The power of CSR
A quantitative study describing the role of CSR in university students’
consumption within the outdoor industry.
Olivia Westberg
Business and Economics, bachelor's level 2020
Luleå University of Technology
Acknowledgment
With this thesis, I finish my bachelor at Luleå University of Technology. The process has been extremely rewarding, and I am grateful for the experience I have gained.
Abstract
In recent years Corporate Social Responsibility (CSR) has gained increasing attention from companies, as CSR activities have been seen to increasingly influence consumers’ attitudes, intentions, and behaviors in relation to brands. This study aims to complement existing research, by focusing on how attitudes and purchase intention of university students are affected by CSR activities of companies within the outdoor industry specifically, as previous research has indicated the impact could vary between industries. Understanding the attitudes and intentions of university students can be seen as particularly interesting, as the attitudes and behaviors of early adopters, typically young and educated people, are typically spread to the majority of the population and market.
The research was done in a deductive manner, where two research questions were conducted to fulfill the purpose of the study. The research was conducted by using a quantitative study through a questionnaire responded by students at Luleå University of Technology. The statistical analysis is based upon a factor analysis and further a correlation analysis and a hierarchical multiple regression analysis.
Results from this study indicate that there is a relationship between university students’ attitudes towards CSR activities of companies within the outdoor industry and purchase intention. Further, the findings concluded this relationship positively. University students with a strong positive attitude towards a company’s CSR activities got a higher intention to purchase. Therefore, CSR activities should be considered as a strategically important opportunity and a tool for companies in the outdoor industry to influence young and educated consumers’ purchase intentions and attitudes towards the company in a positive way.
Keywords: Corporate Social Responsibility; Consumer’s attitude; Purchase intention; Theory of
Table of content
1 INTRODUCTION ... 1 1.1 BACKGROUND ... 1 1.2 PROBLEM DISCUSSION ... 3 1.3 PURPOSE ... 4 1.4 RESEARCH QUESTIONS ... 4 1.5 DELIMITATIONS ... 5 2 LITERATURE REVIEW ... 6 2.1 CORPORATE SOCIAL RESPONSIBILITY ... 6 2.1.1 Carroll’s pyramid of CSR ... 6 2.2 CONSUMERS RESPONSE TO CSR ... 9 2.2.1 Corporate social responsibility and the millennials ... 92.3 THEORY OF PLANNED BEHAVIOR ... 10
List of figures
Figure 2.1 Carroll’s four-level pyramid of CSR……… 7
Figure 2.2 The Theory of planned behavior……….. 11
Figure 2.3 Conceptual framework………. 13
Figure 4.4 Histogram of the attitude index……….. 24
Figure 4.5 Histogram of the purchase intention index………… 25
List of tables
Table 3.1 Factor analysis 1……….. 21
Table 3.2 Factor analysis 2 ………. 22
Table 4.3 Frequency table of gender ……….. 26
Table 4.4 Frequency table of occupation ……….... 26
Table 4.5 Frequency table of monthly income ………... 27
Table 4.6 Correlation analysis………. 28
1 Introduction
This chapter includes an introduction to the thesis, starting with background information to introduce the topic. Thereafter, a problem discussion is presented, resulting in the research purpose and formulation of the research questions. The chapter ends with presenting the delimitations of the study.
1.1 Background
Trading with goods and services has been a crucial component of the development of human society for thousands of years. Throughout this period, individuals, groups, and organizations have applied various approaches to increase the value gained from trading. As history has unfolded, the nature of these efforts, which can be described as marketing, has evolved considerably to become a strategically important operation of companies across the world (Kotler, Armstrong, Saunders & Wong, 2008).
A central aspect of today’s marketing efforts is to build strong and beloved brands. The importance of the brand building can be illustrated with the fact that the stock market value of global enterprises, such as BMW, Nike, and Apple to 75% consists of the value of the brand (Aaker & Joachimsthaler, 2000). It has been found that customers are willing to pay up to 100% more for a product from a strong brand (Kotler et al., 2008). An essential aspect of the process of building a beloved brand is to identify what customers genuinely value, and offer products or services responding to these attributes (Kotler et al., 2008). However, these needs and wants are constantly evolving, which means organizations are required to understand shifts in customers’ expectations (Kotler et al., 2008).
friendly materials and product features, minimizing waste and energy consumption, human-resource practices, as well as donating time and money (Parsa, Lord, Putrevu & Kreeger, 2015). Corporate social responsibility (CSR) has been a commonly used term to define such corporate responsibilities.
