Relationship between Customer Perception of brand CSR and purchase intention: The role of different CSR on different online media channels

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Relationship between Customer Perception of brand CSR and

pur-chase intention: The role of different CSR on different online media

channels

Author: Mufei Cai

Student Number: 11099577

Master thesis

Corporate Communication

University of Amsterdam

Table of content

Abstract 3

1 Introduction 4

2 Literature review and hypothesis development 6

3 Methodology 14

4 Result 17

5 Discussion 19

6 Conclusion 21

7 Strength, limitation and suggestion for future research 22

8 References 25

9.1 Appendix 1 30

Abstract

In the current competitive market environment, for every company, the importance of winning the trust and reputation of customers is crucial to establish a corporate image, has become an important part of corporate governance. However, how to effectively pass CSR to stakeholders and create a good reputation through accurate channels is a huge challenge for enterprises. This research explores how CSR activities will shape the relationship between enterprises’ image and consumers’ decision-making progress. It investigates the influence of three different CSR communication channels on consumers' purchase intention, including owned media channel (official CSR report), paid media (PR drafts on Vogue online), and earned media (YouTube video generated by ordinary user). The study found that although big companies like Zara have an initial low level or even negative reputations among customers, they could improve the level of trust and satisfaction through paid media. The results have several implications for the managers as well. First, companies should rethink about how to build long-term positive relationship with consumers in the era of social media. Second, companies should provide more comprehensive and transparent information in their CSR re-ports which is crucial of booting the reputation of the business.

1 Introduction

Facing fierce market competition, for every company, the importance of winning the trust of customers is crucial to the success of the business (Lim et al., 2018). Therefore, as a way to establish a corporate image, corporate social responsibility (CSR) has become an im-portant part of corporate governance (Bhardwaj et al., 2018). Customers, as one of the most important stakeholders, should be valued by the company and explore ways to communicate with them effectively (Quazi et al., 2016). Companies guide customers to perceive and under-stand them by creating a good brand image so that companies can penetrate the brand and create competitive advantages (Boehe and Cruz, 2010). Perez et al. (2013) pointed out that customers are more concerned about CSR related to their needs, their research result high-lights that the company should pay attention to the real attributes and sincerity of its products or services, such as treat all customers fairly, without discrimination, and effectively respond to complaints.

However, how to effectively deliver CSR to stakeholders and create a creditable repu-tation is a huge challenge faced by enterprises (Leonidou & Skarmeas, 2017). The rapid rise of different media channels creates an arena for brands to interact with customers about their CSR activities (Sparks & Bradley, 2018). Some studies show that the emergence of social media has provided companies with more active communication channels, which is more in-fluential and persuasive than traditional media; however, other researchers indicate that social media is also weakening the control of speech by companies, and customers are likely to in-terpret CSR with user-generated content (UGC) rather than the intention of the company it-self (Tench, Sun, & Jones, 2014). In consequence, it becomes significantly important to un-derstand the channels through which customers perceive CSR and their perception. It is nec-essary to know how customers will perceive and react CSR related information from different channels because customers’ perception of the brands engaging in CSR activities could be reflected by their (increasing) purchase intention (Lovett & Staelin, 2016).

Nonetheless, most of the previous research has focused on internal stakeholders such as shareholders, experiences or employees, and a wider range of external stakeholders like schools, hospitals or other social groups. Only a few studies have focused on customer per-ceptions of CSR and the relationship between them (Perez et al., 2013). However, CSR activ-ities play a more and more important role in today’s business development since consumer

awareness towards CSR is increasing in recent years (Servaes & Tamayo, 2013). In other words, customers begin to evaluate the company by examining their engagement in social issues including environmental protection and human rights issues. Thus, it is important to investigate how the business embraces this trend by studying how the perception of CSR will shape the customer’s decision-making process. On the other hand, although the field of im-pact of CSR and difference between online and offline CSR communication has been greatly understudied (Crane & Glozer, 2016), only limited research has been done on how companies or brands communicate their CSR with their customers or potential customer via a variety of online media channels (such as paid media, owned media, and earned media). This research aims to collect first-hand data based on the case study of Zara and to provide empirical evi-dence of the effectiveness and underlying mechanism of the different types of CSR commu-nications.

The purpose of this research is to study the relationship between consumers’ percep-tion of enterprises’ CSR and their purchase intenpercep-tion. More specifically, how different CSR communication regarding CSR activities will influence consumers’ decision-making process. Considering that the apparel industry is a global industry and has different communication channels, this research will take it as an example to study the role of different CSR communi-cation media channels and how CSR activities spread through different channels affect peo-ple's brand Cognition. The specific fashion brand is ZARA. Through a review of the previous literature, the channels of communication are divided into paid, owned and earned media. Through the questionnaire survey, this research will try to answer the following research questions:

1) What are the behavioural characteristics of fashion consumers in response to different CSR communication channels?

2) What are the influencing factors of the effectiveness of different CSR communication chan-nels on consumers’ attitudes and purchase intentions toward the fashion brand ZARA? 3) What is the influencing mechanism of different CSR communication channels on con-sumers’ attitudes towards the fashion brand ZARA?

The first research question looks at how consumers respond to the enterprise’s CSR activities. The second addresses internal and external factors that may influence the relation-ship between CSR communication channels and consumers’ attitudes. Additionally, the third research question explores the relationship using ZARA as a case study to further demon-strate the role CSR communication play in building a long-term relationship with consumers. To answer these questions, this study tries to shed some light on the relationship between CSR communication and consumers awareness. In particular, what role does paid, earned media play in increasing the brand awareness among the consumers. It will add to the exist-ing literature by explorexist-ing how different CSR communication channels will influence the subsequent consumers' perception of the brand. On the other hand, the empirical results of this study will have some implications for managers as well. More specifically, the managers should have an understanding of the advantages and limitations of each communication channels and learn how to build a relationship with consumers using CSR strategy. Mean-while, companies should provide more comprehensive and transparent information in their CSR reports which is important for building positive image for the companies.

