IJETMR

CONSUMERS’ AWARENESS ON JOLLIBEE FOODS CORPORATION’S CORPORATE SOCIAL RESPONSIBILITY PROGRAMS AND THEIR BUYING BEHAVIOR TOWARDS A STRATEGIC CORPORATE SOCIAL RESPONSIBILITY

 

Jacobson B. Dalay *1, Fershie D. Yap 2

*1 College of Business Administration and Accountancy, De La Salle University-Dasmariñas, Philippines

2 College of Accountancy and Business Administration, President Ramon Magsaysay State University, Philippines

 

DOI: https://doi.org/10.29121/ijetmr.v8.i4.2021.895

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Article Citation: Jacobson B. Dalay, and Fershie D. Yap. (2021). CONSUMERS’ AWARENESS ON JOLLIBEE FOODS CORPORATION’S CORPORATE SOCIAL RESPONSIBILITY PROGRAMS AND THEIR BUYING BEHAVIOR TOWARDS A STRATEGIC CORPORATE SOCIAL RESPONSIBILITY. International Journal of Engineering Technologies and Management Research, 8(4), 25-39. https://doi.org/10.29121/ijetmr.v8.i4.2021.895

 

Published Date: 14 April 2021

 

Keywords:

Buying Behavior

Consumer Awareness

CSR

Descriptive Research

JFC
ABSTRACT

The research identified the consumers’ awareness of CSR, consumers’ buying behavior relating to Jollibee Foods Corporation’s (JFC) Corporate Social Responsibility (CSR) programs as well as to JFC as an organization, determined the relationship between consumers’ CSR awareness and consumer buying behavior, and ascertained differences in consumer buying behavior according to their socio-demographic classification. The study used descriptive research design, using self-administered questionnaires through purposive sampling method in the selection of respondents with a sample size of 250 consumers who participated in the survey. Data were statistically treated using mean, frequency, and percent distribution and standard deviation, chi-square, correlation, Kruskal-Wallis, and Mann-Whitney. Based on the findings, the researcher concludes that 25-34 years old consumers prefer Jollibee Foods brands as their fast-food preference. Females, those with Bachelor’s degrees, and are employed prefer JFC as well. The majority of respondents/consumers have knowledge on the topic at hand, thus they could be seen as the current audience of the CSR programs being done by JFC. It is highly commendable that JFC is conducting programs for the benefit of its targeted segments and communities, but consumers are not fully aware of these programs. Overall, consumers are most aware of other CSR programs done by JFC. Therefore, the researcher recommends creating a strategic CSR communication of JFC’s CSR programs to increase the awareness of consumers. It should capitalize on identified significant relationships between consumers’ CSR awareness and buying behavior to gain economic advantage.



 

1.     INTRODUCTION

 

Within the world of business, the main “responsibility” for corporations has historically been to make money and increase shareholder value. In other words, corporate financial responsibility has been the sole bottom line driving force. However, in the last decade, a movement defining broader corporate responsibilities, for the environment, for local communities, for working conditions, and for ethical practices has gathered momentum and taken hold. This new driving force is known as Corporate Social Responsibility (CSR). CSR is oftentimes also described as the corporate “triple-bottom-line” which describes the totality of the corporation’s financial, social, and environmental performance in conducting its business.

Traditionally, Corporate Social Responsibility is viewed as simply giving for a cause. But it is not so much about giving or philanthropy. Rather, how companies operate their businesses.

In 2010, the Philippine Business for Social Progress advocates that Philippine businesses have to go beyond their comfort zones of finance, production, logistics, and marketing. They have to find solutions to such challenges as globalization, heightened competition, growing scarcity and soaring prices of inputs, and lowering purchasing power. Increasingly, it is drawing and applying lessons from the social development milieu in order to address business issues. Given these pressures, we see the transforming relationships of companies with their shareholders.

Companies use different ways to show their CSR practices which are related to employee welfare, environment, community, charities, and so on. Companies are dedicating themselves to serious CSR practices because they believed that customers provide more support to responsible companies. Obtaining customers’ support and having loyal customers are very important aspects of the operations of modern enterprises (PBSP, 2010).

In 2011, the Philippine Business for Social Progress has described the evolution of CSR in the Philippines. It states that CSR initially started in the Philippines in the 1970s which CSR was driven by self-fulfillment. Given the socio-economic turmoil at that time, the business environment was in a survival mode. Companies organized giving for social welfare and development in the 1970s.

The decade of the 80s saw the rise of enlightened self-interest in the business community. The main CSR strategy was community relations as companies needed to secure a license to operate in the community. The business community has moved on to building self-reliant communities in the 1980s.

In the 1990s, companies were driven more by the need to enhance competitive advantage and reputation capital. Towards the end of the decade, businesses began to engage in more strategic social investment and mainstream CSR in their business practices.

The new millennium drove companies to answer the call for business sustainability. These have led to businesses viewing social development not only as an add-on activity but as an integral part of their business operations to support the business sector in addressing these challenges. The business sector implements the CSR program and integrates these into their operations leading to address challenges presenting responsible business practices.