Researchers have defined CSR in numerous different ways (Dupire & M’Zali, 2018). Consistent with other studies, McWilliams, Siegel, and Wright (2006, p. 1) define CSR as “situations where the firm goes beyond compliance and engages in actions that appear to further some social good, beyond the interest of the firm and that which is required by law”. Carroll’s Pyramid of CSR is another widely accepted definition, consisting of four levels of responsibilities; economic, legal, ethical, and philanthropic responsibility (Carroll, 1991). To be more precise, he argues that if a company wants to take social responsibility, they have to consider both economic, legal, ethical, and philanthropic responsibilities. Furthermore, Carroll (1991) also mentions that this model seems to be in contrast to the ordinary way of operating a business, where the main objective is all about maximizing profit. In other words, the other dimensions in Carroll’s pyramid are not considered.
CSR is not a new phenomenon but a field that, during the last decades, has gained more attention than ever before by companies across the world (Shnayder et al., 2016). Companies and organizations are under increasing pressure to contribute to the environment and society where it operates and improves their social responsibility performance (Alsmadi, 2007). The pressure is coming from stakeholders such as the government, partners, suppliers, employees, and customers (Shnayder et al., 2016). As a result, companies’ engagement and mainly their frequency of communication concerning CSR has substantially increased. For example, Sustainability reports are a widely used tool, which has, become an essential element for CSR communication of many organizations (Fernandez‐Feijoo, Romero & Ruiz‐Blanc, 2014).
within a given industry. In addition, as studies have shown a correlation between a company’s CSR initiatives and the consumers’ attitudes towards the company, these activities are becoming increasingly important strategic areas for businesses (Gosselt, Rompay & Haske, 2019; Muniz, Guzmán, Paswan & Crawford, 2019). Companies taking social responsibility have been able to differentiate themselves and create competitive advantages (Dupire & M’Zali, 2018). These arguments are further strengthened by Khojastehpour and Johns (2014), who emphasize the ability of CSR activities to influence the brand reputation among customers which, in turn, increases financial performance. Consequently, knowledge of how consumers are affected by companies’ CSR activities enables companies to increase consumers’ intention to purchase and, in turn, increase their profit. In other words, knowing how CSR affects consumers’ purchase intention could be a competitive advantage and a key to success.
1.2 Problem discussion
In the previous chapter, it has been outlined that consumers increasingly value that companies engage in CSR activities, but what really matters for most businesses is whether consumers are willing to actually considering CSR when purchasing or not. Previous research in the area of CSR shows that people, in general, are becoming more interested in companies that practice social responsibility (Gosselt et al., 2019). This, in turn, may have a significant impact on the attitude toward the company (Khojastehpour & Johns, 2014; Wongpitch, Minakan, Powpaka, & Laohavichien, 2016). Furthermore, Ajzen (1991) demonstrates a link between attitude and intention to a specific behavior, where a positive attitude towards a behavior will lead to an intention towards that behavior.
Valentini, 2017). However, the author was unable to find any specific research pertaining to the outdoor industry.Therefore, further research on the topic, focusing on this specific industry, could
help companies across the industry to get a better understanding of how consumers’ attitudes and purchase intentions are influenced by CSR activities in this industry specifically. The outdoor industry includes both products, such as skis, bags, and tents using for outdoor activities, as well as clothes designed to be used outdoor. However, in this thesis, the outdoor industry will be defined as companies manufacturing and selling clothes designed for outdoor activities.
It can be seen as even more important to understand the attitudes and intentions of early adopters as the values and behaviors of this group are typically spread to early and late majority, which makes up the majority of the market. Early adopters are often characterized by being young and educated people, such as students (Bohlen & Beal, 1957). Further, previous research has shown that millennials, born between 1979-2001, increasingly expect companies to engage in CSR activities and contribute to the community (McGlone, Spain & McGlone, 2011). In addition, as young and educated adults of today will gradually gain an increasing purchasing power, it may be of particular interest for companies to understand the attitudes and behaviors of this group today, to be able to design competitive business strategies for the next years and decades to come.
1.3 Purpose
Based on the previous discussion, the purpose of this study is to describe the relationship between companies’ CSR initiatives and university students’ purchase intention within the outdoor industry.
1.4 Research questions
In order to achieve the purpose, the study aims to answer the below-defined research questions:
RQ1 - What are students’ attitudes towards a company’s CSR commitment when purchasing
outdoor clothes?
1.5 Delimitations
2 Literature review
This chapter presents previous research in the field of CSR and how it applies to the research purpose. First, a short description and definition of corporate social responsibility is explained. Thereafter, Carroll’s pyramid of CSR is described, followed by findings of consumers’ responses to companies’ CSR activities. A presentation of Theory of Planned Behavior is explained to analyze consumers’ intentions within a CSR context. Lastly, the theoretical framework for this thesis is described, followed by a hypothesis.
2.1 Corporate social responsibility
Corporations taking social responsibility is not a new phenomenon. However, CSR is more highlighted now than ever since companies need to satisfy not just consumers, but stakeholders such as governments, partners, suppliers, and employees (Shnayder et al., 2016). Parsa et al. (2005) further added that CSR has moved from ideology to reality, where many consider it fundamental for companies to apply social responsibility into their corporate operations.
