23036041

Business project in theory

UMCDVE-15-3
Word counts: 2026

Contents
1. Introduction............................................................................................................................3
Objectives:...................................................................................................................................4
2. Literature review....................................................................................................................5
Environmental Protection Responsibility and Customer Attitude................................................5
Customer Perception of Ethical Responsibility and Customer Attitude............................6
Customer Attitude and Purchase Behavior...........................................................................7
Research Gap...........................................................................................................................7
Hypothetical Framework............................................................................................................8
Research Question..................................................................................................................8
3. Methodology.........................................................................................................................9
Research Method.....................................................................................................................9
Sampling...................................................................................................................................9
Data Analysis..........................................................................................................................10
Timescale................................................................................................................................11
4. References..........................................................................................................................13
5. Appendix.............................................................................................................................14
HANOI PEOPLE's PURCHASING BEHAVIOR IN THE COSMETIC INDUSTRY IS
INFLUENCED BY THEIR PERCEPTION OF CORPORATE SOCIAL
RESPONSIBILITY.

1. Introduction

The Fast-Moving Consumer Goods (FMCG) sector's cosmetics and beauty business is
expanding quickly due to the growing interest in wellness and self-care throughout the world.
The value of the worldwide cosmetics market in 2023 is estimated to be $532 billion
(Cătălina Aprodu 2023). A push for sustainable growth through economic, ecological, and
social aims is evident in research on 165 FMCG enterprises (Liczmańska et al., 2019). Big
businesses leading the way in CSR activities are The Body Shop and L'Oréal. In 2020
(Russia, 2022), The Body Shop will have accomplished 14 sustainability targets with its
"Enrich Not Exploit" campaign, and L'Oréal will continue to provide high-quality, risk-free
products (L'Oréal, n.d.). As seen by the Johnson & Johnson talc product litigation and their
purported association with ovarian cancer, worries about carcinogenic substances and
unethical business methods still exist (Mona et al., 2015).
The importance of the interaction between CSR and the cosmetics sector is highlighted by
these problems. According to Stobierski (2021), there are four main components of corporate
social responsibility (CSR): environmental, consumer, community, and legal. With worries
about dangerous compounds like formaldehyde, this study concentrates on the ethical and
environmental dimensions of corporate social responsibility. This carcinogenic chemical,
which is included in several hair products, pollutes the environment and endangers
consumers (He et al. 2022). As a result, a careful examination of ethical and environmental
standards is necessary to comprehend how corporate social responsibility (CSR) affects
cosmetics customer behavior..

Objectives:
 Evaluate the Impact of Environmental Protection Responsibility Perceptions
 Analyze the Influence of Ethical Responsibility Perceptions
  Understand the Relationship Between Customer Attitudes and Purchasing
Behavior

2. Literature review

According to McWilliams and Siegel (2001) and Wan-Jan (2006), corporate social responsibility
(CSR) is defined in this study as the steps businesses take to seek social ideals and meet social
needs. CSR has historically been divided into a number of aspects. Four main categories were
recognized by Nkamnebe (2022): legal, moral, humanitarian, and economic duties. This concept
was extended to five aspects by Dahlsrud (2008): social, economic, environmental,
humanitarian, and ethical responsibility. This research embraces Dahlsrud's five-dimensional
model of corporate social responsibility, emphasizing the analysis of environmental and ethical
obligations. Because the cosmetic sector is relevant to environmental and ethical duties, these
responsibilities are highlighted in this research. The industry has a major negative impact on the
environment due to its large consumption of natural resources and raw materials, which causes
enormous chemical pollution that harms ecosystems and water sources, especially marine life
Andrady (2022). Concerns over ethics stem from the industry's dependence on animal testing to
ensure product safety, as well as the usage of genetically engineered materials and chemicals that
may cause cancer (Abushal et al. 2021).

Environmental Protection Responsibility and Customer Attitude

The integration of environmental protection responsibilities within corporate strategies is

becoming increasingly crucial as businesses acknowledge their significant impact on the
environment. The literature on corporate social responsibility (CSR) emphasizes the importance
of minimizing the detrimental effects of company operations on natural ecosystems.
Environmental protection involves using eco-friendly materials, reducing energy consumption
and waste, and implementing robust environmental management systems to refine a company's
operations, offerings, and protocols (Sun, Du, and Wang, 2019; Fu et al. 2023). These
adaptations are examples of "corporate ecological responsiveness," a term that describes concrete
actions taken by businesses to mitigate their environmental footprint (Bansal and Roth, 2000).
The consumer response to such environmental initiatives is increasingly positive. Van Doorn et
al. (2017) demonstrated that consumer perceptions of a company's CSR efforts are closely linked
to their attitudes toward the brand. More recently, Davis (1994) found that environmental
advertising, which often highlights the negative consequences of unsustainable practices, can
significantly shape customer attitudes. This linkage suggests that CSR-related environmental
activities not only contribute to a better brand image but also reinforce consumer loyalty and
approval (Ahmad et al., 2023).

