BỘ GIÁO DỤC VÀ ĐÀO TẠO

TRƯỜNG ĐẠI HỌC KINH TẾ THÀNH PHỐ HỒ CHÍ MINH

BÁO CÁO TỔNG KẾT

ĐỀ TÀI NGHIÊN CỨU KHOA HỌC THAM GIA

XÉT GIẢI THƯỞNG

“NHÀ NGHIÊN CỨU TRẺ UEH” 2024

Does perceived CSR motivate Gen Z consumers to

purchase a premium of perceived sustainable
products? An empirical research from Vietnam.
Thuộc nhóm chuyên ngành: Quản trị kinh doanh

Thành phố Hồ Chí Minh, ngày 18 tháng 2 năm 2024

Abstract
Table of Contents
1 Introduction ................................................................................................................. 1

2 Literature review.......................................................................................................... 3

2.1 Definitions of Constructs ...................................................................................... 3

2.2 Prior Relevant Studies .......................................................................................... 4

2.3 Hypothesis Development ....................................................................................... 8

3 Research method ....................................................................................................... 13

3.1 Measurement scale .............................................................................................. 13

 1

1 Introduction

Since the last Global Financial Crisis in 2008, more and more research regarding CSR
has seen a rapid increase in the quantity and quality of studies conducted (Xiao et al.,
2019). The voluntary activities a company takes to further its goals and satisfy its
perceived duties to various stakeholders, such as workers, communities, the
environment, and society at large, are referred to as corporate social responsibility, or
CSR (Coombs & Holladay, 2011). Among these research, CSR has been proven to affect
many consumer-related dimensions such as satisfaction,consumer-firm identification,
and positive attitudes toward firms (Berens et al., 2005; Yoon et al., 2006). Besides the
benefits of positively influencing consumer desired behavior, CSR can also provide
additional advantages such as insurance-like protection against negative information,
and lower firm-idiosyncratic risk (Eisingerich et al., 2010; Luo & Bhattacharya, 2009).

The environment and society are greatly impacted by corporate operations, and people
are becoming more aware of this. A growing global consumer group, Generation Z
(GenZ), is very concerned with sustainability. Initiatives for corporate social
responsibility (CSR) help companies live up to these expectations (Narayanan, 2022).
Additionally, in the public domain, the CSR level has emerged as a standard metric by
which customers assess businesses. According to a recent consumer poll, over 40% of
consumers worldwide were prepared to reward (by buying more goods or services) or
penalize (by boycotting) businesses based on how well they implemented CSR (Kim &
Austin, 2019).

This study aims to identify the effects of sustainable marketing on sustainable purchase
intentions among Gen Z consumers in Vietnam. For this purpose, this study uses various
marketing constructs and their effect on sustainable purchase intentions, thus answering
the question of whether Gen Z is willing to pay a premium price for products from well-
applied CSR companies...

In this research, the focus will be only on Generation Z consumers. Generation Z refers
to a demographic group born in the mid-1990s to the early 2010s (Kim & Austin, 2019;
Merriam-Webster, n.d.). This generation is also known as Gen Z, Gen Z, Zeners, and
Zers. In 2019, Gen Z made up 32% of the global population of 7.7 billion people, and
 2
by 2020, they were projected to represent 40% of all consumers (Miller & Lu, 2018;
Taha et al., 2018). Unlike Gen Y, Gen Z grew up in a time of fast change, and they
encountered environmental concerns as children (Jagaciak & Fink, 2017; Young, 2021),
which have been linked to such issues as social unrest and climate change. Because of
the intricate circumstances they've experienced, this emerging generation's online and
offline experiences have merged, leading to a hypercognitive cohort that collects and
contrasts information from both virtual and real-world origins. They actively engage
with current social media trends, question existing norms, and challenge generational
stereotypes (Dentsu, 2020).

Gen Z is, thus, expressing their perspectives on issues they believe they can contribute
to resolving, emphasizing their commitment to sustainability, inclusivity, and justice (
Sparks and Honey, 2015). Unlike previous generations, they prioritize taking action,
with a significant percentage (59% ) aiming to drive change through sustainable
practices (Petro, 2020). Additionally, they are more engaged in social and economic
activities and place a high value on sustainability (Song et al., 2020). Their increased
understanding and concern about the social and natural surroundings create a more
favorable and optimistic perspective for companies that participate in CSR (Ahmad,
2020).