2 Literature review and hypothesis development

CSR is dynamic, diversified, multifaceted, and differentiated across economies and industries (Matten & Moon, 2008). The European Commission (2001) defines CSR as the company's daily work, including social, environmental and ethical issues into its management activities. Fundamentally, the enterprise occupies a part of social resources in daily opera-tions, such as educated employees, state preferential policies for enterprises, and stable eco-nomic growth due to good social order. Therefore, a part of the company's revenue can be used to give back to society, so that the entire social system can be cycled and sustained. Ad-ditionally, the interaction between CSR and society will obtain a good reputation for the company. Stakeholders, especially consumers, often question whether companies are respon-sible for society and the environment (Reynolds, Schultz, & Hekman, 2006). Therefore, a good CSR strategy has a positive relationship with consumers, and a good social reputation will attract customers who are more willing to buy their products (Diddi, 2014). In summary, CSR will not only enrich the interaction between the company and its customers but also in-crease profits for the company (Wigley, 2008).

As media play a crucial role in building the image of the brand, enterprises tend to spend more and more time and resource on media to communicate with their consumers. There are three major types of media that need to be addressed in the marketing campaign: paid, owned and earned media. Although there are some overlaps between each sphere, the enterprise needs to consider to invest in all media channels to maximize the returns from marketing plan (Lovett & Staelin, 2016). On the other hand, with the development of social media, consumers begin to receive information overwhelmingly at daily basis. Thus, the best way to conduct CSR communication with consumers is through all types of media. Accord-ing to previous study, enterprises adopt three types of media as the major communication channels to promote sales and brand awareness (Turkle, & Akyar, 2017). Thus, to study how CSR communication influence consumers’ decision-making process, it is necessary to under-stand the difference between each media channels to develop the media strategy. The most traditional way of self-marketing for autonomous media is for companies to create and con-trol channels. One typical own media channel is the official website. As argued by Uzunoglu et al. (2007), for most companies, own media is the most common channel. Companies prefer this traditional media method, including advertisements, news, and periodical reports on their own official websites (Turkle, & Akyar, 2017). In this way, enterprises have the right of inde-pendent control, and consumers, as passive recipients of information, comprehend the com-pany's active CSR strategy. Customers can browse the comcom-pany's official website or official account to understand the company's outstanding contribution to CSR (Perks et al., 2018). However, scholars have questioned enterprises’ control over their official websites as CSR information communication channel. Boyd et al. (2016) argued that unless supported by a third party, the official website is considered as an unreliable approach. For example, some stakeholders question the authenticity of CSR information on corporate websites and believe that CSR information, news, and reports released by through official website channels are more of a self-marketing tool, namely for an altruistic purpose. (Boyd et al., 2016). More scholars hold positive attitudes towards their own media channels, mainly corporate official websites. Esrock & Leichty (2000) found that up to 82% of fortune 500 companies present one or more CSR projects on their official websites, so as to show their concern for vulnera-ble groups, attention to environmental protection and concern for education, etc., and thus establish a responsible corporate image. In addition, scholars demonstrate that corporate

web-sites serve as an important bridge between companies and their stakeholders (Chaudhi & Wang 2007; Esrock & Leichty, 2000; Fukukawa & Moon, 2004). Park & Reber (2008) proved that consumers' perception of CSR is correlated to their trust in the company, and consumer trust further enhances positive WOM communication. Hong & Rim (2010) con-ducted a questionnaire survey to explore the effects of corporate websites as CSR information channel from the perspective of consumers. The empirical results of Hong & Rim (2010) confirmed that consumers used corporate websites to obtain CSR information, which strengthened their relationship with the company, especially their trust in the company. Based on the above review, this research believes that the corporate official websites, as one typical type of own Media, is an effective CSR communication tool. Therefore, it is imperative to investigate whether the brand could use type of media to demonstrate CSR activities with its consumers.

On the other hand, paid media channel means CSR activities will be leveraged by a third-party channel, such as advertising on third-party sites or commercial channels. Unlike its own media, paid channel with third-party support will increase people's trust in CSR con-tent. For example, the Social Word-of-Mouth (S-WOM), which has emerged in recent years, has attracted extensive attention from researchers (Hutter et al., 2013). It means the intention that the company sells products or provides services and actively conveys information to an-other person. The emergence of S-WOM provides enterprises with a wider range of publicity channels. Social media provides an interactive platform for customers, which not only can promote CSR and a good brand image for the company, but also can attract consumers to make a positive response. Through comments or forwarding, they can promote the brand more widely (Chu & Kim, 2011). Because the third-party media will pay more attention to data and fact reports, so it is more convincing (Villagra and López, 2013). Therefore, paid media could increase the consumer’s trust and satisfaction through CSR communication.

Earned channel means CSR activities will be shared by its customers, the press and the public, they will speak about it via word-of-mouth (Lovett & Staelin, 2016). Similar to S-WOM, user-generated content (UGC) is initiated, created and operated by customers, which is an open and transparent online operation method (Kim & Johnson, 2016). The emergence of UGC has transferred this control to the hands of customers, but if you want to make CSR work, companies have to promote this new way of communication channels and bear the

doubts they may bring (Leonidou & Skarmeas, 2017). The earned channel seems to be able to win the trust of customers while increasing the satisfaction because it is a communication platform established by customers themselves. Comments from different users or public me-dia can try to make customers have an objective understanding of the company's CSR activi-ties and integrate them into their own judgment (Chang & Cheng, 2015). UGC's uniquely and newly operating model also brings unprecedented challenges: on the one hand, UGC has im-proved consumer participation and willingness to buy. On the other hand, there may be stakeholders who have exposed or criticized the CSR of the enterprise through UGC. Despite this, companies are able to understand the views of stakeholders in this way, respond to voic-es of doubts, and sincerely communicate with customers (Perks et al., 2018). As the more in-formation and comments regarding the business could reduce the inin-formation asymmetry of consumers. In other words, consumers will be happy and satisfying when they found that the business are trusted by other consumers which will also increase their purchasing attention.

