Impact of CSR on brand loyalty in NCR with special reference to automobile sector

Abstract

The present-day markets are highly competitive. The degree of competitiveness is quite high in the automobile sector in India. In this direction, the companies are adopting the Corporate Social Responsibility route for building up their goodwill as well as creating Brand Loyalty. So, it becomes pertinent to study whether Automobile consumers are aware of the concept of CSR and the initiatives of CSR the automobile companies in this direction and does the CSR initiatives influence Brand Loyalty, Brand Image. The success of a firm depends largely on its capability to attract consumers to its brands. In particular, it is critical for the survival of a company to retain its current customers and to make them loyal to the brand. To a large extent, the success of most businesses depends on their ability to create and maintain customer loyalty. In the first place, selling to brand loyal customers is far less costly than converting new customers. In general, Brand Loyalty can be defined as the strength of preference for a brand compared to other similar product or service options. It is often measured in terms of repeat purchase behavior, whether price sensitivity is more. Brand Loyalty as a consumer decision, expressed through intention or behavior to repurchase a brand on a regular basis. Past studies paid less attention to empirically determine the relationship between the said variables (Corporate Social Responsibility) on Brand Loyalty. Therefore, this study aims to fill up this gap and contribute to the body of knowledge by examining the relationship between them. This study examines the impact of CSR on Brand Loyalty in Automobile industry in Delhi-NCR. The aim and purpose behind conducting this particular study is to design a scale on CSR and find out the relationship between CSR and Brand Loyalty. The hypotheses were formulated on the basis of literature review and data was collected through questionnaire from 399 personal vehicle users. Data was analyzed through EFA and CFA. It was concluded that CSR has a positive and significant impact on Brand Loyalty. i A self administered and structured survey was conducted targeting personal vehicle users of Delhi-NCR. A sample of 700 questionnaires was distributed to the research population, and 400 filled responses were received. Confirmatory factor analysis was employed to evaluate the research constructs, validity, and composite reliability. Structural Equation Modeling was also used to examine the hypothesized relations of the research model. Mediation Analysis was done to further examine hypothesis testing. The present research reveals that CSR has positive impact on Brand Loyalty in Automobile sector in Delhi-NCR. The study also elaborates the factors affecting CSR in Automobile Industry. newline