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Tác động của trách nhiệm xã hội đến lòng trung thành của khách hàng: Nghiên cứu trường hợp các chuỗi cửa hàng cà phê tại thành phố Hồ Chí Minh

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Nội dung Text: Tác động của trách nhiệm xã hội đến lòng trung thành của khách hàng: Nghiên cứu trường hợp các chuỗi cửa hàng cà phê tại thành phố Hồ Chí Minh

  1. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON CUSTOMER LOYALTY - A STUDY ON COFFEE CHAINS IN HO CHI MINH CITY TÁC ĐỘNG CỦA TRÁCH NHIỆM XÃ HỘI ĐẾN LÒNG TRUNG THÀNH CỦA KHÁCH HÀNG: NGHIÊN CỨU TRƯỜNG HỢP CÁC CHUỖI CỬA HÀNG CÀ PHÊ TẠI THÀNH PHỐ HỒ CHÍ MINH Thi Cam Tu MAI - Hong Son NGUYEN - Nguyen Ngoc Diem PHAN Minh Hang LE - Phuong Khanh LUU - Thi Thu Thao NGUYEN University of Economics and Law – Vietnam National University – HCM tumtc@uel.edu.vn Abstract Corporate social responsibility (CSR) is one of many crucial activities to achieve sustainable development which benefits all the different stakeholders of CSR, including the increase in customer loyalty. This study aims to examine how different aspects of CSR can influence customer loyalty in Vietnamese coffee chain industry in Ho Chi Minh City. Moreover, the article also presents scientific and practical evidence about the authenticity of CSR to the brand image and customer loyalty. By using qualitative and quantitative methods, the article (N=491) has revealed that the implementation of CSR has an indirect impact on customer loyalty through the intermediate variable “brand image” and moderate variable “authenticity” has no role in regulating the relationship between CSR and brand image. Therefore, to increase customer loyalty and achieve sustainable development, businesses need to focus on implementing CSR by practical actions rather than empty words especially environmental and social sustainability. Keywords: Corporate Social Responsibility, customer loyalty, brand image, authenticity Tóm tắt Trách nhiệm xã hội (CSR) của doanh nghiệp từ lâu được xem là yếu tố quan trọng trong chiến lược phát triển bền vững, tác động đáng kể đến lòng trung thành của khách hàng. Nghiên cứu này xác nhận và đo lường mức độ tác động của trách nhiệm xã hội doanh nghiệp đến lòng trung thành khách hàng của các chuỗi cà phê tại TP.HCM thông qua hình ảnh thương hiệu (biến trung gian) và tính xác thực (biến điều tiết). Sử dụng lý thuyết Bộ ba bền vững và lý thuyết hành vi tiêu dùng để xây dựng thang đo, nhóm tác giả đã thực hiện điều tra bảng hỏi với 491 khách hàng với quy trình nghiên cứu tin cậy, cho thấy CSR có tác động thuận chiều và gián tiếp đến lòng trung thành của khách hàng thông qua hình ảnh thương hiệu và tính xác thực không có vai trò điều chỉnh mối quan hệ giữa trách nhiệm xã hội và hình ảnh thương hiệu. Từ kết quả này, nhóm nghiên cứu đưa ra một số hàm ý quản trị nhằm nhằm hướng doanh nghiệp đến các chiến lược phát triển bền vững hiệu quả và minh bạch hơn. 983
  2. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 Từ khoá: Trách nhiệm xã hội, lòng trung thành của khách hàng, hình ảnh thương hiệu, tính xác thực. JEL Classification Code M4, M14, K20 1. Introduction Corporate social responsibility plays an integral role in business success and has received attention and interests from all around the world since 1953. The proper implementation of CSR helps businesses achieve sustainable development, thereby increasing the benefits of businesses (Abdul Rahman et al., 2014; Lee et al., 2017; Lee et al., 2019). Sustainable business development is reflected in the benefits gained from good CSR involvement hence creating a positive brand image for the business as well as reinforcing customer trust and solidifying the foundation to promote customer loyalty to the brand (Lee et al., 2009; Du et al., 2007; Vlachos et al., 2009). Besides, the authenticity of CSR activities also plays an important role in ensuring the correct and adequate implementation of CSR, thereby increasing loyalty through brand image (Brusseau et al., 2013; Alhouti et al., 2016; Chun and Bang, 2016; Joo et al., 2019). In today’s modern context, countries are paying more and more attention to social responsibility. Especially in developing countries such as Vietnam, while being gradually engaged in globalization, CSR is therefore becoming increasingly noticeable. There are a lot of studies on CSR but few studies on how CSR impacts customer loyalty in the coffee chain industry. Despite the team’s search efforts, there are practically no studies on such subjects in Ho Chi Minh City or Vietnam. While researching the