In this decade, where business sustainability in the Philippines is the trend, there is an enhanced notion from the business sector to tap into the company’s core business competency. Inclusivity of their business operation is the path of business, leading to inclusive business and shared value. The business sector continues to implement CSR programs and integrate them into their core business.

As time goes, companies tend to implement CSR programs in response to the current social and economic climate in the country. With the presentation of the evolution of CSR in the Philippines over the four decades, various CSR schemes and programs have surfaced which led towards sustainability to the company and the communities at large.

Through the years it is witnessed that the private sector has redefined its role, from donors to community stakeholders that respond to social issues, knowing that they have a clear stake in the well-being of the communities where they operate.

A CSR survey done by PDAP in 2009 representing various membership organizations’ members was selected on the basis of a stratified sampling process. The results of the study showed that CSR is initiated by the leadership of the respective companies, with 44% of the respondents stating that the owners/founders/CEOs of their companies are acting as its prime mover, followed by the Board of Directors at 16%, both comprising a total of 60% of the respondents. Also, a high percentage of the respondents attributed their involvement in CSR as an expression of their corporate values, emanating from their desire to perform their obligations to their stakeholders and to society in general. The guiding principles in their involvement in CSR relate to company values, and the desire to do well for their stakeholders and society. This study has noted that CSR implementation is usually carried out by a company unit primarily organized for such purpose. Most of the respondents have corporate foundations that are made responsible for the implementation of CSR programs. Other companies delegate such responsibility to the Executive Office or specific departments created for such purpose. A smaller percentage delegate the responsibility of implementing CSR programs to the HRD, Comrel, and Public Relations units.

The companies involved in this research implement a variety of CSR programs, with the top choices being environment-related projects, and education services which include skills training and scholarships. Companies also engage in disaster response, donation, poverty alleviation programs, workplace programs, values education, and health services. Furthermore, the companies carry out CSR programs primarily in the communities where they operate and in coordination with institutions such as NGOs, schools, and local government units.  A smaller proportion of the companies implement programs in partnership with or for specific sectoral interest groups. Moreover, the companies consider integrating CSR into their core business as well as evaluating the social impact and measuring the economic return of CSR as their greatest challenges in doing CSR. The next sets of challenges as perceived by companies in doing CSR pertain to securing the budget, finding suitable partners, and managing various stakeholders. Lastly, this study presented that companies perceive the maintenance of good relations with their publics – community, stakeholders, government, and employees as their primary benefit in implementing CSR.

Xu and Yang (2012) stated that a company’s external environment is primarily composed of various stakeholders, and the consumers occupy an important position among these stakeholders. The consumers’ purchasing behavior may directly influence a company’s performance and development. Consumers’ behaviors and decisions have a significant influence on a company’s profit. They are very important indicators to evaluate a company’s management conditions. There are many methods that can help a company to get consumer’ support and loyalty. One effective way is to establish good corporate prestige in the minds of consumers. Furthermore, they explained that corporate prestige is important because it is an “effective weapon” to build a company’s sustainable competitive advantage and to build trust from stakeholders, especially for their consumers. A company can improve its corporate prestige by fulfilling its CSR, because these CSR activities of a company can strengthen the company’s prestige, and promote consumers’ impression of the company, increase the trust between the company and the consumers, thus influence their purchasing behavior.

Existing literature shows the influence of CSR on consumer buying behavior. Previous studies have proved that companies can get benefits from conducting corporate social responsibility, CSR can influence consumer behavior in many aspects such as purchase intent; product evaluations; brand recommendations and product selection. Also the corporate social responsibility influences not only consumers’ purchasing decisions but also consumers’ evaluation of new products (Mohr & Webb, 2005).

Being the largest Filipino multinational chain of fast-food restaurants in the Philippines and has been doing well in conducting its CSR programs over the years, Jollibee was chosen as the main subject of this research. It has also been noted by the researcher that JFC has been recognized as awardee on the Asian CSR Awards last 2014. Above all, JFC is proudly Filipino and in terms of CSR Implementation, JFC is at par with foreign companies doing business in the Philippines.

This research examined the relationship of Jollibee Foods Corporation’s CSR programs on consumer buying behavior. This study also explored whether the consumers in this industry consider the company’s CSR initiatives in patronizing the company’s products and services. Furthermore, the researcher is interested in identifying the level of awareness of the consumers towards CSR. Thus, the results of this study will be used towards recommending a strategic direction for JFC’s CSR implementation.

 

1.1. RESEARCH OBJECTIVES

 

The main objective of this study was to identify the relationship of Consumers’ Awareness of Jollibee Foods Corporation’s (JFC) Corporate Social Responsibility Programs and their buying behavior of their consumers at selected JFC chain in Cavite.

 

Specifically, the study aimed:

1)     To describe the profile of the respondents in terms of their socio-demographic profile;  

·        Age

·        Gender

·        Educational attainment

·        Employment status

2)     To assess which CSR programs of Jollibee Foods Corporation are the consumers most aware of.