As for the choice of different types of media, scholars have also studied and compared the effects of different CSR communication channels. Lichtenstein (2004) concluded that in the past decade, enterprises preferred the paid media, such as advertisements, to spread CSR information, but the effectiveness of the paid media is disputed. Because the public will sus-pect that these CSR ads are for commercial purposes. In addition, managers find it difficult to determine whether or not CSR communication through paid media could generate economic benefits in the short term, which is difficult to measure (Lichtenstein, 2004). Wiener et al. (1990) indicated that CSR information from their own channels is more likely to arouse the suspicion and reduce the sense of trust of stakeholders than information from non-corporate channels. Differently, consumers respond positively to CSR information from neutral chan-nels (Yoon et al., 2006). Enterprises should rely on independent media chanchan-nels, which is helpful to improve the trustworthiness of CSR communication (Du et al., 2010). From the perspective of communication authority, an informal but credible communication channel is the WOM of stakeholders, such as earned Media. One of the strongest stakeholder groups is consumers. Strong consumer word-of-mouth effect can be amplified when CSR information is communicated through social media platforms, such as Facebook or YouTube (Du et al., 2010). From the perspective of communication direction, the one-way communication of CSR information by companies using their own media and paid media is a low-level

commu-nication. The multi-direction communication of CSR information on social media or earned media is high-level communication (Taylor et al., 2001). Based on the above discussion, this research proposes the first two hypotheses:

Hypothesis 1: Different CSR communication channels show different impacts on consumers’ trust in the brand: earned media > own media > paid media;

Hypothesis 2: Different CSR communication channels show different impacts on consumers’ satisfaction with the brand: earned media > own media > paid media.

Weber et al. (2012) indicated that attitude is an evaluative reflection of people, phe-nomenon or events. Consumer attitude refers to the learned intention or tendency of con-sumers, which leads consumers to form relatively stable positive or negative behaviours to-wards the phenomenon (Schiffman et al., 2003). It is argued by Park et al. (2006) that attitude includes three elements: cognition, affect and behaviour. As a result, consumer attitude is a complex composed of cognition, emotion and behavioural intention (Park et al., 2006). Cog-nitive Component is composed of consumers’ beliefs. It is the knowledge and perception ob-tained from the direct experience of various information and it is the basis of attitude (Schiffman & Kanuk, 2014). Only on the basis of perception and cognition of products and services can consumers form a specific attitude towards a certain kind of goods, and percep-tion and cognipercep-tion will directly determine the orientapercep-tion of consumers’ attitude (Schiffman & Kanuk, 2014). The affective component is a subjective experience. It is the core of attitude and closely related to behaviour, forming the power of consumer attitude. Under the condi-tion that the percepcondi-tion and cognicondi-tion been determined, emocondi-tion determines the persistence and strength of consumer attitude (Penz & Hogg, 2011). Behavioural component refers to an individual’s tendency to react in a specific way to an activity. In consumption, it includes both verbal and nonverbal behaviours of consumers to express their attitudes, such as buying or not buying a product, or recommending brand brands to friends, etc. (Penz & Hogg, 2011). Through verbal and nonverbal behavioural intentions, consumers can show their attitudes to the outside world, and other social members can also learn the true attitudes of consumers from behavioural intentions (Penz & Hogg, 2011). Combined two theoretical frameworks together, this thesis develop a mechanism that describes how consumers attitude influence by

external environment factors. More specifically, the cognition component of attitude will de-termine the consumers’ specific perception of external environment factors. On the other hand, the affect component, as another crucial dimension of consumer behaviour, play an im-portant role in determining the consumers’ satisfaction to external environmental factors. In other words, as shown in Figure 1, consumers will develop their own perception and affects to the external environmental factor, which is reflected as trust and satisfaction, and then make corresponding behaviours. Thus, this research will use consumer trust and satisfaction to measure consumer attitudes and use purchase intention to measure behavioural intention.

Figure 1 Consumer attitude model (Penz & Hogg, 2011)

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From figure 1, this research will take CSR communication through different channels as the external environment factors. Regarding the theoretic and mechanistic understanding of CSR communication, Schoeneborn and Trittin (2013) provided a new constitutive frame-work as summarized in Figure 2, by stressing communication as dynamic and multidirection-al, rather than unidirectional and linear in the traditional transmission model. Within the con-text of social mobile network, CSR communication focuses not only on the external side, but also on the internal corporate as a system, and different channels of communication may ex-hibit different effect as well as behavioural patterns. This motivates this research to investi-gate the behavioural characteristics of fashion consumers, focusing on the responses to dif-ferent CSR communication channels. Another important behavioural framework comes from the work of Gond et al. (2017), focusing on the microscopic perspective of the individuals’ psychological reactions, including the motivations for CSR engagement, evaluation and reac-tions to CSR initiatives. The dynamic process for the individual to react to the CSR commu-nication is mediated by a series of psychological mechanisms, such as social identity and identification link to that organization, as well as signalling effect, social exchange

mecha-nism and so forth (Gond et al., 2017). Therefore this motivates the research to focus not only the different types of communication channels but also the psychological mediating factors.