effects of CSR on customer loyalty in foreign studies, most of our findings are based on two fundamental theories which are Carroll’s theory (1991) and Elkington’s “Triple Bottom Line” theory (1997). However, Elkington’s “Triple Bottom Line” theory is widely used for two main reasons: First, Elkington (1997) adopted the Carroll (1991) model and added environmental responsibility to CSR to complete the CSR model. Second, the integration of CSR components must be applied more cohesively and simultaneously rather than prioritizing economic responsibility over legal, ethics and philanthropy responsibility according to Carroll. This model is applied to many different fields, including the F&B industry (Pivato et al., 2007; Chun and Bang, 2016). On the same note, foreign studies also indicated various approaches to how CSR can impact customer loyalty through the intermediate variables such as (1) brand image and customer satisfaction; (2) brand image (Raza Naqvi et al., 2013; Lauritsen and Perks, 2015; Cha and Joo, 2019); (3) brand experience and trust (Pivato et al., 2007; Khan and Fatma, 2019). A few recent articles have researched the effect of CSR authenticity on brand image and customer loyalty (Alhouti et al., 2016; Chun and Bang, 2016; Feng et al., 2016; Joo et al., 2019), but there are conflicting results. Thus, the results are still indeterminate. Ho Chi Minh City is one of the largest and most dynamic cities in Vietnam. In recent years, the development of the coffee shop chain industry has increased dramatically, attracting many domestic and foreign brands to join in. The market value is estimated to be one billion USD according to survey data from Euromonitor (2019). According to a report from Vietnam market 984
  3. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 research services company Q&I, the growth rate of the coffee shops’ number in Ho Chi Minh City in 2019 is 45%, an increase of about 20% compared to 2018. Although CSR awareness and adoption are later than other countries in the world, the coffee chain businesses in Vietnam and Ho Chi Minh City have increasingly concerned about CSR from 2020 onwards. The CSR components are more prominent in their mission, vision, and campaigns that strive to enhance society’s benefits. However, most businesses have not yet paid proper attention and full awareness of CSR activities. Particularly, coffee chains pay much more attention to economic gains than environmental and social issues. Enterprises consider their social responsibility is simply charity work at the cost of their profits, not knowing that CSR must be integrated into their long-term business strategy. Besides, many customers feel that the enterprises’ commitment to CSR is just empty words and no actions. Some even go against their commitment, especially on environmental matters. Specifically, despite displaying the persona of green life such as committing not to use plastic packaging and tools, limiting waste, etc., businesses have not stood by this commitment. Being aware that enterprises betrayed their CSR expectations, a significant number of customers have turned their backs on the brand which makes it likely that the business will not achieve sustainable development. This is an alarming fact on the awareness and implementation of CSR within the coffee chain industry which threatens sustainable development when their customer loyalty is declining. Therefore, the study of the relationship between CSR and customer loyalty is crucial and has practical significance. In summary, the contribution of this study shines in two main aspects. Firstly, this study aims to identify the components of CSR that affect customer loyalty in the coffee chain industry in developing countries like Vietnam, particularly in Ho Chi Minh City. Secondly, the study extends the “Triple Bottom Lines” theory to evaluate the impact of CSR on customer loyalty and examines the authenticity between CSR and brand image. The study combines qualitative and quantitative methods with meticulous research processes and measurement techniques to accomplish the above intents. 2. Literature Review 2.1. Corporate social responsibility and corporate social responsibility components CSR has been an ongoing topic of interest to researchers and institutions to enhance CSR components, which requires enterprises to implement authentic CSR. All these researches and actions are to create a more prosperous and greener world where CSR goals are completed to their full extent and in line with standards of the world. Bowen is considered to be the forefather of CSR with the book “Corporate Social Responsibility for Businessman” in 1953. CSR is seen as the company’s obligation to make decisions and enact policies according to social values. Bowen (1953) urged managers not to do anything harmful to others’ rights and called for philanthropy action from businesses to make up the loss of society. David (1960) suggested that CSR was decisions and actions based on motives that exclude financial gaining for the company. Friedman (1970) confirmed CSR’s role is to maximize profit within market rules and exclude all activities that may cause misunderstanding 985
