Does corporate social responsibility affect consumers’ purchase intention in retailing industry in Hong Kong?

Abstract

Hong Kong has been known as a shopping paradise that attracts tourists from all over the world. However, in recent years, the retailing industry in Hong Kong has fallen into dire straits and it will be facing more challenges in the future. Therefore this research aims to study the determinants affecting consumers’ purchase intention in the retailing industry in Hong Kong. There are five variables proposed. The independent variables include value-driven motive of CSR and perceived CSR. The dependent variable is purchase intentions. Corporate reputation and consumer trust are both independent and dependent variables. Quantitative research method was used. Data was collected in Hong Kong with convenience sampling method in collecting responses from all adults. Online questionnaires using a 5-point Likert scale are distributed through social media. The questionnaire encompassing 22 items in measuring the five constructs in this research model, eventually, there are 249 effective responses applied in this research. Partial least squares structural equation model (PLS-SEM) shows that five out of six hypotheses are found to be supported except the hypothesis concerning the relationship between value-driven motive and purchase intention. The research reveals that there is a positive relationship between perceived CSR, corporate reputation, consumer trust with purchase intention. At the same time, perceived CSR is positively related to corporate reputation, and corporate reputation is positively related to consumer trust. The research gives a good theoretical framework to further research especially in CSR. For managerial issues, retail managers are recommended to identify and promote CSR activities that best reflect their particular product or service. This will ultimately benefit Hong Kong's retailing industry as a whole.