Broadly, the literature defines CSR activities as a company that takes their social responsibility beyond the business operation. The European Commission (2020) defined Corporate social responsibility as “a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis”. This is in line with McWilliams et al. (2006, p. 1), who define CSR as “situations where the firm goes beyond compliance and engages in actions that appear to further some social good, beyond the interest of the firm and that which is required by law”. Mandal, Benerjee, and Saha (2018) stated that CSR could be seen as a win-win situation since it, on the one hand, satisfies its stakeholder’s needs but at the same time pursues its operations and according to Khojastehpour and Johns (2014), increases their profit.
2.1.1 Carroll’s pyramid of CSR
definitions. Carroll’s reflection ended up in a four-dimensional view of CSR, based on economic, legal, ethical, and discretionary or later on called philanthropic (Carroll, 1997). Later on, based on this four-part perspective, Carroll (1991) created a graphic pyramid model to describe the four kinds of responsibilities. Economic responsibility composes the foundation of the pyramid, while legal responsibilities appear on the second level. Thereafter, ethical responsibilities and finally, at the top of the pyramid, philanthropic responsibilities. According to Carroll (1991), all four levels have always existed to some extent, but economic and legal responsibilities have always composed the base and taken a significant role. This in contrast to ethical and philanthropic responsibility, which have not been significantly considered by corporations until later on.
Figure 2.1: Carroll’s four-level pyramid of CSR Source: Adapted from Carroll, 1991, p.42.
Economic responsibility
Legal responsibility
The second level in Carroll’s pyramid represents a corporation’s legal responsibility. Carroll (1991) meant that even if a company’s economic responsibility is to be profitable, society expects them to meet legal requirements. This means that a company has to relate to the laws and regulations of the context in which the business is operating. To cite Carroll himself “..firms are expected to pursue their economic missions within the framework of the law” (Carroll, 1991, p.41)
Ethical responsibility
In the third level of Carroll’s CSR pyramid, he explained the ethical responsibility. Ethical responsibilities embrace those activities that, according to society, are fair. It is about norms, standards, and expectations from society, but still not a law (Carroll, 1991).
Philanthropic responsibility
Lastly, at the top of the pyramid Carroll (1991) placed philanthropic responsibility. This is about being a good corporation by contributing to society in terms of finances, facilities, and human resources. Unlike the other layers in Carroll’s pyramid, the philanthropic responsibility is sort of voluntary. This means that communities expect firms to take these kinds of responsibility, but they do not regard the companies to be unethical if they do not (Carroll, 1991).
Carroll (1991) argues that even if philanthropic responsibility is highly valued among stakeholders, it is less critical compared to the other three responsibilities in the pyramid, and to cite Carroll (1991, p. 42) “in a sense, philanthropy is icing on the cake”. Gomez-Carrasco, Guillamon-Saorin, and Garcia Osma (2016) give the metaphor another interpretation by describing the icing as the most visible responsibility and, therefore, is a feasible way to cover negative aspects from the other economic, legal and ethical responsibilities, “inside the cake”. Other researchers expressed it as firms investing in CSR activities in order to compensate for their negative social impact (Kotchen & Moon, 2012).
corporate citizen” (p. 43). Carroll’s pyramid provides one way of defining CSR, where he included four different responsibilities in order to take social responsibility, further, that definition will be used as the primary definition of CSR in this study.
2.2 Consumers response to CSR
Companies that practice social responsibility contribute not only to local and global wealth but may also have an impact on consumers’ attitudes as well as their purchase intentions (Wongpitch et al., 2016). Furthermore, consumers consider a company’s commitment to CSR initiatives when evaluating companies (Öberseder, Schlegelmilch & Murphy, 2013). According to Lee and Shin (2010), there is a positive correlation between consumers’ awareness of a company’s CSR activities and consumers’ purchase intention. Further, high awareness of a company’s work with different CSR activities, contribute to a stronger willingness to purchase from that specific company. The same research indicates that consumers seek and intend to buy from “good” companies that execute “good” CSR activities. That was strengthened by Mohr and Webb (2005), who examined the influence of environmental CSR and philanthropic CSR towards consumers. The results indicate that CSR in both fields had a positive impact on consumers’ purchase intention.
2.2.1 Corporate social responsibility and the millennials
Considering millennials’ desire to align with companies practice CSR activities (McGlone et al., 2011) gives an indication of the value in companies’ CSR activities among this generation. Millennials’ positive attitude towards companies practice CSR initiatives may, in turn, have a link to a certain behavior. This link will be further analyzed in the next section, 2.3 Theory of Planned Behavior.