It is hypothesized that there is a positive correlation between customers' perceptions of a

company’s environmental protection efforts and their overall attitude toward the company.

H1: Customer perception of environmental protection responsibility positively influences

customer attitude.

Customer Perception of Ethical Responsibility and Customer Attitude

Ethical responsibility within corporations pertains to upholding the moral rights of stakeholders
and meeting the fairness expectations of customers, employees, shareholders, and the broader
community (Steven, 2022; Samuel et al, 2020; Odongo and Wang, 2018). This aspect of
corporate social responsibility (CSR) reflects a company's commitment to conduct its business in
a manner that is not only legally compliant but also morally exemplary. Research has shown that
consumers increasingly expect companies to operate ethically and are even willing to pay a
premium for products from businesses that demonstrate ethical awareness (Kamboj and Matharu,
2021). Studies by Kuokkanen and Sun (2019) and Guadamillas‐Gómez and Donate‐Manzanares
(2011) have underscored that integrating ethical values into corporate strategies can profoundly
impact customer loyalty. This is further supported by findings that consumers expect businesses
to provide high-quality and safe products and services as a fundamental ethical obligation
(Nadeem et al., 2019). When companies meet these expectations, customers often develop a
strong commitment to the brand, demonstrated by repeated purchases and a preference for the
brand over others.

Furthermore, Shahzad et al. (2023) and Sindhu and Arif (2017) observed that companies that
actively apply ethical considerations in their operations, such as offering products that are safe
and do not harm consumers or the environment, tend to receive positive evaluations from
customers.
H2: Customer perception of ethical responsibility positively influences customer attitude.

Customer Attitude and Purchase Behavior

The complex relationship between customer attitude and purchasing behavior has been a focal
point in marketing research, with various studies revealing mixed outcomes regarding how
attitudes influence buying decisions. While most research supports a positive correlation
indicating that favorable customer attitudes towards a brand's activities and products lead to
increased purchases there are discrepancies in the extent of this influence. Huang (2022) found a
significant positive impact of customer attitude on purchasing behavior, whereas Rathore et al.
(2022) identified a more moderate, yet still positive, effect.

The definition of customer attitude involves an individual's sentiments favorable or unfavorable

toward a company's activities, which are enduring and can significantly impact attention toward
a product or service (Brick & Fournier 2017; Kumar 2017). On the other hand, customer buying
behavior encompasses the series of actions and decisions involved in choosing, acquiring, using,
and disposing of products or services to fulfill needs and desires (Zhao et al. 2021; Rodrigues,
Lopes & Varela 2021). These behaviors include where and how customers shop, the frequency
and volume of their purchases, and the motives behind their buying decisions, which are
essential considerations for marketers.

Given the mixed evidence from past studies and the theoretical basis suggesting that attitudes
should generally enhance purchasing behavior, it is plausible to hypothesize a positive link
between the two. Thus, the hypothesis developed for this study is:

H3: Customer attitude positively influences purchase behavior, but this relationship is
moderated by the availability of substitute products

Research Gap

A large body of research has examined how Corporate Social Responsibility (CSR) affects
customer loyalty and perceptions. However, most of these studies focus on the immediate
advantages of CSR programs, ignoring the ways in which consumer views and loyalty are
influenced by CSR perceptions. It is often difficult to draw a direct line between customer
attitudes and their purchasing decisions and their perceptions of corporate social responsibility.
Therefore, the purpose of this study is to investigate how customer attitudes and perceptions of
corporate social responsibility affect their purchasing decisions. Furthermore, a large portion of
the current study does not concentrate on particular settings or businesses, such as the
Vietnamese market or the cosmetics industry. By analyzing the impacts of environmental and
ethical corporate social responsibility (CSR) in the context of the Vietnamese cosmetics sector,
this study seeks to close these gaps.

