Consumer Responses to Corporate Social

Responsibility Campaigns of Automobile

Manufacturers in Thailand
Wut Sookcharoen Metta Ongkasuwan
Pinrada Kaewkhiew
Faculty of Business Administration Faculty of Business Administration
Faculty of Business Administration
Thai-Nichi Institute of Technology Thai-Nichi Institute of Technology
Thai-Nichi Institute of Technology
Bangkok, Thailand Bangkok, Thailand
Bangkok, Thailand
Wut@tni.ac.th Metta@tni.ac.th
Pinrada@tni.ac.th
 Abstract—Nowadays Corporate Social Responsibility (CSR)
has become an important standard practice among large
companies and trend of corporate social responsibility spending
was continued to increase. The purpose of this research is to
examine how consumers responses to CSR campaigns of
Automobile Manufacturers in Thailand. Researchers conducted a
survey research of 406 samples through valid and reliable
questionnaires. Data were analyzed by using multiple regression
analysis technique. Finding indicated that consumer respond to
CSR campaigns vary across CSR campaigns. Implications and
recommendations are discussed.
Keywords—Corporate Social Responsibility, Consumer
Response, Automobile Manufacturer
I. INTRODUCTION
To succeed in business today, the businesses not only
achieve in a high level of shareholder, customer, and employee
satisfaction but also meet the social expectations.
Corporate Social Responsibility (CSR) is a concept
whereby companies integrate social and environmental
concerns in their business operations and in their interaction
with their stakeholders on a voluntary basis [1].
Thus, CSR has become a growing business strategy around
the world because social responsibility activities are very
important contributions for long-term success of business and
raising the corporate image.
In Thailand, government expects all manufacturers to
exercise CSR activities. Therefore, Thai government foster and
promote CSR by providing various types of CSR recognition
awards to companies. For example, The Stock Exchange of
Thailand (SET) facilitates CSR by providing SET
Sustainability Awards, and CSR-DIW (Corporate Social
Responsibility, Department of Industrial works) award by
Department of industrial works.
Thailand, known as the "Detroit of Asia," is a production
base for some of the world's top carmakers. As of 2016,
Thailand automotive industry was the largest in Southeast Asia
and the 12th largest automotive manufacturer in the world [2].
In 2017, new vehicle production in Thailand was 1,988,823
units, domestic vehicle sales was 871,644 units and vehicle
exports was 1,139,696 units [3].
The automotive industry has a significant contribution to
the Thailand economy, on the other hand, the automotive
industry has associated with high rates of raw material
consumption and pollution during the production process [4].
Automobile Manufacturers has taken responsibility for the
company's effects on environmental and social wellbeing by
developing CSR campaigns. This study explored how
consumer responds to different CSR campaigns of automobile
manufacturers in Thailand.
II. RESEARCH OBJECTIVES
This study has two objectives:
1) To determine types of CSR campaigns that affect
consumer responses.
2) To compare effects of CSR campaigns on a consumer
response.
III. LITERATURE REVIEW
A. The Concept of Corporate Social Responsibility
Over the past 50 years, the concept of CSR has changed its
focus many times.
In the 1950s, the first concept of CSR was introduced by
Howard R. Bowen. He defined CSR as the obligations of
businessmen to pursue their policies, to make their decisions or
to follow their lines of action which are desirable in terms of
