Building Consumer-Oriented CSR Differentiation Strategy

Jinhua Li, Fang Zhang and Shiwei Sun
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Jinhua Li: Scientific Laboratory of Economic Behaviors, School of Economics & Management, South China Normal University, Guangzhou 510006, China
Fang Zhang: Dept. of Business Administration, Guangzhou College of Technology and Business, Foshan 528000, China
Shiwei Sun: School of Management and Economics, Beijing Institute of Technology, Beijing 100081, China

Sustainability, 2019, vol. 11, issue 3, 1-14

Abstract: In a fierce competitive industry, firms conducting a corporate social responsibility (CSR) differentiation strategy can build a relative advantage. However, there is lack of literature to discuss the approach to identifying companies’ CSR differentiation conditions. Based on the theoretical foundations of consumers’ responses to CSR differentiation strategies, this paper proposes a consumer-oriented approach to identify CSR differentiation by using the best–worst scaling approach. In the context of the mobile phone industry, CSR activities were prioritized according to the extent to which they were valued by consumers. Consumers’ perceptions of the CSR activities of Huawei and Apple were also assessed in this study. Finally, the CSR differentiation conditions between the two companies was evaluated. The findings include the following: (1) the consumer priorities for different CSR activities vary greatly, and it is essential for firms to adopt a CSR differentiation strategy; (2) it is feasible to adopt a proper CSR premium in product pricing to build a socially responsible company; and (3) the lack of CSR communication between companies and consumers leads to consumers’ perceived distortion. The results provide implications for firms’ CSR practice.

Keywords: corporate social responsibility; best-worst scaling; differentiation strategy; identification (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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