The Impact of Brand Origin and Csr Actions on Consumer Perceptions in Retail Banking During a Crisis

Abstract

PurposeConsumers' corporate social responsibility (CSR) expectations have increased in the new coronavirus (COVID-19) pandemic, while many financial institutions have supported society with their health-related CSR actions. This study examines the impact of CSR actions and brand origin on consumer attitudes, CSR perceptions, customer-based brand equity (CBBE) and supportive communication intent in retail banking during the crisis from signaling and stakeholder theory perspectives.Design/methodology/approachA 2 (foreign vs. local brand) x 2 (COVID-19-related vs. another CSR action) between-subjects factorial design was used to analyze consumer data.FindingsCSR actions of local brands created more positive attitudes, CSR perceptions and greater CBBE and supportive communication intent than foreign banks. However, CSR action (COVID-19-related vs. another) did not significantly influence consumer attitudes, CSR perceptions, CBBE and supportive communication intent.Originality/valueThis research has shown the significant impact of brand origin on consumer perceptions in response to CSR actions during the pandemic. It has suggested an original conceptual framework and presented timely empirical findings for retail banking in the pandemic period, which can exemplify a crisis period shaped by uncertainty. Besides, it extended the previous literature by focusing on the interaction between brand origin and CSR actions in shaping consumers' CSR and brand perceptions. It is among the first studies examining brand origin's impact on supportive communication intent.