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Relationship Between Corporate Social Responsibility and Sustainability with Customers’ Purchase Intention: Study on Indonesian Automotive Customers
Leo Andri Yulius Caesar

Last modified: 2021-06-09

Abstract


Automotive industry is significant for Indonesian economy with more than 1.5 million worker directly and indirectly involved in it. Covid-19 pandemic affected the industry and while government’s economic stimulation is a short term remedy, companies need longer term remedy. One of the way is by understanding their customers more. In recent years, customers’ awareness of  Corporate Social Responsibility (CSR) and Sustainability is increasing. Previous researches showed there is relationship between those variables with purchase intention. This research tested relationship between coporate social responsibility and sustainability with purchase intention. 561 samples from several provinces of Indonesia were gathered during January-February 2021. Analysis was performed using Partial Least Square technique. Result showed there is significant relationship between CSR with purchase intention, the important indicators are legal and morality. This research also found no significant relationship between sustainability and purchase intention. Future researches can take insights from this research and perform deeper analysis on these topics. Automotive companies must understand their customers preferences more and increase the impact of their CSR to society.


Keywords


Corporate Social Responsibility, Sustainability, Purchase Intention, Automotive, CSR