The effect of CSR on brand assets and loyalty: focusing on the moderating effect of product quality and service quality

Abstract

Existing studies that understand the relationship between CSR and brand assets, CSR and loyalty mainly understand the effect of CSR on marketing performance at the corporate level, and the explanation of the relationship between CSR and other marketing variables is relatively insufficient. The purpose of this study is to compare CSR activities at the product level with product and service quality to understand the effect on marketing performance, specifically to confirm the controlling role of product and service quality in the relationship between CSR and brand assets, CSR and customer loyalty. To this end, in this study, data were collected through a survey of 850 married women in their 20s and 50s and empirical analysis was conducted to verify hypotheses. As all the hypotheses presented in the study were supported, CSR had a positive effect on brand assets and customer loyalty, and it was confirmed that product and service quality played a controlling role in the relationship between CSR and brand assets, CSR and customer loyalty. The specific research results are as follows. First, CSR was found to have a positive effect on brand assets. In other words, CSR was confirmed to increase the value of brand assets by positively affecting brand awareness, perceived quality, and brand association suggested by Aaker (1991) as a component of brand assets. This can be said to be the result of a study that suggests that CSR activities need to be considered as a factor influencing brand asset formation. Second, CSR was found to have a positive effect on loyalty. This means that the brand's competitive advantage can be secured through CSR activities from a social marketing perspective. Third, it was found that product and service quality evaluation plays a controlling role in the relationship between CSR and brand assets, CSR and customer loyalty. In other words, CSR is not only a management activity that directly affects brand asset construction and customer loyalty, but also shows that it can ultimately have a greater impact on brand asset and customer loyalty through improved evaluation of product and service quality. These results suggest that it is more effective for companies to strategically carry out CSR activities through in-depth reflection on their product and service quality levels.