The Effect of Cultural Marketing on a Corporate Image and Purchase Intention in the Foodservice Industry

This study attempts to assess the role of the polarity of information or publicity about a company (whether positive, negative, or neutral) and two CSR activities (e.g., environmental preservation and supporting social welfare in developing countries) in the relationships between consumers and brands and also to investigate how a corporate image, as perceived by consumers, affects the formation of an image of a company or brand through the halo effect of Corporate Social Responsibility (CSR) activity. An experimental design was used to test the hypotheses. A group of subjects who were exposed to negative publicity about a company showed a change in average values in their attitudes toward the brand, purchase intention, corporate image, attitude to the CEO, and brand loyalty. The formation of attitudes or images changed more positively when the type of CSR activity involved was closely related to a company’s corporate image. The results of the analysis used to test the halo effect of a company’s CSR activity indicate that corporate CSR activity is closely related to consumer attitude formation or changes in perceptions of a company. The results of this study provide an opportunity to assess the importance of negative information about a company or product, as well as types of CSR activity that affect image formation. The study suggests that only CSR activities that are highly congruent with a company’s image or its products can produce positive and amicable reactions from consumers through the halo effect.

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Importance of corporate image for domestic brands moderated by consumer ethnocentrism

Journal of Product & Brand Management ◽

10.1108/jpbm-09-2018-2020 ◽

2019 ◽

Vol 29 (3) ◽

pp. 257-272 ◽

Cited By ~ 2

Author(s):

Weichen Teng

Keyword(s):

Product Quality ◽

Corporate Branding ◽

Purchase Intention ◽

Purchase Intentions ◽

Corporate Image ◽

Content Type ◽

Consumer Ethnocentrism ◽

Positive Effects ◽

Branding Strategies ◽

Corporate Ability

Purpose Although consumers’ tendency to support domestic companies by buying local products is growing, few studies discuss the corporate branding for domestic brands. This study aims to help domestic brands develop corporate branding strategies by examining the effects of corporate image of domestic brands on customers’ purchase intentions. Design/methodology/approach This study investigates various aspects of corporate image, including product quality, corporate ability, corporate social responsibility (CSR) and local-customer-first (a measure that is identified in this study). It conducts a survey (N = 283) and tests eight hypotheses with bivariate regression analyses with SPSS, Hayes’ PROCESS macro and structural equation modelling with AMOS to identify significant relationships. Findings The results show that all aspects of corporate image have significant positive effects on customers’ purchase intentions towards domestic brands. However, the effect of CSR image on purchase intention is fully mediated by the corporate ability and product quality images, whereas consumer ethnocentrism moderates the corporate ability and local-customer-first images. Originality/value This study contributes to the literature by examining the effect of corporate image on customers’ domestic brand purchase intentions in emerging economies when the product quality image in the country is low. This study also identifies a new factor, local-customer-first, and its positive effect on purchase intention. It is recommended that domestic brands strengthen their CSR, corporate ability and local-customer-first images to gain local customers’ support. Furthermore, it is found that corporate ability and local-customer-first are more highly valued by ethnocentric consumers. These findings can help domestic brands develop corporate branding strategies.

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