The goal of this study is to add to the body of empirical data supporting corporate social
responsibility (CSR) usage in businesses. Additionally, this study adds significantly to
the limited body of knowledge on sustainable marketing strategies and sheds additional
light on the purchasing habits of Generation Z. This report provides governments,
stakeholders, and businesses with several policy recommendations. This study will
mostly concentrate on the behaviors of Gen Z in Vietnam due to their impending rise in
purchasing power in society and their high level of awareness of corporate social
responsibility.
 3
2 Literature review

2.1 Definitions of constructs

Table 1. Definitions of constructs

Term Definition
Carroll (1991) analyzed CSR as "voluntary
commitment beyond basic legal requirements,
aiming to enhance the quality of life for the public
CSR
and increase social benefits." This implies that,
beyond profit generation, businesses need to
actively contribute to the community and society.
Brand image refers to the symbolic significance
Brand Image connected to particular brand qualities (Gong et al.,
2023).

Notable research from Chaudhuri & Holbrook

Brand Trust (2001) defines brand trust as the “willingness of the
average consumer to rely on the ability of the brand
to perform its stated function”.

Positive views and inclinations towards a particular

product are indicative of brand loyalty. Brand
Brand Loyalty loyalty stands for the customer's anticipated or
potential next move, and the conversion to real
product purchases is strongly correlated with belief,
mentality, and perceived pricing. (Huo et al., 2022)
Spears & Singh (2004) define Purchase Intention
concisely as "Purchase intentions are an
individual’s conscious plan to make an effort to
purchase a brand". In more recent research,
Sustainable Purchase Intention Purchase Intention has developed into Sustainable
Purchase Intention, for "helping consumers to
become more sustainability-oriented will
potentially lead to an increased intention to
purchase sustainability"(Carvalho et al., 2015).
Netemeyer et al. (2004) defined this term as as
being willing to spend more money for a certain
service brand than on equivalent alternative brands.
WTP is obviously important for businesses, as
Willingness to Pay a Price Premium
paying more for products and services may result in
increased profits and a long-term competitive
advantage for the company. (Casidy & Wymer,
2016)
 4
2.2 Prior relevant studies

How does sustainable marketing influence customer engagement and sustainable

purchase intention? The moderating role of corporate social responsibility (Gong
et al., 2023)

Research scope: China

Subject of research: 393 purchasers and potential purchasers of electric vehicles in

China

Conceptual model:

Summary of results:

This report offers final thoughts on the market for electric cars following the
examination. The first finding suggests that improving brand image might benefit from
sustainable marketing. Second, consumer engagement is boosted by brand image. Third,
the attractiveness of sustained purchasing intentions is increased by brand image.
Fourth, a useful strategy for encouraging sustained purchasing intentions is consumer
involvement. Not to mention, CSR has little effect on consumers' intentions to make
sustainable choices. CSR, however, strengthens the bonds between a company's
reputation and consumer involvement as well as between a company's reputation and
intent to make sustainable purchases.

The Impact of Perceived Sustainable Marketing Policies on Green Customer

Satisfaction (Vafaei et al., 2019)

Research Scope:

The scope of this research revolves around understanding the relationship between
perceived sustainable marketing policies and green customer satisfaction within the
 5
context of Iran. Specifically, the study aims to evaluate the impact of sustainable
marketing policies on consumers' satisfaction with green products and services. Given
the increasing global emphasis on sustainability, particularly in developing nations like
Iran, understanding consumer behavior and satisfaction in this area becomes paramount.

Subject of the Research:

The primary subject of this research is the relationship between perceived sustainable
marketing policies and green customer satisfaction. The study delves into various
aspects, including demographic variables like gender, academic degree, and priorities
such as price versus sustainable issues. By focusing on these elements, the research
seeks to provide insights into how different segments of the population respond to
sustainable marketing strategies.

