Doing Well by Avoiding Bad : consumers' Perceptions of CSR and the Effect on Consumer-Based Brand Equity

Abstract: Problem Formulation: The clothing industry is characterised by fierce competition and booming growth. Since the start of the century, clothing consumption has increased tremendously. While consumers are demanding more clothes at cheaper prices, interest for sustainable sourced clothes is also on the rise, especially amongst the younger population. Thus, engaging in CSR could offer potential brand advantages for companies competing in the clothing industry. Purpose: The purpose of this thesis is to explain the relationship between consumers’ perceptions of the organisational actions that are perceived as “doing good”, “avoiding bad” and “doing bad”, and Consumer-Based Brand Equity. Methodology: This thesis adopts a quantitative research method with questionnaires distributed physically at universities and shared in student Facebook-groups. The data collected from the questionnaire consists of 205 valid answers from students at Swedish universities. Findings/Conclusions: The findings based on multiple regression analyses on the results of the distributed questionnaire suggest that organisational actions that are perceived as “avoiding bad” can positively affect Consumer-Based Brand Equity. Furthermore, the findings did not support that engagement in activities that are perceived as “doing bad” is detrimental to Consumer-Based Brand Equity, nor that philanthropic activities that are perceived as “doing good” positively affect Consumer-Based Brand Equity.