Corporate social responsibility, marketing capabilities and consumer behavioral responses.
| Autor | Kankam-Kwarteng, Collins |
Introduction
Corporate social responsibility (CSR) activities are regularly known to be aimed at community members and consumers. Of course, every enterprise engages in CSR principally or relatively to excite consumers and potential consumers in their immediate environment (Boateng&Abdul-Hamid, 2017; Naderian & Baharun, 2015; Santoso, 2014; Tuzcu, 2014). CSR in developing countries, including Ghana, is plagued by limited research (Dartey-Baah, Amponsah-Tawiah, & Agbeibor, 2015; Seeletse & Ladzani, 2012). Moreover, the majority of the extant literature onCSR has tendedtonot concentrate on the specific context ofthe mobile telecommunication industry, bringing important insights from a multi-sectorial perspective.
A growing number of marketplace polls attest to the positive impact of CSR on consumer behavior (Safi, 2013; Bhattacharya & Sen, 2004).
Despite the increasing mentioning of CSR in the marketplace, few research talks about the effects of CSR action on consumers. However, other studies have exhibited that the correlation between an enterprise's CSR engagements and the consumers' reaction is not always direct and that numerous elements affect whether an enterprise CSR undertakings lead to consumer patronage (Valor, 2008; Maignan & Ferrell, 2004; Carrigan & Attalla, 2001; Ellen, Mohr, & Webb, 2000). Research concludes that there is a positive relationship between an enterprise CSR arrangements and consumers' attitudes toward that enterprise and its products (Pino, Amatulli, De Angelis, & Peluso, 2016; Lee, Park, & Lee, 2013; Yoon, Guirhan-Canli, & Schwarz, 2006; Ellen et al, 2000).
In Ghana, the implementation of CSR operations has become significant in recent years (Anku-Tsede & Deffor, 2014). Specifically, the private sector has come under immense pressure to adopt CSR elements in their strategic actions. This suggests that CSR is not a new model in Ghana per se; however, it is still in its developing stages in relation to the industrialized economies. In spite of the few mobile telecommunication companies in the industry, the last few years have witnessed intensity of competition in the industry. The dynamics of competition in the industry is a result of the merger between Airtel and Tigo into AirtelTigo. There is also widespread consumer discontent with the telecommunication network providers in Ghana (Boateng & Abdul-Hamid, 2017). Currently, there are four mobile telecommunication network operators in the country: Vodafone, MTN, AirtelTigo and Glo. Telecommunication network operators in Ghana are accused of frequent call drops, denial of services, interconnectivity problems and consumers are very disappointed about the poor services delivered by these enterprises (Nimako, Azumah, Donkor, & Veronica, 2010). Constant consumer complaints and resultant competitive struggles to increase consumer basis have led to intensive competitive strategies in the industry. One such strategy used by the telecommunication companies is the application of CSR (Abukari & Abdul-Hamid, 2018; Sokro & Agbola, 2016; Mahmoud & Hinson, 2012). The telecommunication companies in Ghana (MTN, AirtelTigo, Vodafone and Glo) have all been involved in CSR activities such as the provision of academic scholarships, community development, building health infrastructure and support (Boateng & Abdul-Hamid, 2017; Mahmoud & Hinson, 2012; Nimako et al, 2010). Interestingly, empirical studies have not examined CSR and consumer behavioral responses with marketing capabilities as a moderator in the mobile telecommunication sector. The focus of this work is, therefore, to estimate consumers' reaction to CSR and the role of marketing capabilities in the relationship. Particularly, this work examines the moderating effect of the firm's marketing capability on the responses of consumer toward CSR programs by the mobile telecommunication industry in Ghana.
Literature review
Consumer behavioral responses
Consumers have long been considered the backbone of every business (Engel, Blackwell, & Miniard, 1991; Schwartz, 1991). Without consumers, a firm has no revenues, no profits and, therefore, no market value (Daunt & Harris, 2012). Consumer behavior is generally considered as a set of activities undertaken by consumers in selecting, purchasing, consuming and disposing of goods and services to gratify their personal needs and desires (Frederiks, Stenner, & Hobman, 2015; Solomon, Russell-Bennett, & Previte, 2012).
In the consumer theory, the term "consumer behavior" denotes not only the act of purchase itself, but also the pre- and post-purchase activities (Pachauri, 2001; Ennew, Reed, & Binks, 1993).