Model:

The research employs a quantitative approach, utilizing statistical tools such as the
Pearson correlation coefficient and linear regression analyses using SPSS 21. The model
includes:

• Independent Variables:

Public Sectors' Responsibility & Policies

Companies' Responsibility & Policies

• Dependent Variable:

Green Customer Satisfaction

The hypotheses formulated for this study are tested using these variables, aiming to
determine the strength and direction of the relationship between sustainable marketing
policies and green customer satisfaction.

Summary of Results:

Descriptive Statistics: The demographic data revealed a significant female majority

among participants, suggesting higher interest among women in sustainable marketing
research in Iran. Additionally, 69% prioritized price over sustainable issues.
 6
Common Sustainable Products: Compostable party plates and cutleries emerged as the
most purchased sustainable products, indicating market demand for such eco-friendly
items. This suggests a potential market gap for other sustainable products.

Pearson Correlation Analysis:

A stronger relationship was observed between perceived sustainable marketing policies

and green customer satisfaction among females than males.

Higher academic degrees generally led to slightly higher green satisfaction, emphasizing
the role of education.

Regression Analysis: Both public sectors' responsibility & policies and companies'
responsibility & policies positively influenced green customer satisfaction, confirming
specific hypotheses. This underscores the need for both macro and micro-level policies
to enhance sustainable practices and marketing strategies.

Priority Analysis: Participants prioritizing sustainable issues showed a higher

correlation between sustainable marketing policies and green customer satisfaction
compared to those prioritizing price.

Overall Relationship: The study established a robust positive relationship (correlation

coefficient of 0.685) between perceived sustainable marketing policies and green
customer satisfaction. This indicates that as sustainable marketing policies become more
apparent and effective, green customer satisfaction tends to increase proportionally.

Conclusion:

Upon rigorous analysis, several key insights emerged regarding sustainable marketing
policies and their impact on green customer satisfaction in Iran. Firstly, perceived
sustainable marketing policies play a pivotal role in bolstering green customer
satisfaction. Secondly, a discernible correlation exists between the responsibilities and
policies of both public sectors and companies and the level of green customer
satisfaction. Thirdly, the study indicates that females tend to show a stronger inclination
towards green satisfaction than their male counterparts. Fourthly, individuals with
higher academic degrees exhibit a marginally elevated level of green satisfaction when
sustainable marketing policies are perceived as effective. Furthermore, participants who
prioritize sustainable issues over price display a more pronounced relationship between
 7
sustainable marketing policies and green satisfaction. Lastly, while Corporate Social
Responsibility (CSR) doesn't directly amplify sustainable purchasing intentions, it
fosters a stronger linkage between brand image, customer engagement, and sustainable
purchase intentions.

Research on the Influencing Mechanism of the Effect of Brands’ Sustainable

Behaviors on Consumer Attitudes: An Empirical Study on Clothing Brands
(Zhang et al., 2023)

Research scope: China

Subject of research: The data come from interviews with 12 experts, and 314 usable
responses were collected (34.08% male and 65.92% female)

Model:

Hypothesis 1 (H1). Product long-life design has a significant impact on material space
benefit;

Hypothesis 2 (H2). Product long-life design has a significant impact on spiritual space
empathy;

Hypothesis 3 (H3). Cultural inheritance and reconstruction have a significant impact on

material space benefit;

Hypothesis 4 (H4). Cultural inheritance and reconstruction have a significant impact on

spiritual space empathy;

Hypothesis 5 (H5). Fashion digital empowerment has a significant impact on material

space benefit;
 8
Hypothesis 6 (H6). Fashion digital empowerment has a significant impact on spiritual
space empathy;

Hypothesis 7 (H7). Material space benefit has a significant impact on brand attitude;

Hypothesis 8 (H8). Spiritual space empathy has a significant impact on brand attitude.