3)     To determine the level of awareness of consumers of the Jollibee Foods Corporation’s CSR programs for the past five years in terms of:

·        Education

·        Environment

·        Housing and Community Development

·        Other CSR Programs?

4)     To determine the consumer buying behavior at Jollibee Foods Corporation;

5)     To ascertain the relationship between Consumer CSR program awareness and consumer buying behavior;

6)     To ascertain the difference in consumer buying behavior according to the socio-demographic profile of the consumers.

7)     To determine the strategic direction for JFC’s CSR implementation

 

1.2. OPERATIONAL FRAMEWORK

 

Figure 1 shows the conceptual framework of the study where the first box shows the socio-demographic profile of the respondents, the second box contains CSR Awareness and Effectiveness, which will both relate independently to consumer buying behavior.

The socio-demographic profile of the respondents was determined, particularly age, gender, educational attainment, and employment status. The information gathered was processed and related to the consumer buying behavior.

The JFC CSR Programs are treated as motivating mechanisms in this research. At this point, the implementation of these CSR programs was being used by consumers to present and support the Attribution Theory of Weiner. The consumers were assessed through JFC’s CSR programs, which may or may not cause a change in their buying behavior.

These CSR programs are clustered into four themes pre-determined by Jollibee Foods Corporation namely, Education, Environment, Housing and Community Development, and Other CSR programs. These themes have three programs under them, which Jollibee has been doing over the past five years.

     

Figure 1: Operational Framework

 

The level of awareness on Jollibee Foods Corporation’s CSR programs in terms of Education, Environment, Housing and Community Development, and other CSR Programs will be identified. Awareness of the consumers on these CSR programs under these CSR themes shall be ranked and identify which of the CSR programs the consumers are most aware of.  These factors were processed and be related to consumer buying behavior. These are the intervening variable to determine the consumers’ buying behavior. The buying behavior of consumers in relation to CSR programs and towards JFC as an organization shall be identified.

The meaningful contract between the businesses and the society is getting more significant. The organizations were more concerned with the society they belong. While realizing that aside from doing their normal operations, the organization has a shared responsibility to the community. By the nature of operating on a certain locality, businesses exhaust resources to conduct their operations, through the social contract, businesses give back to the company, through CSR efforts or improvement of operation’s systems and procedures.

 

2.     MATERIALS AND METHODS 

 

A descriptive research design was used in this study. This particular design of the research is concerned with the present phenomena in terms of conditions, practices, beliefs, processes, relationships, or trends which allows quantitative and qualitative analysis.

      According to Aggarwal (2008), descriptive research is devoted to the gathering of information about prevailing conditions or situations for the purpose of description and interpretation. This type of research method is not simply amassing and tabulating data but includes proper analyses, interpretation, comparisons, identification of trends and relationships.

Both primary and secondary data were employed to provide a thorough explanation of the research questions. The primary data was collected through questionnaires handed to customers at fast-food chain outlets.  Secondary data regarding fast-food chains’ CSR activities and programs were collected from the literature such as books, articles, journals, websites, etc.

A structured questionnaire was used, adapted from the previous studies (Abongan et al, 2014, Trang 2011) which were further enhanced and developed for the current study. Purposive sampling was used in this study. Samples were chosen from pre-existing groups. Groups were selected and then the individuals in those groups were used for the study. Clusters were identified by fast-food chain and location.

 

Table 1: Sample Size

Fast-Food Location

Sample Size

Imus

50

GMA

50

General Trias

50

Silang Bayan

50

Dasmarinas

50

Total sample size

250

 

The socio-demographic characteristics will be summarized through the computation of the percentage. Assessment of the awareness of Jollibee Foods Corporation’s CSR programs used mean to identify mean scores of responses from consumers. The corresponding adjectival rating was implemented on awareness scores generated. Consumer Buying Behavior on JFC’s CSR programs and JFC as an organization was tested using mean standard deviation to determine the range of the respondents’ answer and the weighted mean will also be acquired for the conclusion. Pearson r correlation coefficient was used to ascertain the relationship of consumer buying behavior to consumers’ CSR awareness. This test measured the strength of a linear association between two variables.

The statistical treatment used to determine the significant differences in consumer buying behavior in relation to their socio-demographic profile are the following:

Kruskal-Wallis: age, educational attainment, employment status

Mann-Whitney: gender

 

Kruskal-Wallis test was employed; thus, this is a nonparametric (distribution-free) test. This test assessed for significant differences on a continuous dependent variable by a grouping independent variable (with three or more groups). Mann-Whitney was used to analyze gender statistics. This test was used to compare differences between two independent groups when the dependent variable is either ordinal or continuous, but not normally distributed. The level of significance for all statistical treatments was set at 0.05. P-values less than or equal to 0.05 were considered significant therefore Ho will be rejected.