2.3 Theory of Planned Behavior
Figure 2.2: The Theory of Planned Behavior Source: Adapted from Ajzen (1991, p.182)
2.3.1 Attitude
Attitude refers to which extent the individual has a favorable or unfavorable perception of the specific behavior. More specifically, a person who associates a behavior with positive outcomes will have a favorable attitude towards that behavior. In the same way, a negative association of behavior results in an unfavorable attitude towards the behavior (Ajzen 2005).
According to Gosselt et al. (2019), people, in general, have a positive attitude towards companies that are practicing social responsibility. Furthermore, Khojastehpour and Johns (2014), argue that a positive attitude towards CSR activities benefits corporations in building their reputation and profitability. In the way that, companies involving in CSR activities, may reward for their efforts through consumers’ purchase behavior.
2.3.2 TPB within the context of CSR
Applied to CSR, the Theory of Planned Behavior implies that attitude affects purchase intention. Individuals who tend to have a positive attitude towards a company’s CSR initiative will be more likely to buy from that company, and vice versa. Views on companies engaging in CSR activities can range broadly from being negative to positive. Regardless of where an individual’s attitude falls on that continuum, the Theory of Planned Behavior indicates that those views will influence purchase intention. Previous research in the field of CSR, identified a significant positive relationship between attitude towards the CSR performance of companies and intention to purchase from those whose performance is good (Prendergast & Tsang, 2019).
By linking to previous research, earlier presented in this thesis, which argues that millennials tend to have a positive attitude towards companies practicing social responsibility, this study will further investigate whether the positive attitude has a significant relation to purchase intention. Hence, the two factors subjective norm and perceived behavioral control, included in Ajzen’s TPB-model, will be excluded in the theoretical framework described in the next chapter.
2.4 Theoretical framework
Figure 2.3: Conceptual framework
2.4.1 Hypothesis
Based on the theoretical framework, the author has stated the following hypothesis:
3 Methodology
The chapter presents the choice of method which was used to answer the research questions. Initially, the purpose and approach of the research are presented, followed by the literature search. Thereafter, the author describes how the data was collected and the sample, as well as how the data was analyzed. Finally, a description of how the author secured a high-quality standard of the thesis through reliability and validity is presented.
3.1 Research purpose
The research purpose can be either exploratory, explanatory, or descriptive. However, the research project could, according to Saunders, Lewis, and Thornhill (2016), have more than one purpose and therefore be both descriptive and explanatory. The objective of descriptive research is to describe different situations, events, or persons (Saunders et al., 2016). The main difference between descriptive and exploratory research is the fact that descriptive studies are identified with specific hypotheses. Moreover, descriptive studies are generally based on large samples (Malhotra & Briks, 2007). According to Malhotra and Briks (2007), descriptive studies could be further classified into two different descriptive methods. Either cross-sectional or longitudinal research, where cross-sectional is the most commonly used descriptive design. When the data is collected just once from the respondents, it is called cross-sectional research. Further on, longitudinal research is when the samples are repeatedly measured by the same variables.
Based on the discussion above, this study has a descriptive research purpose since this study aims to describe the relationship between companies’ CSR activities and consumers’ purchase intention. Further, descriptive research was helpful when using a quantitative approach by using a large sample size. Lastly, the study used a cross-sectional design and therefore collected information from the given sample just once.
3.2 Research approach
a process from theory to empirical data. This is done by developing theories or hypotheses from previous research and thereafter testing the given hypothesis, which it is either accepted or rejected (Saunders et al., 2016).
When choosing an approach, it is important to take the author’s possible limitations into account. For example, different forms of restrictions may be the level of knowledge within the subject or limited access to data as well as time (Saunders et al., 2016). Based on the fact that there is a lot of existing theory and literature in the area of CSR and buying intention, this report used a deductive approach. This is also most appropriate since the author created a picture and expectations about what the world looks like and then collected information to investigate whether expectations are in line with reality. In summary, the above arguments result in a deductive approach for this report.
3.2.1 Quantitative approach
The study can either be qualitative or quantitative. A qualitative approach focuses on collecting and interpreting non-numeric data, such as in-deep interviews (Malhotra & Briks, 2007). In contrast, a quantitative approach usually emphasizes quantification in data collection and analysis. It is usually expressed in numbers and, therefore, more measurable (Saunders et al., 2016). According to Saunders et al. (2016), to make this data useful, it needs to be analyzed and interpreted. It generally fits better with a deductive approach, where the researcher uses data to test the theory (Saunders, 2016). Based on the previous discussion, a quantitative approach has been used in this study.
3.3 Data collection
A survey strategy is, according to Saunders et al. (2016), a favorable strategy in business and management research. Using a survey strategy will also be favorable in this study since it allows the data to be quantitative (Saunders et al. (2016). More specifically, questionnaires have been used, which, according to Saunders et al. (2016), is the most favorable one within the survey strategy.