Summary of result:

In the research, long-term product design has broken through the cognitive level of
objects. It also points out that brands need to integrate the evolution of the material
system, human body, and environment. Cultural inheritance and reconstruction break
through the cognitive level of symbolic meaning. At the same time, it is necessary to
change the immediate thinking of sustainable consumption, because the previous
consumption experience determines the next cycle—and even the cycle after that—of
production and consumption. Therefore, brands should promptly understand the public’s
perception of brand-sustainable behaviors, improve the effectiveness of information
transmission between both sides, promote consumers’ recognition of brand behavior,
and then achieve value equivalence between production and consumption.

2.3 Hypothesis Development

CSR and Brand Image

A company's image is an asset that requires favorableness and familiarity as it creates

an impact on customer perceptions about the operations of the firm (Kang & James,
2004). A customer's choice of purchase is influenced by perceived risk and benefit.
Perceived risk, the anticipated negative utility associated with purchasing a specific
brand, might arise from a lack of product understanding or ambiguity. (He & Lai, 2012).
Due to the information asymmetry that always exists between a business and its clients,
it must employ signals to communicate the features of its offerings and operations.
(Chen & He, 2003). Customers may get signals from brands that practice corporate
social responsibility (CSR) that reassure them in their decision-making (He & Lai,
2012). When a consumer assesses the quality of a product, CSR serves as an instance of
an "insurance policy" (Klein & Dawar, 2004). Furthermore, Lynch & de Chernatony
(2004) noted that emotional brand values are seen to be more resilient and less prone to
be lost due to competitive activities. As a result, CSR becomes an imperative emotional
 9
component of the brand's image to continue operating in an increasingly competitive
environment. (Ramesh et al., 2018)

H1: CSR positively Impacts Brand Image

CSR and Brand trust

In the contemporary business landscape, Corporate Social Responsibility (CSR) has

emerged as a pivotal factor influencing the development and credibility of brands.
Several studies have indicated a close relationship between CSR and customer trust in
a brand. Research by Sen and Bhattacharya (2001) revealed that when companies
engage in CSR activities consciously and authentically, it fosters a positive brand image
in the eyes of customers. They asserted that CSR commitment not only generates social
benefits but also positively impacts customer trust in the brand. Another perspective
from Mohr, Eroglu, and Ellen (1998) suggests that when a brand demonstrates its
commitment to the community through CSR campaigns, it creates an "authentic" and
"trustworthy" perception among consumers. This opens up opportunities for the brand
to build a strong and lasting relationship with customers. In a recent study, Luo and
Bhattacharya (2006) demonstrated that implementing CSR activities not only helps a
brand create a positive image but also enhances customer trust and loyalty. They
emphasized that in a competitive market, commitment to CSR becomes a crucial factor
for a brand's resilience and growth.

In summary, these studies provide clear evidence of the positive relationship between
CSR and customer trust in a brand. CSR commitment not only yields social benefits but
also assists the brand in establishing and maintaining a trustworthy relationship with
customers, ensuring success and sustainability in a competitive market (Carroll, 1991;
Sen & Bhattacharya, 2001; Mohr et al., 1998; Luo & Bhattacharya, 2006). Thus, the
following hypothesis is developed.

H2: CSR positively impacts Brand Trust

CSR and Sustainable Purchase Intention among Gen Z

The impact of corporate social responsibility (CSR), pricing value, and brand equity on
consumer purchasing intentions has been the focus of numerous research studies. One
 10
such study by Qasim et al. (2017) delved into the influence of CSR on consumer
purchase intentions while also exploring the mediating effect of business reputation and
the moderating role of peer pressure in this relationship. The study revealed a positive
relationship between business reputation and consumer purchase intent, with corporate
reputation fully mediating the favorable impact of CSR on consumer buying intention.
Additionally, peer pressure was found to moderate the association between business
reputation and customer purchase intention, emphasizing the strong link between CSR
and purchase intent. In another study by Ali and Sohail (2018), the significant influence
of various elements of CSR on customers' buying intentions was evident.

