Customer Perception of Csr and Its Impact on Retailer Evaluation and Purchase Intention in India

By Dutta, Kirti; Singh, Swati | Journal of Services Research, April-September 2013 | Go to article overview
Save to active project

Customer Perception of Csr and Its Impact on Retailer Evaluation and Purchase Intention in India


Dutta, Kirti, Singh, Swati, Journal of Services Research


The Indian organized retail industry holds immense promises and opportunities as a sunrise sector. The rising awareness levels of the consumers through education and media have begun to make the corporate more accountable in their CSR practices. This study focuses on the relative influences of Corporate Social Responsibility (CSR) practices on the consumer's perception and intention to purchase from organized retailers in the Indian market. This study is of importance to the retail practitioners and organized retail players who plan to enter and target the attractive Indian market. It shows that CSR can be used as a strategic tool to help create a differential advantage over competitors as results showed significant positive relationship between all the variables used to measure CSR and consumer's purchase intention. It also examines the perception of CSR activities of some well known established retailers by the consumers and delineates the importance of corporate communication of the practiced CSR activities.

Introduction

The Indian retail industry is predominantly unorganized and comprises 95-97% (approx.) of the retail market. The organized retail is made up of corporate backed retail chains, hyper marts, department stores, etc. and has shown considerable growth over the years on account of changes in consumer profile, aspirations, demographics, exposure to international brands, urbanization and availability of credit besides others. The value of Indian retail business stands at around US$ 550 billion (aaprox.) as on December 2011, of which about four percent is accounted by the organized sector.

A study conducted by the Boston Consultancy Group (BCG) revealed that India's organized retail is likely to reach US$260 billion in the next decade with a penetration of about 21% (Indian brand equity foundation, 2011). Moreover, organized retail which was initially restricted to the metros or large Indian cities now has vast opportunities due to the presence of a large, aspiring, affluent upper and middle class in the Tier II & III cities. The increased availability of credit, better mobility, have all furthered the growth of organized retail. The attractiveness and relative stability of the Indian market attracted numerous Indian as well as international retailers to set up shop in India. The domestic players include the likes of Wills Life style (ITC), Aditya Birla (More), Westside (Tata), Easy Day (Bharti Walmart), Reliance Fresh as well as the Future Group. So far, the international players have been given restricted entry into the Indian market due to restrictions imposed by the government. Currently the government allows only 51% FDI in single brand stores and 100% FDI in wholesale trading. This policy led numerous international brands to set up shop in India some of which include Fendi, Louis Vuitton, Nike, Damro, etc. Foreign retailers have used numerous routes to enter into the lucrative Indian market like licensing agreements, cash and carry and franchising arrangements. As conditions of entry get further relaxed in the future, retailers like Carrefour, Wal-Mart, Tesco to name a few wait earnestly in the wings to set up shop in India. The entry of these foreign players is likely to improve the existing retail infrastructure, remove intermediaries and encourage sourcing directly from the farmers, provide more variety to customers and reduce in - transit wastage.

The government has already made a foiled bid to allow 51% FDI in multi-brand and 100% in single-brand retail (Varma, 2011) and once this is allowed the competitive scenario is bound to heat up further for organized retail. Retailers therefore need to promote themselves in a way so as to elicit unique and more positive feelings about their brand vis-à-vis competitors. Corporate social responsibility (CSR) can be one such tool that can be used by companies to differentiate themselves and generate positive feelings among consumers (Sen and Bhattacharya, 2001).

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

Customer Perception of Csr and Its Impact on Retailer Evaluation and Purchase Intention in India
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?