Figure 2 Mechanistic understanding of CSR communication (Schoeneborn and Trittin, 2013)

Figure 3 Micro-foundations of CSR communication (Gond, et al., 2017)

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As for the effects of CSR communication, scholars have made a number of empirical studies. According to Folkes (1988), attribution theory explains well the causal relationship between attitude and behaviours. It can explain how people's cognition or perception affects their behaviour and attitudes to help investigators explain how consumers view CSR strate-gies (Marin et al. 2016). Wongpitch et al. (2016) also indicated that attribution theory can predict consumer response to CSR. Based on attribute theory, Sinh (2013) indicated that sumers respond to advertising through thinking, perception, and action, which improve con-sumers' perception and awareness of the product and form consumer preferences, thereby af-fecting the customer's consumption behaviour. Furthermore, Mithas et al. (2005) highlighted that through an in-depth understanding of CSR activities, customers’ satisfaction is deepened, and thus their willingness to purchase is increased. Morgan and Hunt (1994) also indicated that consumer trust based on the in-depth understanding of the company creates a deeper re-lationship and emotion with the company, then increasing their willingness to buy. Haigh et al. (2013) found that consumers are more likely to form a positive attitude (including higher trust and satisfaction) towards enterprises which implement CSR activities for altruistic mo-tives, thus positively affecting their purchasing decisions. However, a negative reputation will

weaken consumers’ willingness to buy, and ultimately have a negative impact on the compa-ny (Haigh et al., 2013).

Hypothesis 3a: There is a positive relationship between customers’ trust and customers’ be-havioural intention;

Hypothesis 3b: There is a positive relationship between customers’ satisfaction and cus-tomers’ behavioural intention.

Based on the constitutive model of CSR communication of Schoeneborn and Trittin (2013), and psychological micro-foundations of CSR communication in Gond, et al. (2017), this research proposed a theoretical model to illustrate the influence of different CSR munication channels on consumer attitude, as shown in Figure 4. In this model, CSR com-munication channels are the ‘external stimuli’. Consumers exposed to these stimuli then have their own perceptions and affects, which are reflected as consumer trust and satisfaction. Then consumers show purchase intention as the consequential behavioural intention.

Figure 4 Theoretical model proposed in this research

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3 Methodology

This research adopts quantitative research methods, collects the primary data on con-sumers' attitudes towards CSR and concon-sumers' purchasing intentions through survey and conducts statistical analysis. This research will take the fashion brand Zara as an example to

study the different CSR communication channels and their impact on customers. Zara was chosen as the subject for following reasons. First, the production and sales of the fashion in-dustry are located in different regions, and the characteristics of diversification and globaliza-tion are very suitable for studying CSR (Wigley, 2008). Second, the consumer groups faced by the industry are diverse, and the industries’ own corporate social responsibility news will also attract widespread attention. The variables are discussed as follows:

Independent variables. Three main communication channels are identified: own me-dia, social media and new media; and user-generated content. This research selects three CSR communication channels as independent variables, including CSR report on official website, CSR PR articles on social media, and user-generated content in the online community.

Dependent variables. In term of intermediate and dependent variables, this research refers to consumer behavior theory, holding that CSR communication channels first affect consumers' trust and satisfaction for brands, and then affect their behavioural intentions. Among them, the behavioural tendency of consumers also includes the willingness to share CSR information, the willingness to buy products, and the willingness to recommend others to buy products.

Control variables. this research designs several variables: consumer awareness of CSR, consumers’ familiarity with the enterprise, consumers’ understanding motivations of CSR communication, and consumers’ preferences of media, so as to further investigate the moderating effect of CSR on consumers' attitudes in the context of CSR communication. The data will be obtained through an online questionnaire survey to ensure diversity and accuracy (Denscombe, 2007). Totally 160 respondents were selected by random sam-pling. The criteria are that they are all social media users who used to participate in the online discussion of #Zara# or #CSR#. This ensures that the target samples have a certain under-standing of the background of this research. The time of the questionnaire survey and data collection is from May 9th 2020 to May 16th 2020. As for the measurement of the variables of interest, this research adopts the popular Likert scale from 1 to 5, covering totally disagree (1), partially disagree (2), not sure (3), partially agree (4) and totally agree (5). Therefore the consumers’ attitudes towards qualitative concepts could be measured quantitatively, and the higher numerical value indicates a higher intensity of approval. Following previous research by Perks et al. (2018) and Chang & Cheng (2015), this research divided 160 respondents into

four groups. The grouping method refers to the systematic sampling method. The researcher first numbered 160 respondents randomly. The first group takes the number 1 as the starting number and took one number every four, so as to get the first group of 40 respondents; and the other three groups are obtained in the same way. Group 1 is the reference group without being stimulated by CSR information, and the rest three are all experimental groups. Accord-ing to the discussion on the definition of CSR communication channel in Chapter 2, this re-search selects CSR report on Zara's corporate website as the own media channel, selects commercial magazine Vogue Online as the paid media channel, and selects a video about Zara’s CSR performance which is generated by YouTube user as the earned media channel. Among the three experimental groups, group 2 received the stimulation from the CSR report of Zara as own media (official website), group 3 received the stimulation from the video of Zara CSR content created by YouTube users and the relevant user comments and interactions as UGC media, and group 4 received the stimulation from the review article of Zara’s CSR performance from paid media (Vogue online interview). What is more, the contents of official CSR report (group 1) and paid media (group 4) are considered to be positive stimuli, while group 3 is a negative content criticizing Zara for environmental pollution and other ethical issues.

Totally 147 questionnaires were filled and sent back, among which 115 were com-pletely and efficiently filled. In the 115 questionnaires, there are 27 respondents in group 1, 32 respondents in group 2, 30 respondents in group 3, and 28 respondents in group 4. Accord-ing to the theoretical model established in the literature review chapter, the questionnaire mainly includes the following contents. Firstly, the questions about respondents’ basic infor-mation and media usage habits are designed to understand the basic characteristics of the sample. Some subjective factors based on the respondents’ perspectives are involved, includ-ing the respondents’ familiarity with Zara, their own cognition of CSR, and their understand-ing of the motivation of CSR communication by enterprises. The second part is the perceived trust and satisfaction in consumers' attitudes. The last part is about the behavioural intention of the respondents. The questions in the questionnaire are designed mainly referring to the research on CSR communication conducted by Hong & Rim (2010) and Park & Reber (2008).

