The Relationship between CSR and CBBE in Sub-Saharan Africa: The Moderating Role of Customer Perceived Value

The Relationship between CSR and CBBE in Sub-Saharan Africa: The Moderating Role of Customer Perceived Value
Jun 01, 2022

By: Prince Kodua, Charles Blankson, Swati Panda, Thuy Nguyen, Robert E. Hinson & Bedman Narteh

Dr. Prince Kodua, a Senior Lecturer in the department of Marketing and Entrepreneurship at the University of Ghana Business School and his collaborative team of researchers launched a study to test the relationship between  corporate social responsibility (CSR) and consumer-based brand equity (CBBE), as well as investigate the moderating effect of customer perceived value (CPV) in the CSR-CBBE relationship in a sub-Saharan African marketplace. This study was carried out in line with the faculty's goal of providing cutting edge and policy relevant research for development.
In recent times, firms have been finding it challenging to distinguish themselves from their competitors in an increasingly competitive business environment. However, according to research, investing in corporate social responsibility activities may help businesses position themselves strategically. Dr. Kodua and team therefore used the concepts of CSR and CBBE to better understand sub-Saharan African urban marketplaces. The aim of the research was to create and implement a framework for analysing the relationship between corporate social responsibility and consumer-based brand equity.
Dr. Kodua and his team gathered data from 501 Ghanaian customers from the telecommunications industry and used structural equation modelling to analyse the data. From their findings, CSR positively impacts all areas of brand equity, including brand awareness, brand image, brand quality, and brand loyalty. They also discovered that CPV moderates the relationship between CSR and CBBE in all CSR-CBBE correlations. In the Ghanaian market, these findings have significant implications for CSR, branding, international business, and marketing.
Besides theoretical contributions, the study discloses some particular implications for the management and other stakeholders of the telecommunications industry. The implications are specifically that managers need to re-evaluate the business models underpinning the expansion of their businesses in both urban and rural areas. Also, managers must seek community-based projects that are aligned with their core operations and provides social benefits while also generating profit. Further, telecommunications companies must foster a bottom-up approach to managerial policy in order to recognise the culture and eccentricities of urban and rural markets. This is to create favourable conditions for small company start-ups in the mobile telecommunications sector. Overall, a fundamental conclusion of the research is that spending resources in CSR initiatives pays off.
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