Metamorphosis
18(1) 57–67, 2019
© 2019 Indian Institute of
Management, Lucknow
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DOI: 10.1177/0972622519853158
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CSR, Trust, Brand Loyalty and
Brand Equity: Empirical Evidences
from Sportswear Industry in the
NCR Region of India
Rajesh Sharma
1
Vranda Jain
1
Abstract
This study is aimed towards understanding the effect of perceived CSR initiatives (PCSRI) on brand loyalty, and consumer based brand
equity (CBBE) in Indian sportswear market. This study was conducted on a group of respondents in Delhi NCR region. Different
categories of sportswear brands were chosen for an adequate representation of market share, price and country of origin. The findings
indicate that positive and direct relationships exist between PCSRI and consumer trust, PCSRI and brand loyalty; PCSRI and CBBE;
consumer trust and brand loyalty; consumer trust and CBBE; brand loyalty and CBBE. The study contributes to the existing literature
in understanding the role of PCSRI in building brand loyalty, consumer trust and CBBE. The study will help managers in implementing
action plans for enhancing brand loyalty and CBBE in Indian sportswear industry.
Keywords
Trust, corporate social responsibility, brand loyalty, consumer based brand equity
Article
Introduction
Due to increasing globalization, the balance of power has
shifted from developed economies to emerging economies
1
as businesses from emerging economies are aggressively
challenging the authority of global companies
2
. Businesses
in the emerging markets have witnessed dramatic changes,
such as integrating corporate social responsibility (CSR)
initiatives in their existing practices
3,4
. Therefore, CSR has
become an integral part of not only vision and mission but
is also the basic tenet of firm’s organizational principles
5,6
.
Research scholars
7–11
have shown that brands have been
frequently aligned with social causes for supporting the
overall business strategy of firms.
In the recent past, CSR has gradually evolved as a
strategic tool for marketing
12
primarily because consumers
are expecting good quality brands which are socially
acclaimed. Moreover, CSR is a non-economic factor
through which a firm can derive competitive advantage
13
through a superior brand image and positive attitude
of consumers. The extant literature has been gradually
focusing on why and how consumer behaviour is influ-
enced by specific CSR initiatives
14
. In reality, the inter-
relationship of consumer behaviour and CSR is complex,
therefore there is an uncertainty regarding the role of CSR
initiatives in consumer behaviour in general and brand
loyalty and customer-based brand equity (CBBE) in
particular. Therefore, there is an urgent need to examine
this uncertainty.
In such scenario, scholars have been consistently empha-
sizing the need for intensive research in CSR domain
15,16
especially in emerging markets
17,18
. Despite the fact that there
is adequate research on CSR in Western countries
19
, there are
very few empirical studies which have explored CSR con-
cept in Indian context
20,21
. Researchers have emphasized the
importance of empirical studies in CSR domain in Indian
society which is different from Western and US societies
22
.
Moreover, Indian firms are now bound to legally spend a
minimum (2%) of net profit towards CSR initiatives
23
.
Even though CSR is of strategic importance to firms,
there are certain interesting yet unanswered questions in the
literature. For example, research is inadequate in explaining
1
Jaipuria Institute of Management, Noida, Uttar Pradesh, India.
Corresponding author:
Rajesh Sharma, Jaipuria Institute of Management, A-32A, Sector 62, Noida 201309, Uttar Pradesh, India.
E-mail: profrajeshsharma@gmail.com