 

3.      RESULTS AND DISCUSSIONS

 

3.1. PROFILE OF THE RESPONDENTS

 

The profile of the respondents was described in terms of age, gender, educational attainment, and employment status. A total of 221 consumer-respondents were gathered from the survey, which was purposively identified, by which through initial screening whether they have recently dined at Jollibee Foods Corp.

 

Table 2:  Profile of Respondents

 Age

Frequency

Percent

17 yrs old & below

17

7.7

18 - 24 yrs old

75

33.9

25 - 34 yrs old

80

36.2

35 - 44 yrs old

27

12.2

45 - 54 yrs old

13

5.9

55 yrs old & above

9

4.1

Gender 

Female

129

58.4

Male

92

41.6

 

Educational Attainment 

Elementary

High school

0

48

0

21.7

Vocational

5

2.3

Bachelor's degree

141

63.8

Master's degree or higher

27

12.2

Employment Status 

Unemployed

33

14.9%

Student

64

29.0%

Employed

124

56.1%

 

Age. This middle-range age group incorporates all life stages possible such as singles, married with/without kids, divorced, and many others. Even with the huge range of life stages in this age demographic, they are getting settled into the routines of life. This age group has always had technology around them with TV being their main source of relaxation. They were the first generation to be taught how to use computers at school and at home and they have always known the workplace to be equipped with computers.

Gender. This data shows that more female has been dining at JFC brands during the survey period, also they were the gender which had more inkling on CSR.

Educational Attainment. This data presents that during the commissioning of this research there are more highly educated consumers that have dined at Jollibee Foods Corporation brands.

Employment Status. Three categories were identified, unemployed, employed, and student. and majority of the respondents were employed.

With a major connotation that Jollibee Brands are for the “mass people”, it just shows that most of the respondents are highly educated, having completed bachelor’s degree, and are mostly employed. The results do not represent JFC consumers in general, rather these results provided a picture of people who agreed to be part of the research being undertaken. There are other consumers who begged off to be respondents during data gather due to various reasons such as, they have little to no clear idea on CSR, expressed that they are inappropriate to be respondents due to inadequate knowledge, or lack of confidence that they may be fit to be respondents due to educational attainment, which supports the results on educational attainment, having no respondents on elementary level attainment.

 

3.2. CONSUMER AWARENESS OF JFC’S CSR

 

This section discusses the awareness of the consumers with Jollibee Foods Corporation’s Corporate Social Responsibility programs.

 

Table 3:  Awareness Scores (JFC CSR Programs)

JFC CSR Programs

Mean

Std. Deviation

Adjectival Rating

1)     Jollibee’s Maaga ang Pasko - Other CSR programs

4.07

1.250

High Awareness

2)     Jollibee-Gawad Kalinga Villages - Housing & Community Development

3.10

1.373

Moderate Awareness

3)     Tree-Planting Activities – Environment

3.050

1.399

Moderate Awareness

4)     Waste Management and Conservation – Environment

2.991

1.430

Moderate Awareness

5)     Disaster Response Programs - Other CSR programs

2.790

1.332

Moderate Awareness

6)     Energy Management and Conservation – Environment

2.760

1.385

Moderate Awareness

7)     Busog, Lusog, Talino School Feeding Program – Education

2.661

1.348

Moderate Awareness

8)     Livelihood recovery program for Yolanda stricken Area - Housing & Community Development

2.530

1.230

Low Awareness

9)     Don Bosco Technical Skills Training – Education

2.290

1.098

Low Awareness

10) Citizen-Responsive Leadership Development Project - Other CSR programs

2.260

1.063

Low Awareness

11) Farmer Entrepreneurship Program - Housing & Community Development

2.190

1.102

Low Awareness

12) Project ACE: Improving Access, Curriculum and Employability in HRS Education towards Poverty Alleviation – Education

2.167

1.063

Low Awareness

 

These results show that there were six programs that consumers are moderately aware of, also five programs in which the consumers are less aware of, with only one program in which the consumers are highly aware.

These awareness scores are low, showing low consumer awareness of the CSR programs being conducted by JFC resulting in only one (1) program which the consumers are highly aware of. These kinds of programs should be communicated by JFC, for their good deeds to be known and also be used as a marketing tool for the corporation. Capitalizing on these programs promoting a more positive image to the general public will enhance the brand equity of existing and potential consumers.

 

Table 4: Awareness Scores (JFC CSR Programs by Theme)

CSR Programs by Theme 

Mean

Std. Deviation

Adjectival Rating

Other CSR programs

3.041

0.951

Moderate Awareness

Environment

2.934

1.283

Moderate Awareness

Housing & Community Development

2.608

0.97

Moderate Awareness

Education

2.373

0.945

Less Aware

Overall awareness average

2.739

0.899

Moderate Awareness

 

The thematic program of JFC for their CSR programs is not being communicated well. Other CSR programs that present no specific theme got higher awareness from consumers. However, results show that consumers are more particular and more aware of Environment programs compared to other thematic programs. This implies that the consumers are more particular with JFC’s initiatives concerning environmental protection and conservation. Thus, programs about Education and Housing, and Community Development have lower awareness which presents that aside from these programs have poor communication scheme, this also shows that consumers have low interest in these thematic programs. Low awareness about CSR programs is a limiting factor in consumers’ ability to reward/punish corporations accordingly.    

