CHAPTER FIVE

CONCLUSION AND RECOMMENDATION

5.1 Chapter Introduction

This chapter focuses to conclude the research findings by reviewing the statistical output
which was obtained by analyzing the data. Chapter contains four parts which are
summary of findings, conclusion, recommendations and directions for further study. As
well as under this chapter, it is expected to identify the impact of CSR practices on
customers’ purchasing intentions.

5.2 Summary of findings

The basic purpose of this study was to identify the impact of CSR practices on the
customer purchase intentions with referent to the North-Western province, Sri Lanka. In
this study, CSR practices are identified under four categories as economic
responsibilities, legal responsibilities, ethical responsibilities and philanthropic
responsibilities. Customer purchase intention is also identified under three variables such
as customer satisfaction, customer loyalty and customer trust.

The argument of this study was that there is a positive relationship between CSR
practices and customer purchase intentions. This argument gave rise to a model based on
the thirteen hypotheses. Then base on the analysis done by previous chapter, the overall
conclusion of the study can be identified as follows.

Among the respondents in the sample, 63% of respondents are paid employees while
12%, 9.9%, 8.1% and 7% of respondents are house wives, students, self-employees, and
retired persons respectively. In the sample more than half of respondents (53.1%) are
males and only 46.9% respondents are females. And also most of respondents are in their
middle age (36-45). Only 6.5% of respondents are more than 56 years of age. It is
possible as most of respondents are paid employees, their age distribution also lies in
between 36-45 and 26-35 ranges. Majority of respondents (73.4%) are married. As well
as, most of respondents’ monthly income lies in between 25000-45000 income range.
There is only 0.8% respondents earn more than Rs. 75000 per month while 20.1% of
respondents are unemployed or students.

In data collected questionnaire, there is having few questions which can use to measure
the awareness level of customers regarding CSR practices. Out of these questions first
one is asked for know how far CSR practices can influence customers when they are
making purchasing decisions. Results are presented based on each demographic factor.
Most of respondents have lied in moderate or agree level. There is no significant effect of
occupation, age, gender and marital status according to the results. But when researcher
compared results with income level, it shows significant difference with each income
level’s responses to the questions. The all the customers whose income level is over
Rs.75000 agree with the CSR practices as an influencing factor for shopping while the
50% of customers whose income level range is 65000-75000 in moderate level of opinion
and rest 50% of customers are agree with the CSR practices. Second question for the
customer awareness is check whether customers have ever read a CSR report. For this
question, 87.24% of respondents have not read and only 12.76% have read. Final
question has asked for revisits the shops when they stop doing CSR. For that also
majority of respondents have not either agree or disagree. All these results explain that
the awareness level of customers regarding CSR practices undertaken by companies are
very low level.

According to the results, customers are agreeing with the necessity of CSR practices
which are undertaken by companies. Because mean value of CSR practices is 4.0186.
Customers’ perception towards ethical responsibilities (mean= 4.1952) is higher than
economic responsibilities (mean= 3.9280), legal responsibilities (mean= 3.9819) and
philanthropic responsibilities (mean= 3.9694). As well as it takes mean value of 3.9782
for customer purchase intention which is influenced by organizations’ CSR practices.
Customers are agreeing with that they become they become satisfied when an
organization is engaging in CSR practices is described by the mean value of 4.0786. As
well as customers’ loyalty and their trust towards the organizations which practice the
CSR activities are also described by the mean value of 3.7352 and 4.1227 which are also
lie around the level of agree. However these mean values prove that CSR practices not
only affect to the customers’ satisfaction, but also it is affected to the customers’ loyalty
as well as customer trust towards the organization.

The Pearson’s correlation values prove that there is a moderately positive relationship
between CSR practices customer purchase intentions. The correlation values for the
correlation between independent variables and dependent variables have summarized in
following table.