Purchase intention serves as a significant indicator of whether a consumer will purchase

within a specific timeframe and is considered a proxy for actual behavior (Wang et al.,
2020). It is a crucial variable for examination as businesses traditionally utilize it to
predict future sales (Lee & Lee, 2018). Research has indicated an indirect impact of
corporate social responsibility (CSR) on purchase intention (Bianchi et al., 2019;
Ramesh et al., 2019). Based on the influence of consumers' values on their actions, it is
anticipated that environmental CSR will have a greater influence than social CSR. Given
Generation Z's heightened environmental awareness, their understanding of sustainable
business practices will likely greatly influence their inclination to support businesses
(Gao et al., 2016), thus proposing the following hypothesis:

H3: CSR positively impacts Sustainable Purchase Intention

Brand Image to Brand Loyalty

Brand image has long been recognized as an important concept in marketing (Keller,
1998). Brand image has an important role in brand building, it can be defined as a ‘‘set
of brand associations that are anything linked in memory to a brand, usually in some
meaningful way’’ and can be defined as the combination of the consumer’s perceptions
and beliefs about a brand (Campbell, 1993).

Brand loyalty is when customers continue to purchase from the same brand over and
over again, despite competitors offering similar products or services. Brand loyalty is
defined as “a deeply held commitment to re-buy or patronize a preferred product/service
consistently in the future, thereby causing repetitive same-brand or same-brand set
 11
purchasing despite situational influences and marketing efforts having the potential to
cause switching behavior” (Oliver, 1997).

Generation Z, influenced by the internet and external environment, values products'

environmental attributes and has a psychological tendency towards sustainability,
impacting their purchase intentions. In particular, brands with good images often attract
Gen Z to purchase products, thereby promoting their loyalty to the brand. Brand image
is the powerful variable that brings competitive advantage and organizational success to
ensure their product can compete in the market (Sasmita and Suki, 2015).

H4: Brand Image positively impacts Brand Loyalty

Brand Trust and Brand Loyalty

The establishment and sustenance of a reliable and enduring client connection is vital
for a brand to succeed in the fiercely competitive global market of today (Alhaddad &
Abdullah, 2015). Notable research from Chaudhuri & Holbrook (2001) provides results
that indicate purchase and attitudinal loyalty are determined by brand trust and brand
effect when the factors at the product and brand levels are taken into account. One
interpretation is that customers' firsthand encounters with brands are what build and
nurture brand trust (Kabadayi & Kocak Alan, 2012). Brand trust is reported to be
involved as part of brand credibility in brand equity acceptance (Keller & Aaker, 1992)
and fundamental to the development of loyalty (Joji, 2011). Brand trust has a direct
impact on brand loyalty in addition to being influenced directly or indirectly by
emotional attachment antecedents including perceived quality, perceived value,
customer satisfaction, and perceived differentiation (Atulkar, 2020). For those
references, the following hypothesis is developed:

H5: Brand Trust positively impacts Brand loyalty

Brand Loyalty and Sustainable Purchase Intention

Positive brand attitudes among consumers indicate that they are prepared to pay higher
costs and that they want to promote certain branded goods (Kursan Milaković, 2021).
Huo et al. (2022) concluded that brand loyalty is a positive consumer-valued attitude
toward a product that enhances the chances of consumption, resulting in increased
product quantity and frequency When appropriately addressed, brand loyalty will
 12
elevate increased product quantity and frequency (Cantillo et al., 2021). In addition, Huo
et al. (2022) found that numerous research studies have been done on the relationship
between perceived values and buying intentions from a variety of angles, and most of
them make the assumption that value perceptions have a significant influence on
purchase intentions. Other than situational repercussions and marketing activities aimed
at inciting switching behavior, loyal consumers have a strong commitment to repurchase
and keep using their chosen goods and services in the future (Hall et al., 2021). As vastly
and heavily researched the fundamentals of brand loyalty to purchase intention in a
traditional context, the question of whether the same positive relationship can be applied
to a “sustainable context”, the following hypothesis is developed.