 

3.3. CONSUMER BUYING BEHAVIOR RELATING TO JFC’S CSR PROGRAMS RESULT

 

This section discusses consumers’ buying behavior, both on CSR activities and Jollibee Foods Corp. doing CSR.

 

Table 5:  Consumers’ Buying Behavior Relating to JFC CSR Programs

Items 

Mean

Std. Deviation

Adjectival Rating

Q7, I expect the companies that I deal with to act ethically at all times

4.39

0.88

Most Likely to Buy

Q5 I will buy the products from companies that provide greener and leaner production.

4.36

0.76

Most Likely to Buy

Q8 I will buy products from companies that provide assistance to communities when calamity have stricken.

4.35

0.86

Most Likely to Buy

Q10 I will buy the products from companies who are committed to voluntary and charitable activities

4.35

0.85

Most Likely to Buy

Q9 I will buy the products from companies that help the needy

4.34

0.84

Most Likely to Buy

Q2 I will buy from companies that gives importance on projects linked with education improvement

4.32

0.82

Most Likely to Buy

Q3 I will buy the products from companies that provide livelihood and employment opportunities for those who are in need.

4.32

0.83

Most Likely to Buy

Q4 I will buy the products from the companies who maximizes earning potential of local farmers

4.24

0.88

Most Likely to Buy

Q6 I really care whether the companies I patronize have a reputation for environmental protection and awareness

4.24

0.88

Most Likely to Buy

Q1 I will buy the products from companies that gives time and their efforts for the nutrition of the younger generation

4.18

0.98

Likely to Buy

Average

4.31

.86

Most Likely to Buy

 

The buying behavior score accumulated from this study presented nine questions linked with JFC’s CSR Programs that fall on adjectival rating Most likely to Buy which fall on the mean score of 4.21-5.00.  Data shows the highest mean score of consumers will most likely buy to companies that do act ethically at all times (Q7) with a mean score of 4.39 (SD=.88). The lowest rating with the mean score of 4.18 (SD=.98), the only item which fell on likely to buy adjectival rating is that consumers to buy from companies supporting the nutrition of younger generation.

 

Furthermore, the average mean score on buying behavior of consumers is 4.31 (SD=.86) which belongs to the highest adjectival rating of Most likely to Buy.

 

Table 6:  Consumer Buying Behavior Towards JFC

 Item

Mean

Std. Deviation

Adjectival Rating

CBB6 I will come back if they continue their good CSR program

4.08

0.819

Likely to Buy

CBB1 My view about Jollibee Foods Corporation became positive - Brand equity

3.93

0.886

Likely to Buy

CBB4, I have gained more trust with the brand of Jollibee Foods Corporation and their products and services - Brand trust

3.86

0.979

Likely to Buy

CBB3 I am more encouraged to dine at Jollibee Foods Corporation fast-food chains - Brand repeat purchase intentions

3.81

0.92

Likely to Buy

CBB2 I am encouraged to patronize Jollibee Foods Corporation fast-food chains in place of my previous preference - Brand switch

3.74

0.945

Likely to Buy

CBB5 I believe no other substitute can replace Jollibee foods Corporation as my fast-food preference - Brand loyalty

3.29

1.122

Likely to Buy

Average

3.78

.95

Likely to Buy

 

Consumers have a positive behavior towards Jollibee Foods Corporation with the motivation of CSR Programs being implemented. Furthermore, Filipino consumers seem to view CSR positively. The Filipino consumers expect companies to act ethically, through greener and leaner production, environment protection and conservation and contribute resources for humanitarian purposes to name a few. Furthermore, with the Philippines being hit by numerous disasters for the past years like typhoon and earthquake, consumers expect that business organization will extend help for those who are in need, like in the case of Typhoon Yolanda, many private organizations, like JFC have created programs, and also partnered with agencies that will diligently provide the needs of those who are in need. Also, do programs to prevent man-made or natural disasters. Thus, these programs, when consumers have known being done by companies, create a positive buying behavior in favor of the company communicating these initiatives, which proves that Filipinos are the most socially conscious consumers in the world.

 

3.4. RELATIONSHIP BETWEEN CONSUMER BUYING BEHAVIOR AND CONSUMER CSR

 

Awareness

 

Table 7: Relationship Score Between Consumer Buying Behavior and CSR Awareness of JFC CSR Programs

Education

Pearson's R Value

p-Value

Interpretation

Q6 I really care whether the companies I patronize have a reputation for environmental protection and awareness

0.136

.044**

Significant Relationship

Environment

 

Q1 I will buy the products from companies that gives time and their efforts for the nutrition of the younger generation

0.180

.007

Significant Relationship

Q2 I will buy from companies that gives importance on projects linked with education improvement

 

 

0.153

 

 

.023

 

Significant Relationship

 

Q3 I will buy the products from companies that provide livelihood and employment opportunities for those who are in need.