  4. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 and cheating. The Committee of Economic Development (CED) (1971) affirmed that the basic purpose of businesses is to fulfill the social needs and be prominent through their CSR commitment. In 1979, Carroll defined CSR as the social expectation in economic, ethical, legal and philanthropy dimensions towards organizations at a specific time. Carroll (1991) showed CSR was composed of four interrelated dimensions: economics, legal, ethical, and philanthropy. At the same time, he introduced the pyramid model of CSR including four levels ranked from the base of the pyramid to the top: economic, legal, ethical and philanthropy responsibility. Elkington (1997) argued that sustainable development was surrounded by three principles: environmental protection, economic growth and social justice, which were equally important and necessary. According to World Bank (2003), CSR was the commitment of business in contributing to sustainable economic development - working with employees, their families and local community to improve the living standard. In 2010, International Organization for Standardization (ISO) introduced a standard of CSR including seven core elements: organizational governance, human rights, labor practices, the environment, fair operating practices, consumer issues, community involvement and development. According to Du et al. (2011), CSR was a corporate commitment to maximize long-term economic benefits, contribute to the prosperity of society and protect the environment through business activities, policies and resources. In short, despite many different definitions of CSR, CSR can be defined as the company’s obligation to make decisions, policies and actions to maximize benefits for itself and fulfill its duties to employees and shareholders. Moreover, corporates must comply with the law; commit to well-defined ethical principles; give back to the community; be accountable for social and environmental issues. According to these different concepts, the components of CSR are also broadened and enhanced. David (1960) stated that the composition of CSR was economic responsibility and other responsibilities. To Carroll (1991), in addition to economic responsibility, CSR also included legal, ethical and philanthropy components. Elkington (1997) argued that CSR included environmental economic and social sustainability. The International Organization for Standardization (ISO) had a standard of CSR including seven core elements: organizational governance, human rights, labor practices, the environment, fair operating practices, consumer issues, community involvement and development. This article approaches CSR components according to Elkington (1997) with two reasons: First, Elkington (1997) adopted the Carroll (1991) model and added environmental sustainability to CSR to complete the CSR model. Second, the implementation of the CSR components must be applied more cohesively and simultaneously rather than prioritizing economic responsibility according to Carroll (1991). This model is applied to many different fields including the F&B industry as mentioned above. Some studies base on sustainability theory shows that customers could easily understand and distinguish the three CSR components following this model (Kale and Singh, 2007; Abdul Rahman et al., 2014; Alvarado et al., 2015). This ability to distinguish three dimensions in the “Triple Bottom Line” helps customers have a better overview and easily evaluate businesses’ CSR implementation. 986
