Corporate Social Responsibility and Customer-Based Brand Equity; Towards the Operationalization of a Framework in the Mobile Telecommunication Services Sector

Abstract

Corporate social responsibility (CSR) is becoming a tool for competitive positioning. It is the basis for brand choice among other advantages and therefore described as a strategic tool in marketing. In-spite of these observations, there appears to be a paucity of studies, linking CSR to brand equity or Customer-Based Brand Equity (CBBE). This study therefore ascertains the role of various types of CSR initiatives in building CBBE dimensions. A conceptual framework was developed based on a review of extant literature to depict the relationships among the study variables. Using a mixed methodology, the quantitative part purposively surveyed 500 mobile telecommunications subscribers, which was analysed using Descriptive Statistics, Confirmatory Factor Analysis and Structural Equation Modelling. The results suggest that in general, Corporate Philanthropy is the most important type of CSR initiative pursued by the mobile telecommunications companies in Ghana and is also the most important tool for creating brand awareness and loyalty. For enhanced brand image and quality perceptions among customers, the results suggest that Cause-Related Marketing is the types of CSR that holds the greatest potential among the six types of CSR initiatives that firms pursue. Insights from the second part of the study, which is based on qualitative in-depth interviews of six managers each from the six mobile telecommunications companies in Ghana, is to a greater extent consistent with the quantitative findings. The qualitative study further suggests that for CSR to enhance CBBE dimensions among customers, firms ought to pursue CSR initiatives that are valuable to customers and communicated in a strategic manner. Thus, in taking strategic view of CSR, firms need to pursue effectively the core mandate of delivering customer satisfaction whiles leveraging on CSR for enhanced marketplace competitiveness. In terms of contribution, this study is the first to bring CSR and Customer-Based Brand Equity dimensions together using a mixed method and situating it within the context of Ghana which is one of the developing Sub-Saharan African countries.