual framework. Journal of the Academy of Marketing Science, 22(2), 99-113.

Dutton, J. E., Dukerich, J. M., &Harquail, C. V. (1994). Organizational images and member identification. Administrative Science Quarterly, 239-263.

Economist, T. (2013). Consumer goods.Retrieved from: http://www.eiu.com/industry/article/141041398/pakistan-fmcgs-provide-an-economic-bright- spot/2013-10-09.

Baumann, C., Elliott, G., &Hamin, H. (2011). Modelling customer loyalty in financial services: a hybrid of formative and reflective constructs. International Journal of Bank Marketing, 29(3), 247-267.

Enderle, G., & Murphy, P. E. (2009). Ethics and corporate social responsibility for marketing in the global marketplace. The SAGE Handbook of International Marketing, 504-531.

Fombrun, C. J., & Van Riel, C. B. M. (2003). Fame & fortune: How the world’s top companies develop winning reputations. Pearson Education.

Groening, C., Sarkis, J., & Zhu, Q. (2018). Green marketing consumer-level theory review: A compendium of applied theories and further research directions. Journal of Cleaner Production, 172, 1848-1866.

Harris, L. C., & Goode, M. M. (2010). Online servicescapes, trust, and purchase intentions. Journal of Services Marketing, 24(3), 230-243.

He, H., & Li, Y. (2011). CSR and service brand: The mediating effect of brand identification and moderating effect of service quality. Journal of Business Ethics, 100(4), 673-688.

Hwang, J., & Wen, L. (2009). The effect of perceived fairness toward hotel overbooking and compensation practices on customer loyalty. International Journal of Contemporary Hospitality Management, 21(6), 659-675.

Kline, R. B., &Seffah, A. (2005). Evaluation of integrated software development environments: Challenges and results from three empirical studies. International Journal of Human-Computer Studies, 63(6), 607-627.

Mael, F., &Ashforth, B. E. (1992). Alumni and their alma mater: A partial test of the reformulated model of organizational identification. Journal of Organizational Behavior, 13(2), 103-123.

Mael, F. A., &Ashforth, B. E. (1995). Loyal from day one: Biodata, organizational identification, and turnover among newcomers. Personnel psychology, 48(2), 309-333.

Mandhachitara, R., &Poolthong, Y. (2011). A model of customer loyalty and corporate social responsibility. Journal of Services Marketing, 25(2), 122-133.

Marin, L., & Ruiz, S. (2007). “I need you too!” Corporate identity attractiveness for consumers and the role of social responsibility. Journal of Business Ethics, 71(3), 245-260.

Mohr, L. A., & Webb, D. J. (2005). The effects of corporate social responsibility and price on consumer responses. Journal of Consumer Affairs, 39(1), 121-147.

Mohr, L. A., Webb, D. J., & Harris, K. E. (2001). Do consumers expect companies to be socially responsible? The impact of corporate social responsibility on buying behavior. Journal of Consumer Affairs, 35(1), 45-72.

Moolla, A. I., &Bisschoff, C. A. (2012). Validating a model to measure the brand loyalty of fast moving consumer goods. Journal of Social Sciences, 31(2), 101-115.

Nair, A., &Prajogo, D. (2009). Internalization of ISO 9000 standards: the antecedent role of functionalist and institutionalist drivers and performance implications. International Journal of Production Research, 47(16), 4545-4568.

Nam, J., Ekinci, Y., &Whyatt, G. (2011). Brand equity, brand loyalty and consumer satisfaction. Annals of Tourism Research, 38(3), 1009-1030.

Newman, C., Rand, J., Tarp, F., &Trifkovic, N. (2018). The transmission of socially responsible behaviour through international trade. European Economic Review, 101, 250-267.

Ngobo, P. V. (2017). The trajectory of customer loyalty: an empirical test of Dick and Basu’s loyalty framework. Journal of the Academy of Marketing Science, 45(2), 229-250.

Ogba, I. E., & Tan, Z. (2009). Exploring the impact of brand image on customer loyalty and commitment in China. Journal of Technology Management in China, 4(2), 132-144.

Oliver, R. L., Rust, R. T., & Varki, S. (1997). Customer delight: foundations, findings, and managerial insight. Journal of Retailing, 73(3), 311-336.

Orlitzky, M., Schmidt, F. L., &Rynes, S. L. (2003). Corporate social and financial performance: A meta-analysis. Organization Studies, 24(3), 403-441.

Pedersen, E. R. (2010). Modelling CSR: How managers understand the responsibilities of business towards society. Journal of Business Ethics, 91(2), 155-166.