Table 5.1: Summary of findings

Independent Dependent Variable Correlation Relationship

Variable Value
Economic Customer Satisfaction 0.192 Weak positive
Responsibilities relationship
Legal Responsibilities Customer Satisfaction 0.209 Weak positive
relationship
Ethical Customer Satisfaction 0.339 Moderate positive
Responsibilities relationship
Philanthropic Customer Satisfaction 0.439 Moderate positive
Responsibilities relationship
Economic Customer Loyalty 0.172 Weak positive
Responsibilities relationship
Legal Responsibilities Customer Loyalty 0.177 Weak positive
relationship
Ethical Customer Loyalty 0.204 Weak positive
Responsibilities relationship
Philanthropic Customer Loyalty 0.411 Moderate positive
Responsibilities relationship
Economic Customer Trust 0.060 Weak positive
Responsibilities relationship
Legal Responsibilities Customer Trust 0.372 Moderate positive
relationship
Ethical Customer Trust 0.412 Moderate positive
Responsibilities relationship
Philanthropic Customer Trust 0.326 Moderate positive
Responsibilities relationship
Corporate Social Customer Purchase 0.501 Moderate positive
 Responsibilities Intention relationship

This study was based on thirteen hypotheses which are needed to achieve ultimate
purpose that is impact CSR practices on customers’ purchasing intentions. After
analyzing data collected through the selected sample, thirteen hypotheses are proved,
because it has identified positive relationship between dependent and independent
variables as shown as above table which support to prove the positive relationship
between CSR practices and customer purchase intention.

5.3 Conclusion

Findings of this study describe that CSR practices are positively associated with
customers’ purchase intentions. Hence findings of this study will be helpful to managers
and decision makers who seek to build competitive advantage and ensure sustainable
growth in the business world.

Though there is a positive relationship between CSR practices and customer purchase
intensions, considerable relationships have weak positive relationships such as in
between economic responsibilities and customer satisfaction, legal responsibilities and
customer satisfaction, economic responsibilities and customer loyalty, ethical
responsibilities and customer loyalty and economic responsibilities and customer trust.
While conducting this study, researcher has understood that the major reason for that
weak relationship is lack of awareness about the concept of CSR. This is the same reason
for unable to enjoy enough benefits through CSR initiatives by organizations. Not like the
Western countries, for most of Asian countries still CSR is a new concept, as well as CSR
practices and awareness on CSR concept is less than they are in Western countries.
Because of that it is essential to make society aware of these CSR practices and also CSR
practices must address the real burning issues in the region, society or in the country.
Then it will be highly affected to customers’ purchasing behaviors.

As a common, customers give more concern on factors other than CSR such as price,
availability, place…etc, because they have not enough information regarding CSR
initiatives which are undertaken by the organizations. Some customers do not know even
what CSR is. One respondent has stated in his questionnaire as he believes that the CSR
is only practice which use as a veil to get rid from the heavy income taxes. Another
respondent has stated that as there is no any pure purpose behind the CSR practices, there
is no use to waste time for concerning CSR practices when making purchasing decisions.
Likewise, customers have wrong perception towards the CSR and they have not clear
idea about actually what CSR is. The reason may be organizations unable to address
customers through CSR programs properly.

Though with lack of awareness about CSR among customers, still this study has obtained
positive association between CSR and customer purchase intention. Then if it is possible
to widen the customers’ as well as whole society’s including decision makers knowledge
and awareness on CSR and its benefits, it can be gain vast advantages to both business
and society.

5.4. Limitations of the study and Recommendations for further studies

CSR covers significant areas of the businesses and it gives several directions for new
researchers. According to researcher’s view, it should be reviewed the CSR in Sri Lankan
context. Further, the corporate social responsibility practices used in developed countries
are not directly applicable in developing economies because of economic, technological
and cultural differences. It denotes that there is a need to develop models of CSR that
consider the conditions in each developing country and that are not directly borrowed
from developed countries.
This study is focused on one province in Sri Lanka and data is collected also in only from
one province. In order to increase the reliability of the results, the further study can be
expanded to other provinces as well.

This study focuses only on customers, but there are more stakeholders other than
customers. Then further studies can be done to identify the impact of CSR from other
stakeholders’ perspectives also.

As CSR is a new concept to customers, it has a constraint to collect accurate data and this
may be affected to reliability of the data. Then further studies can be carried out
regarding the awareness of society about CSR concept, because the country like Sri
Lanka definitely there is a gap between concept and awareness or knowledge. Then
further studies regarding CSR awareness also help to bridge this gap.

Hence this study suggests that organizations should engage in doing CSR practices and
build good corporate image to ensure successful corporate performance in competitive
environment. Since there is a positive association between CSR and customer purchase
intentions, decision makers can use CSR as a strategy to gain competitive advantage.