Relationship between corporate social responsibility and environmental sustainability with customers' purchase intention: Study on Indonesian automotive customers in pandemic situation

ABSTRACT

Automotive industry is significant for Indonesian economy with more than 1.5 million workers directly and indirectly involved in it. COVID-19 pandemic affected the industry and government's economic stimulation is a short-term remedy and companies need a longer-term remedy. One of the possible solutions is by better understanding the customers. In recent years, customers' awareness of Corporate Social Responsibility (CSR) and Sustainability is increasing. Previous research showed that there is relationship between those variables with purchase intention. This research tested relationship between corporate social responsibility and sustainability with purchase intention. From 561 samples consisted of several provinces of Indonesia were gathered during January - February 2021. Analysis was performed using Partial Least Square technique and the result showed there is a significant relationship between CSR with purchase intention and we also found that the important indicators are legal and morality. This research also found no significant relationship between sustainability and purchase intention. Future research can take insights from this research and perform deeper analysis on these topics. Automotive companies must understand their customers preferences more and increase the impact of their CSR to society. © 2023 Author(s).