The main statistical tool is SPSS, and specific techniques include descriptive statisti-cal analysis, reliability test, factor analysis, one-way ANOVA, and regression analysis. De-scriptive statistics analysis describes the basic characteristics of a series of data by analyzing their maximum, minimum, average, and standard deviation. This research hopes to under-stand the basic situation of variables through descriptive statistical analysis. Since the inde-pendent variables of this research are three different communication channels, which are dis-continuous variables, one-way ANOVA will be used to determine the differences in consumer attitudes and behaviors caused by different CSR communication channels. In addition, re-gression analysis will be used to determine the causal relationship between intermediate vari-ables, control varivari-ables, and dependent variables.

4 Result

This research conducts a descriptive statistical analysis of the samples, and the results are shown in table 9.2.1 of appendix 2. Female respondents accounted for 50.4% of the total sample, while male respondents accounted for 31.3%. Another 18 percent did not disclose their gender. One reason is that the object of this research is fashion brand Zara, which leads to a higher proportion of female consumers in the sample. In addition, 37.4% of the respon-dents are between 27 and 25 years old, and another 34% are between 21 and 26 years old. All the respondents are under 50 years old. The average age of the sample is low, which is con-sistent with the actual average age of current Internet users. Nearly 50% of the respondents have a bachelor's degree, which is the majority. Another 22% of the respondents have a mas-ter's degree, and 10% of the respondents have a doctoral degree, while only 18% of the re-spondents have not obtained a bachelor's degree. The result indicates that the education level of the sample as a whole is high. This research then tested the reliability of the questionnaire survey, and the results are shown in 9.2.4 of appendix 2. It can be seen that the Cronbach's Alpha coefficient is as high as 0.964, indicating that the questionnaire designed by this re-search has a high degree of stability and reliability.

ANOVA test on consumers’ perceived trust among different groups are run to test the main hypothesis. The perceived trust is represented by the indicator ‘mean value’ in the table 9.2.2 in appendix 2. Difference of consumers’ trust in Zara among different group is signifi-cant (p < 0.001), indicating that through different CSR communication channels, consumers

will generate significantly different levels of trust in ZARA brand. The perceived trust of the reference group was significantly lower than that of the own media group and the paid media group, while the perceived trust of the UGC group was significantly lower for its negative content. Judging from the result of multiple comparison, the trust level of the UGC group and reference groups is not statistically significant, though the UGC group has lower trust. In ad-dition, the difference of trust between own media and paid media is not statistically signifi-cant either. Therefore, hypothesis 1 is partly verified and accepted.

As for hypothesis 2, ANOVA test results of consumers' satisfaction with ZARA in dif-ferent groups show partial support. There are significant differences in the consumers’ satis-faction with Zara among different groups (p < 0.001), indicating that through different CSR communication channels, consumers' satisfaction with Zara brand will be significantly differ-ent. Again, the results of satisfaction are very similar to the comparison of trust levels, be-cause the UGC exhibit vehemently negative content comparing to the positive information from the own media or paid media. For the UGC group, it has the lowest satisfaction level, which is statistically different to own media and paid media (p < 0.001). Though the UGC group has lower satisfaction comparing to the reference group, the difference is not statisti-cally significant with a p-value greater than 0.05. In addition, the satisfaction of the own me-dia is not statistically significant from the paid meme-dia group either, but there are both signifi-cantly higher than the reference group (p < 0.001). Based on the above analysis, hypothesis 2 is partially verified and accepted.

As for hypothesis 3, in the regression analysis of purchase intention, the second re-gression model has the highest goodness of fit, which can explain the change of dependent variable 86.4% (R square = 0.864). In addition, the second regression model was statistically significant (p < 0.001). According to the table 9.2.6 in appendix 2, the dependent variables and control variables that have significant influence on consumers' purchase intention include consumers' perceived trust (p = 0.003), consumer satisfaction (p = 0.003 ), and Zara’s altruis-tic CSR motivation of (p < 0.001). This means that the more consumers believe that CSR communication are motivated by altruism, the more willing they are to purchase products and recommend them to others. In addition, in the process of CSR communication, the higher consumers' perceived trust and satisfaction with enterprise, the stronger purchase intention they have. In the regression analysis of CSR information sharing intention, the third

regres-sion model has the highest goodness of fit (R square = 0.864) and statistical significance (p < 0.001). According to the table 9.2.6 in appendix 2, the dependent variables and control vari-ables that have significant influence on consumers' information sharing intention include consumers' perceived trust (p = 0.003), consumer satisfaction (p < 0.001), consumers’ under-standing of Zara (p < 0.001), and consumers' media use habits. The results show that in CSR communication, the more consumers trust the CSR information of enterprises, the more will-ing they are to share the information. Based on the regression analysis, the hypothesis 3a has been verified and accepted. Consumers’ perceived trust has significantly positive influences on both purchase intention and CSR information sharing intention of consumers. In addition, the hypothesis 3b is partially verified and accepted. Consumer satisfaction has significantly positive influence on the purchase intention of consumers, however, significantly negative influence on the CSR information sharing of consumers.