3.3.1 Questionnaire
The term questionnaire includes data collection in which each person gets the same questions in a predetermined order (Saunders et al., 2016). Further, this study used a mail questionnaire since it was distributed to respondents via e-mail. The e-mail included a link to an online survey platform called Google Forms.
At the beginning of the questionnaire, the respondents were introduced to a company called Houdini. The respondents were asked to look at Houdini’s showcase video, presenting how they are working with sustainability. The video aims to give a short insight into Houdini’s corporate sustainability report in order to prepare the respondents to answer the following questions. Houdini was chosen since their vision is about being an outdoor clothes company focusing on “..form a prosperous society on a thriving planet, for us and future generations” Houdini (2020).
The questionnaire was constructed from two already tested scales. Question number 4-8 was borrowed from an article written by Folse, Niedrich, and Grau (2010). Folse et al. (2010) developed the scale based on a scale used by Brown and Dacin (1997) to measure a product’s social responsibility. Further, questions 9-11 was used in a study made by Lepkowska-White, Brashear, and Weinberger (2003), to analyze purchase intention based on an ad. Since this study aims to focus on a company rather than an ad, the questions were modified to fit the context. A five-point Likert scale was used in which the respondents were asked how strongly he or she agreed or disagreed with a statement. The five-point Likert scales were ranking from Strongly agree to, Agree, Neutral, Disagree, and lastly Strongly disagree.
gender, occupation, and income. Question number 2, about occupation, is especially important since it ensures that the study is based on university students. The questionnaire is attached as an appendix at the very end of this study
3.3.2 Pilot Study
Before launching the survey, it went through a pilot test in order to increase the validity and reliability of the questionnaires. According to Saunders et al. (2016), the purpose of the pilot test is to avoid problems and confusion regarding the questions. Saunders et al. (2016) also mention the importance of pilot testing with people as similar as possible to the final population of the sample. Therefore, the pilot testing included three students at Luleå University of Technology. The pilot testing resulted in changes regarding the introduction as well as in the corporate description in order to ensure better background information.
3.3.3 Literature search
All theories, data, and citations within the introduction as well as in the theoretical framework consist of secondary data such as scientific articles and literature. The author has mostly used the database Business Source Premier which consists of articles within the business and economic area. Further, Google Scholar has been used to some extent. In order to find relevant articles, the following keywords have been used:
● Corporate social responsibility
● CSR
● Consumers’ attitude
● Purchasing intention
● Consumers’ behavior
● Theory of Planned Behavior
● Millennials
3.4 Sample collection
inferences about the population based on the sample result (Malhotra & Briks, 2007). Sampling techniques can be divided into two common types of sample collection methods, either probability samplings or non-probability samplings. Non-probability sampling is not using a random selection method and can therefore, not be counted as statistical evidence. Instead, the researcher decides what elements to include in the sample (Malhotra & Briks, 2007).
In this research, the sample group was made up of students at Luleå University of Technology. The questionnaire was distributed to students and, therefore, the study used a non-probability sampling. The reason why the author chose this sample was that they expected to represent the population, including young, high educational individuals conscious about global issues as well as individuals with interest in social responsibility. The sample selection was also based on practical reasons according to the accessibility of the respondents. The author found the selected sample at Luleå University of Technology’s database, where all students’ IDEALS are registered. Since the general data protection regulation (GDPR) came into effect, it has limited the handling of e-mail addresses. The university is no longer able to hand out digital e-mail address lists, which resulted in the e-mail addresses needed to be selected and entered by hand. Therefore, as stated before, it is classified as a non-probability sampling. 1805 e-mails were distributed, and 122 of these were answered. 122 of 1805 gives a response rate of 6,76%. Further, described in 3.5.1 Data preparation, 23 respondents were eliminated which gives a total of 99 participants.
3.5 Data analysis
According to Saunders et al. (2016), quantitative data have to be processed and analyzed before getting interpretable and useful. They emphasize the importance of using quantitative data techniques such as tables, graphs, and statistics in order to visually present and describe information based on the collected data. In this study, the statistical analysis software Excel and SPSS have been used to prepare and analyze the collected data.
3.5.1 Data Preparation
sampling of this study being students at Luleå University of Technology. Out of 122 participants, there were 21 who admitted that they are working, which gives a total of 101 respondents. The second step was to remove all respondents who had not entirely completed the questionnaire. According to Pallant (2010), there are different ways to deal with the issues of missing data. The researcher can either exclude cases listwise, exclude cases pairwise, or replace missing data with mean. In this study, the author has chosen to exclude cases listwise. This means if a respondent missed answering one question, the case will be totally excluded from the analyses. Pallant (2010) argues that this way of dealing with data can severely and unnecessarily limit the sample size. However, since there were just two respondents who had not completed the questionnaire, that will not affect the output of this study to a broad extent. Additionally, described in 3.5.2 Index, the author constructed indexes which required completed answers. By excluding the two respondents, the study has a sample size of 99 participants.