the objectives and values of society [5].
Patrick Murphy divided CSR into four eras [6].
1) Philanthropic era (the period before 1953), the
companies focused on donation to charities.
2) Awareness era (the period 1953 – 1967), the companies
were aware of impact of business operation on communities.
3) Issue era (the period 1968 – 1973), the companies began
focusing on specific issues such as pollution problems.
4) Responsiveness era (1974 – 1978), the companies began
taking serious management and organizational actions to
address CSR issues.
Archie B. Carroll [7] introduced four components of CSR
might be depicted as a pyramid as shown in Fig. 1.
1) Economic Responsibilities. Fundamentally, company
must produce a fare return for its investors.
2) Legal Responsibilities. Company is expected to conduct
its business in compliance with the laws and regulations.
3) Ethical Responsibilities. Company should do the right
thing beyond legal responsibilities.
4) Philanthropic Responsibilities. Company respond to
society's expectation the business be good corporate citizens
such as contribute resources to the community and improve the
quality of life.
Philanthropic
Responsibilities
Ethical Responsibilities
Legal Responsibilities
Economic Responsibilities
Fig. 1. Carroll's Pyramid of Corporate Social Responsibility
B. Corporate Social Responsibility Campaigns of
Automobile Manufacturers in Thailand
According to Thailand’s Automotive Industry, top five
automobile manufacturers’ websites and sustainability reports
were reviewed to obtain CSR activities [2]. Honda Thailand
website classified CSR activities into four groups
(environmental conservation, road safety, education, and
philanthropy) as well as Toyota divided CSR activities into
four dimensions (Environment performance, social
performance, employee, social contribution). However, this
study, CSR activities were categorized into four campaigns
(environment, road safety, social, philanthropy) shown in
Table I.
D. Previous Research
TABLE I. CSR CAMPAIGNS OF AUTOMOBILE MANUFACTURER IN THAILAND Today, consumers care about issues of corporate
Automobile CSR Campaign
responsibility. Many studies found that CSR could generate
manufacture Environmen Road Social Philanthrop positive consumer attitudes and affects consumer's behavior.
r t Safety Welfare y Rahim et al. [10] studied Carroll's pyramid of CSR affect
Conservatio
n
consumer buying behavior in Malaysian consumers. The study
Honda reforestatio Honda Honda  Honda fund showed that all four CSR dimensions (economic, legal, ethical,
Thailand n, water dream super idea Thailand philanthropic) had a significant direct effect on consumer
resources road contest buying behavior. The economic responsibility attribute had the
conservatio
n
most significant impact on consumers’ buying behavior,
Toyota stop global white road Community scholarship, followed by philanthropic responsibility, ethical responsibility
Motors warming project developmen donation and, finally, legal responsibility, this study differs from Eshra
CSR project, t project and Beshir [11], who indicated that there was no an
activities town
campaign
insignificant relation between consumer buying behavior and
Isuzu reforestatio safety new Isuzu gives donation, CSR elements.
n year water…for scholarship
driving life
Nissan reforestatio get home building drinking E. Research Framework
Thailand n safely home water Research framework was developed from AIDA model as
with building donation
Nissan life in Figure 3. Thus, three hypotheses were developed from
Mitsubishi water safety bicycle donation research framework.
Motors resources drive donation
conservatio safety day
n