5 Discussion

The empirical results indicate that the business will gain consumer trust through CSR communication. However, consumers exposed to different CSR communication channels have differences in their perceived trust in enterprise. Compared with consumers who are not exposed to CSR information and consumers who are exposed to negative content in UGC, consumers exposed to paid media have the highest degree of trust in enterprises, and con-sumers exposed to own media with positive official CRS report also show a high level of trust in enterprise. This indicates that the CSR report issued by the enterprise can provide more comprehensive information on CSR, so that consumers can understand the contribution and improvement of the enterprise in CSR and win consumers’ trust, which is consistent with the discussion of Perks et al. (2018). This finding is also consistent with the empirical conclu-sion of Hong & Rim (2010), that is, when consumers browse corporate websites to obtain CSR information, they tend to perceive a socially responsible corporate image, which make them more trust the company. Public relations draft on paid media can also lead to an im-provement of trust, and it has the highest effectiveness comparing to all the other groups. In addition, YouTube video, as a form of UGC communication channel, allows more ordinary users to communicate and comment on it, so it also wins the trust of consumers if the CSR information is positive (Chang & Cheng, 2015). However, with negative content, the effect

could be reversed, which means not only the media channel has the effect on building trust, the content may have more important determinative role.

The second result of this study is about the relationship between consumer satisfac-tion and enterprises’ CSR communicasatisfac-tion. In particular, consumers exposed to CSR commu-nication do not necessarily have a higher degree of satisfaction with enterprises than con-sumers who are not exposed to CSR communication: paid media leads to the highest degree of satisfaction, followed by owned media, and the reference group and earned media lead to the lowest degree of satisfaction. Although the official CSR report can provide more compre-hensive CSR information, UGC with negative CSR information can certainly hurt the brand. On the other side, paid media acts as a third-party opinion leader with the ability to influence and improve the consumers’ satisfaction, which is consistent to the views of Villagra and Lopez (2013).

The third result of this study is about the relationship between CSR communication and consumers’ behavioural intentions. In CSR communication process, consumers’ trust and satisfaction have significant positive impacts on their purchase intention, which is consistent with the conclusion of Penz & Hogg (2011) on consumer trust and consumer behavior. Trust positively affects consumers’ intention to share information, while satisfaction negatively af-fects their intention to share information. This indicates that respondents in this research are more willing to express their dissatisfaction by forwarding or commenting, which is the ex-ternal manifestation of their attitude. This result is consistent with the conclusion of Sinh (2013), that is, consumers respond to the spread of information through thinking, perception and action. Among the three CSR communication channels, the paid media channel leads to the highest purchase intention and information sharing intention. This result indicates that CSR communication through third-party paid media can arouse consumers’ interest and make them actively share content or links with others. On the other hand, there is a significant posi-tive relationship between consumers' perception of altruistic CSR motivation and their pur-chase intention. When consumers perceive that enterprises are motivated by social welfare and sustainable development, they will be inclined to buy their products. According to Mithas et al. (2005), through in-depth understanding of CSR activities, consumers feel that a compa-ny has a sense of social responsibility, thus generating a willingness to buy.

The results have several implications for the managers as well. Firstly, in the era of social media, social network breaks down the centralized social network formed by informa-tion asymmetry and resource endowment differences, and enterprises should particularly abandon the ‘manager’ or ‘controller’ thinking and rethink about their relationship with con-sumers. Communication through social media is not only the dissemination of information, but also an important channel for enterprises to establish relations with consumers. That is to say, though earned media (UGC) may not necessarily produce positive CSR information, and in fact they create most of the negative contents for most of the time, the communication channel of UGC should still be emphasized. The manage board not only need to pay attention to the contents and trend of the UGC, they also need to actively engage in the process of tent generation to build good relationship with the key opinion leader and ordinary con-sumers. Therefore, through UGC media channels, on the one hand, enterprises need to prove their ability and willingness to take social responsibility to consumers, and have a long-term plan to provide guarantee for CSR projects. On the other hand, enterprises should adopt the feedback information of consumers, which is usually reflected in comments, forwards, or event contents generated, so as to summarize the problems in the implementation of CSR and timely adjust CSR strategy. These strategies should be more targeted and practical to ensure better communication effects and help enterprises to establish a responsible brand image.

Secondly, companies should provide more comprehensive and transparent informa-tion in their CSR reports. The findings of this research show that CSR reports are still an ef-fective means of CSR communication. As a result, enterprises should take social responsibili-ty reports seriously, and show the image of undertaking social responsibiliresponsibili-ty with pictures and texts. In addition, enterprises provide the download page of CSR report in ‘investor rela-tion’, however, modern consumers seldom browse the corporate official website specifically. Therefore, it is recommended that enterprises should share links of CSR report or CSR news on social networks to make it easier for users to see, comment, and forward the CSR reports, or even inviting the UGC media to spread such information. Thus it generates the most con-venient access to ordinary users, which will lead to the most effective CSR communication at the same time.

In conclusion, this research conducts questionnaire survey to collects primary data on consumers' behavioural intentions in different CSR communication channels, and adopted statistical analysis methods to verify the research hypothesis, revises the theoretical model, and answers the research questions. Firstly, this research answers the first research question through statistical comparison. It is found that consumers exposed to CSR information in paid media have the highest degree of trust in enterprises, and consumers exposed to own media channels also show a high level of trust in enterprise. The channel of earned media is double-edged, because it spreads negative information for most of the time and the effective-ness on influencing the consumers’ trust and satisfaction is high. That is to say, the use of paid media could significantly improve the level of trust and satisfaction, due to potential credibility and influence of the paid media as a third-party channel. What is more, the differ-ent effectiveness of differdiffer-ent media channels, including own media, UGC (earned media) and paid media, is established with statistical significance. However, not only the media channel has determinative power on influencing consumers’ perception of CSR information, but also the content itself matters too.

Through regression analysis, this research answers the second and third research questions. As an intermediate variable, consumer trust has a significant positive effect on consumers' purchase intention and information sharing intention. As an intermediate variable, consumer satisfaction has a significant positive effect on purchase intention, but a significant negative effect on information sharing intention. In addition, consumers' own media habits, their understanding of enterprises and their willingness to forward information have a signifi-cant positive impact. The altruistic CSR motivation perceived by consumers in the process of CSR communication has a significant positive impact on purchase intention.

