Factors effecting consumers’ purchasing decisions on CSR banking: A case of commercial bank in Thailand
- Tamika Hirunpattarasilp, Mahidol University International College, Mahidol University, Thailand, Corresponding author; E-mail: firstname.lastname@example.org
- Nuntana Udomkit, Mahidol University International College, Mahidol University, Thailand
Corporate Social Responsibility (CSR) has become significantly important to corporations worldwide. In Thailand, awareness of social responsibility is increasing drastically. There are a number of research examined CSR effects in various sectors in Thailand, but no studies have been undertaken in the banking sector to date. This research aims to assess factors that affect consumers’ purchasing decision on CSR banking by applying the “Theory of Planned Behavior”, a widely applied psychological theory which predicts a single human behavior. It consists of attitudes, subjective norms and perceived behavioral controls, and in this case, the Universal Selection Criteria has been applied. An additional factor, moral obligation has been included to increase the explanatory power of the model. The methodology applied to this research is a consumer survey. Four hundred and ten questionnaires were distributed to commercial banks users in Bangkok who had purchased bank products or services and/or had made transactions at the banks at the time when the questionnaires were distributed. Descriptive statistics and stepwise regression analysis were applied to the analysis. The results show that there are three significant factors affecting customers’ purchase intentions namely moral obligation, attitude, and subjective norms.
Ajzen, I. (1985). From intentions to actions: A theory of planned behavior. In J. Kuhl & J. Beckman (Eds.), Action-control: From cognition to behavior (pp. 11 - 39), Heidelberg, Germany: Springer.
Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50 (2), 179-211.
Ajzen, I. Theory of planned behavior. (online). Retrieved May 28, 2010, from http://www.people.umass.edu/aizen/background.html
Ajzen, I., & Fishbein, M. (1980). Understanding attitudes and predicting social behavior, New Jersey: Prentice-Hall.
Beck, L., & Ajzen, I. (1991). Predicting dishonest actions using the theory of planned behavior. Journal of Research in Personality, 25, 285-301.
Bosnjak, M., Tuten, T.L., & Wittmann, W.W. (2005). Unit (non) response in Web-based access panel surveys: An extended planned behavior approach. Psychology and Marketing, 22 (6), 489-505.
Francis, J.J., Eccles, M.P., Johnston, M., Walker, A.E., Grimshaw, J.M., Foy, R., Kaner, E. F.S., Smith, L., & Bonetti, D. (2004). Constructing questionaires based on the theory of planned behavior. A manual for health services researchers. Newcastle upon Tyne, United Kingdom: Center for Health Services Research.
Gerrard, P., & Cunningham, J. (2001). Singapore's undergraduates: How they choose which bank to patronise. International Journal of Bank Marketing, 19 (3), 104-114.
Gorsuch, R.L., & Ortengerg, J. (1983). Moral obligation and attitude: Their relation to behavioral intention. Journal of Personality and Social Psychology, 44, 1025-1028.
Hirunpattarasilp, T. (2011). Effects of corporate social responsibility on comsumers' purchasing decision in the Thai Commercial Banking Sector. A thesis for the degree of Master of Business Administation (Business Modeling and Analysis). Mahidol University.
Kaynak, E., & Kucukemiroglu, O. (1992). Bank and product selection: Hong Kong. International Journal of Bank Marketing, 10 (1), 3-16.
Kennington, C., Hill, J., & Rakowska, A. (1996). Consumer selection criteria for banks in Poland. International Jounal of Bank Marketing, 14 (4), 12-21.
Khan, Md. H-U-Z., Halabi, A.K., & Samy, M. (2009). Corporate social responsibility (CSR) reporting: A study of selected banking companies in Bangladesh. Social Responsibility Journal, 5 (3), 344-357.
Krung Thai Bank. (2009). Annual Report. Retrieved July 20, 2010, from http://www.ktb.co.th/upload/investor_relation/annual_report/2552/annual_report_2552_en.pdf
Kuasirikun, N., & Sherer, M. (2004). Corporate social accounting disclosure in Thailand. Accounting, Auditing and Accountability Journal, 17 (4), 629-660.
Lundmark, A. (2009). Coporate social responsibility in branding: A study of the body shop's visitors' attitudes and purchase decisions, Sweden: Umea School of Business and Economics.
McDonald, L.M., & Rundle-Theile, S. (2008). Coporate social responsibility and bank consumer satisfaction. International Journal of Bank Marketing, 26 (3), 170-182.
Mohr, L., Harris, K., & Webb, D. (2001). Do consumers expect companies to be socially responsible? The impact of corporate social responsiblity on buying behavior. The Journal of Consumer Affairs, 35 (1), 45-72.
Perez, R.C. (2009). Effects of perceived identity based on corporate social responsibility: The role of consumer identification with the company. Corporate Reputation Review, 12 (Summer), 177-191.
Poolthong, Y., & Mandhachitara, R. (2009). Customer expectations of CSR, perceived service quality and brand effect in Thai retail banking. International Journal of Bank Marketing, 27 (6), 408-427.
Prayukvong, P., & Olsen, M. (2009). Research on CSR development in Thailand by the NETWORK of NGO and business partnerships for sustainable development (Thailand). Bangkok: UNDP.
Santiwong, T. (2008, December 16). No CSR in the heart of Thai banks. BangkokBiz News.
The Earth Summit. (1992). United Nations Conference on Environment and Development (UNCED), Rio de Janeiro, 3 – 14 June 1992.
UNEP (United Nations Environment Programme). (1995). Environmental Policies and practices of the Fiancial Services Sector. Geneva: UNEP.
Xiao, J,J. (Ed.) (2008). Handbook of consumer finance research. New York: Springer.
Yeomans, M. (2005). Banks go green: The world’s largest finance firms are taking into account the enviromental impact of their lending. Time, May 30, A13.