  5. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 2.2. Corporate social responsibility, brand image and customer loyalty Enterprises who focus on adopting CSR will make customers have a good impression on their brand and increase their loyalty (Du et al., 2007; Vlachos et al., 2009). Brand image positively affects how the company is perceived, increases its popularity and narrows the gap between brand and customers based on strong emotional bonds which in turn influence and enhance customer satisfaction and customer loyalty (Ataman and Ülengin, 2003). Similarly, much research has shown that CSR affects customer loyalty through brand image (He and Lai, 2012; Abdu Rahman et al., 2014; Chun and Bang, 2016; Qasim et al., 2017; Cuesta-Valiño et al., 2019). This article also follows this approach that CSR affects customer loyalty through brand image and examines the moderating effect of CSR authenticity to brand image. Brand image is the general impression of consumers about the overall characteristics of the brand, which is built from a set of consistent messages about the brand and through them, customers can easily associate and recognize that brand (Salinas and Perez, 2009). Positive brand image perception triggers favorable customer behaviors and intentions (Lee et al., 2017). A satisfied customer about a company’s CSR feels better about its brand image (Wu and Wang, 2014; Lauritsen and Perks, 2015). Doney and Canon (1997) showed that 76% of customers were willing to switch to a brand’s products or services that cared more about society. CSR and brand image are like two sides of a coin, two inseparable elements of a successful business (Salinas and Perez, 2009). Similarly, the studies of Raza Naqvi et al. (2013), Martínez et al. (2013), Wu and Wang (2014), Lauritsen and Perks (2015), Cha and Jo (2019) also pointed out that the implementation of CSR helped improve the brand image of enterprises in the eyes of customers. The article expects CSR has a positive impact on brand image. This article applies three dimensions of CSR according to Elkington (1997), which are economic, environmental and social sustainability. Hypothesis H1: Corporate social sustainability positively affects brand image. Customer loyalty is the degree to which customers are willing to repeat purchasing from a specific supplier, having a positive attitude towards this supplier and only considering using this supplier when their needs arise (Oliver, 1999; Estalami, 2000). Customer loyalty is also an assessment of future customer behavior. It is the driving force to continue the relationship, to recommend the supplier and to extend the relationship (Selnes and Hansen, 2001). Thakur (2016) defined attitudinal loyalty as a customers’ intention to remain committed to a specific provider in the marketplace by repeating their purchasing experiences. Researchers have studied the impacts of several factors on customer loyalty such as brands (Wu, 2011; Nisar and Whitehead, 2016). Brand image has a positive relationship with customer loyalty (Davies, 2003; Bauer et al., 2008; Hung, 2008; Tu and Wang, 2012, Cuesta-Valiño et al., 2019, Lee and Kim, 2019). The article expects that brand image has a positive effect on customer loyalty. Hypothesis H2: Brand image positively affects customer loyalty 2.3. Authenticity between CSR and brand image Authenticity is an evaluation, judgment of something whether it is authentic or not (Grayson and Martinec, 2004) or an appraisal of what extent the authenticity of something is (Beckman et 987
  6. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 al., 2009). CSR authenticity is defined as the company’s participation in CSR activities that is accurate and truthful far beyond legal regulations (Alhouti et al., 2016). Combining authenticity and CSR can bring success to the company (Meghan, 2015). Besides, stakeholder awareness of authenticity is an important determinant of successful CSR performance. According to Gao and Mattila (2014), customers were more satisfied and loyal to the brand when they realized that the CSR activities were solid and derived from the purpose of serving the community rather than for the company’s benefits. McShane and Cunningham (2011) also showed that improper CSR could harm a company. Meanwhile, authentic CSR can result in sustainable development for a company. The empirical research shows that authenticity is very important for successful CSR implementation. An honest CSR not only benefits the community but also contributes to strengthen brand image (Brusseau et al., 2013; Alhouti et al., 2016; Chun and Bang, 2016; Joo et al., 2019). The article expects that CSR authenticity has a moderating impact on the relationship between CSR and brand image. Hypothesis H3: Authenticity has a moderating impact on the relationship between CSR and brand image. 