7 Strength, limitation and suggestion for future research

This research has the following innovations and strengths. Firstly, the establishment of the research model is based on the combination of the theory of consumer attitude and at-tribute theory, as well as the constitutive model of CSR communication of Schoeneborn and Trittin (2013), and psychological micro-foundations of CSR communication in Gond, et al. (2017). The model takes CSR communication channels as the independent variable, con-sumer satisfaction and trust as the intermediate variables, concon-sumer behaviour intention as

the dependent variable, and also takes into account the consumer's own subjective factors, thus more fully revealing the influence mechanism of CSR communication channels on con-sumer behavioural intention. Secondly, this research sets up a reference group and three ex-perimental groups. Through empirical investigation, analysis and comparison of samples from the four groups, the attitudes, intentions and behaviours of consumers in different CSR communication channels are more significantly demonstrated. Thirdly, in the setting of the experiment group, this research designs three CSR communication channels. Compared with previous empirical studies, this research is in more line with the current situation of network information communication, so that it keeps pace with the modern trends.

The research also has several limitations which needs to be improved from the follow-ing aspects. First, there are limitations of the sample size in this research. The valid sample size is 115, and the sample size in each group is 20-30. This small sample size may affect the universality of the research results. In addition, this research takes the fashion brand Zara as the research object and limits the CSR communication of a single enterprise, which also af-fects the universality of the research results. Therefore, it is suggested to expand the sample size in future studies and consider studying more industries at the same time. Secondly, nei-ther the designing of variables nor the analysis process of this research is comprehensive enough. In the process of analysis, this research set a number of consumers’ own subjective factors as control variables and determined the relationship between these variables and con-sumers' behavioural intention through regression analysis. However, it did not determine whether there were differences in these control variables due to different groups, nor did it confirm the relationship between these variable and the intermediate variables of trust and satisfaction. In the future, these consumers' subjective factors should be considered as inde-pendent variables. Last but not least, it is difficult to disentangle the effect between different media channels and different information stimuli. For example, own media usually display the official CSR report of the company, but the paid media and earned media would have no interest to publish such a long CSR report. Therefore the effect of different content or differ-ent media channel could be confounded, the experimdiffer-ent should be meticulously designed in order to single out the effect of the media channel.

In future research, it is suggested to focus on earn media communication effect. For example, in the literature review, this research mentioned the effect of multidirectional

inter-actions and e-WOM. Therefore, it is suggested that relevant indicators should be established in future studies to carry out further detailed studies on these directions. At the same time, the initiative of consumers in CSR communication is also worth studying. It is suggested that fu-ture studies consider how consumers can participate in the communication process of CSR through UGC (content contribution), and invite more consumers to participate in this process by sharing information, so as to maximize CSR communication effects. In addition, different product categories (such as Fast Moving Consumer Goods or durables), different industry nature of enterprises, or different communication themes lead to different CSR communica-tion effects. It is recommended that future studies explore this direccommunica-tion in greater depth.

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9.1 Appendix 1

Stimulus information for different groups

Group 1

Inditex, OUR COMMITMENT TO SUSTAINABILITY. https://www.inditex.cn/en/web/ guest/news-releases?p_auth=UUyeWlHg&p_p_id=filters_WAR_filtersportlet_IN- STANCE_bJPDQORXcuEu&p_p_lifecycle=1&p_p_state=normal&p_p_mode=view&p_p_- col_id=column-2&p_p_col_pos=1&p_p_col_count=3&_filters_WAR_filtersportlet_IN-STANCE_bJPDQORXcuEu_javax.portlet.action=filterAction

Group 2

Business interview on Vogue online (paid media)

!

!

!

Group 3

UGC video about ZARA CSR performance on YouTube (earned media) The Richest Criminal In The World

https://www.youtube.com/watch?v=WRgyY9KNfZg

Questionnaire

Part 1: Basic information

1. What is your gender?

□ Male; □ Female; □ would not like to disclose 2. What is your age?

□ Under 20; □ 21~26; □ 27~35; □ 36~50; □ above 50 3. What is your education background?

□ High school and below; □ Bachelor degree; □ master's degree; □ PhD degree

Part 2: habit of media use

(1, totally disagree; 2, partially disagree; 3, not sure; 4, partially agree; 5, totally agree) 1. I prefer network media than traditional media (newspaper, radio, TV, etc.). □ 1; □ 2; □ 3; □ 4; □ 5

□ 1; □ 2; □ 3; □ 4; □ 5

3. The purpose to search on the Internet is to socialize (such as Twitter, Instagram etc.). □ 1; □ 2; □ 3; □ 4; □ 5

4. I enjoy sharing information on the web and am an active content provider. □ 1; □ 2; □ 3; □ 4; □ 5

Part 3: In your opinion, Zara's motivation for social responsibility is:

(1, totally disagree; 2, partially disagree; 3, not sure; 4, partially agree; 5, totally agree) 1. Give back to the society and benefit the people

□ 1; □ 2; □ 3; □ 4; □ 5

2. For the sustainable development of mankind □ 1; □ 2; □ 3; □ 4; □ 5

3. In order to establish a good image of the company □ 1; □ 2; □ 3; □ 4; □ 5

4. To persuade consumers to buy their products □ 1; □ 2; □ 3; □ 4; □ 5

5. In order to maintain competitive advantage in the same industry □ 1; □ 2; □ 3; □ 4; □ 5

Part 4: personal understanding of Zara and CSR

(1, totally disagree; 2, partially disagree; 3, not sure; 4, partially agree; 5, totally agree) 1. I'm familiar with Zara