The last part of the data preparation was to modify the response options by using quantitative variables instead of qualitative ones. In order to do so, the response options were modified from “Strongly agree”, “Agree”, “Neutral”, “Disagree”, and “Strongly disagree” into a scale going from 0 (Strongly disagree) to 4 (Strongly agree). This is to get a more accurate analysis as the difference between 0 and 4 is significant compared to the difference between 0 and 1. In contrast, qualitative variables will not distinguish anything in relation to each other. Additionally, the variables gender and occupations were changed from being categorical data to numerical data, called dummy variables. Men were change to 0 and female to 1. Further, studying was changed to 0 and studying and working part-time was changed to 1. Lastly, income changed to be ranked from 0-4.
3.5.2 Index
index was created to measure attitude (question 4-7) and one to measure purchase intention (question 9-11). Question 8 was excluded in the index, further explained in chapter 3.6.2 Reliability.
3.5.3 Statistical techniques
In this study, collected data has been statistically tested through two different types of techniques, a correlation and a hierarchical multiple regression. Correlation is used to analyze the relationship between variables (Saunders et al., 2016). In this case, the purpose aims to find a positive correlation where the attitude towards a company’s CSR and purchase intention are precisely related. By contrast, a regression aims, according to Saunders et al. (2016), to establish the effect of one variable (the independent variable) on another (the dependent variable).
3.6 Credibility
When conducting a scientific study, it is critical to achieving a result with high credibility. Moreover, Saunders et al. (2016) mean that two central judgments to ensure the quality are reliability and validity. Reliability is about replication and consistency, in other words, to which extent any future study could reproduce the same findings using the same methodology. Validity refers to the relevance of the measures, thus to which extent a test really measures what it is intended to measure (Saunders et al., 2016). The following paragraphs will describe how the author has ensured a high-quality standard of the thesis through reliability and validity.
3.6.1 Validity
The validity can be divided into internal and external validity (Saunders et al., 2016). Internal validity refers to making sure that the questionnaire measures what it is intended to measure. Since the construct used in this thesis has been tested and applied in previous studies, it could be considered as construct validity.
External validity is, according to Saunders et al. (2016), about to which extent the result of the study can be generalized and used in other research settings. In order to ensure external validity in this study, the research setting has been clearly described. Further on, the result and conclusion are not generalized. It has instead been based on the population, students at Luleå University of Technology.
3.6.2 Reliability
This study has improved reliability by asking several questions aimed to measure a single characteristic. According to Saunders et al. (2016), it is about internal consistency where a set of questions are combined as an index to measure a particular concept. In order to ensure reliability, the statistical analysis is based upon a factor analysis and Cronbach’s alpha analysis.
Firstly, a factor analysis of question 4-11 was made. Factor analysis is made in order to find the relationship between variables rather than between factors. The result divided the questions into two factors, shown in table 3.1.
It was founded that question 8 was cross-load and therefore removed from the analysis. To exclude question 8 is quite justified since the respondents have no knowledge about the company’s willingness to cares about its sales and profit and hence have an inability to answer the question. After that, two factors were formed with a value between .73 and 1.00, shown in table 3.2. Since all variables have a value > .7, the researcher decided to determine the two indexes. Index one consisting of questions 4-7 and index two consisting of questions 9-11.
Table 3.2: Factor analysis 2
Furthermore, a Cronbach’s alpha analysis was made. It is an overall item correlation where the alpha coefficient’s value ranges between 0 and 1. Alpha coefficient with a value above .7 indicates that the index is consisting of questions measuring a single characteristic (Saunders et al., 2016). Cronbach’s alpha of the Attitude index is .857, and Cronbach’s alpha of the Purchase intention index is .917.
3.6.3 Ethics
● Reliability in ensuring the quality of research, which is reflected in the design, method,
analysis, and utilization of resources.
● Honesty regarding developing, implementing, reviewing, and reporting and informing on
research in an open, fair, complete, and objective manner.
● Respect for colleagues, research participants, society, ecosystems, cultural heritage and
the environment.
● Responsibility for research from idea to publication, for management and organization,
for education, supervision and mentoring, and for its further implications.
4 Data presentation and analysis
In this chapter, the result of the study is presented including both data presentation and data analysis. The data was collected through surveys sent to students at Luleå University of Technology. The chapter initially presents the two indexes, attitude and purchase intention. Thereafter, the control variables are presented, followed by an analysis using two statistical techniques, correlation and regression. Lastly, the hypothesis of the study is either rejected or accepted.
4.1 Attitude index and purchase intention index
This section will present the result from the independent variable, attitude index, and the dependent variable, purchase intention index. The independent variable, attitude, is presented in figure 4.4. The figure clearly states that 76.7% of the respondents have, at least, a mean of score 3 (“Agree”) on all questions included in the index. Further, the mean of the index, present in the correlation matrix 4.6, is 2.90, which also reflects a high number of respondents who answered “agree” or “strongly agree” regarding the attitude.
