The Relationship Between Mother Company’s CSR Image and Subsidiary’s Brand Loyalty and Word of Mouth, Mediating Role of Brand Perception
Keywords:
CSR Corporate Image, Brand Perception, Brand Loyalty, Word of MouthAbstract
This study’s objective is to explore both the direct and indirect effects of CSR Corporate Image of the Parent Company and Brand Perception of the Subsidiary toward Brand Loyalty of the Subsidiary and Word of Mouth of the Subsidiary. It is quantitative research utilizing a questionnaire for the 400-sample data collection with purposive sampling. All hypotheses of direct effects were tested by ordinary least square regression, while the hypotheses of mediating effect were tested by Sobel Test, at a 0.05 significant level. It was found that (1) CSR Corporate Image of the Parent Company has a direct effect on Brand Loyalty of Subsidiary (b = 0.796, p < 0.05) and it has a direct effect on Word of Mouth of Subsidiary (b = 0.816, p < 0.05) (2) Brand perception of Subsidiary will mediate a positive effect between CSR Corporate Image of Parent Company and Brand Loyalty of Subsidiary (Path ab: b = 0.662, p < 0.001), and (3) Brand Perception of Subsidiary will mediate a positive effect between CSR Corporate Image of Parent Company and Word of Mouth of Subsidiary (Path ab: b = 0.625, p < 0.001). Therefore, it is to confirm that an association of CSR Corporate Image of the Parent Company and Brand Perception of the Subsidiary is the key success factors affecting the Brand Loyalty of the Subsidiary and Word of Mouth of the Subsidiary for sustainable business practices.
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