□ 1; □ 2; □ 3; □ 4; □ 5

2. I usually purchase Zara clothes and accessories □ 1; □ 2; □ 3; □ 4; □ 5

3. I once participated in Zara's online/offline activities □ 1; □ 2; □ 3; □ 4; □ 5

4. I know about CSR □ 1; □ 2; □ 3; □ 4; □ 5

5. I focus on CSR performance of enterprises □ 1; □ 2; □ 3; □ 4; □ 5

6. I consider myself a person with a sense of social responsibility □ 1; □ 2; □ 3; □ 4; □ 5

Part 5: consumers’ trust

(1, totally disagree; 2, partially disagree; 3, not sure; 4, partially agree; 5, totally agree) 1. Zara can treat consumers fairly

□ 1; □ 2; □ 3; □ 4; □ 5

2. Zara will keep its promises to its customers □ 1; □ 2; □ 3; □ 4; □ 5

3. I have great confidence in Zara's ability and strength □ 1; □ 2; □ 3; □ 4; □ 5

4. Zara takes into account what consumers think when making major decisions □ 1; □ 2; □ 3; □ 4; □ 5

5. Zara complies with various legal provisions and rules □ 1; □ 2; □ 3; □ 4; □ 5

Part 6: consumers’ satisfaction with Zara

(1, totally disagree; 2, partially disagree; 3, not sure; 4, partially agree; 5, totally agree) 1. Zara is an environmentally conscious company

□ 1; □ 2; □ 3; □ 4; □ 5

2. I recognize Zara's efforts to protect the environment □ 1; □ 2; □ 3; □ 4; □ 5

3. Zara is a socially responsible company □ 1; □ 2; □ 3; □ 4; □ 5

4. Zara is a respectable company □ 1; □ 2; □ 3; □ 4; □ 5

5. Zara has a good brand image □ 1; □ 2; □ 3; □ 4; □ 5

6. I prefer Zara to other fashion brands □ 1; □ 2; □ 3; □ 4; □ 5

Part 7: behavioural intention

(1, totally disagree; 2, partially disagree; 3, not sure; 4, partially agree; 5, totally agree) 1. I would like to buy Zara products

□ 1; □ 2; □ 3; □ 4; □ 5

□ 1; □ 2; □ 3; □ 4; □ 5

3. When choosing similar products, I will first consider buying Zara products □ 1; □ 2; □ 3; □ 4; □ 5

4. I will recommend Zara products to my friends and relatives if they need them □ 1; □ 2; □ 3; □ 4; □ 5

5. I am willing to reprint forward CSR content of Zara on the Internet □ 1; □ 2; □ 3; □ 4; □ 5

6. I would like to share the link of CSR activities of Zara on the Internet □ 1; □ 2; □ 3; □ 4; □ 5

7. I would like to invite friends to participate in the CSR activities of Zara online □ 1; □ 2; □ 3; □ 4; □ 5

8. I would like to introduce CSR activities of Zara to my friends offline □ 1; □ 2; □ 3; □ 4; □ 5

9. I am willing to participate in the CSR activities of Zara □ 1; □ 2; □ 3; □ 4; □ 5

9.2 Appendix 2—tables and figures

Table 9.2.1 Descriptive and reliability test of gender

Table 9.2.2 Descriptive and reliability test of age

Table 9.2.3 Descriptive and reliability test of education

Table 9.2.4 Reliability Statistics

Frequency Percent Valid Percent Cumulative Percent

Valid Male 36 31.3 31.3 31.3

female 58 50.4 50.4 81.7

Not to disclose 21 18.3 18.3 100

Total 115 100 100

Frequency Percent Valid Percent Cumulative Percent

Valid Under 20 19 16.5 16.5 16.5

21-26 39 33.9 33.9 50.4

27-35 43 37.4 37.4 87.8

36-50 14 12.2 12.2 100

Total 115 100 100

Frequency Percent Valid Percent Cumulative Percent Valid High school

and below 21 18.3 18.3 18.3 B a c h e l o r degree 57 49.6 49.6 67.8 M a s t e r ’ s degree 25 21.7 21.7 89.6 PhD degree and above 12 10.4 10.4 100 Total 115 100 100

Table 9.2.5 ANOVA of Purchase intention and information sharing intention

Crobach’s Alpha N of Items

0.964 26 Model Sum of Squares df Mean Square F Sig. Purchase intention 1. regressi on 86.12 2 43.02 172.02 000 Residual 27.91 112 0.25 Total 114.0 113 2. regressi on 98.52 3 32.83 235.72 .000 Residual 15.42 111 0.13 Total 114 114 Information sharing intention 1. regressi on 81.32 2 40.71 139.81 Residual 32.61 112 0.29 Total 114 114 2. regressi on 88.45 3 29.55 127.58 .000 Residual 25.76 111 0.23 Total 114 114 3. regressi on 89.62 4 22.39 100.75 .000 Residual 24.43 110 0.22 Total 114 114

Table 9.2.6 Regression of Purchase intention and information sharing intention

Model Std.Error Beta t Sig.

Purchase intention 1.Trust 0.075 0.702 9.321 0.000 Satisfaction 0.075 0.202 2.655 0.009 2.Trust 0.075 0.231 3.055 0.003 Satisfaction 0.057 0.142 2.513 0.013 Altruistic motives 0.062 0.625 9.487 0.000 Information sharing intention 1.Trust 0.081 0.914 11.232 .000 Satisfaction 0.081 -0.090 -1.105 .270 2.Trust 0.089 0.631 7.105 .006 Satisfaction 0.076 -0.213 -2.811 .000 Understanding ZARA 0.084 0.459 5.496 .000 3.Trust 0.088 0.604 6.862 .000 Satisfaction 0.079 -0.278 -3.492 .001 Understanding ZARA 0.082 0.450 5.489 .000 Media use habit 0.060 0.139 2.309 .023