Consumer behavioral responses involve indications for the actual consumption, and hence, it is imperative that they are monitored (Zeithaml, Berry, & Parasuraman, 1996). Consumer behavioral response includes purchase intention and willingness to pay, and it can result in organizational performance (Wirtz & Mattila, 2004). A consumer who exhibits both strong indications of purchase and willingness to pay is more likely to remain loyal to the service provider, with lower sensitivity toward the operations of the firm (Keh & Xie, 2009). Behavioral responses are among the essential concepts in consumer behavior literature, perhaps, due to its strong relationship with the actual consumer buying behavior (Akhtar, Sun, Akhtar, & Chen, 2019). Literature indicates that meeting consumer needs, which enhance consumer satisfaction and therefore affects their repurchase intentions toward the incumbent firm, is largely influenced by how consumers perceive the firm (Laczniak, DeCarlo, & Ramaswami, 2001). That is, the reputation or image of the firm is very vital in dictating consumer responses and patronage. Research has shown that there is a positive correlation between corporate image and consumer behavioral responses (Lacey, 2007).
The effect of CSR on consumer behavioral responses
The concept of CSR suggests different issues to different researchers. One side argues that CSR targets compliance with laws, and the other side considers CSR as philanthropy initiative (Matten, Crane, & Chappie, 2003). Hiller (2013) also suggests that CSR can be viewed from the "who benefits" point. The beneficiaries include employees, suppliers, consumers and other amorphous group considered as the society (Hiller, 2013). The traditional view of enterprises suggests that their core responsibilities are to their stockholders or owners (Beekun & Badawi, 2005; Andre, 2012).
Mahmoud and Hinson (2012) suggest that CSR practices stimulate mobile telecommunication companies' ability to attract more knowledgeable and dedicated individuals, get community support and boost consumers' morale and assurance to the enterprise. The ability of the mobile telecommunication companies to meet the needs of consumers through the provision of valued services; as it becomes economically responsible, it does not only improve the firm's reputation, but also makes it more attractive to existing consumers in the market (Amponsah-Tawiah & Dartey-Baah, 2016; Kodua & Mensah, 2017). Benefits that firms accrue from CSR activities are majorly attained by the reputational improvement the firm sustains as its corporate image soars due to favorable judgments it receives from consumers (Agyemang & Ansong, 2017; Afiuc et al, 2020). Amoako, Agbola, Sokro, and Dzogbenuku (2011) assert that CSR activities in telecommunications have higher social approval asset. The resultant effect is an increase in consumer patronage, thereby leading to higher sales performance and profitability (Hinson & Kodua, 2012; Stawiski, Deal, & Gentry, 2010; Lai, Debo, & Sycara, 2010; Stanaland, Lwin, & Murphy, 2011). The studies into the telecommunication industry in specific Ghanaian context have demonstrated that CSR activities require continues research to establish how heighten competition influences consumer behavioral responses. Based on this discussion, it can be hypothesized as follows:
H1. CSR has a positive effect on consumers' behavioral responses.
The effect of marketing capabilities on consumer behavioral responses Marketing capabilities in the telecommunication industry have been noted by management researchers (Kyei & Bayoh, 2017; Mihardjo & Rukmana, 2018; Gyemang & Emeagwali, 2020). Marketing capabilities including market sensing (Nath, Nachiappan, & Ramanathan, 2010; Camra-Fierro etal, 2012; Heusinkveld, Benders, & van den Berg, 2009), consumer capabilities, functional capabilities, networking capabilities and partner linking have been connected to a number of encouraging outcomes (Mitrega, Ramos, Forkmann, & Henneberg, 2011).
In the mobile telecommunication industry, literature (Ofosu-Boateng, 2020; Ofori, Osei, Mensah, & Affum, 2015; Marcelle, 2005) has shown that the ability to correctly sense the market to attract consumer patronage is a key component of firms with strong marketing capabilities. Mahmoud and Hinson (2012) confirm that it allows the telecommunication firm to expand the potential range of strategic responses and enhances consumer-based performance. According to Leonidou, Palihawadana and Theodosiou (2011), strong marketing capabilities are important for sensing the needs of consumers in a quick and accurate manner, leading to higher competitive advantages. Rational consumer behavior requires that consumers redirect their buying patterns and patronage towards firms that have the ability to meet their needs, serve them with valued products and ensure that their expectations are met (Javornik, 2016; Xie & Kahle, 2014; BigneAlcaniz, 2012). Nalcaci and Yagci (2014) argue that particularly in modern markets, where consumers have heterogeneous and dynamic valuations for quality, marketing capabilities cannot be overlooked. Morgan, Katsikeas and Vorhies (2012), Merrilees, Rundle-Thiele, and Lye (2011) and Narver and Slater (1990) have also demonstrated that firms with strong marketing capabilities are not only...
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