Influence of CSR on Brand Equity and Consumer Satisfaction: Role of Customer Satisfaction and Moderating Role of Skepticism

Abstract

This study examines the impact of corporate social responsibility (CSR) on customer satisfaction and customer-based brand equity (CBBE) within a collectivist cultural context, specifically in Pakistan. It explores how CSR initiatives shape customer perceptions, foster satisfaction, and ultimately enhance brand value, with customer satisfaction acting as a bridge between CSR and brand equity. A quantitative research approach was adopted, collecting data from 200 respondents in Karachi using a five-point Likert scale questionnaire administered both in person and online. Smart-PLS was utilized for hypothesis testing. The findings reveal that CSR positively influences both customer satisfaction and brand equity, with customer satisfaction playing a crucial mediating role. Additionally, skepticism was found to impact the relationship between customer satisfaction and brand equity, highlighting the significance of consumer trust in brand perception. However, the study faced limitations such as a short data collection period, a lower response rate of 168 out of 200, and the use of a structured questionnaire with close-ended questions. Given these constraints, future research should explore this relationship from other stakeholders’ perspectives and employ longitudinal data to enhance generalizability and reliability.