0.135

.045

Significant Relationship

 

Q6 I really care whether the companies I patronize have a reputation for environmental protection and awareness

0.223

.001

Highly Significant Relationship

 

Q9 I will buy the products from companies that help the needy

0.205

.002

Significant Relationship

 

Q10 I will buy the products from companies who are committed to voluntary and charitable activities

0.145

.032

Significant Relationship

Other CSR Programs

 

Q1 I will buy the products from companies that gives time and their efforts for the nutrition of the younger generation

0.182

.007

Significant Relationship

 

Q2 I will buy from companies that gives importance on projects linked with education improvement

0.228

.001

Highly Significant Relationship

 

Q3 I will buy the products from companies that provide livelihood and employment opportunities for those who are in need.

0.207

.002

Significant Relationship

 

Q5 I will buy the products from companies that provide greener and leaner production.

0.149

.027

Significant Relationship

 

Q6 I really care whether the companies I patronize have a reputation for environmental protection and awareness

0.227

.001

Highly Significant Relationship

 

Q8 I will buy products from companies that provide assistance to communities when calamity have stricken.

0.160

.018

Significant Relationship

 

Q9 I will buy the products from companies that help the needy

0.221

.001

Highly Significant Relationship

 

Q10 I will buy the products from companies who are committed to voluntary and charitable activities

0.175

.009

 

Significant Relationship

Significant at 5%

Significant Relationship ≤ .05

Highly Significant Relationship ≤ .001

 Non-significant items not included

 

The awareness of JFC’s CSR programs that shows most relationships on consumer buying behavior is on Other CSR Programs Awareness with eight items with significant relationships, Q1, Q2, Q3, Q5, Q6, Q8, Q9, and Q10. The relationship of Consumer Buying Behavior with Environment program awareness gained the second most relationship among the programs presented having six items having significant relationships. Item Q1 is deemed significant, Q2, Q3, Q6, Q9, and Q10. Third on the rank is Consumer Buying Behavior relationship with Education program awareness, with one item that presents relationship and deemed significant, Q6. Lastly, there is no significant relationship seen between Consumer Buying behavior and Housing and Community Development program awareness.

 

Table 8:  Relationship Score Between Consumer Buying Behavior and Overall CSR Awareness

OVERALL

Pearson's r Value

p-Value

Interpretation

Q2 I will buy from companies that gives importance on projects linked with education improvement

0.170

.012

Significant Relationship

 

Q3 I will buy the products from companies that provide livelihood and employment opportunities for those who are in need.

0.137

.042

Significant Relationship

 

Q6 I really care whether the companies I patronize have a reputation for environmental protection and awareness

0.180

.007

Significant Relationship

 

Q9 I will buy the products from companies that help the needy

0.148

.028

Significant Relationship

Significant at 5%

Significant ≤ .05

Highly Significant ≤ .001

Non-significant items not included

 

The overall awareness of JFC’s CSR program shows a relationship on consumer buying behavior with four items with significant relationships, Q6 6which tackles positive consumer buying behavior to companies who venture into environment protection and conservation with the highest significant relationship score, followed by Q2 which tackles consumers buying behavior towards Education Improvement to Beneficiaries, Q4 which tackles on Consumer Behavior relating to companies who act ethically at all times, and lastly Q3 which is about companies providing livelihood opportunities and employment to those who are in need.

 

Table 9: Relationship Score Between Consumer Buying Behavior on JFC and Awareness of JFC CSR Programs

Education

 

Pearson's r Value

p-Value

Interpretation

CBB2 I am encouraged to patronize Jollibee Foods Corporation fast-food chains in place of my previous preference - Brand switch

0.234

≤ .001

Significant Relationship

CBB3 I am more encouraged to dine at Jollibee Foods Corporation fast-food chains - Brand repeat purchase intentions

0.171

.011

Significant Relationship

CBB4, I have gained more trust with the brand of Jollibee Foods Corporation and their products and services - Brand trust

0.159

.018

Significant Relationship

CBB6 I will come back if they continue their good CSR program

0.151

.024

Significant Relationship

Environment

 

CBB1 My view about Jollibee Foods Corporation became positive - Brand equity

0.195

.004

Significant Relationship

CBB2 I am encouraged to patronize Jollibee Foods Corporation fast-food chains in place of my previous preference - Brand switch

0.344

≤ .001

Highly Significant Relationship

CBB3 I am more encouraged to dine at Jollibee Foods Corporation fast-food chains - Brand repeat purchase intentions

          0.304

             ≤ .001

Highly Significant Relationship

CBB4, I have gained more trust with the brand of Jollibee Foods Corporation and their products and services - Brand trust

0.261

≤ .001

Highly Significant Relationship

 

CBB6 I will come back if they continue their good CSR program

0.211

.002

Significant Relationship

Housing and Community Development

 

CBB2 I am encouraged to patronize Jollibee Foods Corporation fast-food chains in place of my previous preference - Brand switch