C. Consumer Response
When marketing communication deliver messages to
consumers, consumers would process and respond in different CSR Campaigns of
ways. Automobile Manufacturers Consumer Responses
According to AIDA model [8], marketing communication in Thailand
Brand Awareness
messages can create consumer attention, interest, desire, and Environment Conservation Purchase Intention
action. Lavidge and Steiner [9] suggested that marketing Road Safety Company Image
communication messages could move consumers through the Social Welfare
hierarchy, starting with awareness, knowledge, preference, and Philanthropy
ending in conviction as shown in Fig. 2.

Fig. 3. Research framework

Purchase Behavior
H1: CSR campaigns (Environment Conservation, Road
safety, Social welfare, Philanthropy) have a significant effect
Conviction on brand awareness
H2: CSR campaigns (Environment Conservation, Road
Preference safety, Social welfare, Philanthropy) have a significant effect
on purchase intention Purchase Behavior
Knowledge Consumer H3: CSR campaigns (Environment Conservation, Road
Response Conviction
safety, Social welfare, Philanthropy) have a significant effect
Awareness on company image
Preference

Knowledge Consumer
IV. METHODOLOGY Response
Media This study was applied with quantitative analysis using by
Awareness
using 5-point Likert scale questionnaire
Conviction
to collect data. The
measurement items were tested for content validity by using
Fig. 2. Hierarchy of Effects Model Index of Item-Objective Congruence (IOC) and reliability by
using Cronbach's alpha coefficient. The result of the IOC was
Media
0.9 and Cronbach’s Alpha was 0.981, which are considered
sufficiently high for using this questionnaire to collect data. Model R R Square Adjusted R Square
According to Hair, Anderson, Tatham, and Black, the
1 0.795a 0.632 0.632
sample size for multivariate data analysis should not less than 2 0.841b 0.707 0.705
200 samples [12]. A total of 406 usable samples were collected 3 0.853c 0.728 0.726
from car users in Bangkok by using simple random sample a.
Predictors: (Constant), Environment
b.
Predictors: (Constant), Environment, Philanthropy
technique. The stepwise linear multiple regression analysis was c.
Predictors: (Constant), Environment, Philanthropy, RoadSafety
used to examine the relationship between independent variables Dependent Variable: Awareness
(Environment Conservation, Road safety, Social welfare,
Philanthropy) and dependent variables (brand awareness,
purchase intention, company image). The assumptions of TABLE III. COEFFICIENTS OF HYPOTHESIS 1 MODEL
multiple regression analysis were tested as follows;
Unstandardized Standardized
1) The values of the residuals are independent. (Normal P-P Coefficients Coefficients
Model Sig.
Plot was close to the reference line) B
Std.
Beta
Error
2) There is no autocorrelation in residuals. (Durbin- 1 (Constant) -0.777 0.147  
Watson's statistic falls within value of 1.5-2.5) Environment 1.073 0.041 0.795 0.000
2 (Constant) -0.908 0.132
3) There is no evident of multicollinearity. (Variance Environment 0.687 0.053 0.510  0.000
inflation factor: VIF is less than 10) Philanthropy 0.455 0.045 0.395 0.000
3 (Constant) -0.624 0.137  
Environment 0.533 0.058 0.395 0.000
Philanthropy 0.293 0.052 0.254 0.000
V. RESULTS RoadSafety 0.242 0.043 0.278 0.000
Dependent Variable: Awareness
A total of 406 samples, 53.7% were men and 46.3% were
women. The respondents age between 25-30 years old were
29.6%, 31-40 years old were 39.4%, 41-50 years old were
22.2%, and over 50 years old were 8.9%
A. Hypothesis 1: CSR campaigns have a significant effect B. Hypothesis 2: CSR campaigns have a significant effect on
on brand awareness purchase intention
Three assumptions of multiple regression analysis were Three assumptions of multiple regression analysis were
tested, the results shown that the values of the residuals was tested, the results indicated that the values of the residuals
independent (the expected the values close to the reference were independent, there was very little autocorrelation in
line), there was no autocorrelation in residuals (Durbin- residuals (Durbin-Watson's =1.349), and not found evident of
Watson's =1.649), and there was no evident of multicollinearity multicollinearity (VIF<10).
(VIF<10). The results of multiple regression analysis shown that CSR
Stepwise multiple linear regression analysis was conducted campaigns including environment conservation, road safety,
to examine the influence of CSR campaigns on brand and philanthropy campaigns had significant impact on
awareness, the results showed that CSR campaigns including purchase intention (adjusted R square is 0.618). However,
environment conservation, road safety, and philanthropy had there was no relationship between social welfare campaign
significant impact on brand awareness (adjusted R square is
and purchase intention. (Table IV)
0.726), but there was no relationship between social welfare
campaign and brand awareness. (Table II)
The table III shown the coefficient of hypothesis 1 model TABLE IV. MODEL SUMMARY OF HYPOTHESIS 2
that could be used explain the degree of influence of CSR
campaigns on brand awareness. According to unstandardized
coefficients, the multiple regression equation of hypothesis 1 Model R R Square Adjusted R Square
was
1 0.737a 0.544 0.543
2 0.782b 0.611 0.609
3 0.788c 0.620 0.618
Brand Awareness = -0.624 + 0.533(Environment) + a.
Predictors: (Constant), Environment
0.293(Philanthropy) + 0.242(RoadSafety) c.
b.
Predictors: (Constant), Environment, RoadSafety
Predictors: (Constant), Environment, RoadSafety, Philanthropy
Dependent Variable: PurchaseIntention
This equation indicated that environment conservation
campaign was the most effect on brand awareness followed by
The coefficient values in table V were used to develop the
philanthropy campaign, and road safety campaign.
multiple regression equation of hypothesis 2. Therefore, the
multiple regressions equation of hypothesis 2 was

TABLE II. MODEL SUMMARY OF HYPOTHESIS 1

 Purchase Intention = -0.057 + 0.466(Environment) + Company Image = 0.108 + 0.424(Environment) +
0.246(RoadSafety) + 0.188(Philanthropy) 0.380(RoadSafety) + 0.166(Philanthropy)

According to multiple regressions equation of hypothesis

According to multiple regressions equation of hypothesis
3, the environment campaign had the most impact on company
2, the environment campaign had the most impact on purchase
image followed by road safety campaign, and philanthropy
intention followed by road safety campaign, and philanthropy
campaign.
campaign.