Hypothetical Framework

Research Question

1) How does the perception of environmental protection responsibility within

Vietnamese cosmetics companies influence customer attitudes towards those
companies?
2) How does the perception of ethical responsibility influence customer attitudes in
the Vietnamese cosmetics industry?
3) How do customer attitudes towards Vietnamese cosmetics companies influence
their purchasing behavior?
 3. Methodology

Research Method

Researchers like Wu and Wang (2014), Rahim and colleagues, Jalaludin, and Tajuddin
(2011), Qadeer and Rehman (2020), Hamid, Amsami, and Ibrahim (2021), and Rahim,
Jalaludin, and Tajuddin (2011) have all used a quantitative method in their study. Thus,
the quantitative approach will likewise be used in this investigation.

A thorough analysis of the literature will be done, and current scales will be added, in
order to find out how consumers in Hanoi see corporate social responsibility (CSR) in the
cosmetics business and how it affects their purchase decisions. This research intends to
use measurement tools created by Öberseder et al. (2014) for ethical responsibility, Jiddi
(2023) for environmental responsibility, Akbari et al. (2019) for purchase behavior, Bian
and Forsythe (2012) for customer attitudes, and Shabib and Ganguli (2017) for the
availability of alternatives. These measures will be modified to fit the particular study
setting, and the questionnaire will be translated into Vietnamese to make it simpler for
participants in Hanoi to complete and guarantee more accurate answers. To make data
analysis easier, the questionnaire will employ a 5-point Likert scale, with 1 denoting
"Strongly Disagree" and 5 denoting "Strongly Agree." Google Forms will be used to
conduct the survey, allowing for effective data gathering and saving the researchers time
and money. After that, the gathered information will be assembled into an Excel file and
safely kept on the researcher's Google Drive.

Variables Number of items Sources

Ethical Responsibility 5 (Öberseder et al.,
2014)
Environmental 4 (Jiddi, 2023)
Responsibility
Customer Attitude 4 (Bian and Forsythe,
2012)
 Purchase Behavior 4 (Shabib and Ganguli,
2017)

Sampling

According to Neuman (2014), for research results to be objective and broadly applicable,
a significant sample size with extensive observations is required. Additionally, Neuman
notes that probability sampling yields the highest quality results in research. However, as
Choy (2014) mentions, this method is costly and more appropriate for large-scale, long-
duration studies. Given that the current study is small-scale, budget-constrained, and
limited to a three-month period, probability sampling is impractical. Consequently, this
research will utilize non-probability sampling methods. Specifically, the study will
employ snowball sampling and convenience sampling, targeting an anticipated sample
size of 100 to 150 males and females at universities in Hanoi. Choy (2014) acknowledges
that probability sampling tends to produce superior sample quality. Nonetheless,
considering all aspects of this study, a non-probability sampling approach is deemed most
suitable.

Data Analysis

A combination of descriptive and inferential statistical techniques will be used in this

study. Prior to conducting hypothesis testing, the validity and reliability of the measuring
instruments will be assessed. Data analysis will be conducted using SmartPLS 4, and
scale reliability will be measured by computing the Cronbach coefficient. As
recommended by Fatima Ezzahra Jiddi (2023), observed variables with a Cronbach's
alpha of 0.7 or above would be deemed trustworthy; however, Peterson (1994) thinks a
threshold of 0.6 is acceptable.

The study will use additional metrics, such as Outer Loading and Composite Reliability,
to evaluate the suitability of the measuring scales after determining scale reliability using
Cronbach's alpha. The link between each item and its latent variable is shown by the
outer loading, with an outer loading of 0.7 or above often being deemed strong.
Nonetheless, values in the range of 0.5 and 0.6 could also be appropriate at this early
stage of study, especially for novel scales (Hair et al., 2010). When taking into account
various indicator loadings, Composite Reliability, which is similar to Cronbach's alpha,
will evaluate the internal consistency of latent variables; a value of 0.7 or above indicates
good consistency (Chin, 1998; Henseler and Sarstedt, 2013).

Then, to test hypotheses, regression analysis with SmartPLS software will be used. This
study will examine how independent factors affect the dependent variable while
evaluating the model's effectiveness and correlation between the variables. This approach
will make it easier to evaluate research hypotheses, forecast how each independent
variable will affect the dependent variable, and comprehend variable relationships.

Timescale

Milestones 1 Decide on a quantitative methodology.

Milestone 2 Forward a questionnaire to gather
Milestones 3 Complete the project
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5. Appendix