0.167

.013

Significant Relationship

Other CSR Programs

 

 

CBB2 I am encouraged to patronize Jollibee Foods Corporation fast-food chains in place of my previous preference - Brand switch

0.217

.001

Highly Significant Relationship

CBB3 I am more encouraged to dine at Jollibee Foods Corporation fast-food chains - Brand repeat purchase intentions

0.154

.022

Significant Relationship

 

CBB4, I have gained more trust with the brand of Jollibee Foods Corporation and their products and services - Brand trust

0.145

.031

Significant Relationship

 

CBB6 I will come back if they continue their good CSR program

0.137

.042

Significant Relationship

Significant at 5%

Significant ≤ .05

Highly Significant ≤ .001

Non-significant items not included

 

The awareness of JFC’s CSR programs that shows most relationships on consumer buying behavior on JFC was observed with five out of six items which also unanimously shown significant relationship on CBB1, CBB2, CBB3, CBB4, and CBB6, which corresponds to Brand Equity, Brand Switch, Brand Repeat Purchase Intentions, Brand Trust and if they will come back if they continue to do good CSR programs. The CSR program with the most highly significant relationship observed is Environment programs with three items gaining highly significant relationship particularly on CBB2, which is on Brand Switch, CBB3 which is on Brand Repeat Purchase Intentions, and CBB4 which is on Brand Trust with p-values unanimously at ≤ .001.

 

Table 10: Relationship Score Between Consumer Buying Behavior on JFC and Overall CSR Awareness

OVERALL CSR PROGRAM AWARENESS

Pearson's R Value

p-Value

Interpretation

CBB2 I am encouraged to patronize Jollibee Foods Corporation fast-food chains in place of my previous preference - Brand switch

0.243

≤ .001

Highly Significant Relationship

 

CBB3 I am more encouraged to dine at Jollibee Foods Corporation fast-food chains - Brand repeat purchase intentions

0.192

.004

Significant Relationship

CBB4, I have gained more trust with the brand of Jollibee Foods Corporation and their products and services - Brand trust

0.167

.013

Significant Relationship

 

CBB6 I will come back if they continue their good CSR program

0.167

.013

Significant Relationship

Significant at 5%; Highly Significant ≤ .001

Significant ≤ .05; Non-significant items not included

 

The overall awareness of JFC’s CSR program shows a relationship on consumer buying behavior with four items with significant relationships, with a notable highly significant rating on CBB2, on the Brand switch which presents consumer will patronize JFC more over previous preference upon after being aware of JFC CSR with a p-value of ≤ .001. Followed by CBB3, on Brand Repeat Purchase Intentions, which encourages consumers to dine again at JFC after being aware of JFC’s CSR Programs with a p-value of .004. Third on the ranking of the level of a significant relationship is on CBB4 and 6 with equal p-Value of .013, which are on Brand Trust and that Consumers will come back to JFC if they continue to do CSR.

There are significant relationships were identified between consumer CSR program awareness and consumer buying behavior. This presents that CSR may complement consumers’ buying behavior. Consumers are an important and complex factor in the CSR equation, undoubtedly, they may contribute towards a positive buying behavior. Companies need to become more proactive with respect to consumers’ social responsibility if they want to make their CSR programs more effective.

Differences in Consumer Buying Behavior relating to Socio-Demographics of Respondents

This section discusses the differences in consumer buying behavior depending on their socio-demographic classification. Initially, the researcher made descriptive for the mean and standard deviation to present differences of responses per classification for each question raised. Then, the Kruskal-Wallis test was used to determine whether there are significant differences in the responses based on age, educational attainment, employment status, while Mann Whitney was used for gender. Significant differences shall be noted if the p-value is ≤ .05. There is no significant difference in the Consumer Buying Behavior on JFC’s CSR Programs when grouped according to age, educational attainment, and employment status.

 

Table 11:  Differences in Consumer Buying Behavior on JFC’s CSR Programs When Grouped According to Gender

Items

Gender

Mean

Std. Deviation

Z (MW)

p-Value (MW)

Interpretation

Q2 I will buy from companies that gives importance on projects linked with education improvement

 

Female

 

4.41

 

.767

-1.972

.049

Significant Difference

Male

4.20

.867

Average

4.32

.815

Q3 I will buy the products from companies that provide livelihood and employment opportunities for those who are in need.

Female

4.40

.796

-2.051

.040

Significant Difference

Male

4.20

.855

Average

4.32

.825

Q4 I will buy the products from the companies who maximizes earning potential of local farmers

Female

4.34

.834

-2.254

.024

Significant Difference

Male

4.09

.922

Average

4.24

.878

Significant at 5%

Significant ≤ .05 

Highly Significant ≤ .001 

Non-significant items not included

 

The results show significant differences in consumers’ buying behavior on JFC’s CSR programs when grouped according to gender. Differences in consumers’ buying behavior on JFC’s CSR programs, when grouped according to gender, were observed, particularly on Q2, Q3, and Q4. Q4, which has the highest significant rating is about maximizing earning potential of local farmers. It is highly notable that females had a higher mean rating (Most likely to buy) versus males (Likely to buy). Followed by Q3 which is about providing livelihood opportunities to those who are in need, with females (Most likely to buy) versus males (Likely to buy). Meanwhile, Q2 is about education improvement, who were females (Most likely to buy) versus male (Likely to buy).