H6: Brand Loyalty will positively impact Sustainable Purchase Intention

Sustainable Purchase Intention and Willingness to Pay a Price Premium

According to some research, there are doubts about the predictive value of PI for WTP
(Beriain et al., 2009; Bishop & Barber, 2013; Tey et al., 2018). However, Beriain et al.
(2009) did conclude that “Consumers who appreciated greater quality were also more
willing to pay for the additional level of quality”. In contrast to this conclusion, Bishop
& Barber (2013) define PI into 3 levels (high, moderate, and low) and discovered that
the three PI levels did not significantly differ in actual Willingness to Pay (Shukla,
2012). It is suggested that the more customers are aware of the ethical implications of a
product, the more likely they are to buy it, which helps gauge their willingness to pay.
(Phau et al., 2015). Customer behavior is changing as a consequence of their growing
awareness of the ethical implications of the goods they purchase and use (Davies et al.,
2012). Consumers' purchase intentions indicate actual purchasing. Thus, it is critical to
evaluate how purchase intention influences actual purchasing behavior, underscoring
the need to comprehend consumers' perceptions of a product (Phau et al., 2015).
Therefore, the following hypothesis is proposed.

H7: Sustainable Purchase Intention positively impacts Willingness to Pay Premium

 13

Figure 1. Proposed conceptual model

3 Research method

3.1 Measurement scale

The current study includes 6 variables: Corporate Social Responsibility (CSR), Brand
Trust (BT), Brand Image (BI), Brand Loyalty (BL), Sustainable Purchase Intention
(SPI), and Willingness to Pay a Price Premium (WTPP). All 6 constructs are adapted
from previous research and modified for better understanding and avoiding
misconception, will be using a 5-point Likert scale. The measurement scales are
described below.
 14

Table 2. Measurement scale

Constructs Items
CSR 1. I consider this company's practice of CSR to demonstrate that it is a socially responsible company
2. This company is more beneficial to social welfare than other companies
3. This company contributes something to society
Brand Trust 1.This company is a brand that meets my expectations
2. I feel confident in this company brand
3.This company is a brand that never disappoints me
4. The brand of this company guarantees satisfaction
5. This company's brand will be honest and sincere when addressing my concerns
6. I can rely on this company brand to solve problems
7.This company brand will try its best to satisfy me
8.This company's brand will compensate me somehow for the problem with the product
Brand Image Brand image (functional image)
1.This company can provide product forms and packaging that meet consumer needs.
2. I think choosing this company is wise.
3. This company will provide excellent service.
4. The quality of this Company's products meets the requirements and expectations of .
Brand image (symbolic image)
1. Using this company's products is a trend.
2. Using this company's products is a symbol of social status.
3.This company may be a leading brand.
4. Products and brands of this company matches my personal image.
 15
Brand image (experience image)
1.This company's products interest me.
2.This company's service makes me feel warm and comfortable.
3.Store environment of this company gives me enjoyment.
4. This company's products pursue diverse consumer needs in daily life.
Brand Loyalty 1. I want to buy products from this brand more often.
2. I would like to revisit this brand in the future.
3. I will say positive things about this brand to others.
SPI 1. I am willing to buy sustainable products provided by the company
2. I will recommend company A's sustainable products to my family or friends around me
3. I can accept that the price of company A's green products is slightly higher
4. Among similar products, X's environmentally friendly green product is my first choice
WTPP 1. The price of X would have to increase quite a bit before I switched to another brand of product.
2. I am willing to pay a higher price for X products compared to other product brands.
3. I am willing to pay ___% more for product X than for other brands: 0% 10% 20% 30% 40% or more.
4. I am willing to pay more for X than for other brands in the same product category.
Note: Except for Item 3 on Willingness to pay a higher price, all items are measured on a 5-point scale of Strongly
Disagree to Strongly Agree
Sources: Eisingerich et al. (2010); Azizi (2014); Wu & Wang (2014); Hennig-Thurau et al. (2002); Zeithaml et al. (1996); Zhao & An
(2023); Netemeyer et al. (2004)
 16
3.2 Questionnaire design

In the context of our research paper, we employed Google Forms as the platform for our survey,
structuring it into three distinct sections. The initial section focused on the simulation and
description of a well-applied CSR company. The subsequent section was dedicated to the
collection of participants' demographic information. Finally, the third section encompassed the
measurement of our research constructs. Before the survey's final distribution, the questionnaire
will be reviewed by the group and instructors. Adjustments were subsequently made to enhance
the questionnaire's comprehensibility and effectiveness.