2.3. The research model On the theoretical basis and inheritance of the empirical studies in sections 2.1, 2.2 and 2.3, the article proposes the research model as shown in Figure 1. With the above three hypotheses, this study measures the indirect impact of CSR on customer loyalty through the intermediary variable “brand image” under the adjustment of authenticity. Besides, the recent empirical studies also confirmed the indirect effect of CSR and customer loyalty such as He and Lai (2012), Qasim et al. (2017), Cuesta Valiño et al. (2019), Cha and Jo (2019). Below is the proposed research model: Figure 1. The research model 3. Methodology 3.1. Qualitative study Preliminary research: a measurement scale was proposed for the research through research objectives, theoretical basis, previous studies, identification of research concepts, building research hypotheses and research model. The measurement scale is shown in table 1: The multigroup analysis method is usually used to measure the moderating impact (Chun 988
  7. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 and Bang, 2016; Young et al., 2019). Thus, the authors decided to use this method to evaluate the relationship between CSR and brand image. Three factors: (1) reliability, (2) transparency and (3) benevolence (Joo et al., 2019) were used as measurement items for CSR authenticity. Table 1. The measurement scale Measurement Items Source ECS1 Coffee chain (X) focuses on maxi- Alvarado et al. (2015), mizing profits. Chan and Saad (2019) ECS2 Coffee chain (X) always tried to Chan and Saad improve their products (beverage, Economic bakery and other products). Sustainability (ECS) ECS3 Coffee chains (X) control their cost Alvarado et al. (2015), accordingly. Chan and Saad (2019) ECS4 Coffee chains (X) tries to Alvarado et al. (2015) continuously improve the additional quality of the services that they offer. ECS5 Coffee chains (X) has plans for its Alvarado et al. (2015), long-term success. Chan and Saad (2019) SS6 Coffee chains (X) actively promotes Alvarado et al. (2015), volunteerism activities within the Chan and Saad (2019) local communities to enhance local life quality. Social SS7 Coffee chains (X) engages in Alvarado et al. (2015), Sustainability (SS) charitable activities by donating for Chan and Saad (2019) education to children in remote areas. SS8 Coffee chains (X) tries to be highly Alvarado et al. (2015) committed to well-defined ethical principles. SS9 Coffee chains (X) ensures food and De Giovanni (2012) beverage safety. SS10 Coffee chains (X) provides customers Svensson et al. (2016) with information about food and bev- erage. ES11 Coffee chains (X) uses eco-friendly, Alvarado et al. (2015), recycle material in their business Chan and Saad (2019) (bamboo, inox, grass straws; paper Environment glass for take-away; serving glass for Sustainability (ES) using at shops; etc). ES12 I am aware of Coffee chains (X)’s Chan and Saad (2019) initiatives towards the environment. ES13 Coffee chains (X) has a very good Chan and Saad (2019) image in my mind of its environmental activities. 989
  8. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 CA14 Reliability: Coffee chains (X) Joo et al. (2019) implement CSR programs as they promised. CA15 Transparency: All aspects of the Joo et al. (2019) CSR Authenticity Coffee chains (X)’s CSR programs (CA) are open to public evaluation. CA16 Benevolence: Coffee chains (X) is Joo et al. (2019) being philanthropic in their support for CSR programs. BI17 The products of coffee chains (X) Salinas and Perez (2009) have a high quality. BI18 Coffee chains (X) have nice and Salinas and Perez (2009) friendly staff. Brand Image (BI) BI19 Coffee chains (X) has a personality Salinas and Perez (2009) that distinguishes itself from competitors. BI20 Coffee chains (X) is one of the best Salinas and Perez (2009) brands in the sector with customers. BI21 Coffee chains (X) is very Salinas and Perez (2009) consolidated in the market. CL22 Coffee chains (X) is my top of choice. Wu and Wang (2014) CL23 I would love to try coffee chains (X)’s Wu and Wang (2014) Customer Loyalty new products. (CL) CL24 I am loyal to the coffee chains (X)’s Wu and Wang (2014) brand. CL25 I would be happy to spend my time in Wu and Wang (2014) search of coffee chains (X)’s product information. 3.2. Quantitative study Survey data processing techniques were implemented according to the following processes: Cronbach’s Alpha reliability analysis, Exploratory Factor Analysis (EFA), Pearson correlation coefficient (Pearson), Confirmatory Factor Analysis (CFA) to assess the scales. The structural equation modeling (SEM) and multigroup were used to test the model and hypotheses. The sample size depends on which survey data processing techniques are used. The sample size in the EFA is usually determined based on (1) the minimum size and (2) the number of measurement variables. Hair et al. (2006) suggested the minimum sample size in the EFA should be 50, and preferably 100. Besides, the ratio between observations and items was 5:1 (with 13 observed variables of the CSR scale, so the minimum sample size to conduct EFA is 13x5 = 65). If using the SEM model, the minimum sample size was N = 200 (Boomsma and Hoogland, 2001). Thus, the sample size of the study must be over 200. To achieve high accuracy, the sample size should be over 400 (Comrey and Lee, 1992). 990