There is no significant difference in the Consumer Buying Behavior relating to JFC when grouped according to age, educational attainment, and employment status.

 

Table 12:  Differences in Consumer Buying Behavior Relating to JFC When Grouped According to Gender

Item

Gender

Mean

Std. Deviation

Z (MW)

p-Value

Interpretation

CBB1 My view about Jollibee Foods Corporation became positive - Brand equity

 

Female

 

4.07

 

.782

-2.463

.014

Significant Difference

Male

3.73

.985

Average

3.93

.886

Significant at 5%

Significant ≤ .05

Highly Significant ≤ .001; Non-significant items not included

 

It shows significant differences in consumers’ buying behavior relating to JFC when grouped according to gender. It was identified that there is a significant difference on CBB1 with a p-value of .014 is about Brand Equity. It is highly notable that females had a higher mean rating of 4.07 (Likely to buy) versus males with a mean of 3.73 (Likely to buy).

The results showed that significant differences were observed only on gender, with the female having a higher mean rating compared to males. This proves that CSR programs have more effect on female respondents compared to male. Furthermore, as the results suggest, females put more consideration on the socially responsible initiatives of companies they patronize. They tend to buy more on companies that provide livelihood opportunities to communities; also, to companies that give importance to education improvement of beneficiaries. 

 

4.     CONCLUSIONS AND RECOMMENDATIONS 

 

Understanding the organization, Jollibee Foods Corporation, it is good to know they have a lot of programs going on to assist people to have better lives and a better environment. These programs entail costs which basically come from all the profit they have gained over the years. It may have been a hard task to push through most of these programs, also to attain success in doing so. While they have been earning well for the past years, they have not forgotten the environment and the communities they are serving. They find ways to give back to those who are in dire need, through their own corporate funds as well as mobilizing funds and/or in-kind items from regular citizens, which are their regular consumers.

Being consumers of the Jollibee Foods Corporation brands, it is noteworthy if the brand that consumers are patronizing is doing well in their business operations, whether they are doing their business ethically by going leaner and greener in their production, as well as providing assistance to those who are in dire need and take responsibility to extend a helping hand.  Upon knowing these efforts by Jollibee, it increases the brand’s equity that makes a more positive image to the eyes of the consumer. Also, based on survey results, compared to other brands, a consumer will opt to patronize the JFC brand and they are more encouraged to dine with JFC. Thus, gaining more trust in the JFC brand which will result to continued patronage and loyalty if JFC continues to do good for the benefit of the many.

This study has proven CSR awareness has a significant relationship with consumer buying behavior. This presents a valid business case for companies to conduct more CSR programs. Also, conducting CSR programs shall improve brand switch, brand purchase repeat intentions, and brand trust to companies doing CSR, thus increase market share. 

It is therefore recommended that (1) Study pricing and food quality of Jollibee Foods Corporation across their brands whether the current pricing is still cost & quality efficient, with the profile of respondents who were consumers of JFC brand mostly are of higher educational attainment and were employed, having an assumption that these clusters have more capacity to pay. (2) Examine communications and marketing of JFC because a majority of consumers identified in this research are female, thus it is recommended that they create programs to attract more male consumers while maintaining the female population dining with JFC brands. (3) Due to low awareness of JFC’s CSR program, to create a strategic CSR communications program in terms of (3a) Develop IEC materials, using a visual approach. (3b) Inform and empower staff/front liners about the CSR programs that the organization has been doing through interacting with consumers. (4) Develop and communicate programs that promote ethical and legal behaviors of the company towards the society, environment, and the company itself. (5) Consumers had a significant relation to the following programs that they are aware of, thus capitalize on these results to gain economic gain. (6) Since there is a significant difference on the buying behavior of female compared to male, therefore to create a communications strategy about the CSR programs designed to appeal to male and to create a communications strategy about CSR programs to maintain current the female population. (7) Developing a strategic and sustainable CSR for JFC.

 

SOURCES OF FUNDING

 

This research received no specific grant from any funding agency in the public, commercial, or not-for-profit sectors.

 

CONFLICT OF INTEREST

 

The author have declared that no competing interests exist.

 

ACKNOWLEDGMENT

 

None.

 

REFERENCES

 

       [1]      Philippine Business for Social Progress (2010). https://www.pbsp.org.ph

       [2]      Mohr, L. & Webb, D. (2005). The effects of corporate social responsibility and price on consumer responses. Journal of Consumer Affairs 39(1):121 – 147. DOI: 10.1111/j.1745-6606.2005. 00006.x

       [3]      Aggarwal, Y.P. (2008). Statistics of Education. (2nd Ed.) Delhi: Sterling.

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