Do CSR actions in retailing really matter for young consumers? A study in France and Norway

https://doi.org/10.1016/j.jretconser.2013.09.005Get rights and content

Highlights

  • French and Norwegian young consumers have problems linking CSR with food retailing

  • French and Norwegian young consumers question retailers' true commitment to CSR

  • Retailers' CSR commitment positively affects their brand image in France and Norway

  • CSR related products can be associated with higher prices in France and Norway

Abstract

This research explores how young consumers perceive Corporate Social Responsibility (CSR) actions of French and Norwegian food retailers, and how these actions affect brand image, brand associations (adjectives, verbs, and names) and consumer–retailer relationships. It uses a qualitative methodology with in-depth interviews. This exploratory study shows that French and Norwegian young consumers have problems linking CSR with food retailing, and they question retailers' true commitment to CSR. Young French consumers had stronger brand associations than young Norwegians. Therefore, we argue that, CSR commitment among retailers in both countries is likely to positively affect retailer brand image. Nevertheless, CSR related products could also be associated with higher prices and may exclude low-income consumers.

Introduction

Corporate Social Responsibility (CSR) has become an important research topic and the number of specialized journals dedicated to this topic is increasing. At the same time, CSR is becoming a more important strategic issue for businesses (Ramasamy and Yeung, 2009). Unfortunately, many companies only start to feel concerned about CSR when their reputations suffer. Firms such as Coca Cola, Wal-Mart and Gap have been criticized for their lack of commitment to CSR (www.marketingweek.co.uk, 2007). This disregard of corporate behavior could irreversibly damage or change their brand image (Louppe, 2006). Neglecting CSR is a strategic mistake because consumers seem to respond positively when a certain brand exhibits good social behavior (Gupta and Pirsch, 2008, Castaldo et al., 2009). Increasing consumer interest in corporate social responsibility could lead them to reward or punish corporate brands accordingly, and thereby affect brand images. It is, therefore, critical to assess the effect CSR has on consumers. However, most research in this field tends to take a corporate perspective (Konrad et al., 2006) while less research adopts the consumer perspective (Gupta and Pirsch, 2008, Swaen and Chumpitaz, 2008, Ramasamy and Yeung, 2009). In this exploratory study, we integrate research reflecting both corporate and consumer perspectives, with an emphasis on consumer perceptions.

Our research is focused on young adult consumers in two countries: Norway and France. It is interesting and relevant to gain insights into the behavior of young adult consumers, as this consumer group has increasing commercial worth and their behavioral traits and attitudes are barometers of social and cultural changes (Grant, 2004, Kruger and Mostert, 2012). Young adult consumers are also seen as educated, critical, and demanding consumers (Grant, 2004, Sheriff and Nagesh, 2007). Furthermore, they exhibit high social consciousness as they have a concern for social causes and activism (Sheriff and Nagesh, 2007, Hyllegard et al., 2011). Young adults are also increasingly brand conscious and exhibit strong brand relationships (Grant, 2004, Sahay and Sharma, 2010). Yet, in societies where young adults move out on their own, they are under economic pressure to purchase all products for the household. Consequently, they balance between being brand conscious and price-sensitive (Chandon et al., 2009, Sahay and Sharma, 2010). As consumer behaviors are presumed to vary across nations (Podoshen et al., 2011) and communication about responsibility is considered difficult to articulate across cultures (Usunier and Prime, 2012), we compare young adult consumers because they tend to be more alike than other groups in an international context. Comparing this group in France and Norway will allow us to analyze the differences and similarities between them.

We selected food retailing as the business context, and found this sector appropriate for several reasons. First, the food sectors – encompassing the supply chain from producers, agri-business, and food industry to retailers – have suffered a number of recent food scandals: the dioxin crisis, the bovine spongiform encephalopathy (BSE), and E. coli and Salmonella (Chen, 2008). It is, therefore, crucial for actors such as retailers to build and enhance consumers' trust in food safety. Second, food products are seen as high-involvement products as they are closely associated with individual health (Montoro-Rios et al., 2008). Simultaneously, consumers have difficulties evaluating food attributes through search and experience, and have to rely on credence properties (Chen, 2008). Consumers, therefore, would seek to diminish risk perceptions through trusted brands, including retailing brands. Third, retailers are starting to see the positive relationship between social corporate responsibility and the building of consumer trust and loyalty (Swaen and Chumpitaz, 2008, Xie and Peng, 2011). Further research exploring the effects of CSR in the retailing sector could clarify these relationships (Oppewal et al., 2006).

The focal research analyzes how young adult consumers perceive retailers' CSR actions. More specifically, we explore whether and if so how CSR actions affect brand image, brand associations, and the consumer–retailer relationship in France and Norway.

First, we explore young adult consumers' awareness and perceptions of CSR actions in food retailing. Consumer awareness of CSR actions is essential because it preconditions a consumer's ability to reward or punish firms (Kline and Dai, 2005). CSR awareness among consumers also depends on retailers' efforts and strategies to communicate their CSR actions (Pomering and Dolnicar, 2009). Second, we explore whether and if so how retailers' CSR actions affect brand image, brand associations, and the consumer–retailer relationship. Few retailing studies on brand image have incorporated the effects of CSR actions (Gupta and Pirsch, 2008). Hence, we have limited knowledge of CSR effects brand image, brand associations, and the consumer–retailer relationship. Our research, therefore, aims to add new insights into these issues.

The paper is structured as follows. First, we present the theoretical and conceptual framework and the research context. Second, we describe the methodology. Third, we analyze and present the main findings. Finally, in the last section, we present the discussion and conclusions as well as some ideas for future research.

Section snippets

Theoretical framework

Our theoretical framework is based on two main areas. The first covers research on CSR, with both a consumer perspective and a corporate perspective. The second area incorporates theories on brand image, brand associations, and consumer–brand relationships, with a focus on how CSR actions impact these conceptual constructs.

Comparing French and Norwegian retail sectors

In the following section, we describe and compare the retailing sectors of France and Norway.

France, with 65 million inhabitants as of 2012, has been a retail pioneer in terms of launching different types of formats: supermarkets, hypermarkets, convenience stores, and discount stores (Bénoun and Héliès-Hassid, 1995, Sternquist, 2007). Nowadays, the French retailing sector has a considerable market size and is Europe's second largest retail market after Germany. One of the top French retailers,

Consumers perceptions of CSR actions in retailing

Both French and Norwegian consumers had problems coming up with examples of CSR actions in food retailing. In fact, the respondents had real problems even empirically linking CSR and retailing in general. Our young consumers across both countries thought the relation between CSR and retailing was doubtful, and they questioned retailers' engagement in CSR. French and Norwegian consumers were not convinced that retailers had a true commitment in spite of their CSR actions, as the following quotes

Challenges to communicate CSR through retailer branding

As outlined above, both Norwegian and French consumers in our sample had difficulties linking CSR to retailing and questioned whether retailers had a true engagement in CSR. Our young consumers also lacked information about CSR actions in food retailing, and potential positive consequences of such actions. We argue, therefore, that retailers are generally failing to communicate their CSR efforts, and are thereby responsible for low awareness of CSR (Pomering and Dolnicar, 2009). Several factors

Limitations and future research

This research has the natural limitations inherent in a qualitative and explorative approach. However, the article builds on previous research of the authors (one on the CSR concept and the other on consumer brand relationship). The main objective was to assess if CSR really matters to a small sample of young adult consumers in two different European countries. As the sample concentrates on business students, we recommend further studies that include other groups of students and also

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