  9. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 Based on the above measurement scale, the authors conducted to preliminary interview in March 2020. 50 out of 60 responses obtained by the convenient sampling method were valid and they were used for preliminary analysis to evaluate the reliability of EFA, Pearson and CFA. The evaluation of the preliminary result indicated that the research data was qualified via the Cron- bach’s Alpha coefficient (Cronbach’s Alpha coefficient > 0.6 and correlation coefficient - total > 0.3, Nunnally & Burnstein, 1994). Therefore, this questionnaire was used for the formal interview and survey. The actual survey was conducted from March to August 2020 that focused on customers who were over 16 years old and frequent at coffee chains in Ho Chi Minh City at least twice a month. With 601 answers collected by using the convenient sampling method, 110 responses were unsatisfactory and 491 were valid (n=491 > 400). The final sample was described in detail as table 2. It was safe to say that they were representative of customers’ coffee chains in Ho Chi Minh City, where most customers are young people in their twenties and thirties (78.45%). The five point Likert scale was used to measure these factors (from 1: strongly disagree to 5 strongly agree). After examining the data, 93.01% of participants regularly used one of the five coffee chains: Highlands Coffee, The Coffee House, Phuc Long Coffee and Tea, Starbucks Coffee, Trung Nguyen Legend Café. Therefore, these five above chains were used to represent the coffee chains in Ho Chi Minh City for conducting the study. Table 2. Sociodemographic profile of valid sample (N=491) Variable Valid percentage (%) 16 - 19 18.33 20 - 29 71.12 30 - 39 7.33 >39 1.22 Education High school 7.13 College 9.57 University 76.99 Higher education 6.31 Job: High school student 3.26 University and college student 42.77 Officer 48.47 Others 5.50 Income: ≤ 5 million dongs (roughly 250 USD) 52.75 5-
  10. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 Preferable coffee chains Highlands Coffee 37.07 The Coffee House 32.99 Phuc Long Coffee and tea 20.16 Starbucks Coffee 5.07 Trung Nguyen Legend Cafe 4.07 Frequency twice a month 57.23 once a week 20.57 2-3 times/week 16.09 Over 3 times/week 6.11 4. Results and Discussion At first, the study used the Cronbach’s Alpha coefficient (Cronbach’s Alpha coefficient > 0.6 and correlation coefficient - total > 0.3, Nunnally & Burnstein, 1994). The results of the re- liability test also met requirements (all Cronbach’s alpha - α ≥ 0.7). Next, the study used principal component analysis with Varimax rotation (Kinnear & Tay- lor, 1996). The number of factors was not restricted. For the sake of convergent validity, 0.5 was used as a factor loading cut-off point. Items had to display a 0.3 loading difference with any other factors to ensure distinctive validity. The result showed that 5 factors with the factor structure were fully matched: First, Bartlett’s test of sphericity was statistically significant (p(Bartlett) = 0.000), which verified that the correlation matrix was not an identity matrix, thereby validating the suitability of the factor analysis. Second, The Kaiser-Meyer-Olkin (KMO) was performed, which showed KMO = 0.872, lower than the suggested 0.507. The total variance explained 60.316%. Similarly, the variable “brand image” and “customer loyalty” also met the requirements: total variances were 54.859% and 67.173%, higher than 50%; Eigenvalues were higher than 1. After running the confirmatory factor analysis (CFA) for the first time, one item “ECS1” was eliminated because its factor loading was 0.452 (< 0.50) (Gerbing & Anderson, 1988). After deleting this item, we ran the CFA for the second time (Figure 2). The model demonstrated a good fit: χ2 was 524.285 (degree of freedom = 177, p < 0.000), χ2 /df value was 2.962 (< 3.0), CFI was 0.932, Tucker Lewis coefficient (TLI) was 0.919 and the value of RMSEA was 0.063 (< 0.08). 992
