THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON CUSTOMER SATISFACTION IN PAKISTAN: THE MEDIATING ROLE OF BRAND ATTITUDE AND MODERATING EFFECT OF BOYCOTT INTENTION

Abstract

In today’s environment, where political tensions run high and consumers often express their political views through their purchasing decisions, companies face new challenges in maintaining customer satisfaction. While Corporate Social Responsibility (CSR) generally improves customer satisfaction, its role during political conflicts is not fully understood. This study explores how CSR influences customer satisfaction through brand attitude and how boycotts may affect this relationship amid political disputes. The research aimed to: (1) determine if CSR directly impacts customer satisfaction during boycott periods, (2) examine whether brand attitude mediates the CSR-satisfaction link, (3) assess if boycotts moderate the effect of brand attitude on satisfaction, (4) develop and test a comprehensive model of these relationships, and (5) provide practical guidance for companies managing customer relations during political conflicts. Data were collected from 100 consumers in Pakistan during geopolitical tensions and boycott campaigns targeting international companies. Participants rated their agreement on a 5-point Likert scale. The study used advanced statistical analysis (PLS-SEM) to examine the relationships between CSR perceptions, brand attitude, customer satisfaction, and boycott support. Measurement scales were adapted from established research and validated for the local context.

Key findings include: (1) Brand attitude fully mediates the effect of CSR on satisfaction, with strong significant paths (CSR to brand attitude: β = 0.627, p < 0.001; brand attitude to satisfaction: β = 0.786, p < 0.001). (2) The model explains customer satisfaction well (R² = 0.807). (3) CSR alone does not directly affect satisfaction significantly (β = 0.134, p = 0.081), highlighting brand attitude as the crucial link. (4) Boycotts somewhat moderate the brand attitude satisfaction relationship (β = -0.147, p = 0.052), potentially weakening it. (5) All measures were reliable and valid.

This research contributes to theory by showing how political issues alter CSR’s effects on customer relations, enhancing understanding of boycotts in marketing, developing models suited for emerging markets by combining global theories with local realities, clarifying when CSR is effective during political crises, and testing advanced models in politically sensitive contexts. Practically, the findings advise companies to focus on managing brand attitude during political tensions, improve CSR communication in political conflicts, develop strategies for handling customers during boycotts, segment customers by boycott support, and guide governments on business regulations amid political conflicts. The study also demonstrates the use of advanced statistical techniques for complex relationships in sensitive research and the adaptation of measurement tools for cultural and political sensitivity. This research shows that CSR still matters during political conflicts, but it mainly works through brand attitude rather than directly affecting satisfaction. Good brand relationships can survive political pressure, though boycotts might weaken them. The study helps us understand how political issues affect customer behavior and gives companies practical advice for working in politically sensitive markets. The model created can guide future research on business and politics in different countries.