Does CSR Perception Matter to Brand Loyalty? The Mediating Roles of Brand Trust and Brand Image

Abstract

It is no secret that the grocery retail industry has played a critical role in food security, nutrition and sustainability, but what happens if these practices result in food waste? Recent reports suggest that supermarkets may contribute to this global issue by using unethical promotion strategies that lead to consumers buying more food than they need. This not only affects the environment but also has the potential to damage brand loyalty. To address these issues, this study aims to determine whether the three dimensions of consumer Corporate Social Responsibility (CSR) perceptions create more positive outcomes, such as brand trust, image and loyalty, in the Malaysian grocery retail sector. Grounded in stakeholder and resource-based view theories, scholars support the notion that brands need to embrace purpose and sustainability to fulfil their responsibility to stakeholders and enhance their competitive advantage. A multistage sampling technique was used with 536 Malaysian grocery retail consumers. Partial least squares structural equation modelling (PLS-SEM) results revealed that consumer CSR perception matters to brand loyalty, with the mediating effects of brand trust and image. These findings have theoretical and practical implications for supermarkets and policymakers seeking to improve the effectiveness of CSR activities and brand loyalty.