Corporate Social Responsibility and Firm-Based Brand Equity: The Moderating Effect of Marketing Communication and Brand Identity

Abstract

To examine how the CSR activities facilitate a company’s brand-building process and useful in building its Brand Equity i.e., Firm-Based Brand Equity (FBBE). Methodology: For the present study, responses have been elicited from a sample of 69 company executives. Multi-stage sampling (method of random sampling) is used in the present study to select the sample executives. The collected sample dataset is analyzed through SPSS (version 25) and AMOS (version 24) software. Cronbach’s Alpha technique is used to measure how closely related a set of items are as a group. This is considered to be a measure of scale reliability. The Exploratory Factor Analysis (EFA) statistical method is used to uncover the underlying structure of a relatively large set of variables. Structural Equation Modeling (SEM) is conducted in the study in order to test the statistical hypotheses formulated for the study and to examine the effect of CSR on Brand Equity with the moderating effect of Marketing Communication and Brand Identity. Findings: The outcomes of the study revealed that Corporate Social Responsibility (CSR), Marketing Communication, Brand Identity and Brand Equity are positively associated. Thus, it can be surmised that CSR affects Brand Equity with the mediating effect of Marketing Communication and Brand Identity. Originality: The present study is based on original research that facilitates new insight instead of summarizing what is already known in a new form. Though many studies on CSR have been conducted in the past, but studies on the relationship between Corporate Social Responsibility and Firm-Based Brand Equity with the moderating effect of Marketing Communication and Brand Identity are few and far between. Implications: The outcome of the study will cast new light on the impact of Corporate Social Responsibility on Corporate Brand Image and also facilitate future research endeavors on CSR. The results of the study will help corporate houses in building a strong brand image. As a matter of fact, the CSR activities implemented by the companies offer a better brand recognition, resulting in greater brand awareness among customers and society at large. Such awareness is related to CSR initiatives of the companies brings brand trust and loyalty. Consequently, the trust and loyalty so developed enhances the Brand Image and strengthens the Brand Equity.