Further, figure 4.5 presents the result from the dependent variable, purchase intention index. The result is not that clear as in figure 4.4, but still, 73.7% of the respondents have a mean of 2-4 on all questions included in the index. In other words, 73.7% answered either “Neutral”, “Agree” or “Strongly agree”.
Figure 4.5: Histogram of the purchase intention index
4.2 Control variables
This section will present the control variables using later on in the analysis. The analysis consists of three control variables; gender, occupation and income. All of them presented in frequency tables below.
Table 4.3: Frequency table of gender
The occupation distribution of the study was divided into either studying or studying and working part-time. As shown in Table 4.4, 76,8% of the respondents are studying, and the remaining 23,2% are studying and working part-time.
Table 4.4: Frequency table of occupation
Table 4.5: Frequency table of monthly income
4.3 Statistical techniques
To be able to answer the hypothesis, two statistical techniques were used. The choice of techniques is based on whether the variables are quantitative or qualitative. In this study, both x-variable and y-variable are quantitative and, therefore, correlation and regression were used to analyze the relationship between consumers’ attitudes towards a company’s CSR activities and their purchase intention.
4.3.1 Correlation
Correlation analysis enables the researcher to quantify the strength and direction of the linear relationship between two variables. Further, if the variables are ranked data, Spearman Ranked Order Correlation (roh) should be used to qualify the strength of the relationship (Pallant, 2010). Since the variables in this study are ranked, Spearman’s roh coefficient was used.
correlation between consumers’ attitudes towards a company’s CSR activities and their purchase intention but does also include the three control variables; gender, occupation, and income.
Table 4.6: Correlation analysis
Table 4.6 present the correlation between attitude and purchase intention, .621, which indicates a positive correlation between the indexes of the study. Increased positive attitude towards a company’s CSR activities, leads to increased purchase intention. Considering the value of the coefficient will indicate the strengths of the correlation. According to Saunders et al. (2016), there is a strong positive correlation if the coefficient is placed between .6 and .8. Therefore, a correlation of .621 suggests a fairly strong relationship between attitude and purchase intention.
they are related (Saunders et al., 2016). As presented in Table 4.6, the correlation of attitude and purchase intention is significant at the .01 level.
The table also stated a positive correlation between income and attitude, where a higher level of income results in an increased positive attitude. Moreover, income and occupation, not surprisingly, have a positive correlation since a person who is studying and working part-time has a higher income compare to someone who just study.
4.3.2 Regression
Similar to correlation, regression also examines the relationship between variables. However, a regression equation is using one dependent and one independent variable (Saunders et al., 2016). The independent variable named X, in this study attitude towards a company’s CSR activities and further, the dependent variable named Y, in this study purchase intention. This means that X will be used to predict the value of Y.
Table 4.7: Hierarchical multiple regression analysis
4.3.3 Hypothesis result
Previously in this chapter, empirical data has been presented and further analyzed by using statistical techniques such as correlation and regression. In addition, the hypothesis will now be either rejected or accepted.
H1- A positive attitude towards the CSR activities of a company in the outdoor industry, positively influence purchase intention.
Earlier present in Table 4.6, the relationship between consumers’ attitudes towards companies’ CSR activities and purchase intention was investigated using the Spearman Rank Order Correlation coefficient (roh). It proved a strong, positive correlation between the two variables attitude and purchase intention, roh=.621, n=99, p<.01, with a high level of positive attitude towards a company’s CSR activities associated with a high level of purchase intention. This was strengthened by the regression analysis, present in Table 4.7, where the B coefficient of attitude is .830. This means that if a consumer’s attitude increases with one unit, purchase intention increases with .830 units, with a significant level of 99%. In addition, control variables were used to avoid incorrect conclusions about the main relationship. With consideration of the two analyses, the results indicate that respondents have a positive attitude towards a company’s CSR activities, positively influencing purchase intention. Therefore, the study accepts the hypothesis, A positive attitude towards the CSR activities of a company in the outdoor industry, positively influence purchase intention, presented in Figure 4.6.
5 Conclusion
This final chapter of the thesis presents the conclusions of this thesis. Firstly, the research questions are answered to fulfill the purpose of this study; describe the relationship between companies’ CSR initiatives and university students’ purchase intention within the outdoor industry. Thereafter, implications for theory and implications for practitioners are presented, followed by limitations and suggestions for further research.
5.1 Conclusions for research questions one
RQ1 - What are students’ attitudes towards a company’s CSR commitment when purchasing outdoor clothes?