Peloza, J., & Shang, J. (2011). How can corporate social responsibility activities create value for stakeholders? A systematic review. Journal of the academy of Marketing Science, 39(1), 117- 135.

Peloza, J. (2009). The challenge of measuring financial impacts from investments in corporate social performance. Journal of Management, 35(6), 1518-1541.

Perrini, F., Castaldo, S., Misani, N., &Tencati, A. (2010). The impact of corporate social responsibility associations on trust in organic products marketed by mainstream retailers: a study of Italian consumers. Business Strategy and the Environment, 19(8), 512-526.

Parker, A. H., Youlten, R., Dillon, M., Nussbaumer, T., Carter, R. C., Tyrrel, S. F., & Webster, J. (2010). An assessment of microbiological water quality of six water source categories in north- east Uganda. Journal of Water and Health, 8(3), 550-560.

Quazi, H. A., &Padibjo, S. R. (1998). A journey toward total quality management through ISO 9000 certification-a study on small-and medium-sized enterprises in Singapore. International Journal of Quality & Reliability Management, 15(5), 489-508.

Rahbar, E., & Abdul Wahid, N. (2011). Investigation of green marketing tools’ effect on consumers’ purchase behavior. Business Strategy Series, 12(2), 73-83.

Roberts, P. W., & Dowling, G. R. (2002). Corporate reputation and sustained superior financial performance. Strategic Management Journal, 23(12), 1077-1093.

Rose, C., & Thomsen, S. (2004). The Impact of Corporate Reputation on Performance: Some Danish Evidence. European Management Journal, 22(2), 201-210.

Schiffman, L. G., &Kanuk, L. L. (2010). Consumer Behavior. Edisi 10. Schmeltz, L. (2012). Consumer-oriented CSR communication: focusing on ability or morality? Corporate Communications: An International Journal, 17(1), 29-49.

Sen, S., Bhattacharya, C. B., &Korschun, D. (2006). The role of corporate social responsibility in strengthening multiple stakeholder relationships: A field experiment. Journal of the Academy of Marketing Science, 34(2), 158-166.

Sila, I. (2018). Linking quality with social and financial performance: A contextual, ethics‐based approach. Production and Operations Management, 27(6), 1102-1123.

Singh, A., Pant, D., Korres, N. E., Nizami, A. S., Prasad, S., & Murphy, J. D. (2010). Key issues in life cycle assessment of ethanol production from lignocellulosic biomass: challenges and perspectives. Bioresource Technology, 101(13), 5003-5012.

Smidts, A., Pruyn, A. T. H., & Van Riel, C. B. (2001). The impact of employee communication and perceived external prestige on organizational identification. Academy of Management journal, 44(5), 1051-1062.

Survey, P. E. (2017). Overview of the Economy, Pakistan Economic Survey. Pakistan: Retrieved from: http://www.finance.gov.pk/survey/chapters_17/overview_2016-17.pdf.

Tajfel, H., & Turner, J. C. (1985). The psychology of intergroup relations (pp. 7–24). Chicago: Nelson-Hall. Google Scholar.

Terlaak, A., & King, A. A. (2006). The effect of certification with the ISO 9000 Quality Management Standard: A signaling approach. Journal of Economic Behavior & Organization, 60(4), 579- 602.

Walsh, G., &Wiedmann, K. P. (2004). A conceptualization of corporate reputation in Germany: An evaluation and extension of the RQ. Corporate Reputation Review, 6(4), 304-312.

Wang, A., & Anderson, R. B. (2011). A multi-staged model of consumer responses to CSR communications. The Journal of Corporate Citizenship, (41), 51.

Weiss, H. M., Suckow, K., &Cropanzano, R. (1999). Effects of justice conditions on discrete emotions. Journal of Applied Psychology, 84(5), 786.

Whetten, D. A., & Godfrey, P. C. (1998). (Eds.). Identity in organizations: Building theory through conversations. Sage.

Wiengarten, F., Humphreys, P., Onofrei, G., &Fynes, B. (2017). The adoption of multiple certification standards: perceived performance implications of quality, environmental and health & safety certifications. Production Planning & Control, 28(2), 131-141.

Williamson, D., Lynch-Wood, G., & Ramsay, J. (2006). Drivers of environmental behavior in manufacturing SMEs and the implications for CSR. Journal of Business Ethics, 67(3), 317-330.

Wood, D. J. (2010). Measuring corporate social performance: A review. International Journal of Management Reviews, 12(1), 50–84.