TABLE V : COEFFICIENTS OF HYPOTHESIS 2 MODEL

TABLE VII : COEFFICIENTS OF HYPOTHESIS 3 MODEL
Unstandardized Standardized
Coefficients Coefficients Unstandardized Standardized
Model Sig. Coefficients Coefficients
Std. Model Sig.
B Beta Std.
Error B Beta
Error
1 (Constant) -0.244 0.151  
Environment 0.921 0.042 0.737 0.000 1 (Constant) 1.116 0.096
RoadSafety 0.694 0.028 0.782 0.000
2 (Constant) 0.082 0.145
Environment 0.521 0.062 0.417  0.000 2 (Constant) 0.231 0.150
RoadSafety 0.333 0.040 0.412 0.000 RoadSafety 0.456 0.041 0.514 0.000
Environment 0.473 0.064 0.344 0.000
3 (Constant) -0.057 0.150  
Environment 0.466 0.063 0.372 0.000 3 (Constant) 0.108 0.155
RoadSafety 0.246 0.047 0.305 0.000 RoadSafety 0.380 0.049 0.428 0.000
Philanthropy 0.188 0.057 0.175 0.001 Environment 0.424 0.065 0.309 0.000
Dependent Variable: PurchaseIntention Philanthropy 0.166 0.059 0.142 0.001
Dependent Variable: CompanyImage

VI. DISCUSSION AND IMPLICATIONS

Nowadays, CSR is important to a business because it
C. Hypothesis 3: CSR campaigns have a significant effect on demonstrates to publics that company aware and try to
company image improve society. Automobile manufacturers in Thailand
has initiated various CSR activities which categorized into
Likewise hypothesis 2, three assumptions of multiple four campaigns including environment conservation
regression analysis were tested, the results showed that the campaign, road safety campaign, social welfare campaign,
values of the residuals were independent (the expected the and philanthropy campaign. Lavidge and Steiner [8]
values close to the reference line), there was no suggested that consumer could response to marketing
autocorrelation in residuals (Durbin-Watson's = 1.934), and communication in some way. Therefore, this study
there was no evident of multicollinearity (VIF<10). explored how a consumer response to different CSR
Based on the results obtained in table VI, CSR campaigns campaigns.
including road safety, environment conservation, and Stepwise linear multiple regression analysis was used
philanthropy had significant impact on company image to examine the influence of four CSR campaigns
(adjusted R square is 0.662), On the other hand, there was no (environment conservation campaign, road safety
relationship between social welfare campaign and company campaign, social welfare campaign, and philanthropy
image. campaign) on consumer responses (brand awareness,
purchase intention, and company image).
TABLE VI. MODEL SUMMARY OF HYPOTHESIS 3 Main finding of this study indicated that consumer
respond to CSR campaigns vary across CSR campaigns.
This result was consistent with Rahim [10], who indicated
Model R R Square Adjusted R Square
that CSR activities directly affect consumer attitude and
1 0.728a 0.612 0.611 behavior.
2 0.811b 0.658 0.657 In additional, three equations were developed from
3 0.815c 0.665 0.662 stepwise linear multiple regression analysis to test three
a.
Predictors: (Constant), RoadSafety
b.
Predictors: (Constant), RoadSafety, Environment, hypotheses [8] [9] [10], those equations indicated that CSR
campaigns including environment conservation campaign,
c.
Predictors: (Constant), RoadSafety, Environment, Philanthropy
Dependent Variable: CompanyImage
road safety campaign, and philanthropy campaign had
impact on brand awareness, purchase intention, and
The multiple regression equation was developed using company image. However, this study suggested that there
coefficient values in table VII. The multiple regressions was no relationship between social welfare campaign and
equation of hypothesis 3 was consumer responses including brand awareness, purchase
intention, and company image.
 CSR campaign regarding environment conservation had
the most impact on brand awareness, purchase intention,
and company image. CSR campaign regarding Road safety
had medium impact on brand awareness, purchase [1]
intention, and company image. CSR campaign regarding
philanthropy had less impact on brand awareness, purchase [2]
intention, and company image. And CSR campaign
regarding social welfare had no impact on any consumer
responses.
Findings of this study point out some important [3]
implications as follows;
[4]
1) Automobile manufacturers in Thailand should focus
on CSR campaign which relate to environment [5]
conservation, road safety, and philanthropy such as
donation to generate brand awareness, intention to [6]
purchase, and company image.
[7]
2) Each CSR campaign including environment
conservation, road safety, and philanthropy has impact on
consumer responses. Thus, automobile manufacturers [8]
should initiate various type of CSR campaigns instead of
only one type. [9]
3) Marketers should set objectives of CSR campaign
and choose appropriated CSR activities to serve those [10]
objectives
This study has some limitations because it was [11]
conducted only in automobile industry and only in
Thailand in a specific time period. So the researchers
suggest that applying this study in other industries or other [12]
countries should be considered.
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