Figure 4.4, shown in the result, states that 76,7% of the respondents have, at least, a mean of score 3 (“Agree”) on all questions included in the attitude index. A score of 3 could be translated to: “Agree” with the statement in the questionnaire. Notably, the mean is at least a score of 3, which means that many respondents got a higher score and thus answered “Strongly agree” at least at one question including the attitude index. The high number of respondents answering “Agree” or “Strongly agree” at all questions included in the attitude index indicates a positive attitude towards companies practicing CSR activities. Further, the mean of the index, present in the correlation matrix, is 2.90, which also indicates a positive attitude among respondents.
Based on the findings of this study, in the context of this research and its limitations;
● Results showed that university students have a positive attitude towards company’s CSR commitment when purchasing outdoor clothes.
5.2 Conclusions for research question two
RQ2 - How do companies’ CSR activities, within the outdoor industry, affect University students’ intention to purchase?
Results from this study indicate that a positive attitude towards a company’s CSR activities, positively influence purchase intention. It is proved both from the correlation and the regression analysis. The correlation analysis proved a strong, positive correlation where rho=.621. Notable is that this correlation can be proved with a relatively high significant level of a p-value less than .01. This was strengthened by the hierarchical multiple regression analysis. The output from the regression aims to show the effect of one independent variable on another dependent variable, which suggested that if a university student’s attitude increases with one unit, its purchase intention increases with .830 units with 99% certainty.
The findings are in line with results from previous research, which indicate a relation between the two variables attitude and purchase intention (Lee & Shin, 2010; Mohr & Webb, 2005; Öberseder et al., 2013). Prendergast and Tsang (2019) used the Theory of Planned Behavior applied to CSR, which indicates a significant positive relationship between attitude towards a company’s CSR initiatives and the intention to purchase from that company.
Based on the findings of this study, in the context of this research and its limitations;
● Results showed that there is a relationship between companies’ CSR activities, within the outdoor industry, and university students’ intention to purchase. In other words, companies’ CSR activities, within the outdoor industry, do affect university students’ intention to purchase.
● Further, this relationship is positive. University students with a strong positive attitude towards a company’s CSR activities got a higher intention to purchase.
5.3 Implications for theory
The purpose of this study has been to gain a more in-depth knowledge about the power of CSR. More specifically, investigate knowledge of how consumers’ purchase intention is affected by companies’ CSR activities in the given industry. That knowledge will, in turn, give practical implications for companies, present in chapter 5.4 Implications for practitioners.
The study has provided insights of a correlation between consumers' attitude and purchase intention were the result shows a strong positive correlation between the two variables. To put it in another way, a positive attitude towards a company’s CSR activities, positively influence purchase intention. Though the conclusions may be considered in the context of its extent. However, the findings are in line with previous research. Additionally, the study was limited to the outdoor industry and has, therefore provided a niche of research within the theory of CSR.
5.4 Implications for practitioners
Based on the findings of the study, some implications for practitioners will be listed below. These aspects may be considered for managers in all parts of the organization but may be particularly important when it comes to strategy.
incorporation of CSR into an organization’s strategic plan may impact the company’s ability to attract and keep loyal customers of the millennial generation.
• Companies should see CSR as an opportunity and a tool to influence consumers’ attitudes towards the company in a positive way. A positive attitude will increase the purchase intention and, in turn, increase the profit.
• In order for customers to be able to form a positive attitude towards the company’s CSR initiative, it is of high importance that the company ensures that the customer is aware of the company’s initiative. Since this study is based on a questionnaire that was introduced with a corporate video describing their CSR engagement, the result depends on the respondents’ awareness of their CSR communication. Therefore, communication may be a critical aspect of how consumers get aware of companies' CSR activities and should, therefore, be considered.
5.5 Limitations
The research conducted for this thesis has resulted in some limitations, mainly concerning the data collection. More particularly, sample size and to which extent the researcher was able to reach the sample. As described in the methodology, out of 1805 surveys, 122 students answered, which is a relatively low response rate of 6.76 %. Notably is the number of surveys that have been sent out, which also affect the outcome number of respondents. Since the general data protection regulation (GDPR) came into effect, it has limited the collection and handling of e-mail addresses. The amount of limited surveys combined with a low response rate implies that the respondents may not be representative of the population of the study.
contains a number of limitations, including some issues with sample size as well as data collection, the findings should only be generalized with great caution.
5.6 Suggestions for further research
This thesis has provided an in-depth knowledge within the field of CSR, focusing on university students’ attitude and purchase intention within the outdoor industry. However, based on the earlier presented delimitations and limitations the author has some suggestions for further research in order to get an even deeper knowledge of the power of CSR.
Firstly, further research could make more comprehensive research consisting of additional participants. The participants could be collected from a wider geographical area with students from other universities. Additional participants would fill in the gap of this study’s limited data collection. To further broader the study and consequently be able to provide a more general result, further research is recommended to base the questionnaire on more than one outdoor clothes company.
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