  11. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 Figure 2. Result of confirmatory factor analysis (CFA) As presented in table 3, the factor loadings of items ranged from 0.527 to 0.853 which were all above 0.50. Besides, the values of average variance extracted (AVE) were from 0.502 to 0.615 (> 0.50) which indicated satisfactory convergent validity (Hair et al., 1998) (Table 3). The discriminant validity was also confirmed because the AVEs were larger than the squared corre- lation coefficients between factors (Fornell & Larcker, 1981) (Table 3). The composite reliabilities (CR) were from 0.77 to 0.871 (> 0,70) (Table 3). Thus, the measurement of CSR, brand image and customer loyalty were satisfactory in terms of convergent validity, discriminant validity and reliability. Table 3. Items of the refined measurement scales and measures of reliability Factor Factor loading loading Average Standard (EFA) (CFA) deviation Economic Sustainability (Cronbach’s α = 0.764, CR = 0.77, AVE = 0.502) ECS1) Coffee chain (X) focuses on maximizing 0.696 0.452 4.34 0.769 profits. ECS2) Coffee chain (X) always tried to improve 0.634 0.581 4.09 0.822 their products (beverage, bakery and other prod- ucts). ECS3) Coffee chains (X) control their cost accord- 0.527 0.617 3.83 0.931 ingly. 993
  12. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 ECS4) Coffee chains (X) tries to continuously im- 0.726 0.692 4.23 0.828 prove the additional quality of the services that they offer. ECS5) Coffee chains (X) has plans for its long- 0.687 0.802 4.13 0.812 term success. Social Sustainability (Cronbach’s α = 0.806, CR = 0.815, AVE = 0.512) SS6) Coffee chains (X) actively promotes volun- 0.655 0.518 3.82 0.898 teerism activities within the local communities to enhance local life quality. SS7) Coffee chains (X) engages in charitable ac- 0.762 0.543 3.28 0.979 tivities by donating for education to children in re- mote areas. SS8) Coffee chains (X) tries to be highly commit- 0.737 0.814 3.78 0.863 ted to well-defined ethical principles. SS9) Coffee chains (X) ensures food and beverage 0.607 0.790 4.05 0.813 safety. SS10) Coffee chains (X) provides customers with 0.602 0.733 4.01 0.851 information about food and beverage. Environmental Sustainability (Cronbach’s α = 0.823, CR = 0.827, AVE = 0.615) ES11) Coffee chains (X) uses eco-friendly, recy- 0.841 0.745 3.76 1.135 cled material in their business (bamboo, inox, grass straws; paper glass for take-away; serving glass for using at shops; etc). ES12) I am aware of Coffee chains (X)’s initia- 0.817 0.762 3.75 1.020 tives towards the environment. ES13 Coffee chains (X) has a very good image in 0.800 0.842 3.64 1.031 my mind of its environmental activities. Brand Image (Cronbach’s α = 0.871 CR = 0.871, AVE = 0.576) BI17) The products of coffee chains (X) have a 0.764 0.782 4.22 0.741 high quality. BI18) Coffee chains (X) have nice and friendly 0.829 0.722 4.14 0.803 staff. BI19) Coffee chains (X) has a personality that dis- 0.853 0.824 4.19 0.771 tinguishes itself from competitors. BI20) Coffee chains (X) is one of the best brands 0.635 0.771 4.08 0.823 in the sector with customers. BI21) Coffee chains (X) is very consolidated in 0.719 0.689 4.23 0.778 the market. 994
  13. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 Customer Loyalty (Cronbach’s α = 0.876, CR = 0.819, AVE = 0.539) CL22) Coffee chains (X) is my top of choice. 0.674 0.740 3.82 0.974 CL23) I would love to try coffee chains (X)’s new 0.844 0.621 3.77 1.038 products. CL24) I am loyal to the coffee chains (X)’s brand. 0.649 0.882 4.15 0.794 CL25) I would be happy to spend my time in 0.800 0.658 3.89 0.974 search of coffee chains (X)’s product information. CR: composite reliability, AVE: average variance extracted, ASV = Average shared variance, MSV = Maximum shared variance Table 4. Correlations Matrix Among the Latent Constructs 1 2 3 4 5 (1) Economic 0.708 Sustainability (2) Social Sustainability 0.539 0.715 (3) Environmental 0.413 0.575 0.791 Sustainability (4) Brand Image 0.609 0.500 0.460 0.754 (5) Customer loyalty 0.508 0.540 0.414 0.583 0.752 Values in parentheses represent the square root of the average variance extracted; all cor- relations were significant (p b 0.01). Table 5 provides estimates of structural modeling. The mode fit indices for the structural model was satisfactory with Chi-square/df= 2.948; RMSEA=0.063; TLI= 0.909; CFI= 0.922 (Chi-square/df < 3; CFI, GFI, TLI > 0.9; RMSEA < 0.08, Hair et al., 2010). Thus, it provided a good basis for examining the hypothesized paths H1 and H2 in this study. Table 5 shows the structural results of the proposed model with standardized path coefficients for significant relationships. First, CSR presented positive relations (β = 0.865, P < 0.001) with brand image, hence H1 was supported. More specifically, comparing the values of the coefficients of CSR’s three dimensions: ECS had the greatest influence on CSR, then SS and ES. The significant rela- tionship between CSR and brand image was approved in previous researches (He and Lai, 2012; Abdul Rahman et al., 2014; Lauritsen and Perk, 2015; Qasim et al., 2017; Cha and Jo, 2019). Second, Brand image (β = 0.814, P < 0.001) had significant effects on customer loyalty, thus H2 was supported. In the other words, the better the brand image is, the customers tend to be more loyal to the coffee chains (Bauer et al., 2008; Hung, 2008; Tu and Wang, 2012; He and Lai, 2012; Abdul Rahman et al., 2014). 995
  14. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 Table 5. Standardized Parameter Estimates Standard- Hypothesized Path ized Esti- S.E. C.R. P Result mate SS
  15. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 environment. Among the three dimensions of CSR, CSR on ES of coffee chains in Ho Chi Minh City is more alarming and concerned. Research results once again solidified the theoretical as well as the practical basis of CSR authenticity and brand image. Thus, in the case of coffee chains in Ho Chi Minh City, CSR authenticity had no moderating effect on brand image. Research result also supported Alhouti et al., (2015) that the moderating role of CSR authenticity depended on the research context, the industry’s characteristics, and the research object which led to the difference of the CSR authenticity’s impact. In Vietnam in general and Ho Chi Minh City in particular, most customers found it difficult to verify the authenticity of CSR activities because most of the program’s information was not publicly available or transparent. 5. Conclusion and managerial implications The results reveal customers’ good perception of CSR has a positive effect on brand image, as well as customer loyalty. Besides, the study also adds to the theoretical and practical basis that the moderating effect of authenticity is not significant in the relationship between CSR and brand image in coffee chains in Ho Chi Minh City. This study has two managerial implications for coffee chains in Ho Chi Minh. Firstly, the results of the study support that customers’ perceived CSR affects their loyalty. The article contributes to a better understanding of how CSR can positively impact customer loyalty, especially through brand image. Therefore, the managers have to focus on adopting CSR as an important part of their sustainability strategy to improve brand image. Hence, businesses can increase customer loyalty through activities aimed at enhancing local communities. Secondly, the result shows that customers’ perceived CSR is leaning toward ECS. Meanwhile, SS and ES are still underrated, just empty words. Therefore, managers are required to carefully devise strategies that effectively and simultaneously implement all CSR dimensions as Elkington’s publication (1997). For ECS, coffee chains can apply cause-related marketing to raise funds for pressing community projects. For SS, enterprises should have reasonable price policies in purchasing input ingredients from farmers as well as organize projects to improve the living standards of farmers. As for ES, coffee chains need to have transparent and effective communication activities on environmental protection to raise community awareness about the issues as well as improve the brand image. However, this study has some limitations that represent directions for future research. First, the sample is sufficient, but it is necessary to enlarge the sample size to include a wider demo- graphic. Therefore, the data may limit its generalizability. Second, there are some limitations in resources and time. Third, due to COVID 19 complications, data could only be gathered through online survey forms instead of having face-to-face interviews at coffee shops in Ho Chi Minh City. Therefore, the result could not cover a larger scale. Last, the proposed model only mentioned three dimensions of CSR and ignored other factors that could affect customer loyalty. In the future, the researchers may expand the components of CSR or other intermediate variables to measure the impact of CSR on customer loyalty and extending the sample size. REFERENCES 1. Abdul Rahman, N. I., & Nik Abdul Rashid, N. R. (2014). CSR Practices and Customer 997
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